MIRA
INFORM REPORT
|
Report Date : |
31.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
IMBASJAYA SDN BHD |
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Registered Office : |
Lot 17, Bdc/Milek, Perkasa Light Industrial Estate, Mile 5, Off Jalan Tuaran, Inanam, 88450 Kota Kinabalu, Sabah |
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Country : |
Malaysia |
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Financials (as on) : |
30.11.2006 |
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Date of Incorporation : |
03.10.1985 |
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Com. Reg. No.: |
145638-T |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading of Sundry Goods |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
* Adopted abbreviations
: SC - Subject Company (the comp
any enquired by you)
N/A
- Not Applicable
EXECUTIVE
SUMMARY
REGISTRATION NO. :145638-T
COMPANY NAME :IMBASJAYA
SDN BHD
FORMER NAME :N/A
INCORPORATION DATE :03/10/1985
COMPANY STATUS :EXIST
LEGAL STATUS :PRIVATE
LIMITED
LISTED STATUS :NO
REGISTERED ADDRESS :LOT 17, BDC/MILEK, PERKASA LIGHT
INDUSTRIAL ESTATE, MILE 5, OFF JALAN TUARAN, INANAM, 88450 KOTA KINABALU,
SABAH, MALAYSIA.
BUSINESS ADDRESS :LOT 17, LORONG MANGGA 2, BDC
MILEK PERKASA LIGHT INDUSTRIAL ESTATE, MILE 5, OFF JALAN TUARAN, 88450 KOTA
KINABALU, SABAH, MALAYSIA.
TEL.NO. :088-423848/422262
FAX.NO. :088-429278
CONTACT PERSON :KHOR
KOWI KIM ( MANAGING DIRECTOR )
INDUSTRY CODE :51239
PRINCIPAL ACTIVITY :TRADING
OF SUNDRY GOODS
AUTHORISED CAPITAL :MYR
1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL:MYR 630,000.00
DIVIDED INTO
ORDINARY SHARES
250,000 CASH AND 380,000 OTHERWISE OF MYR 1.00 EACH.
SALES :MYR
37,225,049 [2006]
NET WORTH :MYR
1,595,302 [2006]
STAFF STRENGTH :50
[2008]
BANKER (S) :HONG
LEONG BANK BHD
PUBLIC BANK BHD
LITIGATION :CLEAR
FINANCIAL CONDITION :FAIR
PAYMENT :AVERAGE
MANAGEMENT CAPABILITY :GOOD
COMMERCIAL RISK :MODERATE
CURRENCY EXPOSURE :MODERATE
GENERAL REPUTATION :SATISFACTORY
INDUSTRY OUTLOOK :STRONG
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 of sundry goods.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top
Corporate Performers in the Malaysia 1000 (M1000) publication, a directory
jointly published by Companies Commission of Malaysia (The Registrar Office),
Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS
Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
|
MR. KHOR KOWI KIM + |
HOUSE 9, LORONG BUNGA DAHLIA 1, TAMAN CANTEK, 88000 KOTA KINABALU, SABAH, MALAYSIA. |
600208-08-5947 5821779 |
472,500.00 |
|
MR. CHEAH KOK LEONG + |
HOUSE 16, LOT 2, TAMAN PENAMPANG, PHASE 2A, JALAN PENAMPANG LAMA, BATU 5 1/2, 89500 PENAMPANG, SABAH, MALAYSIA. |
640912-07-5597 7438370 |
31,500.00 |
|
MR. ONG LUN HUP + |
HOUSE 3, TAMAN PENAMPANG, PHASE 2A, JALAN PENAMPANG LAMA, BATU 5 1/2, PENAMPANG, 89500 PENAMPANG, SABAH, MALAYSIA. |
641229-08-5285 |
31,500.00 |
|
MS. HO AH YIN |
H9, LORONG BUNGA DAHLIA 1, TAMAN CANTEK, JALAN PENAMPANG, 88200 KOTA KINABALU, SABAH, MALAYSIA. |
560701-05-5318 |
94,500.00 |
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|
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|
--------------- |
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630,000.00 |
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|
============ |
+ Also Director
DIRECTORS
DIRECTOR 1
Name Of Subject :MR.
CHEAH KOK LEONG
Address :HOUSE 16, LOT 2, TAMAN
PENAMPANG, PHASE 2A, JALAN PENAMPANG LAMA, BATU 5 1/2, 89500 PENAMPANG, SABAH,
MALAYSIA.
IC / PP No :7438370
New IC No :640912-07-5597
Date of Birth :12/09/1964
Nationality :MALAYSIAN
CHINESE
DIRECTOR 2
Name Of Subject :MR. ONG
LUN HUP
Address :HOUSE 3, TAMAN
PENAMPANG, PHASE 2A, JALAN PENAMPANG LAMA, BATU 5 1/2, PENAMPANG, 89500
PENAMPANG, SABAH, MALAYSIA.
New IC No :641229-08-5285
Date of Birth :29/12/1964
Nationality :MALAYSIAN
CHINESE
DIRECTOR 3
Name Of Subject :MR. KHOR
KOWI KIM
Address HOUSE 9, LORONG BUNGA
DAHLIA 1, TAMAN CANTEK, 88200 KOTA KINABALU, SABAH, MALAYSIA.
IC / PP No :5821779
New IC No :600208-08-5947
Date of Birth :08/02/1960
Nationality :MALAYSIAN
CHINESE
Date of Appointment :03/10/1985
MANAGEMENT
1) Name of Subject :KHOR
KOWI KIM
Position :MANAGING
DIRECTOR
AUDITOR
Auditor :KHOO
& ASSOCIATES
Auditor' Address :LOT 20-2, BLOCK D, DAMAI PLAZA, PHASE
III, LUYANG, P.O.BOX 14293, LEVEL 3, 88849 KOTA KINABALU, SABAH, MALAYSIA.
COMPANY SECRETARIES
1) Company Secretary :MR.
VINCENT SOON MIN KEONG
IC / PP No :H0202373
New IC No :530608-12-5265
Address :2-3-4, PHASE II, BLOCK
D NOUNTON APARTMENT KOLOMBONG, 88450 KOTA KINABALU, SABAH, MALAYSIA.
Date of Appointment :26/03/2002
BANKING
Banking relations are maintained principally with :
1) Name :HONG LEONG BANK
BHD
2) 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 :07/12/2005
Description Of Charge :N/A
Amount Secured :RM381,072.00
Description Of Property Affected :N/A
Name & Address Of Chargee :HONG
LEONG ISLAMIC BANK BHD
Form 40 Dated
Registered and Numbered 12 In The Register of Charges
ENCUMBRANCE 2
Date of Creation :07/12/2005
Description Of Charge :OPEN
CHARGE
Amount Secured :N/A
Description Of Property Affected :N/A
Name & Address Of Chargee :HONG
LEONG BANK BHD
Form 40 Dated
Registered and Numbered 13 In The Register of Charges
ENCUMBRANCE 3
Date of Creation: 12/06/2006
Description Of Charg :N/A
Amount Secured :RM250,000.00
Description Of Property Affected :N/A
Name & Address Of Chargee :PUBLIC
BANK BHD
Form 40 Dated
Registered and Numbered 14 In The Register of Charges
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
Overseas :YES
Import Countries INDIA,HONG
KONG,SINGAPORE,NEW ZEALAND
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 :SABAH
Overseas :NO Percentage :0%
Credit Term :30 -
60 DAYS
Payment Mode :CASH,CHEQUES
Type of Customer: :RETAIL,WALK
IN CUSTOMERS
OPERATIONS
Goods Traded :SUNDRY
GOODS
Competitor(s) :A
CLOUET & COMPANY (KUALA LUMPUR) SDN BHD
HARPERS TRADING
(MALAYSIA) SDN BHD
LUN HENG SDN BHD
MAGRI FOODS SDN BHD
SUSHI KIN SDN BHD
Ownership of premises :OWNED
Total Number of Employees:
YEAR 2008 2007 2006 2005
GROUP N/A N/A N/A N/A
COMPANY 50 41 74 61
Branch :NO
Other Information:
The SC is principally engaged in the (as a / as an) trading of sundry goods.
The SC sells a wide range of products including onion, garlic, potatoes, dried
chillie, spices, canned foods, ginger, herbs, seasonings, edible oil (palm
oil), rice, grain, flour, salt and many more.
The SC normally imports the products 2 to 3 times per month.
The SC has a store located at the same premises to keep stocks.
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 :006088423848
Current Telephone Number :088-423848/422262
Match :YES
Address Provided
by Client :LOT
17, LORONG MANGA NO.2 BOC MILEK PERKORA INDUSTRIAL ESTATE 3 1/2 MILES JALAN
TUARAN KOTA KINABALU SOBAH EHSAN
Current Address :LOT
17, LORONG MANGGA 2, BDC MILEK PERKASA LIGHT INDUSTRIAL ESTATE, MILE 5, OFF
JALAN TUARAN, 88450 KOTA KINABALU, SABAH, MALAYSIA.
Match :NO
Latest Financial Accounts :YES
Other Investigations
We conducted an interview with one of the SC's Senior staff from Admin & Accounts Department, Ms. Chong. She revealed some relevant information on the SC.
FINANCIAL COMMENTS
Profitability:
Turnover : Increased [ 10.43% ]
Profit/(Loss) Before Tax : Increased [ 18.32% ]
Return on Shareholder Funds : Favourable [ 31.79% ]
Return on Net Assets : Favourable [ 40.78% ]
The higher turnover could be attributed to the favourable market condition and
the SC could be gaining the market share progressively. The SC's management
have been efficient in controlling its operating costs. Generally the SC was
profitable. The favourable return on shareholders' funds and return on net
assets indicate that the SC's management was efficient in utilising the assets
to generate returns.
Working Capital Control:
Stock Ratio : Favourable [ 30 Days ]
Debtors Ratio : Favourable [ 54 Days ]
Creditors Ratio : Favourable [ 45 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be
due to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days. The
SC could be taking advantage of the cash discounts and also wanting to maintain
goodwill with its creditors.
Liquidity:
Liquid Ratio : Unfavourable [ 0.59 Times ]
Current Ratio : Unfavourable [ 0.88 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 [ 3.62 Times]
Gearing Ratio : Unfavourable [ 1.04 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 Accessment:
Generally, the SC's performance has improved
with higher turnover and profit. 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 : FAIR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic
Indicators: |
2004 |
2005 |
2006 |
2007* |
2008** |
|
|
|
|
|
|
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|
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 |
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|
|
|
|
|
|
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 |
|||||
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INDUSTRY COMMENTS
MSIC CODE
51239 : Wholesale of other foodstuffs e.g mee,kueh teow, wantan skin and
related products,cooking oil, tinned food, etc
INDUSTRY : FOOD & BEVERAGES
Food production is seen to expand further with the Government's policy
to reduce the food import bill and promote self-sufficiency by 2010 through
expansion of idle lands and mechanization of farming methods as well as
promotion of good farming practices. Areas of activity that will boost this
sector include aquaculture, deep-sea fishing, floriculture as well as herbs
cultivation.
Output of the food products industry grew significantly by 12.7% (January-June
2006: 1.1%). This was driven by higher output in processing and preserving of
fish and fish products, which grew by 27.1% in tandem with increased marine
fish landings. In addition, the robust growth of food products was also
supported by increased output of dairy (16.0%) and grain mill products (7.0%),
in particular, rice milling which increased 17.7%, benefiting from higher
production of paddy. Meanwhile, other food products, particularly, sugar
refinery and biscuit products also registered double-digit growth ranging
between 23.0% and 25.0%.
Export receipts of food products increased by 15.9% (RM5,268 million) while
beverages 106.5% (RM580 million) as a result of continuous efforts by
manufacturers to attain quality assurance and accreditation for Malaysia's food
and beverages products.
The Government has identified the processed food industry as one of the major
growth sectors of the economy under the Ninth Malaysia Plan (9MP). Under the
9MP, the food commodities subsector is expected to grow at an average rate of
7.6% per annum through improvements in efficiency and productivity as well as
expansion in hectarage. Exports of food commodities will be increased to
achieve a positive food trade balance. The production of 'padi' will be
increased to meet the target of self-sufficiency level of 90%. The production
of fruits will be undertaken on a large-scale in the fruit production zones
using the cluster development approach and concentrating on nine fruit species
which have export potential. The production of vegetables will focus on high
value varieties for local consumption and selected export markets. The Green
Book Programme to promote cultivation of food crops at the community level will
be reactivated.
The Government has approved an allocation of RM11.4 billion representing an
increase of 70% compared with the Eighth Plan allocation for the sector. Among
the objectives of the plan are large-scale commercial farming and greater
application of modern technology and ICT to produce higher value-added
processed food and food products.
Production of 'halal' food will be further promoted to take advantage of the
vast potential of the 'halal' export market. This will include processing and
packaging of meat, fisheries and other food-based products. In addition,
Malaysia will be developed as the centre for the certification of 'halal'
products and the Jabatan Kemajuan Islam Malaysia (JAKIM) 'halal' certification
will be promoted worldwide. Concerted efforts to develop Malaysia as world
halal hub to capture new markets worldwide would provide impetus for further
growth of the local food industry.
The market for convenience and functional foods is expected to grow rapidly in
view of the changing consumption patterns and greater awareness of healthy
lifestyles. In this regard, the production and supply of ready-to-use seafood,
livestock products and vegetable-based convenience food will be promoted as new
areas of investment. Palm oil and cocoa-based food ingredients will be further
developed in terms of products range and quality. The better performance in the
food products industry was also due to greater efforts undertaken by the
industry to keep pace with advancement in technology.
Note : The Ninth Malaysia Plan (9MP) was tabled in Parliament on March 31,
2006, is the five-year blueprints within the new National Mission policy and
implementation framework from now until 2010. Malaysia is expected to see some
structural changes and improved performance in the economy.
OVERALL INDUSTRY OUTLOOK : Strong Growth
COMMENTS
Established in 1985 as a private limited company, the SC is principally engaged
in the trading of sundry goods. The SC sells a wide range of products such as
onions, garlic, potatoes, canned food and etc. Having been in the market for
over two decade, the SC should have acquired certain market shares and
developed its own image in the market.
Over the years, the SC should have established a wide and stable clientele base
in the market. We noted that the SC solely focuses on the domestic market. With
the only concentration in the local market, it limits the business expansion
opportunities of the SC. However, we believe that its vast business experience
and extensive network has well diversified its business risk. Besides, its
broad product range allows the SC exposes the lower market risk as well.
Presently, the business activities of the SC are overseen by Managing Director,
Khor Kowi Kim supported by 50 staff in its operations.
During the financial year, the SC's pre-tax profit has grown 18.31% to
RM637,180, given a high turnover of RM37.22million in 2006. Return on
shareholders' funds was high, indicating that the management was efficient in
utilising its funds to generate returns. However, the SC's liquidity ratio was
slightly low at 0.59 times, which demonstrates that the SC was not be able to
repay all its short term obligations. A high gearing ratio has placed the SC at
high financial risk. The SC's overall financial position is fair in 2006.
Besides obtaining its products locally, the SC also imports from other
countries such as India, Hong Kong, Singapore and New Zealand. With the
contribution of both local and overseas suppliers, it eliminates the risk of
dependency on deliveries from a number of key suppliers and shortage of its
resources.
Based on our historical financial data, the SC's overall payment habit is
average and there is no legal suit against the SC.
The rising population, improvement in quality of life and higher propensity to
consume will further increase the demand for food products. These factors
provided the SC with the necessary foundation to maintain its business. Hence,
with its vast experience in the business, the SC has the potential of capturing
a higher market share in line with the growth in the industry.
In view of the above, we recommend credit be granted to the SC promptly.
PROFIT AND LOSS
ACCOUNT
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
IMBASJAYA SDN BHD
For The Year Ended
30-November-2006
|
|
|
|
|
|
2006 |
2005 |
|
|
MYR |
MYR |
|
|
|
|
|
|
|
|
|
TURNOVER |
37,225,049 |
33,709,685 |
|
|
========== |
========== |
|
PROFIT/(LOSS) FROM OPERATIONS |
637,180 |
538,540 |
|
|
|
|
|
|
------------ |
------------ |
|
PROFIT/(LOSS) BEFORE TAXATION |
637,180 |
538,540 |
|
Taxation |
<130,104> |
<165,892> |
|
|
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
|
------------ |
------------ |
|
As previous reported |
444,826 |
72,178 |
|
|
|
|
|
|
------------ |
------------ |
|
|
------------ |
------------ |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
951,902 |
444,826 |
|
|
|
|
|
TRANSFER TO RESERVES - General |
13,400 |
- |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
RETAINED BY: The Company |
965,302 |
444,826 |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
INTEREST EXPENSE (as per notes to PL) |
|
|
|
Term loan |
18,017 |
- |
|
Bank overdraft |
29,592 |
24,993 |
|
|
|
|
|
Hire purchase |
30,136 |
33,970 |
|
|
|
|
|
|
|
|
|
Interest on trust receipts |
165,077 |
108,356 |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
BALANCE SHEET
|
IMBASJAYA SDN
BHD |
|
As At
30-November-2006 |
|
|
|
|
|
|
2006 |
2005 |
|
|
MYR |
MYR |
|
|
|
|
|
ASSET EMPLOYED: |
|
|
|
FIXED ASSETS |
3,375,070 |
2,772,039 |
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deffered assets |
38,945 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
------------ |
------------ |
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS |
------------ |
------------ |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Stocks |
3,077,257 |
2,731,397 |
|
|
|
|
|
Trade debtors |
5,527,100 |
4,806,925 |
|
Other debtors, deposits &
prepayments |
25,257 |
17,339 |
|
Short term deposits |
- |
993,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances |
806,200 |
- |
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
Trade creditors |
4,558,852 |
3,889,427 |
|
Other creditors & accruals |
262,157 |
1,326,405 |
|
Hire purchase & lease
creditors |
302,979 |
244,726 |
|
Bank overdraft |
634,451 |
297,277 |
|
Short term borrowings/Term loans |
114,523 |
- |
|
Other borrowings |
47,794 |
- |
|
|
|
|
|
Bill & acceptances payable |
4,743,000 |
4,139,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation |
28,050 |
54,464 |
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
------------ |
------------ |
|
NET CURRENT ASSETS/(LIABILITIES) |
------------ |
------------ |
|
TOTAL NET ASSETS |
------------ |
------------ |
|
|
|
|
|
FINANCED BY: |
|
|
|
|
|
|
|
SHARE CAPITAL |
|
|
|
Ordinary share capital |
630,000 |
630,000 |
|
|
|
|
|
TOTAL SHARE CAPITAL |
------------ |
------------ |
|
|
|
|
|
RESERVES |
|
|
|
|
|
|
|
|
|
|
|
revaluation reserve |
- |
13,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward |
965,302 |
444,826 |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term loans |
191,638 |
- |
|
Other long term borrowings |
146,059 |
- |
|
|
|
|
|
Hire purchase creditors |
225,024 |
282,088 |
|
|
|
|
|
|
------------ |
------------ |
|
|
------------ |
------------ |
|
|
2,158,023 |
1,370,314 |
|
|
========== |
========== |
|
|
|
|
FINANCIAL RATIOS
|
IMBASJAYA SDN
BHD |
|
As At
30-November-2006 |
|
|
|
|
|
|
2006 |
2005 |
|
|
MYR |
MYR |
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS |
|
|
|
Cash |
806,200 |
993,913 |
|
Net Liquid Funds |
57,226 |
696,636 |
|
Net Liquid Assets |
<4,333,249> |
<4,133,122> |
|
Net Current Assets/(Liabilities) |
<1,255,992> |
<1,401,725> |
|
Net Tangible Assets |
2,158,023 |
1,370,314 |
|
Net Monetary Assets |
<4,895,970> |
<4,415,210> |
|
|
|
|
|
BALANCE SHEET ITEMS |
|
|
|
Total Borrowings |
1,662,468 |
824,091 |
|
Total Liabilities |
11,254,527 |
10,233,387 |
|
Total Assets |
12,849,829 |
11,321,613 |
|
Net Assets |
2,158,023 |
1,370,314 |
|
Net Assets Backing |
1,595,302 |
1,088,226 |
|
Shareholders" Funds |
1,595,302 |
1,088,226 |
|
Total Share Capital |
630,000 |
630,000 |
|
Total Reserves |
965,302 |
458,226 |
|
|
|
|
|
LIQUIDITY(Times) |
|
|
|
Cash Ratio |
0.08 |
0.10 |
|
Liquid Ratio |
0.59 |
0.58 |
|
Current Ratio |
0.88 |
0.86 |
|
|
|
|
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
Stock Ratio |
30 |
30 |
|
Debtors Ratio |
54 |
52 |
|
Creditors Ratio |
45 |
42 |
|
|
|
|
|
SOLVENCY RATIOS (Times) |
|
|
|
Gearing Ratio |
1.04 |
0.76 |
|
Liabilities Ratio |
7.05 |
9.40 |
|
Times Interest Earned Ratio |
3.62 |
4.22 |
|
|
|
|
|
PERFORMANCE RATIO (%) |
|
|
|
Operating Profit Margin |
1.71 |
1.60 |
|
Net Profit Margin |
1.36 |
1.11 |
|
Return On Net Assets |
40.78 |
51.51 |
|
Return On Capital Employed |
27.41 |
36.91 |
|
Return On Shareholders'
Funds/Equity |
31.79 |
34.24 |
|
Dividend Pay Out Ratio (Times) |
0 |
0 |
|
|
|
|
|
NOTES TO ACCOUNTS |
|
|
|
Contingent Liabilities |
0.00 |
0.00 |
|
|
|
|
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%)