*
Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
244968-D
|
|
COMPANY NAME
|
:
|
CHIN HEONG (K.L.) SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
21/07/1992
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
ROOM 609, LOKE YEW BUILDING, JALAN MAHKAMAH PERSEKUTUAN, 6TH FLOOR,
50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 9, INDUSTRIAL AREA, JINJANG UTARA, 52000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-62525088
|
|
FAX.NO.
|
:
|
03-62525099
|
|
CONTACT PERSON
|
:
|
POH LEONG AUN ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51239
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF FOOD PRODUCTS
|
|
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 200,000.00
DIVIDED INTO
ORDINARY SHARES 200,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 16,088,768 [2008]
|
|
NET WORTH
|
:
|
MYR 424,801 [2008]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
10 [2010]
|
|
BANKER (S)
|
:
|
|
PUBLIC
BANK BHD
UNITED OVERSEAS BANK (MALAYSIA)
BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD6,593.00
|
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 food products.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MS. TEH ENG
HOOI +
|
BLOCK D-27-8, CONDOMINIUM
VILLA ANGSANA, JALAN KRIAN, OFF JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
570719-07-5658
5228511
|
110,000.00
|
|
MR. POH LEONG
AUN +
|
BLOCK D-27-8, CONDOMINIUM
VILLA ANGSANA, JALAN KRIAN, OFF JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
540916-07-5457
4694607
|
90,000.00
|
|
|
|
|
---------------
|
|
|
|
|
200,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. POH CHEAN HUNG
|
|
Address
|
:
|
BLOCK D-27-8, CONDOMINIUM VILLA ANGSANA, JALAN KRIAN, OFF JALAN
IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
800311-14-5377
|
|
Date of Birth
|
:
|
11/03/1980
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
28/02/2000
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. POH LEONG AUN
|
|
Address
|
:
|
BLOCK D-27-8, CONDOMINIUM VILLA ANGSANA, JALAN KRIAN, OFF JALAN
IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
4694607
|
|
New IC No
|
:
|
540916-07-5457
|
|
Date of Birth
|
:
|
16/09/1954
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
21/07/1992
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. TEH ENG HOOI
|
|
Address
|
:
|
BLOCK D-27-8, CONDOMINIUM VILLA ANGSANA, JALAN KRIAN, OFF JALAN IPOH,
51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
5228511
|
|
New IC No
|
:
|
570719-07-5658
|
|
Date of Birth
|
:
|
19/07/1957
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
21/07/1992
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
POH LEONG AUN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
LEE, SONG & CO
|
|
Auditor' Address
|
:
|
ROOM 605, LOKE YEW BUILDING, JALAN MAHKAMAH PERSEKUTUAN, 6TH FLOOR,
50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. TEE AH LEH @ TEE BOON GEE
|
|
|
IC / PP No
|
:
|
3401560
|
|
|
New IC No
|
:
|
500223-05-5115
|
|
|
Address
|
:
|
17, JALAN USJ 6/2M, UEP, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
UNITED OVERSEAS 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
|
:
|
18/11/1992
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM900,000.00
|
|
Description Of Property Affected
|
:
|
|
HS(M) 5328 PT LOT 9485, MK BT
|
|
|
Name & Address Of Chargee
|
:
|
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
380-382 JLN TUANKU ABDUL RAHMAN, 50100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 26/12/1992
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
09/06/2005
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
12/11/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM2,650,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 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.
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
|
:
|
CHINA,INDIA,TAIWAN
|
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 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CASH,CHEQUES
|
|
Type of Customer
|
:
|
DEALERS,END USERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
ONION, GARLIC, CHILI, GRAINS AND OTHERS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AURIC CHUN YIP SDN BHD
|
|
HARPERS TRADING (MALAYSIA)
SDN BHD
|
|
LUCKY FROZEN SDN BHD
|
|
LUN HENG SDN BHD
|
|
PGEO GROUP SDN BHD
|
|
|
|
|
|
|
Ownership of
premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2010
|
2009
|
2008
|
2007
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
10
|
9
|
15
|
19
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of food products.
The SC offers a wide range of foodstuff including onion, garlic, chilli, nuts,
ginger, grains and related goods.
We were informed that the SC has a store to keep stock of the products.
The SC normally purchases the foodstuff such as onion, garlic, grain from
overseas based on its customers' requirements.
The SC's fast moving goods are onions, chilli, garlic and others.
The SC also sells canned food which are sourced from both local and overseas
suppliers.
The SC has its own transport to deliver the goods to its customers'
destinations.
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
|
:
|
03-62525088
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT NO. 9 INDUSTRIAL AREA, JINJANG UTARA 5200, KULA LUMPUR
|
|
Current Address
|
:
|
LOT 9, INDUSTRIAL AREA, JINJANG UTARA, 52000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigation
We contacted one of the staff from the Admin Department. She provided
some information on the SC.
The SC refused to comment on the economic downturn and its effects to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2.83%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
116.46%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
18.15%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
37.75%
|
]
|
The higher turnover could be attributed to the favourable market condition.
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
|
[
|
10 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
40 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
27 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had reduced
funds being tied up in stocks. The favourable debtors' days could be due to
the good credit control measures implemented by the SC. 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
|
[
|
0.74 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.86 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
|
[
|
1.93 Times
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
3.20 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:
Generally, the
SC's performance has improved with higher turnover and profit. 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 : LIMITED
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2006
|
2007
|
2008
|
2009*
|
2010**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
26.64
|
27.17
|
27.73
|
28.31
|
28.88
|
|
Gross Domestic Products ( % )
|
5.8
|
6.3
|
4.6
|
<3.5>
|
4.5
|
|
Domestic Demand ( % )
|
7.0
|
9.0
|
6.9
|
2.9
|
4.6
|
|
Private Expenditure ( % )
|
7.0
|
8.6
|
7.1
|
<0.3>
|
-
|
|
Consumption ( % )
|
7.1
|
9.0
|
8.4
|
3.5
|
-
|
|
Investment ( % )
|
7.0
|
7.1
|
1.5
|
<17.7>
|
-
|
|
Public Expenditure ( % )
|
6.8
|
10.1
|
6.5
|
11.4
|
-
|
|
Consumption ( % )
|
5.0
|
10.8
|
11.6
|
7.3
|
-
|
|
Investment ( % )
|
8.9
|
9.3
|
0.7
|
16.6
|
-
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
108,192
|
100,340
|
129,563
|
89,650
|
90,960
|
|
Government Finance ( MYR Million )
|
<19,109>
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.3>
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
|
Inflation ( % Change in Composite CPI)
|
3.9
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
|
Unemployment Rate
|
3.4
|
3.2
|
3.7
|
4.5
|
3.9
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
290
|
336
|
388
|
331
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
4.21
|
3.04
|
1.91
|
2.87
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
12.91
|
13.30
|
13.24
|
11.08
|
-
|
|
Average Base Lending Rate ( % )
|
6.61
|
6.72
|
6.72
|
5.53
|
-
|
|
Business Loans Disbursed( % )
|
<2.5>
|
9.1
|
11.6
|
13.7
|
-
|
|
Foreign Investment ( MYR Million )
|
20,228.0
|
33,426.0
|
23,261.4
|
22,156.8
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,293
|
43,337
|
41,599
|
41,578
|
-
|
|
Registration of New Companies ( % )
|
2.2
|
13.2
|
<4.0>
|
<0.1>
|
-
|
|
Liquidation of Companies ( No. )
|
8,647
|
22,629
|
27,992
|
-
|
-
|
|
Liquidation of Companies ( % )
|
181.8
|
161.5
|
23.7
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
216,147
|
227,410
|
269,866
|
312,581
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
52,879
|
20,431
|
18,885
|
-
|
-
|
|
Business Dissolved ( % )
|
<27.9>
|
<61.4>
|
<7.6>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
446.2
|
442.9
|
497.5
|
319.4
|
-
|
|
Cellular Phone Subscribers ( Million )
|
19.5
|
23.3
|
25.1
|
-
|
-
|
|
Tourist Arrival ( Million Persons )
|
17.5
|
20.9
|
21.5
|
-
|
-
|
|
Hotel Occupancy Rate ( % )
|
64.8
|
70.0
|
68.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
15.4
|
20.1
|
17.1
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
36,555
|
30,004
|
34,834
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,596
|
13,238
|
13,907
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<14.3>
|
<2.6>
|
5.1
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2006
|
2007
|
2008
|
2009*
|
2010**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.3
|
3.1
|
3.6
|
<2.0>
|
2.5
|
|
Palm Oil
|
5.8
|
<0.6>
|
7.0
|
<3.5>
|
-
|
|
Rubber
|
12.6
|
1.0
|
<1.1>
|
<23.0>
|
-
|
|
Forestry & Logging
|
<0.4>
|
2.8
|
<1.5>
|
<14.3>
|
-
|
|
Fishing
|
9.3
|
5.2
|
4.0
|
7.9
|
-
|
|
Other Agriculture
|
5.3
|
7.0
|
5.9
|
5.3
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
516.5
|
487.3
|
393.0
|
413.7
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
1.1
|
<2.0>
|
1.3
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.4>
|
3.3
|
<0.8>
|
<0.4>
|
1.1
|
|
Oil & Gas
|
4.6
|
2.2
|
12.7
|
2.1
|
-
|
|
Other Mining
|
5.1
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
55.4
|
42.2
|
36.0
|
44.2
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
7.3
|
3.1
|
1.3
|
<8.0>
|
1.7
|
|
Exported-oriented Industries
|
11.1
|
<1.9>
|
2.7
|
<19.0>
|
-
|
|
Electrical & Electronics
|
13.4
|
3.0
|
2.4
|
<30.3>
|
-
|
|
Rubber Products
|
0.4
|
8.0
|
4.2
|
<10.1>
|
-
|
|
Wood Products
|
0.7
|
3.3
|
<6.0>
|
-
|
-
|
|
Textiles & Apparel
|
12.6
|
<10.1>
|
1.9
|
<19.5>
|
-
|
|
Domestic-oriented Industries
|
5.0
|
5.3
|
9.9
|
<9.8>
|
-
|
|
Food, Beverages & Tobacco
|
4.8
|
5.6
|
9.5
|
0.2
|
-
|
|
Chemical & Chemical Products
|
1.7
|
9.2
|
1.4
|
<7.7>
|
-
|
|
Plastic Products
|
21.3
|
<3.6>
|
6.5
|
<9.1>
|
-
|
|
Iron & Steel
|
<6.9>
|
17.5
|
16.8
|
<32.7>
|
-
|
|
Fabricated Metal Products
|
20.0
|
26.2
|
14.7
|
<2.5>
|
-
|
|
Non-metallic Mineral
|
<1.9>
|
6.6
|
8.3
|
<15.5>
|
-
|
|
Transport Equipment
|
5.3
|
<19.0>
|
27.1
|
<13.5>
|
-
|
|
Paper & Paper Products
|
4.1
|
14.9
|
8.6
|
<5.0>
|
-
|
|
Crude Oil Refineries
|
12.1
|
8.6
|
7.8
|
0.2
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,181.3
|
6,366.2
|
5,729.4
|
6,007.3
|
-
|
|
% of Industry Non-Performing Loans
|
12.7
|
14.1
|
16.8
|
18.3
|
-
|
|
|
|
|
|
|
|
|
Construction
|
<0.5>
|
4.6
|
2.1
|
3.0
|
3.2
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,527.3
|
5,116.7
|
4,149.8
|
3,241.8
|
-
|
|
% of Industry Non-Performing Loans
|
11.4
|
11.3
|
12.2
|
9.9
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.2
|
9.7
|
7.3
|
4.5
|
3.6
|
|
Electric, Gas & Water
|
5.2
|
4.6
|
5.0
|
<1.4>
|
1.8
|
|
Transport, Storage & Communication
|
5.2
|
7.6
|
7.8
|
7.3
|
8.7
|
|
Wholesale, Retail, Hotel & Restaurant
|
7.1
|
11.6
|
10.0
|
7.4
|
3.5
|
|
Finance, Insurance & Real Estate
|
7.7
|
10.7
|
9.2
|
8.1
|
7.1
|
|
Government Services
|
9.8
|
4.6
|
8.6
|
4.0
|
2.8
|
|
Other Services
|
4.7
|
5.0
|
5.9
|
5.4
|
5.0
|
|
Industry Non-Performing Loans ( MYR Million )
|
11,593.2
|
10,207.8
|
8,281.4
|
6,631.3
|
-
|
|
% of Industry Non-Performing Loans
|
23.9
|
22.6
|
24.3
|
20.2
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
Rising inflationary pressure and volatile financial markets have prompted
some companies to forecast conservative earnings as they brace for a
potential slowdown in consumer spending this year. Companies cautious about
their earnings outlook are mainly those in the food and beverage industry.
Most of them import their raw materials, including milk and wheat, where
the prices have surged in recent months.
|
|
While contending with margin squeeze, the companies would not want to pass
on most of the costs yet on concerns the higher prices would affect
consumer spending. For the moment, the outlook for consumer spending might
not be as bright but the domestic economy is still strong.
|
|
The food and beverages industry has always been one of the more resilient
industries in an economic downturn. For the period of January - May 2009,
the industry achieved exports of RM4.41 billion, slightly lower than RM4.42
billion attained in the same period in 2008. The Government is dealing with
issues like inflation to improve consumer sentiment. High commodity prices
would boost the country's gross domestic product growth and consumer
spending would stay resilient, given rising household income for farmers,
civil servants and private sector employees.
|
|
An increase in the annual subsidy assistance for padi farmers to boost
production levels and encourage more people to plant the crop so as to
increase the State's food supply. The government believes the increase in
the subsidy assistance will directly increase the level of income and
well-being of the farmers in the State. This would be in line with the Malaysia
policy of People First, Performance Now. The move is also in line with the
government objective to increase the State's self-sufficiency in padi and
rice production to 60 per cent by the year 2010.
|
|
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.
|
|
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 & RECOMMENDATION
|
The SC was established in 1992 as a private limited company. The SC is
principally involved in the trading of food products. Having been in the
industry for over a decade, the SC should have built up its reputation and
image in the market. With a small issued and paid up capital of RM200,000
contributed by 2 individual shareholders, the SC may face difficulties in
its attempt to further expand its business in the future.
|
|
The SC's business operations are predominantly in Malaysia.
As such, any adverse developments in the economic environment and
uncertainties in Malaysia
could materially and adversely affect the business prospects of the SC. Its
business risk is high compared to the export oriented company. Being a
small company, the SC's business operation is supported by 10 employees.
Overall, we regard that the SC's management capability is average.
|
|
For the financial year ended 2008, the SC has reported a total turnover and
pre-tax profit of RM16,088,768 and RM152,757. 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. However, due to
its weak liquidity position, the SC will be face 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 has high gearing ratio and
it may face financial difficulties if no additional capital is injected.
The SC's overall financial performance is limited.
|
|
Investigation revealed that the SC's raw materials are sourced from both
local and overseas suppliers. Hence, the SC is subjected to currency
fluctuation risk and high operating costs.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is average. The SC is capable to meet small and medium commitments.
|
|
The industry remains robust with continuing strong global demand for its
products. With the promising outlook of the industry performance, the SC's business
potential should be favourable. Nonetheless, the SC should adopt better
competitive strategies in order to sustain its business position and to
compete with other well established players in the same industry.
|
|
In view of the above, we recommend credit be granted to the SC with close
monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
CHIN HEONG
(K.L.) SDN BHD
|
|
For The Year
Ended 31-December-2008
|
|
|
|
|
|
|
2008
|
2007
|
|
|
MYR
|
MYR
|
|
|
|
|
|
TURNOVER
|
16,088,768
|
15,646,352
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
152,757
|
70,570
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
152,757
|
70,570
|
|
Taxation
|
<75,670>
|
<58,412>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
77,087
|
------------
12,158
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
77,087
|
------------
12,158
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
77,087
|
------------
12,158
|
|
As previous reported
|
147,714
|
135,556
|
|
|
|
|
|
As restated
|
------------
147,714
|
------------
135,556
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
224,801
|
147,714
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
224,801
==========
|
------------
147,714
==========
|
|
RETAINED BY: The Company
|
224,801
|
147,714
|
|
|
|
|
|
|
------------
224,801
==========
|
------------
147,714
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
18,717
|
17,347
|
|
Bank overdraft
|
81,668
|
38,446
|
|
Hire purchase
|
10,636
|
7,740
|
|
Bankers acceptance
|
53,552
|
54,917
|
|
|
------------
164,573
==========
|
------------
118,450
==========
|
|
|
|
|
BALANCE SHEET
|
CHIN HEONG
(K.L.) SDN BHD
|
|
As At
31-December-2008
|
|
|
|
|
|
|
2008
|
2007
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
1,049,697
|
785,412
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
Investment properties
|
375,000
|
375,000
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
375,000
|
------------
375,000
|
|
TOTAL LONG TERM ASSETS
|
------------
1,424,697
|
------------
1,160,412
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
Stocks
|
454,678
|
481,772
|
|
|
Trade debtors
|
1,778,590
|
1,434,973
|
|
|
Other debtors, deposits & prepayments
|
146,761
|
119,119
|
|
|
Amount due from director
|
616,584
|
711,521
|
|
|
Cash & bank balances
|
462,428
|
616,140
|
|
TOTAL CURRENT ASSETS
|
------------
3,459,041
|
------------
3,363,525
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
1,193,245
|
1,128,627
|
|
|
Other creditors & accruals
|
71,111
|
87,105
|
|
|
Hire purchase & lease creditors
|
107,627
|
58,337
|
|
|
Bank overdraft
|
842,844
|
566,357
|
|
|
Short term borrowings/Term loans
|
13,455
|
12,760
|
|
|
Bill & acceptances payable
|
1,791,000
|
2,026,000
|
|
|
Provision for taxation
|
23,850
|
-
|
|
TOTAL CURRENT LIABILITIES
|
------------
4,043,132
|
------------
3,879,186
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<584,091>
|
------------
<515,661>
|
|
TOTAL NET ASSETS
|
------------
840,606
==========
|
------------
644,751
==========
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
200,000
|
200,000
|
|
TOTAL SHARE CAPITAL
|
------------
200,000
|
------------
200,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
224,801
|
147,714
|
|
TOTAL RESERVES
|
------------
224,801
|
------------
147,714
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
424,801
|
------------
347,714
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
246,476
|
259,703
|
|
|
Hire purchase creditors
|
148,329
|
16,334
|
|
|
Deferred taxation
|
21,000
|
21,000
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
415,805
|
------------
297,037
|
|
|
------------
|
------------
|
|
|
840,606
|
644,751
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
CHIN HEONG
(K.L.) SDN BHD
|
|
As At
31-December-2008
|
|
|
|
|
|
|
2008
|
2007
|
|
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
462,428
|
616,140
|
|
|
Net Liquid Funds
|
<393,871>
|
37,023
|
|
|
Net Liquid Assets
|
<1,038,769>
|
<997,433>
|
|
|
Net Current Assets/(Liabilities)
|
<584,091>
|
<515,661>
|
|
|
Net Tangible Assets
|
840,606
|
644,751
|
|
|
Net Monetary Assets
|
<1,454,574>
|
<1,294,470>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
1,358,731
|
913,491
|
|
|
Total Liabilities
|
4,458,937
|
4,176,223
|
|
|
Total Assets
|
4,883,738
|
4,523,937
|
|
|
Net Assets
|
840,606
|
644,751
|
|
|
Net Assets Backing
|
424,801
|
347,714
|
|
|
Shareholders" Funds
|
424,801
|
347,714
|
|
|
Total Share Capital
|
200,000
|
200,000
|
|
|
Total Reserves
|
224,801
|
147,714
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.11
|
0.16
|
|
|
Liquid Ratio
|
0.74
|
0.74
|
|
|
Current Ratio
|
0.86
|
0.87
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
10
|
11
|
|
|
Debtors Ratio
|
40
|
33
|
|
|
Creditors Ratio
|
27
|
26
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
3.20
|
2.63
|
|
|
Liabilities Ratio
|
10.50
|
12.01
|
|
|
Times Interest Earned Ratio
|
1.93
|
1.60
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
0.95
|
0.45
|
|
|
Net Profit Margin
|
0.48
|
0.08
|
|
|
Return On Net Assets
|
37.75
|
29.32
|
|
|
Return On Capital Employed
|
17.59
|
14.74
|
|
|
Return On Shareholders' Funds/Equity
|
18.15
|
3.50
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
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