|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
256898-T
|
|
COMPANY NAME
|
:
|
SHENG KIMN HONG SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
21/01/1993
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
26, TINGKAT CIKU 1, TAMAN CIKU, SEBERANG PERAI TENGAH,
1ST FLOOR, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 981, MK16, LORONG SUNGAI LOKAN 3/1, KAW PERINDUSTRIAN
SUNGAI LOKAN, 13800 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3565551
|
|
FAX.NO.
|
:
|
04-3565560
|
|
EMAIL
|
:
|
skhpg@tm.net.my
|
|
WEB SITE
|
:
|
www.skhpg.com
|
|
CONTACT PERSON
|
:
|
NG SHAN POH ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51239
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF SPICES
|
|
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 764,000.00
DIVIDED INTO
ORDINARY SHARES 764,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 30,805,043 [2006]
|
|
NET WORTH
|
:
|
MYR 3,039,836 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
35 [2008]
|
|
BANKER (S)
|
:
|
|
ALLIANCE BANK MALAYSIA BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY
/ BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one
and a maximum of forty-nine shareholders. As a private limited company, the SC
must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the SC is insolvent. The SC is governed by the
Companies Act, 1965 and the company must file its annual returns, together
with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) trading of spices.
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. NG CHONG HONG +
|
58, LORONG SERI
AROWANA 1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
411127-08-5475
2408627
|
532,484.00
|
|
MR. NG SHAN POH +
|
58, LORONG SERI
AROWANA 1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
741020-07-5287
A2861389
|
79,583.00
|
|
MS. LOW SWEE NYA
|
58, LORONG SERI AROWANA
1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
460620-07-5538
2056789
|
57,878.00
|
|
MR. NG SAN HUA
|
58, LORONG SERI
AROWANA 1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
710925-02-5477
A1990169
|
21,705.00
|
|
MR. NG SHAN JOO
|
58, LORONG SERI
AROWANA 1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
730423-07-5261
A2431286
|
21,705.00
|
|
MR. NG SHAN KUAN
|
58, LORONG SERI
AROWANA 1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
700729-02-5331
A1593611
|
21,705.00
|
|
MS. NG SHAN HEE
|
58, LORONG SERI
AROWANA 1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
76031--70-7540
A3201634
|
21,705.00
|
|
MS. NG KIA LEE
|
58, LORONG SERI AROWANA
1, TAMAN AROWANA, 13700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
771020-07-5452
|
7,235.00
|
|
|
|
|
---------------
|
|
|
|
|
764,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. NG SHAN POH
|
|
Address
|
:
|
58, LORONG SERI AROWANA 1, TAMAN AROWANA, 13700
BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A2861389
|
|
New IC No
|
:
|
741020-07-5287
|
|
Date of Birth
|
:
|
20/10/1974
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
25/04/1995
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. NG CHONG HONG
|
|
Address
|
:
|
58, LORONG SERI AROWANA 1, TAMAN AROWANA, 13700
BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
2408627
|
|
New IC No
|
:
|
411127-08-5475
|
|
Date of Birth
|
:
|
27/11/1941
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
21/01/1993
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
NG SHAN POH
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
PERI & CO
|
|
Auditor' Address
|
:
|
33C-1-A3, BEACH STREET, 10300 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. YEONG YIN YIN
|
|
|
IC / PP No
|
:
|
5852612
|
|
|
New IC No
|
:
|
600323-07-5226
|
|
|
Address
|
:
|
24, JALAN TAMAN BUKIT, SEBERANG PRAI TENGAH, 14000 BUKIT
MERTAJAM, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
ALLIANCE BANK MALAYSIA 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
|
:
|
17/08/1999
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
O/D
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
MULTI-PURPOSE BANK BHD
|
|
4105-4107, JALAN BAGAN LUAR, 12000 BUTTERWORTH, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 25/08/1999
|
|
Registered and Numbered 4 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
28/10/2000
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
O/D
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
29/09/2001
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
O/D
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ALLIANCE BANK MALAYSIA BHD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 6 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
20/09/2006
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,363,327.60
|
|
Description Of Property Affected
|
:
|
|
LOT 981, MUKIM 16, DAERAH 16, DAERAH SEBERANG PERAI
UTARA, NEGERI PULAU PINANG HELD UNDER GERAN NO. PENDAFTARAN 10497
|
|
|
Name & Address Of Chargee
|
:
|
|
ALLIANCE BANK MALAYSIA BHD
|
|
4105-4107, JALAN BAGAN LUAR, 12000 BUTTERWORTH, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 11/10/2006
|
|
Registered and Numbered 7 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,MYANMAR,AUSTRALIA,SINGAPORE,CHINA,CANADA,MIDDLE
EAST,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
|
[
|
X
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
80%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
20%
|
|
Export Market
|
:
|
THAILAND, INDONESIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
DEALERS,END USERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
HARPERS TRADING (MALAYSIA) SDN BHD
|
|
LUN HENG SDN BHD
|
|
PGEO GROUP SDN BHD
|
|
YHI CORPORATION (MALAYSIA) SDN BHD
|
|
ZAMCORP NIAGA SDN BHD
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
35
|
30
|
25
|
22
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of spices.
The SC sells a wide range of spices from seeds, roots, bark, flowers, garlic,
nutmeg to almond etc.
Besides spices, the SC also offers beans/grains, oil seeds/kernels,
pulses/dhalls, dried fruits and herbs.
The SC specialises in wide range of beans from both local and overseas
countries.
The SC handles a wide range of quality spices to meet the demands of an
expanding market.
We were informed that the SC operates its own packaging and delivery
services.
According to the SC, the demands for its products are very high during the
Muslim festivals compared to other festivals.
The SC has more than 100 variety of spices available to interested customers.
The SC sells its goods in 50 kg bags and it also repacked into 30 kg bags
upon customer's requirement.
The SC has its own warehouse located at the same premises to keep stock.
According to the SC, the demand for the spcices is encouraging. The SC has
established customers despite the stiff competition.
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
|
:
|
04-3565551
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT 981, MK16, LORONG
SUNGAI LOKAN 3/1, KAW PERINDUSTRIAN SUNGAI LOKAN, 13800 BUTTERWORTH, PULAU PINANG.
|
|
Current Address
|
:
|
LOT 981, MK16, LORONG
SUNGAI LOKAN 3/1, KAW PERINDUSTRIAN SUNGAI LOKAN, 13800 BUTTERWORTH, PULAU
PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the Senior staff from the Finance Department. She
provided some information on the SC. Later we contacted the Supervisor from
the Sales Division for more information on the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2004 - 2006
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2004 - 2006
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
6.74%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
16.69%
|
]
|
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
profit fell sharply because of the high operating costs incurred. 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
|
[
|
20 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
81 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
8 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. 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 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
|
[
|
0.79 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.94 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
|
[
|
1.47 Times
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
1.59 Times
|
]
|
The SC's interest cover was low. If its profits fall or when interest rate
rises, it may not be able to meet all its interest payment. 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:
Although
the SC's turnover had increased, its profits had declined over the same
corresponding period. This could be due to the stiffer market competition and
/ or higher operating costs which lowered the SC's profit margin. 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. If there is a fall in the SC's profit or any
increase in interest rate, the SC may not be able to generate sufficient
cash-flow to service its interest. 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 : 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
|
6.3
|
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
|
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
|
3.4
|
|
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
|
|
51239 : Wholesale of other foodstuffs e.g mee,kueh teow,
wantan skin and related products,cooking oil, tinned food, etc
|
|
|
|
|
INDUSTRY :
|
FOOD & BEVERAGES
|
|
|
|
|
Agricultural output will be further boosted by the projected increase in
food production resulting from the various incentives and development
programmes mounted by the government to reduce the high food import bill as
well as to raise farmers' income through diversification into high value
food crops and farming, including aquaculture, floriculture and cultivation
of medicinal plants.
|
|
During the January to November 2007, domestic food manufacturing surged by
7.9%. The food and beverage sector remains dynamic with the opening of new
international and local food chains and outlets throughout the country. The
industry's potential has also attracted the interest of investors in
hospitality-linked companies including the introduction of a new budget
hotel chain patterned after the concept of budget airlines.
|
|
Agricultural produces for food is one of the main thrusts of the Government
towards country's self-sufficiency, and also as a major contributor to the
country's development. The objective is expected to be achieved through
concerted efforts to reduce food imports and fully utilise the nation's
resources. Imports of meat products currently stand at about RM2 billion
annually.
|
|
In addition, turning Malaysia into a halal food hub is still on the agenda,
which partly supports the positive outlook on the domestic food industry;
this is a niche market that is not seen to be vulnerable to the effects of
an economic slowdown in the US. Meanwhile, another area that has
experienced growth and is poised to expand further this year is the
processing and preservation of fish and fish 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.
|
|
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 : Average Growth
|
COMMENTS
|
Established in 1993, the SC is principally engaged in the trading of
spices. The SC sells a wide range of spices from seeds, roots, bark,
flowers, garlic, nutmeg to almond etc. With its long presence in the
industry coupled with its vast experiences in the business, the SC should
have built up a certain goodwill with its client over times.
|
|
Having been in the business for over a decade, the SC should have received
strong support from its regular customers. Apart from serving the local
market, the SC also exports to Thailand and Indonesia. Its ability to
penetrate into the global market has benefited the SC in terms of higher
profitability and minimised its business risk. At present the workforce of
the SC is SC is 35 and the SC's business activities are headed by Director,
Ng Shan Poh and its management capability is average.
|
|
During the financial under review, turnover of the SC grew by 15.82% to
RM30.81 million in 2006. The SC recorded a pre-tax profit of RM295,016 for
the year. The SC generated an unfavourable return on shareholder's fund
indicating that the SC was inefficient in utilising its shareholders' funds
to generate favourable returns. Besides this, it is in a weak liquidity
position with its current liabilities not well covered by its current
assets. Thus it may face working capital deficiency in repaying its short
term obligations. The SC posted a high gearing ratio indicating that the SC
faces high financial risk. Nonetheless with the comfortable networth
standing at RM3.04 million, the SC is able to sustain its business
performance in the near terms.
|
|
Investigation revealed that the SC's supplies are sourced from both local
and overseas suppliers. Hence, the SC is subjected to currency fluctuation
risk and high operating costs.
|
|
Based on its historical financial data, the SC's payment is average. The SC
should be able to meet its small and medium commitments.
|
|
The rising population, improvement in quality of life and higher propensity
to consume will further increase the demand for food products. We believe
that the encouraging demand for the SC's products would present more
business opportunities for the SC. However, the SC is facing increasing
competition from other companies. Hence, the SC should improve its
management capability and explore more new market segments in order to have
a stable standing in the industry.
|
|
In view of the above 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.
|
|
SHENG KIMN
HONG SDN BHD
|
|
For The Year
Ended 30-November-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
30,805,043
|
26,596,791
|
25,519,242
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
295,016
|
479,062
|
210,083
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
295,016
|
479,062
|
210,083
|
|
Taxation
|
<90,076>
|
<115,400>
|
<37,004>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
204,940
|
------------
363,662
|
------------
173,079
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
204,940
|
------------
363,662
|
------------
173,079
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
204,940
|
------------
363,662
|
------------
173,079
|
|
As previous reported
|
2,070,896
|
1,713,233
|
1,504,852
|
|
Prior year adjustment
|
-
|
<6,000>
|
35,302
|
|
As restated
|
------------
2,070,896
|
------------
1,707,233
|
------------
1,540,154
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
2,275,836
|
2,070,895
|
1,713,233
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
2,275,836
==========
|
------------
2,070,895
==========
|
------------
1,713,233
==========
|
|
RETAINED BY: The Company
|
2,275,836
|
2,070,895
|
1,713,233
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
2,275,836
==========
|
------------
2,070,895
==========
|
------------
1,713,233
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
-
|
566,202
|
540,433
|
|
|
|
|
|
|
Hire purchase
|
25,270
|
33,312
|
30,181
|
|
|
|
|
|
|
Bank interest
|
600,563
|
-
|
-
|
|
|
|
|
|
|
|
------------
625,833
==========
|
------------
599,514
==========
|
------------
570,614
==========
|
|
|
|
|
|
BALANCE SHEET
|
SHENG KIMN
HONG SDN BHD
|
|
As At
30-November-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
6,260,959
|
3,044,840
|
3,100,521
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
-
|
112,230
|
112,230
|
|
|
|
|
|
|
|
|
|
|
|
building under construction
|
-
|
3,192,344
|
3,002,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
-
|
------------
3,304,574
|
------------
3,114,403
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
6,260,959
|
------------
6,349,414
|
------------
6,214,924
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
1,690,298
|
1,008,659
|
1,139,597
|
|
|
|
|
|
|
Trade debtors
|
6,818,553
|
5,444,130
|
4,764,729
|
|
Other debtors,
deposits & prepayments
|
205,758
|
130,745
|
83,233
|
|
Short term deposits
|
-
|
-
|
600,000
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from
director
|
33,000
|
115,400
|
-
|
|
Cash & bank
balances
|
1,149,398
|
2,599,735
|
2,217,868
|
|
|
|
|
|
|
Amount due from inland
revenue
|
51,000
|
14,000
|
-
|
|
Prepayment term loan
interest
|
974,695
|
1,110,954
|
1,270,266
|
|
Employees loan account
|
17,500
|
-
|
-
|
|
Shareholders loan account
|
86,344
|
-
|
-
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
11,026,546
|
------------
10,423,623
|
------------
10,075,693
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
693,001
|
2,800,072
|
1,080,838
|
|
Other creditors
& accruals
|
329,607
|
340,051
|
472,877
|
|
Hire purchase &
lease creditors
|
123,352
|
103,294
|
120,720
|
|
Bank overdraft
|
1,770,335
|
1,006,511
|
1,661,080
|
|
Short term
borrowings/Term loans
|
450,422
|
450,422
|
356,640
|
|
|
|
|
|
|
|
|
|
|
|
Bill &
acceptances payable
|
8,403,000
|
6,330,495
|
5,779,945
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to
director
|
-
|
-
|
5,000
|
|
Provision for
taxation
|
-
|
-
|
175,467
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
11,769,717
|
------------
11,030,845
|
------------
9,652,567
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<743,171>
|
------------
<607,222>
|
------------
423,126
|
|
TOTAL NET ASSETS
|
------------
5,517,788
==========
|
------------
5,742,192
==========
|
------------
6,638,050
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share
capital
|
764,000
|
764,000
|
764,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
764,000
|
------------
764,000
|
------------
764,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain
profit/(Accumulated loss) carried forward
|
2,275,836
|
2,070,895
|
1,713,233
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
2,275,836
|
------------
2,070,895
|
------------
1,713,233
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
3,039,836
|
------------
2,834,895
|
------------
2,477,233
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
2,289,931
|
2,731,864
|
3,994,425
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase
creditors
|
188,021
|
175,433
|
166,392
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
2,477,952
|
------------
2,907,297
|
------------
4,160,817
|
|
|
------------
|
------------
|
------------
|
|
|
5,517,788
|
5,742,192
|
6,638,050
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
SHENG KIMN
HONG SDN BHD
|
|
As At
30-November-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
1,149,398
|
2,599,735
|
2,817,868
|
|
Net Liquid Funds
|
<1,071,359>
|
1,142,802
|
800,148
|
|
Net Liquid Assets
|
<2,433,469>
|
<1,615,881>
|
<716,471>
|
|
Net Current
Assets/(Liabilities)
|
<743,171>
|
<607,222>
|
423,126
|
|
Net Tangible Assets
|
5,517,788
|
5,742,192
|
6,638,050
|
|
Net Monetary Assets
|
<4,911,421>
|
<4,523,178>
|
<4,877,288>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
4,822,061
|
4,467,524
|
6,299,257
|
|
Total Liabilities
|
14,247,669
|
13,938,142
|
13,813,384
|
|
Total Assets
|
17,287,505
|
16,773,037
|
16,290,617
|
|
Net Assets
|
5,517,788
|
5,742,192
|
6,638,050
|
|
Net Assets Backing
|
3,039,836
|
2,834,895
|
2,477,233
|
|
Shareholders"
Funds
|
3,039,836
|
2,834,895
|
2,477,233
|
|
Total Share Capital
|
764,000
|
764,000
|
764,000
|
|
Total Reserves
|
2,275,836
|
2,070,895
|
1,713,233
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.10
|
0.24
|
0.29
|
|
Liquid Ratio
|
0.79
|
0.85
|
0.93
|
|
Current Ratio
|
0.94
|
0.94
|
1.04
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
20
|
14
|
16
|
|
Debtors Ratio
|
81
|
75
|
68
|
|
Creditors Ratio
|
8
|
38
|
15
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
1.59
|
1.58
|
2.54
|
|
Liabilities Ratio
|
4.69
|
4.92
|
5.58
|
|
Times Interest
Earned Ratio
|
1.47
|
1.80
|
1.37
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit
Margin
|
0.96
|
1.80
|
0.82
|
|
Net Profit Margin
|
0.67
|
1.37
|
0.68
|
|
Return On Net Assets
|
16.69
|
18.78
|
11.76
|
|
Return On Capital
Employed
|
11.71
|
14.77
|
8.90
|
|
Return On
Shareholders' Funds/Equity
|
6.74
|
12.83
|
6.99
|
|
Dividend Pay Out Ratio
(Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent
Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
