|
* Adopted abbreviations : SC - Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
525026-M
|
|
COMPANY NAME
|
:
|
SONIATEX TRADING SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
30/08/2000
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
27, PERSIARAN BAYAN INDAH, BAYAN BAY, SUNGAI NIBONG, 11900 BAYAN
LEPAS, PULAU PINANG, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
27, PERSIARAN
BAYAN INDAH, BAYAN BAY, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU PINANG,
MALAYSIA.
|
|
TEL.NO.
|
:
|
04-6441715
|
|
FAX.NO.
|
:
|
04-6441714
|
|
CONTACT PERSON
|
:
|
MANOJ KUMAR
A/L DHARAM VEER ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
5131
|
|
PRINCIPAL ACTIVITY
|
:
|
WHOLESALE
& RETAIL OF TEXTILE & RELATED 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
1,005,831.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH AND 505,831 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 11,126,739
[2009]
|
|
NET WORTH
|
:
|
MYR 1,132,289
[2009]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
11 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
POOR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MATURE
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD11,327
|
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) wholesale & retail of
textile & related 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. SUNITA SETHI +
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
580215-71-5104
|
402,333.00
|
|
MR. MANOJ KUMAR A/L DHARAM VEER +
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
850111-07-5461
|
201,166.00
|
|
MR. NAVIN KUMAR A/L DHARAM VEER +
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
820806-07-5487
|
201,166.00
|
|
MS. SONIA A/P DHARAM VEER +
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
860706-35-5744
|
201,166.00
|
|
|
|
|
---------------
|
|
|
|
|
1,005,831.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. NAVIN KUMAR A/L DHARAM VEER
|
|
Address
|
:
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
820806-07-5487
|
|
Date of Birth
|
:
|
06/08/1982
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
01/03/2004
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. MANOJ KUMAR A/L DHARAM VEER
|
|
Address
|
:
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
850111-07-5461
|
|
Date of Birth
|
:
|
11/01/1985
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
01/03/2004
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. SONIA A/P DHARAM VEER
|
|
Address
|
:
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
860706-35-5744
|
|
Date of Birth
|
:
|
06/07/1986
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
25/01/2010
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MS. SUNITA SETHI
|
|
Address
|
:
|
29 JALAN PANTAI JERJAK 5, SUNGAI NIBONG, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
580215-71-5104
|
|
Date of Birth
|
:
|
15/02/1958
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
30/08/2000
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
MANOJ KUMAR A/L DHARAM VEER
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
STEPHEN & CO
|
|
Auditor' Address
|
:
|
LIP SIN BUILDING, 2-4-1B, LEBUH PEKAKA 1, SUNGAI 2, 4TH FLOOR, 11700
GELUGOR, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. RAJAN A/L PERIATHAMBY
|
|
|
IC / PP No
|
:
|
8267328
|
|
|
New IC No
|
:
|
551231-02-5709
|
|
|
Address
|
:
|
1, TAMAN PONDOK LABU, 09000 KULIM, KEDAH, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
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
|
:
|
23/04/2002
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM800,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
CIMB BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
25/04/2003
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM500,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
CIMB BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
12/05/2004
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM1,000,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
CIMB BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
09/10/2006
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM1,700,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
SOUTHERN BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register of Charges
|
ENCUMBRANCE 5
|
Date of Creation
|
:
|
18/04/2008
|
|
Description Of Charge
|
:
|
OPEN CHARGE
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
CIMB BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 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
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
|
|
|
|
|
|
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
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
X
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CASH,CHEQUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
TEXTILE & RELATED PRODUCTS
|
|
|
|
|
|
Competitor(s)
|
:
|
EAGLESPIN (M)
SDN BHD
JKT MARKETING SDN BHD
KIDDY HOUSE CHILDREN WEARS SDN BHD
N-2 JEANSMAKER SDN BHD
PADINI HOLDINGS BHD
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
11
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) wholesale & retail of
textile & related products.
The SC is primarily engaged in wholesale of textile, yarn and other fabrics.
The SC will provide good and best quality of textile for their local
customer.
The SC sells its products based on customers requirement.
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
|
:
|
04-6441715
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
27 PERSIARAN BAYAN INDAH, BAYAN BAY, SG NIBONG, 11900, BAYAN LEPAS,
PULAU PINANG.
|
|
Current Address
|
:
|
27, PERSIARAN BAYAN INDAH, BAYAN BAY, SUNGAI NIBONG, 11900 BAYAN
LEPAS, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the SC staff Ms Ana and she provided some information
regarding to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
21.70%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
5.17%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
15.74%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
15.83%
|
]
|
The lower turnover could be due to the intense market competition. The SC's
management have been efficient in controlling its operating costs. The SC's
management had generated acceptable return for its shareholders using its
assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
42 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
134 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
151 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
|
:
|
Unfavourable
|
[
|
0.60 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.79 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
|
[
|
2.37 Times
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
3.18 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:
Due to the
efficient control of its operating costs, the SC was able to remain
profitable despite lower turnover achieved during the year. 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:
|
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
|
|
5131 : Wholesale of textiles, clothing and footwear
|
|
|
|
|
INDUSTRY :
|
TEXTILE
|
|
|
|
|
|
|
The Malaysian textile industry is in a quandary and slowly losing out to
other textile-producing countries in the region like Cambodia, China,
Indonesia, Thailand and Vietnam. Malaysian Knitting Manufacturers Association
(MKMA) viewed that in order to remain competitive and relevant, it needs
support from the Government and the financial sector. Without this support,
the industry might not be able to survive and will soon become a sunset
industry.
|
|
Textile industry remained labour-intensive and the Government must admit
that companies were largely dependent on foreign workers as they were
having problems hiring locals. If the Government did not provide long-term
solutions, local textile companies would have no choice but to relocate to
other countries. Although production cost was rising in China, the country
was huge, offered a ready workforce and companies could operate in the
second- and third-tier cities. Government always told industries to
automate, it must remember that certain production procedures still
required the human touch. Moreover, it was not easy for textile companies
to secure loans to invest in automation and technology, as local banks
already had the notion that the industry was a sunset industry.
|
|
However, this perception is disputed as the country's export of textiles
and apparel was on the uptrend in the last 10 years; although the figure
declined to RM8.93bil last year from RM10.49bil in 2008 due to the global
economic recession. The outlook for the textile industry is still positive
as orders have started coming back since the last quarter of 2009 and are
expected to pick up in the second half of the year.
|
|
Local textile makers were not really perturbed by the difficulty in
securing loans for their business expansion and some of them had even
diversified their range of products. These include producing fire-retardant
and ultraviolet-protective textile and fabrics for the non-apparel segment
such as the upholstery for furniture, automotives and aeroplanes.
|
|
In the view of above, Government should be more proactive and emulate the
steps taken by the governments of the countries mentioned in supporting
their textile industry. For example, there is a bill in the United States
requiring the health, military and postal departments there to use only
locally-made fabrics for their staff uniforms. Therefore, Malaysia should
do the same and the move could include the police, immigration and customs
departments, and uniforms for school children and participants of the
National Service programme. If such a bill were passed by parliament, not
only the textile industry would benefit but so would the small and
medium-scale enterprises, especially those in the support and service
sectors. Although local textile makers were known for their reliability and
quality products internationally, that would not guarantee their survival
as other countries were fast catching up.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Mature
|
COMMENTS & RECOMMENDATION
|
Established in 2000, the SC is a private limited company with core
business in the wholesale and retail of textile and related products.
Having been in the industry for over a decade, the SC has achieved a
certain market share and has built up a satisfactory reputation in the
market. With RM1 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.
|
|
At present, local market remains the SC's biggest market. It depends solely
on the sales in the domestic market to achieve profitability. Any adverse
developments in the economic environment and uncertainties in Malaysia
could materially and adversely affect the business prospects of the SC. As
such, its business risk is high compared to export oriented companies. The
SC can be recognised as a small entity with a work force of 11 employees in
the operations. Its management capability is considered average.
|
|
For the financial year ended 2009, the SC's turnover decreased from
RM14,209,629 to RM11,126,739. Despite the lower turnover, the SC's pre-tax
profit grew 5.17% to RM282,258. 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, the SC possesses a weak
liquidity position and we believe that the SC may face some difficulties in
meeting its short term financial obligations. Moreover, the SC has a high
gearing ratio of 3.18 times which has placed the SC at high financial risk.
The SC had a limited financial performance. Nevertheless, as the SC
maintain a positive net worth standing at RM1.13 million, we believe the SC
is able to enhance its business in the near term.
|
|
Our check revealed that the SC's supplies are 100% sourced from overseas
countries. As an imported oriented company, its forex exposure is high. A
small movement in currency exchange rates would result in a change in
operating profit or costs.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is poor. The unfavourable creditors' ratio may affect the goodwill
between the SC and its suppliers and the SC may inadvertently have to pay
more for its future supplies.
|
|
The industry has reached its maturity stage and only enjoying a marginal
growth. The competition within the industry is very competitive. Hence, the
SC should embrace new technologies and best practices to increase
productivity, efficiency and adapt the ever-changing market in order to
sustain its market shares.
|
|
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.
|
|
SONIATEX
TRADING SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
11,126,739
|
14,209,629
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
282,258
|
268,377
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
282,258
|
268,377
|
|
Taxation
|
<104,008>
|
<71,630>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
178,250
|
------------
196,747
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
178,250
|
------------
196,747
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
178,250
|
------------
196,747
|
|
As previous reported
|
454,039
|
257,292
|
|
|
|
|
|
As restated
|
------------
454,039
|
------------
257,292
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
632,289
|
454,039
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
632,289
==========
|
------------
454,039
==========
|
|
RETAINED BY: The Company
|
632,289
|
454,039
|
|
|
|
|
|
|
|
|
|
|
------------
632,289
==========
|
------------
454,039
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
169,401
|
187,038
|
|
|
|
|
|
|
|
|
|
Hire purchase
|
36,774
|
16,931
|
|
|
|
|
|
|
------------
206,175
==========
|
------------
203,969
==========
|
|
|
|
|
BALANCE SHEET
|
SONIATEX
TRADING SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
1,145,890
|
1,256,900
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment properties
|
3,431,603
|
3,431,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
3,431,603
|
------------
3,431,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
4,577,493
|
------------
4,688,503
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
1,273,666
|
923,744
|
|
|
|
|
|
|
|
Trade debtors
|
4,080,758
|
3,111,375
|
|
|
Other debtors, deposits & prepayments
|
34,996
|
19,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
83,651
|
682,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
5,473,071
|
------------
4,737,296
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
4,603,933
|
4,437,421
|
|
|
Other creditors & accruals
|
166,083
|
189,215
|
|
|
Hire purchase & lease creditors
|
139,974
|
434,639
|
|
|
Bank overdraft
|
856,835
|
501,906
|
|
|
Short term borrowings/Term loans
|
171,327
|
140,424
|
|
|
Other borrowings
|
491,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
525,822
|
488,943
|
|
|
Provision for taxation
|
10,462
|
29,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
6,965,436
|
------------
6,221,842
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<1,492,365>
|
------------
<1,484,546>
|
|
TOTAL NET ASSETS
|
------------
3,085,128
==========
|
------------
3,203,957
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
500,000
|
------------
500,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
632,289
|
454,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
632,289
|
------------
454,039
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
1,132,289
|
------------
954,039
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
1,824,761
|
2,036,314
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
122,350
|
207,827
|
|
|
Deferred taxation
|
5,728
|
5,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
1,952,839
|
------------
2,249,918
|
|
|
------------
|
------------
|
|
|
3,085,128
|
3,203,957
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
SONIATEX
TRADING SDN BHD
|
|
As At
31-December-2009
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
83,651
|
682,199
|
|
|
Net Liquid Funds
|
<944,511>
|
39,869
|
|
|
Net Liquid Assets
|
<2,766,031>
|
<2,408,290>
|
|
|
Net Current Assets/(Liabilities)
|
<1,492,365>
|
<1,484,546>
|
|
|
Net Tangible Assets
|
3,085,128
|
3,203,957
|
|
|
Net Monetary Assets
|
<4,718,870>
|
<4,658,208>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
3,606,247
|
3,321,110
|
|
|
Total Liabilities
|
8,918,275
|
8,471,760
|
|
|
Total Assets
|
10,050,564
|
9,425,799
|
|
|
Net Assets
|
3,085,128
|
3,203,957
|
|
|
Net Assets Backing
|
1,132,289
|
954,039
|
|
|
Shareholders" Funds
|
1,132,289
|
954,039
|
|
|
Total Share Capital
|
500,000
|
500,000
|
|
|
Total Reserves
|
632,289
|
454,039
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.01
|
0.11
|
|
|
Liquid Ratio
|
0.60
|
0.61
|
|
|
Current Ratio
|
0.79
|
0.76
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
42
|
24
|
|
|
Debtors Ratio
|
134
|
80
|
|
|
Creditors Ratio
|
151
|
114
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
3.18
|
3.48
|
|
|
Liabilities Ratio
|
7.88
|
8.88
|
|
|
Times Interest Earned Ratio
|
2.37
|
2.32
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
2.54
|
1.89
|
|
|
Net Profit Margin
|
1.60
|
1.38
|
|
|
Return On Net Assets
|
15.83
|
14.74
|
|
|
Return On Capital Employed
|
11.48
|
11.03
|
|
|
Return On Shareholders' Funds/Equity
|
15.74
|
20.62
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
