|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
148782-T
|
|
COMPANY NAME
|
:
|
KIMIA PERTAMA (M) SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
20/12/1985
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
D12, PLAZA PEKELILING, 2 JALAN TUN RAZAK, 1ST FLOOR, 50400 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
6, JALAN ANGGERIK MOKARA 31/47, KOTA KEMUNING, SECTION 31, 40460
SHAH ALAM, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-51217333
|
|
FAX.NO.
|
:
|
03-51229208
|
|
CONTACT PERSON
|
:
|
KWEE MOON TECK ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51499
|
|
PRINCIPAL ACTIVITY
|
:
|
DISTRIBUTION OF CHEMICAL PRODUCTS
|
|
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
1,300,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH AND 300,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 21,761,769 [2009]
|
|
NET WORTH
|
:
|
MYR 11,899,201 [2009]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
10 [2011]
|
|
BANKER (S)
|
:
|
|
MALAYAN
BANKING BHD
PUBLIC BANK BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD255,519
|
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) distribution of chemical
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
|
|
MR. KWEE MOON TECK +
|
2, JALAN PUTRA PERMAI, 10/3A, PUTRA HEIGHTS, 47650 SUBANG JAYA,
SELANGOR, MALAYSIA.
|
540310-04-5421
4588380
|
780,000.00
|
|
MR. CHONG KONG LEUN @ CHONG KONG SEN +
|
17, LORONG SS23/6A, TAMAN SEA, 47400 PETALING JAYA, SELANGOR,
MALAYSIA.
|
471113-01-5745
1582760
|
520,000.00
|
|
|
|
|
---------------
|
|
|
|
|
1,300,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. CHONG KONG LEUN @ CHONG KONG SEN
|
|
Address
|
:
|
17, LORONG SS23/6A, TAMAN SEA, 47400 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
1582760
|
|
New IC No
|
:
|
471113-01-5745
|
|
Date of Birth
|
:
|
13/11/1947
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
27/02/1991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. KWEE MOON TECK
|
|
Address
|
:
|
2, JALAN PUTRA PERMAI, 10/3A, PUTRA HEIGHTS, 47650 SUBANG JAYA,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4588380
|
|
New IC No
|
:
|
540310-04-5421
|
|
Date of Birth
|
:
|
10/03/1954
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
05/06/1986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
KWEE MOON TECK
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
Auditor
|
:
|
DOUGLAS LOH & ASSOCIATES
|
|
Auditor' Address
|
:
|
LOT 351, WISMA MPL, JALAN RAJA CHULAN, 3RD FLOOR, 50200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. CHEOK KIM CHEE
|
|
|
IC / PP No
|
:
|
1311695
|
|
|
New IC No
|
:
|
490204-05-5287
|
|
|
Address
|
:
|
18, JALAN DESA RIA 2, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
PUBLIC 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
|
:
|
03/03/1986
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM100,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
13/09/1988
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM130,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
13/10/1992
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM200,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 6 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
24/09/1992
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM30,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 7 In The Register of Charges
|
ENCUMBRANCE 5
|
Date of Creation
|
:
|
22/03/1996
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM350,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 9 In The Register of Charges
|
ENCUMBRANCE 6
|
Date of Creation
|
:
|
11/11/1997
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM650,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 10 In The Register of Charges
|
ENCUMBRANCE 7
|
Date of Creation
|
:
|
27/06/2005
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM2,430,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 11 In The Register of Charges
|
ENCUMBRANCE 8
|
Date of Creation
|
:
|
01/07/2009
|
|
Description Of Charge
|
:
|
LETTER OF SETOFF
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
PLEDGE OF FIXED DEPOSIT (FD) TOGETHER WITH INTEREST ACCRURD THEREON
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
2, JALAN SEPADU B25/B, TAMAN PERINDUSTRIAN AXIS, SECTION 25, 40400 SHAH
ALAM, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 08/07/2009
|
|
Registered and Numbered 12 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.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
UNITED STATES,EUROPE,ASIA
|
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
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
|
:
|
CHEQUES,CASH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
CHEMICALS
|
|
|
|
|
|
Competitor(s)
|
:
|
IDEMITSU
CHEMICALS (M) SDN BHD
KZH RESOURCES SDN BHD
MARUBENI KABUSHIKI KAISHA_(MARUBENI CORPORATION)
TEXCHEM RESOURCES BHD
TITAN TRADING CORP. SDN BHD
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2009
|
2008
|
2007
|
2006
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
10
|
10
|
10
|
11
|
11
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) distribution of chemical
products.
The SC's chemicals are mainly in the liquid form.
The products are sold in drums.
The SC has a warehouse located at the same premises to keep stock and
materials.
Besides that it also provides delivery services to the customers' door step.
The SC sells the following products:
1) Dow Chemical - TCE, MC, PCE, PG, NPAC, IPAC, etc
2) Ineos Oxide - PAG, PEG 200 to PEG 8000, MEA, DEA, TEA
3) Total Oil - Hydrocarbons, Aromatic and Aliphatic Solvents
4) Blue Gold - Water-based degreaser
The SC also sell Heat Transfer Fluids (Glycol base), both food grade and
Industrial grade.
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
|
:
|
03-51217333
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
6, JALAN ANGGERIK MOKARA 31/47, KOTA KEMUNING, SECTION 31, 40460,
SHAH ALAM, SELANGOR.
|
|
Current Address
|
:
|
6, JALAN ANGGERIK MOKARA 31/47, KOTA KEMUNING, SECTION 31, 40460
SHAH ALAM, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the SC staff and he provided some information regarding
to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
11.52%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
15.82%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing
and new market players. The SC's profit fell sharply because of the high
operating costs incurred. The SC's management had generated acceptable return
for its shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Acceptable
|
[
|
59 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
100 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
50 Days
|
]
|
The SC kept adequate stocks to meet its normal business transactions without
incurring excessive storage costs. The SC's debtors ratio was high. The SC
should tighten its credit control and improve its collection period. 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
|
:
|
Favourable
|
[
|
2.26 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
3.34 Times
|
]
|
A minimum liquid ratio of 1 should be maintained by the SC in order to assure
its creditors of its ability to meet short term obligations and the SC was in
a good liquidity position. Thus, we believe the SC is able to meet all its
short term obligations as and when they fall due.
Solvency
|
Interest Cover
|
:
|
Favourable
|
[
|
106.10 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The interest cover showed that the SC was able to service the interest. The
favourable interest cover could indicate that the SC was making enough profit
to pay for the interest accrued. The SC had no gearing and hence it had
virtually no financial risk. The SC was financed by its shareholders' funds
and internally generated fund. During the economic downturn, the SC, having a
zero gearing, will be able to compete better than those which are highly
geared in the same industry.
Overall
Assessment:
The SC recorded
lower profits as its turnover showed a erratic trend. The SC's management was
unable to control its costs efficiently as its profit showed a downward
trend. The SC was in good liquidity position with its total current
liabilities well covered by its total current assets. With its current net
assets, the SC should be able to repay its short term obligations. With the
favourable interest cover, the SC could be able to service all the accrued interest
without facing any difficulties. The SC was a zero gearing company, it was
solely dependant on its shareholders to provide funds to finance its
business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : STRONG
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
51499 : Wholesale of other intermediate products, waste and scrap
n.e.c.
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
|
|
|
|
|
The chemicals industry is one of Malaysia's key industries, catering not
only for its own national requirements but also exporting to a number of
countries worldwide. The Malaysian chemicals and chemical products industry
has become the second largest contributor to the manufactured exports
sector, after the electrical and electronics industry.
|
|
The chemicals industry is important in Malaysia on account of the nation's
substantial oil and gas feedstock. The Chemicals Industries Council of
Malaysia (CICM) was established in 1978 as an industry group under the
aegis of the Federation of Malaysian Manufacturers, to focus on the
development of the chemicals industry. The primary objective of the CICM
was to organise the chemicals industry in Malaysia into a cohesive group to
represent Malaysia's interest at the ASEAN Chemicals Industries Club
(ACIC).
|
|
The Malaysian chemicals industry witnessed 37% growth in domestic sales
value in 2004 and sustained solid growth up until mid-2008. It expanded
rapidly and had been forecast to reach sales figures of MYR60,816mn by
2009.
|
|
Malaysia's balance of trade for the year January to December 2008 was
MYR114,883mn. In the first five months of 2008, total trade was 11.2% up on
the same period last year. These impressive figures were short-lived
however, with significant decreases observed in the latter half of 2008 and
early 2009, due to the impact of global economic crisis. The Industrial
Production Index (IPI) in January 2009 was 20.2 % lower than it was in
January 2008, following a sharp decline of 15.9% in December 2008.
|
|
The biggest drop was witnessed by chemicals and chemical products, which
saw output contract by 29.9%. This is partly because the chemicals industry
tends to be more sensitive to the economic cycle and so fares
disproportionately badly in recessions.
|
|
Total exports are down from MYR100,115mn (US$27,858.48mn) in
January-February 2008 to MYR77,856mn (US$21,662mn) in the same period of
2009. Similarly, there has been a fall in imports, with total incoming
sales falling from MYR81,289mn (US$22,617mn) in January-February 2008 to
MYR57,778mn (US$16,705mn) in January-February 2009.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1985, as a private limited company, the SC is principally
engaged in the distribution of chemicals products. The SC has been
existence in the market for 23 years and it has succeeded in building up
its image in the market. With RM1.3 million in issued and paid up capital,
the SC has the potential of capturing a higher market shares as it is
competing aggressively in the market.
|
|
Information revealed that the SC solely focuses on domestic market rather
than overseas market. We believe that this narrow market segment would
limit the SC's business opportunities and the SC is likely to be affected
by the uncertainties in local economy. However, its long presence in the
market has enabled the SC to gain certain market shares and established
good rapport with its clients. Thus, its business risk is diversified. The
management of the SC is overseen by its Managing Director, Kwee Moon Teck
and assisted by 10 staff in the operations. Overall the management
capability of the SC is average.
|
|
In year 2009, the SC's business performance showed a reverse trend as both
its turnover and pre-tax profit have decreased compared to the previous
year. Its turnover has moderated from RM23.03 million to RM21.76 million
whilst its pre-tax profit dropped to RM1.87 million, in view of decline in
margin as a result of a challenging and competitive business environment.
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. Besides, good cash flow management has enabled the SC to
meet its short term obligations as and when they fall due. Moreover, being
a zero geared company, the SC virtually has no financial risk as it is
mainly dependent on its internal funds to finance its business. Given a
positive net worth standing at RM11.89 million, the SC should be able to
maintain its business in the near terms.
|
|
The SC might be exposed to the forex risk as some of its raw materials are
sourced from overseas suppliers such as Asia, Europe and United States.
With its long presence in the market, it should have developed a strong
supplier. Thus, it eliminates the risk of dependency on deliveries from a
number of key suppliers and insufficient quantities of its raw materials.
|
|
Based on our historical financial data, we concluded that the SC's payment
is good. This implies a good credit control and the SC could be taking
advantage of the cash discounts and maintain a good reputation with its
creditors. The SC is clear of any litigation as it has maintained a good
image over the years.
|
|
The chemical industry remains an important sector and a growth engine for
manufacturing output. With the positive outlook from these industries, the
SC's business opportunity in the future should be bright. Nonetheless, the
SC should expand its business to the international market to gain higher
market share.
|
|
In view of its favorable financial condition and based on our assessment,
we recommend credit be granted to the SC promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
KIMIA PERTAMA
(M) SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
21,761,769
|
23,035,121
|
22,066,163
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,870,850
|
2,920,436
|
1,772,746
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,870,850
|
2,920,436
|
1,772,746
|
|
Taxation
|
<499,901>
|
<586,723>
|
<480,159>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
1,370,949
|
------------
2,333,713
|
------------
1,292,587
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
1,370,949
|
------------
2,333,713
|
------------
1,292,587
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
1,370,949
|
------------
2,333,713
|
------------
1,292,587
|
|
As previous reported
|
9,591,748
|
7,258,035
|
5,965,448
|
|
|
|
|
|
|
As restated
|
------------
9,591,748
|
------------
7,258,035
|
------------
5,965,448
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
10,962,697
|
9,591,748
|
7,258,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<363,496>
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
10,599,201
==========
|
------------
9,591,748
==========
|
------------
7,258,035
==========
|
|
RETAINED BY: The Company
|
10,599,201
|
9,591,748
|
7,258,035
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
10,599,201
==========
|
------------
9,591,748
==========
|
------------
7,258,035
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
17,800
|
87,567
|
86,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
17,800
==========
|
------------
87,567
==========
|
------------
86,443
==========
|
|
|
|
|
|
|
KIMIA PERTAMA
(M) SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
4,316,115
|
4,299,779
|
4,497,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
4,316,115
|
------------
4,299,779
|
------------
4,497,337
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
3,518,282
|
1,791,412
|
2,208,551
|
|
|
|
|
|
|
|
|
Trade debtors
|
5,934,173
|
4,482,781
|
6,031,886
|
|
|
Other debtors, deposits & prepayments
|
71,027
|
1,879,342
|
744,426
|
|
|
Short term deposits
|
594,992
|
288,172
|
279,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
754,957
|
583,751
|
361,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
10,873,431
|
------------
9,025,458
|
------------
9,625,414
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
2,963,247
|
1,744,605
|
3,378,097
|
|
|
Other creditors & accruals
|
44,178
|
265,606
|
82,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term borrowings/Term loans
|
-
|
-
|
120,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
100,000
|
189,515
|
409,580
|
|
|
Provision for taxation
|
143,283
|
218,030
|
232,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
3,250,708
|
------------
2,417,756
|
------------
4,222,734
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
7,622,723
|
------------
6,607,702
|
------------
5,402,680
|
|
TOTAL NET ASSETS
|
------------
11,938,838
==========
|
------------
10,907,481
==========
|
------------
9,900,017
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
1,300,000
|
1,300,000
|
1,300,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
1,300,000
|
------------
1,300,000
|
------------
1,300,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
10,599,201
|
9,591,748
|
7,258,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
10,599,201
|
------------
9,591,748
|
------------
7,258,035
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
11,899,201
|
------------
10,891,748
|
------------
8,558,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
Long term loans
|
-
|
-
|
1,341,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
39,637
|
15,733
|
716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
39,637
|
------------
15,733
|
------------
1,341,982
|
|
|
------------
|
------------
|
------------
|
|
|
11,938,838
|
10,907,481
|
9,900,017
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
KIMIA PERTAMA
(M) SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
1,349,949
|
871,923
|
640,551
|
|
|
Net Liquid Funds
|
1,349,949
|
871,923
|
520,179
|
|
|
Net Liquid Assets
|
4,104,441
|
4,816,290
|
3,194,129
|
|
|
Net Current Assets/(Liabilities)
|
7,622,723
|
6,607,702
|
5,402,680
|
|
|
Net Tangible Assets
|
11,938,838
|
10,907,481
|
9,900,017
|
|
|
Net Monetary Assets
|
4,064,804
|
4,800,557
|
1,852,147
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
1,461,638
|
|
|
Total Liabilities
|
3,290,345
|
2,433,489
|
5,564,716
|
|
|
Total Assets
|
15,189,546
|
13,325,237
|
14,122,751
|
|
|
Net Assets
|
11,938,838
|
10,907,481
|
9,900,017
|
|
|
Net Assets Backing
|
11,899,201
|
10,891,748
|
8,558,035
|
|
|
Shareholders" Funds
|
11,899,201
|
10,891,748
|
8,558,035
|
|
|
Total Share Capital
|
1,300,000
|
1,300,000
|
1,300,000
|
|
|
Total Reserves
|
10,599,201
|
9,591,748
|
7,258,035
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.42
|
0.36
|
0.15
|
|
|
Liquid Ratio
|
2.26
|
2.99
|
1.76
|
|
|
Current Ratio
|
3.34
|
3.73
|
2.28
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
59
|
28
|
37
|
|
|
Debtors Ratio
|
100
|
71
|
100
|
|
|
Creditors Ratio
|
50
|
28
|
56
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0.17
|
|
|
Liabilities Ratio
|
0.28
|
0.22
|
0.65
|
|
|
Times Interest Earned Ratio
|
106.10
|
34.35
|
21.51
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
8.60
|
12.68
|
8.03
|
|
|
Net Profit Margin
|
6.30
|
10.13
|
5.86
|
|
|
Return On Net Assets
|
15.82
|
27.58
|
18.78
|
|
|
Return On Capital Employed
|
15.82
|
27.58
|
18.55
|
|
|
Return On Shareholders' Funds/Equity
|
11.52
|
21.43
|
15.10
|
|
|
Dividend Pay Out Ratio (Times)
|
0.27
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
|
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