|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
686333-H
|
|
COMPANY NAME
|
:
|
NAMI CREATIONS SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
28/03/2005
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
52B, JALAN 6/21D, MEDAN IDAMAN BUSINESS CENTRE, JALAN GOMBAK, 53100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
1-13A-06,LANAI KIARA CONDO,JALAN KIARA 3,MONT KIARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-62039796
|
|
FAX.NO.
|
:
|
03-62039796
|
|
CONTACT PERSON
|
:
|
NIREN BHARAT SHAH ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51393
|
|
PRINCIPAL ACTIVITY
|
:
|
RETAIL OF JEWELLERIES
|
|
AUTHORISED
CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 1,820,976 [2006]
|
|
NET WORTH
|
:
|
MYR 501,082 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
5 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
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) retail of jewelleries.
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
|
|
NIREN BHARAT
SHAH +
|
6-M, JALAN PJS
7/20B, BANDAR SUNWAY, 46150 PETALING JAYA, SELANGOR, MALAYSIA.
|
Z1534153
|
200,000.00
|
|
MR. MOIDEEN
BIN ALI KUTTY +
|
45, KAMPUNG
MUHIBBAH, MUKIM NAGA, 06000 JITRA, KEDAH, MALAYSIA.
|
681105-02-5439
A1160694
|
150,000.00
|
|
MR. AZLAN BIN
ABDULLAH
|
71, JALAN
BUKIT GANTANG, BATU 4, JALAN IPOH, TAMAN EASTERN, 51200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
740717-02-6069
A3203907
|
150,000.00
|
|
|
|
|
---------------
|
|
|
|
|
500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. HASEENA BEGAM BTE IBRAHIM BABU
|
|
Address
|
:
|
D4 16, JALAN BARLI 1, TAMAN SKUDAI KANAN, TAMPOI, 81200 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
850726-14-6334
|
|
Date of Birth
|
:
|
26/07/1985
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
07/05/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. MOIDEEN BIN ALI KUTTY
|
|
Address
|
:
|
45, KAMPUNG MUHIBBAH, MUKIM NAGA, 06000 JITRA, KEDAH, MALAYSIA.
|
|
IC / PP No
|
:
|
A1160694
|
|
New IC No
|
:
|
681105-02-5439
|
|
Date of Birth
|
:
|
05/11/1968
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
28/03/2005
|
DIRECTOR 3
|
Name Of Subject
|
:
|
NIREN BHARAT SHAH
|
|
Address
|
:
|
6-M, JALAN PJS 7/20B, BANDAR SUNWAY, 46150 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
Z1534153
|
|
|
|
|
|
Date of Birth
|
:
|
23/01/1979
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
28/03/2005
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
NIREN BHARAT SHAH
|
|
|
Position
|
:
|
MANAGING 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. MAHMMUD BIN KINDANG
|
|
|
IC / PP No
|
:
|
K0075485
|
|
|
New IC No
|
:
|
651206-13-5541
|
|
|
Address
|
:
|
12A, JALAN PERMAISURI 1A, BANDAR SUNGAI BUAYA, 48010 RAWANG, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
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
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Import Countries
|
:
|
INDIA,ASIA
|
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
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
DEALERS,AGENTS,END USERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
KAH HONG TRADING SDN BHD
|
|
MALAYSIAN INDUSTRIAL DIAMOND & SYNTHESIZING SDN BHD
|
|
MMC (1976) BHD
|
|
PUSAT EMAS & PERMATA AHMAD ISMAIL SDN BHD
|
|
WAH CHAN CONSOLIDATED SDN BHD
|
|
|
|
|
|
|
Ownership of
premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
5
|
5
|
7
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) retail of jewelleries.
We were informed that the SC sells both costume and valuable jewelleries
includes silverwares, gold and others.
The SC sells in loose quantity as well as in ready made forms.
The SC imports the jewelleries according to the orders.
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
|
:
|
03-62039796
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
1-13A 06 LANAI KIARA CONDOMINIUM, LALAN KIARA 3, KIARA 50430, KAULA
LUMPUR
|
|
Current Address
|
:
|
1-13A-06,LANAI KIARA CONDO,JALAN KIARA 3,MONT KIARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted the SC's Director,Mr Niren Bharat. He furnished some information
on the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
403.75%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
<223.43%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
2.22%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
2.47%
|
]
|
The increase in turnover could be due to the SC adopting an aggressive
marketing strategy. The management had succeeded in turning the SC into a
profit making company. The profit could be due to better control of its
operating costs and efficiency in utilising its resources. 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
|
:
|
Unfavourable
|
[
|
1173 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
85 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
1239 Days
|
]
|
The SC could be incurring higher holding cost. As its capital was tied up in
stocks, it could face liquidity problems. 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
|
:
|
Unfavourable
|
[
|
0.13 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.08 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
|
:
|
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:
The higher turnover
had helped to reduce the SC's losses. 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 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 : LIMITED
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
|
6.3
|
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
|
5.0
|
|
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
|
3.4
|
|
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
|
6.0
|
|
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
|
1.8
|
|
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
|
5.5
|
|
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
|
7.7
|
|
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
|
|
51393 : Wholesale of jewellery, watches, clocks and silverware
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
Retail Group Malaysia is maintaining its earlier forecast of 7% growth for
the retail industry despite the surging costs of living. Retail Group,
which tabulates quarterly retail data for the Malaysian Retailers
Association (MRA), expects the retail industry to be affected towards the
second half of year 2008.
|
|
One of the important factors in consumer spending is the 'feel good'
factor. Malaysian consumers in general do not have a high consumer
confidence level. This has been affecting retail sales. The retailers, who
had better control of their overall costs, would "ride through"
this latest crisis. More importantly, retailers must understand shoppers'
current consumption patters as these had changed over the last 10 years.
|
|
For the whole of 2007, the Malaysian retail industry recorded
"surpassingly" strong growth rate of 12.8% in sales compared with
2006 which is the highest growth rate in the Malaysia retail industry since
1992. This was mainly attributed to Visit Malaysia Year 2007 and salary
increments of civil servants.
|
|
According to the Retail Group, this however was not an indication of
recovery in the retail industry. Although that the prices of food and
groceries increased in year 2007 due to higher raw material prices,
Malaysian consumers did not cut back the spending significantly.
|
|
Retailers in all retail sub-sectors reported encouraging results in year
2007. The sales growth was stronger for national chain retailers than
small-scale retailers. All retail sub-sectors were expected to record
positive growth in business during the first quarter of 2008.
|
|
In comparing retail sales with other economic indicators, Retail Group
noted that the inflation rate was maintained at a reasonable 2% during the
year 2008 despite soaring food prices while private consumption expenditure
grew 11.7% in year 2007.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Incorporated in 2005 as a private limited company, the SC is principally
engaged in retailing of jewelleries. With a paid up capital of RM500,000,
the SC's shares are held by three individual shareholders. Without a strong
shareholders' backing, the SC may face difficulties in its attempt to
expand its business.
|
|
Being a small and young company, the SC has slowly been building up
contacts with its customers in the market. Apart from serving to the
domestic market, the SC has expanded its business Asia countries in order
to capture higher market shares. This global approach has enabled the SC
exposes to lower its business risk and achieve higher earnings. Presently,
there are 5 employees in its operations and more efforts are expected from
the management in order to sustain its growth momentum.
|
|
During the financial year 2006, the SC's turnover increased by 403.75% from
RM361,484 to RM1.82million, which led to higher pre-tax profit of RM12,380.
Return on shareholders' funds was low, indicating that the SC was efficient
in utilising its funds to generate returns. Besides, a weak liquidity
position demonstrates that the SC was not be able to repay all its current
obligations. As a zero geared company, the SC faces low financial risk.
|
|
We noted that all of the SC's supplies are imported from overseas
countries. Being highly dependent on overseas suppliers, the SC is
subjected to high forex risk. A small movement in currency exchange rates
would result in a change in operating profit or costs.
|
|
Based on our historical financial data, the SC's overall payment habit is
fair. The SC should be able to meet its small and medium commitments.
|
|
The industry remains robust and its upward trend is likely to sustain in
the near term. With the promising outlook of the industry performance, this
will present more business opportunities for the SC. The SC however faces
stiff competition in the market.
|
|
In view of the above and based on our assessment, we recommend credit be
granted to the SC with monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
NAMI CREATIONS
SDN BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
1,820,976
|
361,484
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
12,380
|
<10,030>
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
12,380
|
<10,030>
|
|
Taxation
|
<1,268>
|
-
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
11,112
|
------------
<10,030>
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
11,112
|
------------
<10,030>
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
11,112
|
------------
<10,030>
|
|
As previous reported
|
<10,030>
|
-
|
|
|
|
|
|
As restated
|
------------
<10,030>
|
------------
-
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
1,082
|
<10,030>
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
1,082
==========
|
------------
<10,030>
==========
|
|
RETAINED BY: The Company
|
1,082
|
<10,030>
|
|
|
|
|
|
|
|
|
|
|
------------
1,082
==========
|
------------
<10,030>
==========
|
|
|
|
|
BALANCE SHEET
|
NAMI CREATIONS
SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
3,026
|
-
|
|
TOTAL LONG TERM ASSETS
|
------------
3,026
|
------------
-
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
5,850,000
|
1,834,500
|
|
|
|
|
|
Trade debtors
|
426,030
|
183,635
|
|
Other debtors, deposits &
prepayments
|
4,600
|
4,600
|
|
|
|
|
|
Amount due from director
|
382,796
|
464,736
|
|
Cash & bank balances
|
19,769
|
16,419
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
6,683,195
|
------------
2,503,890
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
6,181,316
|
2,012,420
|
|
Other creditors & accruals
|
2,555
|
1,500
|
|
|
|
|
|
Provision for taxation
|
966
|
-
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
6,184,837
|
------------
2,013,920
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
498,358
|
------------
489,970
|
|
TOTAL NET ASSETS
|
------------
501,384
==========
|
------------
489,970
==========
|
|
|
|
|
|
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
|
1,082
|
<10,030>
|
|
TOTAL RESERVES
|
------------
1,082
|
------------
<10,030>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
501,082
|
------------
489,970
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
Deferred taxation
|
302
|
-
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
302
|
------------
-
|
|
|
------------
|
------------
|
|
|
501,384
|
489,970
|
|
|
==========
|
==========
|
|
|
|
|
FINANCIAL RATIOS
|
NAMI CREATIONS
SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
19,769
|
16,419
|
|
Net Liquid Funds
|
19,769
|
16,419
|
|
Net Liquid Assets
|
<5,351,642>
|
<1,344,530>
|
|
Net Current Assets/(Liabilities)
|
498,358
|
489,970
|
|
Net Tangible Assets
|
501,384
|
489,970
|
|
Net Monetary Assets
|
<5,351,944>
|
<1,344,530>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
0
|
0
|
|
Total Liabilities
|
6,185,139
|
2,013,920
|
|
Total Assets
|
6,686,221
|
2,503,890
|
|
Net Assets
|
501,384
|
489,970
|
|
Net Assets Backing
|
501,082
|
489,970
|
|
Shareholders" Funds
|
501,082
|
489,970
|
|
Total Share Capital
|
500,000
|
500,000
|
|
Total Reserves
|
1,082
|
<10,030>
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
0
|
0.01
|
|
Liquid Ratio
|
0.13
|
0.33
|
|
Current Ratio
|
1.08
|
1.24
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
1173
|
1852
|
|
Debtors Ratio
|
85
|
185
|
|
Creditors Ratio
|
1239
|
2032
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0
|
0
|
|
Liabilities Ratio
|
12.34
|
4.11
|
|
Times Interest Earned Ratio
|
0
|
0
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
0.68
|
<2.77>
|
|
Net Profit Margin
|
0.61
|
<2.77>
|
|
Return On Net Assets
|
2.47
|
<2.05>
|
|
Return On Capital Employed
|
2.47
|
<2.05>
|
|
Return On Shareholders'
Funds/Equity
|
2.22
|
<2.05>
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
