|
* Adopted abbreviations : SC - Subject Company (the company enquired by
you)
N/A - Not
Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
161423-W
|
|
COMPANY NAME
|
:
|
BHAVANI IMPEX SDN BHD
|
|
FORMER NAME
|
:
|
BAVANI STORES SDN BHD (08/07/2000)
|
|
INCORPORATION DATE
|
:
|
11/05/1987
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
ROOM 101, BANGUNAN
PERSATUAN YAP SELANGOR, 102C, JALAN TUN H S LEE, 3RD FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
28, JALAN SBC
8, TAMAN SRI
BATU CAVES,
68100 BATU CAVES,
SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-61869205
|
|
FAX.NO.
|
:
|
03-61869217
|
|
CONTACT PERSON
|
:
|
K S KAILASAM ( CEO )
|
|
INDUSTRY CODE
|
:
|
51239
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF FOODSTUFF & GENERAL MERCHANDISE
|
|
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
1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 6,305,801
[2009]
|
|
NET WORTH
|
:
|
MYR 1,093,107 [2009]
|
|
STAFF STRENGTH
|
:
|
12 [2011]
|
|
BANKER (S)
|
|
HSBC BANK MALAYSIA
BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
LOW
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD2,189
|
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 foodstuff
& general merchandise.
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. RATHINASABAPATHY A/L SACHITHANANTHAM +
|
28, JALAN SBC 8, TAMAN SRI BATU
CAVES, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
S1062423A
|
998,000.00
|
|
KALAVATHY RATHINASABAPATHY
|
4, GRANGE GARDEN, 1024, SINGAPORE.
|
2170189J
|
2,000.00
|
|
|
|
|
---------------
|
|
|
|
|
1,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
KAILASAM SHANMUGASUNDARAM
|
|
Address
|
:
|
28, JALAN SBC 8, TAMAN SRI BATU
CAVES, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
F7267904
|
|
|
|
|
|
Date of Birth
|
:
|
27/09/1957
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
|
|
|
|
Remark
|
:
|
OLD PP: B1675428
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. SARATHA A/P K.MUNIAN
|
|
Address
|
:
|
4, JALAN 2, TAMAN SUBANG BARU, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A3685888
|
|
New IC No
|
:
|
770911-10-5892
|
|
Date of Birth
|
:
|
11/09/1977
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
08/08/2010
|
|
Remark
|
:
|
ALT DIR TO KAILASAM SHANMUGASUNDARAM
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. RATHINASABAPATHY A/L SACHITHANANTHAM
|
|
Address
|
:
|
28, JALAN SBC 8, TAMAN SRI BATU
CAVES, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
S1062423A
|
|
|
|
|
|
Date of Birth
|
:
|
30/06/2010
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
K S KAILASAM
|
|
|
Position
|
:
|
CEO
|
AUDITOR
|
Auditor
|
:
|
TCMK ASSOCIATED
|
|
Auditor' Address
|
:
|
102C, BANGUNAN YAP SELANGOR, JALAN TUN H S LEE, 3RD FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. KRISHNAN A/L KS MANIAM
|
|
|
IC / PP No
|
:
|
8179547
|
|
|
New IC No
|
:
|
550201-10-6693
|
|
|
Address
|
:
|
10, JALAN WIRAWATI 7, TAMAN MALURI, 55100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HSBC BANK MALAYSIA
BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
17/04/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 03/05/2007
|
|
Registered and Numbered 10 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
22/05/2008
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 26/05/2008
|
|
Registered and Numbered 11 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank against 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
Overseas : YES
Import Countries : INDIA
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
|
:
|
CHEQUES,CASH
|
OPERATIONS
|
Products manufactured
|
:
|
|
BLACKGRAM, FRIEDGRAM, GRAMDHAL, PAPPADUM, TOORDHAL
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AURIC CHUN YIP SDN BHD
|
|
HARPERS TRADING (MALAYSIA)
SDN BHD
|
|
LUCKY FROZEN SDN BHD
|
|
LUN HENG SDN BHD
|
|
PGEO GROUP SDN BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
12
|
13
|
13
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of foodstuff
& general merchandise.
The SC mainly sells traditional Indian food products as well as prayers
items.
The SC keeps stock of the products.
The SC has its own transport to deliver the products 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
|
:
|
60-3-20700744
|
|
Current Telephone Number
|
:
|
03-61869205
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
28, JALAN SBC 8, TAMAN SRI BATU
CAVES, 68100, BATU CAVES,
SELANGOR.
|
|
Current Address
|
:
|
28, JALAN SBC 8, TAMAN SRI BATU
CAVES, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted Ms
Kuna from the SC and she provided some information on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
1.03%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
80.57%
|
]
|
|
Return on
Shareholder Funds
|
:
|
Unfavourable
|
[
|
1.67%
|
]
|
|
Return on Net
Assets
|
:
|
Acceptable
|
[
|
11.05%
|
]
|
The higher turnover could be attributed to the favourable market condition. The
SC's profit fell sharply because of the high operating costs incurred. The
unfavourable return on shareholders' funds and net assets could indicate that
the SC's management was inefficient in utilising its assets to generate
returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
13 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
13 Days
|
]
|
|
Creditors
Ratio
|
:
|
Favourable
|
[
|
25 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
|
[
|
0.32 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.42 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
|
[
|
1.25 Times
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
2.78 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 Assessment:
The higher turnover
had helped to reduce the SC's losses. Due to its weak liquidity position, the
SC will be faced with problems in meeting all its short term obligations if
no short term loan is obtained or additional capital injected into the SC. If
there is a fall in the SC's profit or any increase in interest rate, the SC
may not be able to generate sufficient cash-flow to service its interest. The
SC's gearing level was high and its going concern will be in doubt if there
is no injection of additional shareholders' funds in times of economic
downturn and / or high interest rates.
Overall financial condition of the SC : POOR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
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
|
|
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
|
Incorporated in 1987 as a private limited company, the SC is
principally engaged in the trading of foodstuff and general merchandise.
With over 2 decades of experience in the business, the SC has fairly rich experiences
in the business and has achieved a certain market share. With a paid up
capital of RM1 million, the SC has greater opportunities to expand its
business when the needs arise. Under the control of its directors, we
considered that the SC's business position in the market is much dependent
on their abilities.
|
|
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.
Headed by its CEO, K S Kailasam, the SC currently has about 12 staff in its
business operations. The overall management capability of the SC is
average.
|
|
Financially, the SC registered a higher turnover of RM6.30 million compared
to RM6.24 million previously. However, its pre-tax profit has moderated by
80.57% to RM55,099. The lower profit achieved was a result of higher
operating cost and increased competition. Return on shareholders' funds of
the SC is relatively low, indicating that the SC did not generate an acceptable
amount of profits based on its existing shareholders' funds. Besides, the
SC possesses a weak liquidity position and we believe that the SC may face
some difficulties in meeting its short term financial obligations. The high
gearing ratio clearly implied that the SC was supported by more debt than
equity. Thus, the SC is exposed to high financial risk. Nevertheless, as
the SC maintain a positive net worth standing at RM1.09 million, we believe
the SC is able to enhance its business in the near term.
|
|
Apart sourcing its products locally, the SC also imports from India.
Being involved in import activity, the SC might be exposed to forex risk.
|
|
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 shows an upward trend and this trend is likely to sustain in
the near future. With the promising outlook of the industry performance,
the SC business potential should be favourable. The SC however faces
moderate business risk as it has to compete with many well established
players in the same field.
|
|
In view of its poor financial performance and based on our assessment, 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.
|
|
BHAVANI IMPEX
SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
TURNOVER
|
6,305,801
|
6,241,540
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
55,099
|
283,574
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
55,099
|
283,574
|
|
Taxation
|
<36,880>
|
<89,697>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
18,219
|
------------
193,877
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
18,219
|
------------
193,877
|
|
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
18,219
|
------------
193,877
|
|
As previous reported
|
354,888
|
161,011
|
|
As restated
|
------------
354,888
|
------------
161,011
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
373,107
|
354,888
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<280,000>
|
-
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
93,107
==========
|
------------
354,888
==========
|
|
RETAINED BY: The Company
|
93,107
|
354,888
|
|
|
------------
93,107
==========
|
------------
354,888
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
93,965
|
113,952
|
|
Bank overdraft
|
40,483
|
33,590
|
|
Hire purchase
|
13,420
|
13,116
|
|
Interest on trust receipts
|
75,436
|
64,858
|
|
|
------------
223,304
==========
|
------------
225,516
==========
|
BALANCE SHEET
|
BHAVANI IMPEX
SDN BHD
|
|
As At
31-December-2009
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
3,761,804
|
2,814,577
|
|
TOTAL LONG TERM ASSETS
|
------------
3,761,804
|
------------
2,814,577
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
Stocks
|
223,119
|
528,086
|
|
|
Trade debtors
|
222,869
|
698,277
|
|
|
Other debtors, deposits & prepayments
|
447,441
|
867,285
|
|
|
Amount due from director
|
5,238
|
741,191
|
|
|
Cash & bank balances
|
613
|
1,947
|
|
TOTAL CURRENT ASSETS
|
------------
899,280
|
------------
2,836,786
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
435,172
|
894,402
|
|
|
Other creditors & accruals
|
9,733
|
68,720
|
|
|
Hire purchase & lease creditors
|
71,388
|
76,712
|
|
|
Bank overdraft
|
573,420
|
537,294
|
|
|
Short term borrowings/Term loans
|
86,344
|
77,743
|
|
|
Other borrowings
|
927,802
|
911,036
|
|
|
Provision for taxation
|
37,172
|
139,392
|
|
TOTAL CURRENT LIABILITIES
|
------------
2,141,031
|
------------
2,705,299
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<1,241,751>
|
------------
131,487
|
|
TOTAL NET ASSETS
|
------------
2,520,053
==========
|
------------
2,946,064
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
1,000,000
|
1,000,000
|
|
TOTAL SHARE CAPITAL
|
------------
1,000,000
|
------------
1,000,000
|
|
RESERVES
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
93,107
|
354,888
|
|
TOTAL RESERVES
|
------------
93,107
|
------------
354,888
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
1,093,107
|
------------
1,354,888
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
1,297,835
|
1,394,313
|
|
|
Hire purchase creditors
|
80,688
|
152,076
|
|
|
Deferred taxation
|
48,423
|
44,787
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
1,426,946
|
------------
1,591,176
|
|
|
------------
|
------------
|
|
|
2,520,053
|
2,946,064
|
|
|
==========
|
==========
|
FINANCIAL RATIOS
|
BHAVANI IMPEX SDN
BHD
|
|
As At
31-December-2009
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
613
|
1,947
|
|
|
Net Liquid Funds
|
<659,151>
|
<613,090>
|
|
|
Net Liquid Assets
|
<1,464,870>
|
<396,599>
|
|
|
Net Current Assets/(Liabilities)
|
<1,241,751>
|
131,487
|
|
|
Net Tangible Assets
|
2,520,053
|
2,946,064
|
|
|
Net Monetary Assets
|
<2,891,816>
|
<1,987,775>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
3,037,477
|
3,149,174
|
|
|
Total Liabilities
|
3,567,977
|
4,296,475
|
|
|
Total Assets
|
4,661,084
|
5,651,363
|
|
|
Net Assets
|
2,520,053
|
2,946,064
|
|
|
Net Assets Backing
|
1,093,107
|
1,354,888
|
|
|
Shareholders" Funds
|
1,093,107
|
1,354,888
|
|
|
Total Share Capital
|
1,000,000
|
1,000,000
|
|
|
Total Reserves
|
93,107
|
354,888
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0
|
0
|
|
|
Liquid Ratio
|
0.32
|
0.85
|
|
|
Current Ratio
|
0.42
|
1.05
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
13
|
31
|
|
|
Debtors Ratio
|
13
|
41
|
|
|
Creditors Ratio
|
25
|
52
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
2.78
|
2.32
|
|
|
Liabilities Ratio
|
3.26
|
3.17
|
|
|
Times Interest Earned Ratio
|
1.25
|
2.26
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
0.87
|
4.54
|
|
|
Net Profit Margin
|
0.29
|
3.11
|
|
|
Return On Net Assets
|
11.05
|
17.28
|
|
|
Return On Capital Employed
|
8.56
|
13.99
|
|
|
Return On Shareholders' Funds/Equity
|
1.67
|
14.31
|
|
|
Dividend Pay Out Ratio (Times)
|
15.37
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
