|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
520163-A
|
|
COMPANY NAME
|
:
|
KYROS FOOD INDUSTRIES SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
13/07/2000
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
57-1, PERSIARAN BAYAN INDAH, BAYAN BAY, SUNGAI NIBONG, 11900
BAYAN LEPAS, PULAU PINANG, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
12, JALAN SEGAMBUT LENTANG, 51200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-62592887
|
|
FAX.NO.
|
:
|
03-62591887
|
|
CONTACT PERSON
|
:
|
LOO CHOO GEE ( EXECUTIVE DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
15119
|
|
PRINCIPAL ACTIVITY
|
:
|
PROCESSING & TRADING OF MEAT
|
|
AUTHORISED CAPITAL
|
:
|
MYR 5,000,000.00
DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP
CAPITAL
|
:
|
MYR 2,000,000.00
DIVIDED INTO
ORDINARY SHARES 1,750,002 CASH AND 249,998 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 3,786,599 [2006]
|
|
NET WORTH
|
:
|
MYR <2,033,084> [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
100 [2008]
|
|
BANKER (S)
|
:
|
|
MALAYAN BANKING
BHD
RHB BANK BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
POOR
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
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) processing & trading
of meat.
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 KYROS INTERNATIONAL SDN BHD, a
company incorporated in MALAYSIA.
The ultimate holding company of the SC is CAB CAKARAN CORPORATION BERHAD, a
company incorporated in MALAYSIA.;
The major
shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
KYROS INTERNATIONAL SDN BHD
|
57-2, PERSIARAN BAYAN INDAH, BAYAN BAY, SUNGAI NIBONG, 11900
BAYAN LEPAS, PULAU PINANG, MALAYSIA.
|
391726
|
2,000,000.00
|
|
|
|
|
---------------
|
|
|
|
|
2,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. LOO CHOO GEE
|
|
Address
|
:
|
39 LORONG IDAMAN 1/2, TAMAN IDAMAN, SIMPANG AMPAT, 14100
SIMPANG AMPAT, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
7438832
|
|
New IC No
|
:
|
640928-07-5401
|
|
Date of Birth
|
:
|
28/09/1964
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. CHUAH HOON PHONG
|
|
Address
|
:
|
1663, BUKIT KECIL, 14000 BUKIT MERTAJAM, PULAU PINANG,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
791020-07-5135
|
|
Date of Birth
|
:
|
20/10/1979
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. CHUAH AH BEE
|
|
Address
|
:
|
1663 BUKIT KECIL, 14000 BUKIT MERTAJAM, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
3878958
|
|
New IC No
|
:
|
510815-07-5207
|
|
Date of Birth
|
:
|
15/08/1951
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. CHEW CHEE KHONG
|
|
Address
|
:
|
18, JALAN BU 11/7, BANDAR UTAMA, 47800 PETALING JAYA,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5292441
|
|
New IC No
|
:
|
571025-01-5735
|
|
Date of Birth
|
:
|
25/10/1957
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
LOO CHOO GEE
|
|
|
Position
|
:
|
EXECUTIVE DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
DELOITTE KASSIMCHAN
|
|
Auditor' Address
|
:
|
WISMA WANG, 251A JALAN BURMA, 4TH FLOOR, 10350 PULAU
PINANG, PULAU PINANG, MALAYSIA.
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. KHOO LAY TATT
|
|
|
IC / PP No
|
:
|
A2549906
|
|
|
New IC No
|
:
|
730702-07-5141
|
|
|
Address
|
:
|
107-17-3, GAMBIER HEIGHTS, PERSIARAN BUKIT GAMBIR 1,
11700 GELUGOR, PULAU PINANG, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING 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
|
:
|
02/07/2004
|
|
Description Of Charge
|
:
|
|
1ST PARTY 3RD LEGAL CHARGE
|
|
|
Amount Secured
|
:
|
RM1,050,000.00
|
|
Description Of Property Affected
|
:
|
|
ALL THAT PIECE OF LAND AND HEREDITAMENT HELD UNDER PN
24529, LOT 16471, MUKIM BATU, KUALA LUMPUR
|
|
|
Name & Address Of Chargee
|
:
|
|
MALAYAN BANKING BHD
|
|
447,448-449, JALAN PERMATANG RAWA, BANDAR PERDA, 14000
BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 09/09/2004
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
12/03/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM880,000.00
|
|
Description Of Property Affected
|
:
|
|
A NEW REFRIGERATION EQUIPMENTS FOR 400KG/HR SPIRAL
KNOWN AS "HAISAN" BRAND AMMONIA REFRIGERATION NEW EQUIPMENTS,
COMPONENTS AND ACCESSORIES FOR 400KG/HR SPIRAL FREEZER INCLUSIVE OF
INSTALLATION MATERIALS, WIRINGS AND WORKMANSHIP
|
|
|
Name & Address Of Chargee
|
:
|
|
RHB BANK BHD
|
|
2784-2785, JALAN CHAIN FERRY, TAMAN INDERAWASIH, 13600
PERAI, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 21/03/2007
|
|
Registered and Numbered 5 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,AUSTRALIA,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
|
[
|
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
X
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
DEALERS,AGENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The SC focuses more on the local market. The SC mainly exports to Pakistan.
The SC only exports if there are requirements from the overseas countries.
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AYAMPLUS FOOD CORPORATION SDN BHD
|
|
FIKA FOODS CORPORATION SDN BHD
|
|
PERUSAHAAN SAUDEE SDN BHD
|
|
RAMLY FOOD PROCESSING SDN BHD
|
|
SEAPACK FOOD SDN BHD
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
100
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) processing & trading
of meat.
The SC uses chicken, mutton, beef for its meat processing.
The meat are sourced from local and overseas suppliers.
The SC has related companies which engaged in the food business as well.
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
|
:
|
03-62592887
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
|
|
Current Address
|
:
|
12, JALAN SEGAMBUT LENTANG, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the Senior staff from the Finance Department. She
provided some information on the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
57.85%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
<256.65%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
98.86%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<55.32%>
|
]
|
The increase in turnover could be due to the SC adopting an aggressive
marketing strategy. Higher losses before tax during the year could be due to
the higher operating costs incurred. Although the SC's returns showed
positive figures it is not reflective of the true situation. The SC incurred
losses during the year and its shareholders' funds have turned red. The
positive returns on shareholders' funds is the result of losses divided by
negative shareholders' funds. The SC's management was inefficient in
utilising the assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Unfavourable
|
[
|
89 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
70 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
78 Days
|
]
|
The SC could be incurring higher holding cost. As its capital was tied up in
stocks, it could face liquidity problems. The high debtors' ratio could
indicate that the SC was weak in its credit control. However, the SC could
also giving longer credit periods to its customers in order to boost its
sales or to capture / retain its market share. 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
|
:
|
Unfavourable
|
[
|
0.30 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.36 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
|
:
|
Unfavourable
|
[
|
<3.48
Times>
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
<3.29
Times>
|
]
|
The SC incurred losses in the year. It did not generate sufficient income to
service its interest. If the situation does not improve, the SC may be vulnerable
to default in servicing the interest. The SC's gearing was negative during
the year as its shareholders' funds was in the red. This means the SC is
running its business using borrowed money. We consider the SC as facing high
financial risks.
Overall Accessment:
Although
the SC's turnover increased its profits however showed a reverse trend. The
losses could be due to the management's failure to maintain its
competitiveness in the market. 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's interest cover was negative, indicating that it did not generate
sufficient income to service its interest. If its result does not show
impressive improvements or succeed obtaining short term financing or capital
injection, it may not be able to service its interest and repay the loans.
The SC has high financial risks. If its shareholders do not inject more
capital into the company or if its business performance does not improve, its
going concern may be in question.
Overall financial condition of the SC : POOR
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
|
|
15119 : Production, processing and preserving of other
meat products
|
|
|
|
|
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 2000, the SC is a private limited company with core business
in the processing and trading of meat. Throughout its years of establishment,
the SC has slowly been building up contacts with its clients and competing
in the industry. With RM2 million in issued and paid up capital, the SC has
the potential of capturing a higher market shares as it is competing
aggressively in the market.
|
|
Besides catering to the local market, the SC also ventured to Asia
countries. As it concentrates in both local and overseas markets, we
believe that the SC has the ability to lower its business risk to meet any
uncertainties in the local economy. Currently, the SC has a total work
force of 100 employees. The SC's business activities are overseen by its
executive director, Loo Choo Gee. The management capability of the SC is
considered as weak due to its red shareholders' fund.
|
|
Financially, the SC registered poor financial standing in year 2006.
Despite the higher turnover of RM3,786,599, the SC suffered pre-tax losses
of RM2,009,972 which reflected a highly competitive business environment.
Due to these losses, the SC has generated an unfavourable return on
shareholders' funds indicating that the management was inefficient in
utilising its funds to generate return. Besides, a low liquidity and high
gearing level has placed the SC on high financial risk. The SC's
unfavourable financial performance over the years has wiped out its
shareholders' funds to a deficit of RM2,033,084. Therefore, the SC as a
going concern is much dependent on its ability to generate sufficient cash
flow and obtain additional financing to meet its future obligations.
|
|
Investigation revealed that the SC's raw materials are sourced from both
local and overseas suppliers. Hence, the SC is subjected to currency
fluctuation risk and high operating costs.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is poor. The unfavourable creditors' ratio may affect the goodwill
between the SC and its suppliers and the SC may inadvertently have to pay
more for its future supplies.
|
|
The industry remains robust with continuing strong global demand for its
products. There is no doubt that the food industry is growing, in tandem
with the rising population. However, we are of the opinion that there are
large numbers of other companies in the same industry. In another words, we
believe that the SC faces stiff competitions from other local and foreign
players.
|
|
In view of above and due to its red shareholders' fund, we regard granting
credit to the SC to be quite risky. Hence, credit is not recommended.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
KYROS FOOD
INDUSTRIES SDN BHD
|
|
For The Year
Ended 30-09-2006
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
3,786,599
|
2,398,871
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<2,009,972>
|
<563,569>
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<2,009,972>
|
<563,569>
|
|
Taxation
|
-
|
19,742
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
<2,009,972>
|
------------
<543,827>
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
<2,009,972>
|
------------
<543,827>
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
<2,009,972>
|
------------
<543,827>
|
|
As previous reported
|
<523,112>
|
20,715
|
|
|
|
|
|
As restated
|
------------
<523,112>
|
------------
20,715
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<2,533,084>
|
<523,112>
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<2,533,084>
==========
|
------------
<523,112>
==========
|
|
RETAINED BY: The Company
|
<2,533,084>
|
<523,112>
|
|
|
|
|
|
|
|
|
|
|
------------
<2,533,084>
==========
|
------------
<523,112>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
236,529
|
112,823
|
|
Bank overdraft
|
32,278
|
36,103
|
|
|
|
|
|
Hire purchase
|
180,185
|
-
|
|
|
------------
448,992
==========
|
------------
148,926
==========
|
|
|
|
|
BALANCE SHEET
|
KYROS FOOD
INDUSTRIES SDN BHD
|
|
As At
30-09-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
12,694,780
|
7,745,848
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
12,694,780
|
------------
7,745,848
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
925,634
|
235,132
|
|
|
|
|
|
Trade debtors
|
721,048
|
515,984
|
|
Other debtors,
deposits & prepayments
|
518,628
|
3,331,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from
holding company
|
12,576
|
824,715
|
|
|
|
|
|
Amount due from
related companies
|
3,268,649
|
4,888,338
|
|
|
|
|
|
|
|
|
|
Cash & bank
balances
|
77,024
|
59,075
|
|
|
|
|
|
tax recoverable
|
951
|
451
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
5,524,510
|
------------
9,855,305
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
804,800
|
282,702
|
|
Other creditors
& accruals
|
538,314
|
349,111
|
|
Hire purchase &
lease creditors
|
637,349
|
-
|
|
Bank overdraft
|
290,975
|
409,859
|
|
Short term
borrowings/Term loans
|
896,931
|
809,723
|
|
|
|
|
|
Amounts owing to
related companies
|
2,974,081
|
1,739,135
|
|
amount owing to immediate
holding company
|
136,395
|
-
|
|
amount owing to ultimate
holding company
|
9,118,946
|
10,720,000
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
15,397,791
|
------------
14,310,530
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<9,873,281>
|
------------
<4,455,225>
|
|
TOTAL NET ASSETS
|
------------
2,821,499
==========
|
------------
3,290,623
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share
capital
|
500,000
|
500,000
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
500,000
|
------------
500,000
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
Retain
profit/(Accumulated loss) carried forward
|
<2,533,084>
|
<523,112>
|
|
|
|
|
|
TOTAL RESERVES
|
------------
<2,533,084>
|
------------
<523,112>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
<2,033,084>
|
------------
<23,112>
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
Long term loans
|
2,434,568
|
3,313,735
|
|
|
|
|
|
|
|
|
|
Hire purchase
creditors
|
2,420,015
|
-
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
4,854,583
|
------------
3,313,735
|
|
|
------------
|
------------
|
|
|
2,821,499
|
3,290,623
|
|
|
==========
|
==========
|
FINANCIAL RATIOS
|
KYROS FOOD
INDUSTRIES SDN BHD
|
|
As At
30-09-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
77,024
|
59,075
|
|
Net Liquid Funds
|
<1,110,882>
|
<1,160,507>
|
|
Net Liquid Assets
|
<10,798,915>
|
<4,690,357>
|
|
Net Current
Assets/(Liabilities)
|
<9,873,281>
|
<4,455,225>
|
|
Net Tangible Assets
|
2,821,499
|
3,290,623
|
|
Net Monetary Assets
|
<15,653,498>
|
<8,004,092>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
6,679,838
|
4,533,317
|
|
Total Liabilities
|
20,252,374
|
17,624,265
|
|
Total Assets
|
18,219,290
|
17,601,153
|
|
Net Assets
|
2,821,499
|
3,290,623
|
|
Net Assets Backing
|
<2,033,084>
|
<23,112>
|
|
Shareholders"
Funds
|
<2,033,084>
|
<23,112>
|
|
Total Share Capital
|
500,000
|
500,000
|
|
Total Reserves
|
<2,533,084>
|
<523,112>
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
0.01
|
0
|
|
Liquid Ratio
|
0.30
|
0.67
|
|
Current Ratio
|
0.36
|
0.69
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
89
|
36
|
|
Debtors Ratio
|
70
|
79
|
|
Creditors Ratio
|
78
|
43
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
<3.29>
|
<196.15>
|
|
Liabilities Ratio
|
<9.96>
|
<762.56>
|
|
Times Interest
Earned Ratio
|
<3.48>
|
<2.78>
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit
Margin
|
<53.08>
|
<23.49>
|
|
Net Profit Margin
|
<53.08>
|
<22.67>
|
|
Return On Net Assets
|
<55.32>
|
<12.60>
|
|
Return On Capital
Employed
|
<33.59>
|
<9.19>
|
|
Return On
Shareholders' Funds/Equity
|
98.86
|
2.00
|
|
Dividend Pay Out
Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent
Liabilities
|
0.00
|
0.00
|
|
