|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
534530-U
|
|
COMPANY NAME
|
:
|
REGAL STAR SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
11/12/2000
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
EXEMPT PRIVATE
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 14, 47400
PETALING JAYA, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLAZA MONT KIARA, SUITE E-11-09, JALAN KIARA, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-62042600
|
|
FAX.NO.
|
:
|
03-62042601
|
|
CONTACT PERSON
|
:
|
SARJAK PRAVIN SHAH ( EXECUTIVE DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
52392
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF DIAMOND AND OTHER ORNAMENTS
|
|
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
2,146,538.00 DIVIDED INTO
ORDINARY SHARES 2,146,538 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
N/A
|
|
NET WORTH
|
:
|
N/A
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
5 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY / BACKGROUND
The SC is an exempt private company which is allowed to have a minimum of two
and a maximum of twenty shareholders and all the shareholders must be
individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The SC is governed by the
Companies Act, 1965 and must file in its annual return. The SC need not file
in its financial statements but it has to file in a document duly signed by
its director in charge of its finance, the secretary and its auditor stating
that the SC is able to meet all its obligations as and when they fall due.
Although the SC is not required to file in its financial statements, it also
has to prepare its financial account which must be presented at the Annual
General Meeting.
The SC is principally engaged in the (as a / as an) trading of diamond and
other ornaments.
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
|
|
SARJAK PRAVIN SHAH +
|
130-14-1, KELAWEI ROAD, GURNEY VILLA, 10250 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
Z1477687
|
1,094,733.00
|
|
MS. AZINA BINTI SHAIK ALI AKBAR +
|
23-12-8, DESA RAHMAT, JALAN RELAU, 11900 BAYAN LEPAS, PULAU PINANG,
MALAYSIA.
|
660412-07-5484
A0409600
|
643,961.00
|
|
MR. AMISH GUNVANTRAI PATEL +
|
725-U, JALAN SUNGAI DUA, 11700 GELUGOR, PULAU PINANG, MALAYSIA.
|
720102-07-5253
A2093950
|
407,843.00
|
|
DIPTI SARJAK SHAH +
|
130-14-1, KELAWEI ROAD, GURNEY VILLA, 10250 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
F4219959
|
1.00
|
|
|
|
|
---------------
|
|
|
|
|
2,146,538.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. GUNVANTRAI A/L NARBHERAM PATEL
|
|
Address
|
:
|
130-14-1, GURNEY VILLA, KELAWEI ROAD, 10250 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
|
New IC No
|
:
|
400914-71-5073
|
|
Date of Birth
|
:
|
14/09/1940
|
|
Nationality
|
:
|
MALAYSIAN OTHER
|
|
Date of Appointment
|
:
|
22/12/2000
|
DIRECTOR 2
|
Name Of Subject
|
:
|
DIPTI SARJAK SHAH
|
|
Address
|
:
|
130-14-1, KELAWEI ROAD, GURNEY VILLA, 10250 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
F4219959
|
|
Nationality
|
:
|
N/A
|
|
Date of Appointment
|
:
|
11/12/2000
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. AMISH GUNVANTRAI PATEL
|
|
Address
|
:
|
725-U, JALAN SUNGAI DUA, 11700 GELUGOR, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A2093950
|
|
New IC No
|
:
|
720102-07-5253
|
|
Date of Birth
|
:
|
02/01/1972
|
|
Nationality
|
:
|
MALAYSIAN OTHER
|
|
Date of Appointment
|
:
|
22/12/2000
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MS. AZINA BINTI SHAIK ALI AKBAR
|
|
Address
|
:
|
23-12-8, DESA RAHMAT, JALAN RELAU, 11900 BAYAN LEPAS, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
A0409600
|
|
New IC No
|
:
|
660412-07-5484
|
|
Date of Birth
|
:
|
12/04/1966
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
31/03/2006
|
DIRECTOR 5
|
Name Of Subject
|
:
|
SARJAK PRAVIN SHAH
|
|
Address
|
:
|
130-14-1, KELAWEI ROAD, GURNEY VILLA, 10250 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1477687
|
|
Nationality
|
:
|
N/A
|
|
Date of Appointment
|
:
|
11/12/2000
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
SARJAK PRAVIN SHAH
|
|
|
Position
|
:
|
EXECUTIVE DIRECTOR
|
|
|
|
|
|
AUDITOR
No Auditor found
in our databank
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. NG YEN HOONG
|
|
|
IC / PP No
|
:
|
A0769395
|
|
|
New IC No
|
:
|
670904-10-5060
|
|
|
Address
|
:
|
42A, JALAN PJU 3/18H, DAMANSARA INDAH RESORT HOMES, 47410 PETALING
JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. WONG PEIR CHYUN
|
|
|
IC / PP No
|
:
|
A1935519
|
|
|
New IC No
|
:
|
710824-10-5806
|
|
|
Address
|
:
|
15, SOLOK NONA, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
ABN AMRO 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
|
:
|
10/06/2002
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM160,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 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
|
:
|
EUROPE,ASIA,INDIA
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
N/A
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CASH,CHEQUES
|
|
Type of Customer
|
:
|
END USERS
|
OPERATIONS
|
Goods Traded
|
:
|
|
DIAMOND AND OTHER ORNAMENTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
LUXURYCONCEPTS WATCHES AND JEWELLERY SDN BHD
|
|
PAJAK GADAI THYE FOH SDN BHD
|
|
POH KONG JEWELLERS SDN BHD
|
|
TOMEI CONSOLIDATED BHD
|
|
WOO HING BROTHERS (MALAYA) BHD
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
2007
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
5
|
3
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of diamond and
other ornaments.
The SC sells various precious stones, diamonds and jewelleries mostly
imported from the overseas countries.
The SC's major business is trading of diamonds.
The SC is also able to import the required precious stones for its customers.
The SC only provided limited information on its operation.
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
|
:
|
03-62042600
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLAZA MONT KIARA, SUITE E-11-02, NO 2 JALAN 1/70C, MONT KIARA, 50480
KUALA LUMPUR, WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
PLAZA MONT KIARA, SUITE E-11-09, JALAN KIARA, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
NO
|
|
We have contacted the SC's Accountant and its Company Secretary for the latest
financial accounts. However they have rejected our request in view of the
confidentiality of the documents.
|
|
|
Other Investigations
We contacted one of the SC's Director, Mr Sarjak Pravin Shah. He furnished some
information on the SC.
We have verified and confirmed that the SC's Suite number had been changed.
FINANCIAL COMMENTS
The SC is a private exempt company which
does not need to file in its accounts with the Registrar of Companies for the
information of the public. Therefore, we are not able to comment on the SC's
financial performance.
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
|
5.7
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.1
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
6.6
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
6.8
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
6.2
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
4.7
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.7
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
3.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
80,663
|
99,760
|
108,192
|
100,340
|
115,563
|
|
Government Finance ( MYR Million )
|
<19,419>
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.3>
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
1.4
|
3.1
|
3.9
|
2.0
|
4.4
|
|
Unemployment Rate
|
3.5
|
3.5
|
3.4
|
3.2
|
3.3
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
254
|
266
|
290
|
336
|
388
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
5.13
|
4.21
|
3.04
|
1.91
|
|
Average 3 Months of Non-performing Loans ( % )
|
8.46
|
13.63
|
12.91
|
13.30
|
13.24
|
|
Average Base Lending Rate ( % )
|
5.99
|
6.00
|
6.61
|
6.72
|
6.72
|
|
Business Loans Disbursed( % )
|
10.5
|
8.7
|
<2.5>
|
9.1
|
-
|
|
Foreign Investment ( MYR Million )
|
13,143.9
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,580
|
37,474
|
38,293
|
43,337
|
-
|
|
Registration of New Companies ( % )
|
6.8
|
<2.9>
|
2.2
|
13.2
|
-
|
|
Liquidation of Companies ( No. )
|
3,334
|
3,069
|
8,647
|
22,629
|
-
|
|
Liquidation of Companies ( % )
|
<15.8>
|
<7.9>
|
181.8
|
161.5
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
189,206
|
193,095
|
216,147
|
227,410
|
-
|
|
Registration of New Business ( % )
|
4.6
|
2.1
|
11.9
|
5.2
|
-
|
|
Business Dissolved ( No. )
|
51,301
|
73,355
|
52,879
|
20,431
|
-
|
|
Business Dissolved ( % )
|
7.0
|
43.0
|
<27.9>
|
<61.4>
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
380.6
|
400.8
|
446.2
|
442.9
|
-
|
|
Cellular Phone Subscribers ( Million )
|
14.6
|
18.5
|
19.5
|
23.3
|
25.1
|
|
Tourist Arrival ( Million Persons )
|
15.7
|
16.7
|
17.5
|
20.9
|
21.5
|
|
Hotel Occupancy Rate ( % )
|
60.8
|
63.6
|
64.8
|
70.0
|
68.0
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
19.3
|
13.9
|
15.4
|
20.1
|
-
|
|
Bad Cheque Offenders (No.)
|
70,465
|
57,316
|
36,555
|
30,004
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
13,238
|
-
|
|
Individual Bankruptcy ( % )
|
31.6
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.0
|
2.5
|
5.3
|
3.1
|
3.6
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
7.0
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
4.0
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
393
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
Mining
|
3.9
|
0.8
|
<0.4>
|
3.3
|
2.8
|
|
Oil & Gas
|
4.5
|
1.6
|
4.6
|
2.2
|
12.7
|
|
Other Mining
|
<8.0>
|
<1.0>
|
5.1
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
62.6
|
68.8
|
55.4
|
42.2
|
36.0
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
9.8
|
5.1
|
7.3
|
3.1
|
4.7
|
|
Exported-oriented Industries
|
15.5
|
3.0
|
11.1
|
<1.9>
|
2.7
|
|
Electrical & Electronics
|
17.8
|
3.6
|
13.4
|
3.0
|
2.4
|
|
Rubber Products
|
14.8
|
2.4
|
0.4
|
8.0
|
4.2
|
|
Wood Products
|
12.7
|
0.9
|
0.7
|
3.3
|
<6.0>
|
|
Textiles & Apparel
|
<11.7>
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
|
Domestic-oriented Industries
|
9.7
|
6.9
|
5.0
|
5.3
|
9.9
|
|
Food, Beverages & Tobacco
|
3.8
|
7.7
|
4.8
|
5.6
|
9.5
|
|
Chemical & Chemical Products
|
14.6
|
6.9
|
1.7
|
9.2
|
1.4
|
|
Plastic Products
|
13.5
|
18.6
|
21.3
|
<3.6>
|
6.5
|
|
Iron & Steel
|
2.7
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
|
Fabricated Metal Products
|
29.2
|
<7.5>
|
20.0
|
26.2
|
14.7
|
|
Non-metallic Mineral
|
<4.8>
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
|
Transport Equipment
|
8.6
|
10.4
|
5.3
|
<19.0>
|
27.1
|
|
Paper & Paper Products
|
2.3
|
4.6
|
4.1
|
14.9
|
8.6
|
|
Crude Oil Refineries
|
<2.4>
|
8.2
|
12.1
|
8.6
|
7.8
|
|
Industry Non-Performing Loans ( MYR Million )
|
7,765.4
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.5>
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,547.7
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
|
% of Industry Non-Performing Loans
|
12.4
|
10.9
|
11.4
|
11.3
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.8
|
6.6
|
7.2
|
9.7
|
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
|
8,281.4
|
|
% of Industry Non-Performing Loans
|
19.9
|
18.4
|
23.9
|
22.6
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
52392 : Retail sale of watches, clocks, jewellery and silverware
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
The country's retail sector has moderated in the face of higher fuel and
electricity prices and the outlook for the industry remains murky as
inflation catches up with consumer sentiment and retailing costs.
|
|
According to Retail Group Malaysia (RGM), survey was being conducted shows
that retail sales may grow 7% in 2008, slowing from last year's 12.8% pace
that was the fastest since 1992. Sales gained 6.9% in the first six months
from a year earlier. Besides, the industry report shows that the industry
sales for the first six months (1H) grew 6.9% year-on-year, even as the
rising price of energy and food took a big bite out of consumers'
disposable income. But with inflation hitting 7.7% and 8.5% in June and July,
respectively, it was unclear whether the 6.9% rate growth could be
sustained.
|
|
Retailers may not as gung-ho as before but the outlook is still optimistic
for certain categories such as pharmaceuticals and those in the supermarket
business - the essentials. But areas such as fashion are still suffering.
|
|
We believe retail sales performance remains sluggish amidst the rising
costs of living. The energy and food crises during the middle of the year had
affected the average Malaysian consumer. Retail growth is expected to be
maintained through 2H08, and estimates 7% retail growth for the entire
year.
|
|
Prime Minister Datuk Seri Abdullah Ahmad Badawi raised petrol prices by 41%
in June as he sought to contain the government's fuel subsidy bill amid
soaring crude oil costs. A 5.6% cut in the petrol price and budget measures
such as tax cuts and free electricity for the poor announced last month
won't be enough to revive spending.
|
|
According to Budget 2009, it did not introduce direct measures to boost
consumer spending. Although the government has introduced plenty of
incentives to lessen Malaysians' financial burden, they do not encourage
higher retail spending.
|
|
Retailers were only now beginning to feel the pinch of the hike in energy
prices, which might translate into a slower growth rate for 2H08. More
importantly, the sudden hike in prices had dampened consumer sentiment.
Public messages from the government and the media telling Malaysians to
spend less will also affect retailers
|
|
However, Malaysia Savings Sale at the end of the year would inject some
excitement into the retail industry, and enable the local industry to
compete with regional retailers. Besides, the year-end sale is expected to
help boost numbers leading into 2009.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
The SC is an exempt private company which involves in trading of diamond and
other ornaments. With its short operating history, the SC has slowly been
building up contacts with its customers and competing aggressively in the
market. Presently, the SC has a paid up capital of RM2,146,538, it should
have sufficient funds to expand its business.
|
|
The SC's business operations are predominantly in Malaysia. As such, any
adverse developments in the economic environment and uncertainties in the
local economy could adversely affect the business prospects of the SC.
Besides, we believe that the SC's exposure to business risk is high due to
its narrow market segment and it mainly trades luxury goods. As a small
entity, there are 5 employees in its business operations and the SC's
overall management capability is considered average.
|
|
The SC is a private exempt company which does not need to file in its
accounts with the Registrar of Companies for the information of the public.
Therefore, we are not able to comment further on the SC's financial
performance.
|
|
The SC's supplies are sourced locally and also imported from overseas
countries. Hence, the SC is subjected to currency fluctuation risk.
|
|
The SC is clear of any litigation.
|
|
The improvement of economic condition in the country is believed to encourage
the demand on luxury goods due to the increasing purchasing power of
customers, higher income level and the improvement quality of life.
However, world economic slowdown, the weakness of American economic
structure and high price of food and energy might affect the business
performance of the SC. Hence, more efforts are expected from the management
in order to maintain its business and compete with other players in the
same industry.
|
|
In view of the above, we recommend credit be granted to the SC under
reliable guarantee.
|
|
