|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
590864-H
|
|
COMPANY NAME
|
:
|
FARM TRACK SUPPLIERS SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
27/08/2002
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
97A, REGAT SRI
CEMPAKA, TAMAN CEMPAKA, 31400 IPOH, PERAK, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
131-133, JALAN BENDAHARA, 31650 IPOH, PERAK, MALAYSIA.
|
|
TEL.NO.
|
:
|
05-2542131
|
|
FAX.NO.
|
:
|
05-2542132
|
|
EMAIL
|
:
|
ftrack76@yahoo.com
|
|
CONTACT PERSON
|
:
|
THONG KOK HOONG ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
50301
|
|
PRINCIPAL ACTIVITY
|
:
|
DEALER IN
HARDWARE, SPARE PART, COMPONANT PART, ACCESSORIES AND FITTING OF ALL KIND
OF TRACTOR, EXCAVATOR, AUTOMOBILE, TRUCK AND MACHINERY
|
|
AUTHORISED
CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 5,991,893 [2006]
|
|
NET WORTH
|
:
|
MYR 260,285 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
12 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
LOW
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL 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) dealer in hardware, spare
part, componant part, accessories and fitting of all kind of tractor,
excavator, automobile, truck and machinery.
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. HO CHIANG KEEN +
|
6, JALAN HOR HOCK LUNG, CAMY PARK, 31650 IPOH, PERAK, MALAYSIA.
|
591020-08-5409
5697766
|
60,000.00
|
|
MS. LEE SIEW ENG +
|
6, JALAN HOR HOCK LUNG, CAMY PARK, 31650 IPOH, PERAK, MALAYSIA.
|
640717-04-5528
7441270
|
20,000.00
|
|
MR. THONG KOK HOONG +
|
827, PASIR PINJI, 31650 IPOH, PERAK, MALAYSIA.
|
760102-08-5423
A3293980
|
20,000.00
|
|
|
|
|
---------------
|
|
|
|
|
100,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. LEE SIEW ENG
|
|
Address
|
:
|
6, JALAN HOR HOCK LUNG, CAMY PARK, 31650 IPOH, PERAK, MALAYSIA.
|
|
IC / PP No
|
:
|
7441270
|
|
New IC No
|
:
|
640717-04-5528
|
|
Date of Birth
|
:
|
17/07/1964
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
27/08/2002
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. THONG KOK HOONG
|
|
Address
|
:
|
827, PASIR PINJI, 31650 IPOH, PERAK, MALAYSIA.
|
|
IC / PP No
|
:
|
A3293980
|
|
New IC No
|
:
|
760102-08-5423
|
|
Date of Birth
|
:
|
02/01/1976
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
27/08/2002
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. HO CHIANG KEEN
|
|
Address
|
:
|
6, JALAN HOR HOCK LUNG, CAMY PARK, 31650 IPOH, PERAK, MALAYSIA.
|
|
IC / PP No
|
:
|
5697766
|
|
New IC No
|
:
|
591020-08-5409
|
|
Date of Birth
|
:
|
20/10/1959
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
27/08/2002
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
THONG KOK HOONG
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
LEE SIEW ENG
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
HO CHIANG KEEN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
LIM TANG & PATNERS
|
|
Auditor' Address
|
:
|
UNIT A-3-6, INTAN BUSINESS CENTRE 1, JALAN MEDAN IPOH 2, BANDAR
BARU, MEDAN IPOH, 31400 IPOH, PERAK, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. CHEAH BOO SOO
|
|
|
IC / PP No
|
:
|
2917157
|
|
|
New IC No
|
:
|
450720-07-5341
|
|
|
Address
|
:
|
97A, REGAT SRI CEMPAKA, TAMAN CEMPAKA, 31400 IPOH, PERAK, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
27/08/2002
|
|
|
|
|
|
|
|
|
|
|
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
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Import Countries
|
:
|
INDIA,TURKEY
|
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
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
TRACTOR SPARE PARTS & FITTINGS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
EON TRADING SDN BHD
|
|
FREESCALE SEMICONDUCTOR MALAYSIA SDN BHD
|
|
PROTON EDAR SDN BHD
|
|
ROBERT BOSCH (SOUTH EAST ASIA) PTE LTD
|
|
YHI (MALAYSIA) SDN BHD
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
12
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) dealer in hardware, spare
part, componant part, accessories and fitting of all kind of tractor,
excavator, automobile, truck and machinery.
The SC is a trading company of tractor spare parts, fittings and others.
The SC does not have any branch.
We were informed that the SC's tractors are used in construction industry and
agriculture industry.
The SC does not providing any maintenance services which include repairing
and installation services.
The SC are selling about 20 types of spare parts.
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.database.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
05-2542131
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
131-133, JALAN BENDAHARA, 31650 IPOH, PERAK.
|
|
Current Address
|
:
|
131-133, JALAN BENDAHARA, 31650 IPOH, PERAK, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview from the SC's Account Department, Ms. Lee. She
furnished us some information on the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
16.55%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
32.71%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
18.53%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
20.47%
|
]
|
The higher turnover could be attributed to the favourable market condition and
the SC could be gaining the market share progressively. The higher profit
could be attributed to the increase in turnover. The SC's management had
generated acceptable return for its shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
35 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
117 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
149 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had reduced
funds being tied up in stocks. 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
|
:
|
Acceptable
|
[
|
0.82 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.03 Times
|
]
|
The SC's liquid ratio was slightly low. This could indicate that the SC's
working capital was slightly deficient. The SC will have to improve its
liquidity position either by obtaining short term financing or increase its paid
up capital so that it can meet all its short term obligations as and when
they fall due.
Solvency
|
Interest Cover
|
:
|
Acceptable
|
[
|
8.35 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.58 Times
|
]
|
The SC's interest cover was slightly low. If there is no sharp fall in its
profit or sudden increase in the interest rates, we believe the SC is able to
generate sufficient income to service its interest and repay the loans. The
SC was lowly geared thus it had a low financial risk. The SC was mainly
financed by its shareholders' funds and internally generated funds. In times
of economic slowdown / downturn, the SC being a lowly geared company, will be
able to compete better than those companies which are highly geared in the
same industry.
Overall Accessment:
Generally, the
SC's performance has improved with higher turnover and profit. The SC's
liquidity was at an acceptable range. If the SC is able to obtain further
short term financing, it should be able to meet all its short term
obligations. The SC had an acceptable interest cover. If there is no sudden
sharp increase in interest rate or fall in the SC's profit, we do believe the
SC is able to generate sufficient cash flow to service its interest payment.
The SC as a lowly geared company, will be more secured compared to those
highly geared companies. It has the ability to meet all its long term
obligations.
Overall financial condition of the SC : FAIR
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
|
6.0
|
|
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
|
|
50301 : Wholesale of parts and accessories for cars, vans and
four-wheel drives
|
|
|
|
|
INDUSTRY :
|
MOTOR VECHICLE
|
|
|
|
|
|
|
The domestic automotive market seems geared for a much faster growth than originally
expected in year 2008, given a high double-digit sales expansion in the
first three months of 2008. New car sales for the first quarter 2008 should
have grown 25 per cent year-on-year over the previous corresponding period
in 2007. The months of December 2007 till February 2008 have been the
highest compared with each corresponding month in recent years.
|
|
In January, Malaysian Automotive Association (MAA) had forecast a 4.7 per
cent growth in industry sales to 510,000 in year 2008, after a 0.7 per cent
contraction in 2007 of 487,176 units.
|
|
The sales number for February in year 2008 was 15.8 per cent lower than in
January. But the 38,587 units recorded were 23.3 per cent more than in February
2007. Earlier, January 2008 sales rose 31 per cent year-on-year to 45,828
units, from 35,047 units in the same month for the year 2007. Total sales
volume in the first two months stood at 84,415 units, up from 66,331 units
in the corresponding period in 2007.
|
|
MAA said improved consumers' confidence, new model launches and the
pre-Chinese New Year rush were key contributing factors. Historically,
industry sales were stronger in the second half, signalling that the strong
momentum can sustain in the coming months for year 2008. MAA forecast
vehicle sales may reach 530,000 in 2009 and hit 550,000 in 2010.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS
|
Incorporated in 2002 as a private limited company, the SC is principally
engaged as a dealer of hardware, spare part, componant part, accessories
and fitting of all kind of tractor, excavator, automobile, truck and
machinery. Throughout its years of establishment, the SC has slowly been
building up contacts with its clients and competing in the industry. With a
share capital of RM100,000 contributed from individual shareholders, the SC
does not have strong shareholders' backing.
|
|
Presently, the SC only concentrates on the domestic market. With this
narrow market segment, the SC may lose competitiveness over other
export-oriented company. Besides that, it is vulnerable to the changes in
the local economy. The SC should expand its business to the international
market to gain higher market share. The management of the SC is overseen by
its managing director, Ho Chiang Keen and assisted by 12 staff in the
operations. Overall the management capability of the SC is average.
|
|
For the financial year ended 2006, the SC registered a higher pre-tax
profit of RM70,840 as its turnover increased by 16.55% from RM5.14 million
to RM5.99 million. Return on shareholders' funds of the SC was at an
acceptable range which indicated that the management was efficient in utilising
its funds to generate income. The SC also managed to maintain an adequate
liquidity level, indicating that the SC has the ability to meet its
financial obligations. Being a lowly geared company, the SC is exposed to
low financial risk as it is mainly dependent on its internal funds to
finance its business needs. The overall financial standing of the SC is
regarded as fair.
|
|
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. About 40% of the SC's products are imported
from India and Turkey. As a result, the SC is exposed to foreign currency
fluctuation risk.
|
|
Based on the historical financial data, we concluded that the SC's payment
record is fair.
|
|
The industry has reached its optimum level and is generally stable. The
potential growth for the industry is marginal and it is quite competitive.
It very much depends on the SC's capacity in sustaining its performance in
the market.
|
|
In view of above, we recommend credit of be granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
FARM TRACK
SUPPLIERS SDN BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
5,991,893
|
5,141,128
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
70,480
|
53,108
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
70,480
|
53,108
|
|
Taxation
|
<22,260>
|
<13,436>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
48,220
|
------------
39,672
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
48,220
|
------------
39,672
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
48,220
|
------------
39,672
|
|
As previous reported
|
112,065
|
72,393
|
|
|
|
|
|
As restated
|
------------
112,065
|
------------
72,393
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
160,285
|
112,065
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
160,285
==========
|
------------
112,065
==========
|
|
RETAINED BY: The Company
|
160,285
|
112,065
|
|
|
|
|
|
|
------------
160,285
==========
|
------------
112,065
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
Hire purchase
|
9,587
|
6,332
|
|
|
------------
9,587
==========
|
------------
6,332
==========
|
BALANCE SHEET
|
FARM TRACK
SUPPLIERS SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
316,033
|
211,323
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
316,033
|
------------
211,323
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
578,514
|
796,098
|
|
|
|
|
|
Trade debtors
|
1,917,643
|
1,456,112
|
|
Other debtors, deposits & prepayments
|
7,946
|
5,765
|
|
Short term deposits
|
109,487
|
106,176
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
307,464
|
265,330
|
|
TOTAL CURRENT ASSETS
|
------------
2,921,054
|
------------
2,629,481
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
2,449,231
|
2,223,123
|
|
Other creditors & accruals
|
70,234
|
19,358
|
|
Hire purchase & lease
creditors
|
34,694
|
23,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
286,800
|
298,418
|
|
Provision for taxation
|
4,934
|
6,110
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
2,845,893
|
------------
2,570,206
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
75,161
|
------------
59,275
|
|
TOTAL NET ASSETS
|
------------
391,194
==========
|
------------
270,598
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
100,000
|
100,000
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
100,000
|
------------
100,000
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
160,285
|
112,065
|
|
|
|
|
|
TOTAL RESERVES
|
------------
160,285
|
------------
112,065
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
260,285
|
------------
212,065
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
Hire purchase creditors
|
115,409
|
46,933
|
|
Deferred taxation
|
15,500
|
11,600
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
130,909
|
------------
58,533
|
|
|
------------
|
------------
|
|
|
391,194
|
270,598
|
|
|
==========
|
==========
|
|
|
|
|
FINANCIAL RATIOS
|
FARM TRACK
SUPPLIERS SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
416,951
|
371,506
|
|
Net Liquid Funds
|
416,951
|
371,506
|
|
Net Liquid Assets
|
<503,353>
|
<736,823>
|
|
Net Current Assets/(Liabilities)
|
75,161
|
59,275
|
|
Net Tangible Assets
|
391,194
|
270,598
|
|
Net Monetary Assets
|
<634,262>
|
<795,356>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
150,103
|
70,130
|
|
Total Liabilities
|
2,976,802
|
2,628,739
|
|
Total Assets
|
3,237,087
|
2,840,804
|
|
Net Assets
|
391,194
|
270,598
|
|
Net Assets Backing
|
260,285
|
212,065
|
|
Shareholders" Funds
|
260,285
|
212,065
|
|
Total Share Capital
|
100,000
|
100,000
|
|
Total Reserves
|
160,285
|
112,065
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
0.15
|
0.14
|
|
Liquid Ratio
|
0.82
|
0.71
|
|
Current Ratio
|
1.03
|
1.02
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
35
|
57
|
|
Debtors Ratio
|
117
|
103
|
|
Creditors Ratio
|
149
|
158
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0.58
|
0.33
|
|
Liabilities Ratio
|
11.44
|
12.40
|
|
Times Interest Earned Ratio
|
8.35
|
9.39
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
1.18
|
1.03
|
|
Net Profit Margin
|
0.80
|
0.77
|
|
Return On Net Assets
|
20.47
|
21.97
|
|
Return On Capital Employed
|
18.80
|
20.23
|
|
Return On Shareholders'
Funds/Equity
|
18.53
|
18.71
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
