* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
686333-H
|
|
COMPANY NAME
|
:
|
NAMI CREATIONS SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
28/03/2005
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
52B, JALAN 6/21D, MEDAN IDAMAN BUSINESS CENTRE, JALAN GOMBAK, 53100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
1-18-01,LANAI KIARA CONDO,JALAN KIARA 3,MONT
KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-62039796
|
|
FAX.NO.
|
:
|
03-62039796
|
|
CONTACT PERSON
|
:
|
NIREN BHARAT SHAH ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51393
|
|
PRINCIPAL ACTIVITY
|
:
|
RETAIL OF JEWELLERIES
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 5,110,570 [2009]
|
|
NET WORTH
|
:
|
MYR 508,925 [2009]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
5 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
POOR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
HISTORY / BACKGROUND
The SC is a private limited company and is
allowed to have a minimum of one and a maximum of forty-nine shareholders. As
a private limited company, the SC must have at least two directors. A private
limited company is a separate legal entity from its shareholders. As a
separate legal entity, the SC is capable of owning assets, entering into
contracts, sue or be sued by other companies. The liabilities of the
shareholders are to the extent of the equity they have taken up and the
creditors cannot claim on shareholders' personal assets even if the SC is
insolvent. The SC is governed by the Companies Act, 1965 and the company must
file its annual returns, together with its financial statements with the
Registrar of Companies.
The SC is principally engaged in the (as a / as an) retail of jewelleries.
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
|
|
NIREN BHARAT SHAH +
|
1-18-01, LANAI KIARA CONDOMINIUM, JALAN 1/61A, MONT
KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
Z1534153
|
200,000.00
|
|
MS. HASEENA BEGAM BTE IBRAHIM BABU +
|
74, JALAN SG 10/2, TAMAN SRI GOMBAK, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
850726-14-6334
|
150,000.00
|
|
MR.MOIDEEN BIN ALI KUTTY +
|
45, KAMPUNG MUHIBBAH, MUKIM NAGA, 06000 JITRA, KEDAH, MALAYSIA.
|
681105-02-5439
A1160694
|
150,000.00
|
|
|
|
|
---------------
|
|
|
|
|
500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. HASEENA BEGAM BTE IBRAHIM BABU
|
|
Address
|
:
|
74, JALAN SG 10/2, TAMAN SRI GOMBAK, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
850726-14-6334
|
|
Date of Birth
|
:
|
26/07/1985
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
07/05/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
NIREN BHARAT SHAH
|
|
Address
|
:
|
1-18-01, LANAI KIARA CONDOMINIUM, JALAN 1/61A, MONT
KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1534153
|
|
|
|
|
|
Date of Birth
|
:
|
23/01/1979
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
28/03/2005
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
NIREN BHARAT SHAH
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ABDUL RAJI & CO
|
|
Auditor' Address
|
:
|
B17-4, BLOCK B, MEGAN AVENUE, 12, JALAN YAP KWAN SENG, 50450 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. MAHMMUD BIN KINDANG
|
|
|
IC / PP No
|
:
|
K0075485
|
|
|
New IC No
|
:
|
651206-13-5541
|
|
|
Address
|
:
|
12A, TAMAN RAMPAISARI 1A, BANDAR SUNGAI BUAYA, 48010 RAWANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the subject
has been involved in any litigation. Our databank consists of 99% of the
wound up companies in Malaysia.
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%
|
|
Import Countries
|
:
|
INDIA,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
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
X
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
DEALERS,AGENTS,END USERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
JEWELLERIES
|
|
|
|
|
|
Competitor(s)
|
:
|
KAH HONG
TRADING SDN BHD
LS GOLD BULLION SDN BHD
MALAYSIAN INDUSTRIAL DIAMOND & SYNTHESIZING SDN BHD
PUSAT EMAS & PERMATA AHMAD ISMAIL SDN BHD
WAH CHAN CONSOLIDATED SDN BHD
|
|
|
|
|
|
Ownership of premises
|
:
|
LEASED/RENTED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
COMPANY
|
5
|
5
|
0
|
5
|
5
|
7
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) retail of jewelleries.
We were informed that the SC sells both costume and valuable jewelleries
includes silverwares, gold and others.
The SC sells in loose quantity as well as in ready made forms.
The SC imports the jewelleries according to the orders.
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
|
:
|
0362039796
|
|
Current Telephone Number
|
:
|
03-62039796
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
1-13A-06,LANAI KIARA CONDO,JALAN KIARA 3,MONT
KIARA, 50480, KUALA LUMPUR,
WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
1-18-01,LANAI KIARA CONDO,JALAN KIARA 3,MONT
KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
we contacted Mr Niren, one of the SC's Director. He furnished some
information on the SC.
The SC had shifted from the address provided.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
6.15%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
76.25%
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
0.03%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
0.53%
|
]
|
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
|
:
|
Unfavourable
|
[
|
232 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
141 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
346 Days
|
]
|
The SC could be incurring higher holding cost. As its capital was tied up in stocks,
it could face liquidity problems. 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
|
[
|
0.43 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.10 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
|
:
|
Acceptable
|
[
|
3.00 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The SC's interest cover was slightly low. If there is no sharp fall in its profit
or sudden increase in the interest rates, we believe the SC is able to
generate sufficient income to service its interest and repay the loans. The
SC 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:
Although the
SC's turnover had increased, its profits had declined over the same
corresponding period. This could be due to the stiffer market competition and
/ or higher operating costs which lowered the SC's profit margin. 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. The SC had an acceptable interest cover. If
there is no sudden sharp increase in interest rate or fall in the SC's
profit, we do believe the SC is able to generate sufficient cash flow to
service its interest payment. The SC 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 : 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
|
|
51393 : Wholesale of jewellery, watches, clocks and silverware
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
Retail chain outlook in year 2010 is positive.
|
|
Figure shown that in year 2009, retail sales grew by a mere 0.8 per cent
while in 2008, the growth was at 5 per cent. In 2007, retail sales grew by 12.8
per cent. Last year was challenging, businesses that were hit were those in
the fashion and fashion accessories as well as those that sold luxury or
higher priced items.
|
|
However, most of the business have started to pick up this year. The 5.5
per cent growth is expected to translate into RM74.9 billion in consumer
spending on items ranging from clothing to furniture and groceries to
jewelery. The figures do not take into account big ticket items like houses
and cars.
|
|
Sales in the second half of the year will see an impact from the reduction
of subsidies and rising interest rates. The government's move of reducing
subsidies this year will have a major impact on consumers this year. Prices
may not have risen so far, but they are expected to do so towards the end
of the year.
|
|
Another factor affecting retail trend is the cost of borrowing. Rising
interest rates will have some impact on the purchasing power of Malaysian
consumers.
|
|
It costs more now to buy big tickets items or consumer goods on credit. At
the same time, higher car and housing installments will reduce the spending
power of consumers on retail goods. Moreover, domestic consumption may also
be affected as the external demand remains week.
|
|
In the first quarter of 2010, retail growth was at 7.9 per cent, up from a
3.3 per cent contraction. With the exception of the second quarter of 2010,
the three other quarters are expected to grow over last year's
corresponding quarters. Sales in the third quarter are set to improve by 6
per cent due to the Mega Sale Carnival and Hari Raya purchases. Retail
sales in the October to December 2010 period are forecast to grow by 3.5
per cent supported by the traditional year-end school holidays and
Christmas shopping. Sales in the third quarter are set to improve by 6 per
cent due to the Mega Sale Carnival and Hari Raya purchases.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 2005 as a private limited company, the SC is principally
engaged in retailing of jewelleries. With a paid up capital of RM500,000,
the SC's shares are held by three individual shareholders. Without a strong
shareholders' backing, the SC may face difficulties in its attempt to
expand its business.
|
|
Besides catering to the local market, the SC also exports to other
countries in Asia. As it concentrates in
both local and overseas markets, we believe that the SC has the ability to
lower its business risk to meet any uncertainties in the local economy.
However, being an international player, the SC is subjected to certain
inherent risks of foreign currencies fluctuation and stiff competition from
the international market. Presently, there are 5 employees in its
operations and more efforts are expected from the management in order to
sustain its growth momentum.
|
|
The SC has an unfavourable financial standing in year 2009. Financially,
the SC registered a higher turnover of RM5.11 million compared to RM4.81
million previously. However, its pre-tax profit has moderated by 76.25% to
RM1,793. 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. Being a
zero geared company, the SC is mainly dependent on its internal funds to
finance its business needs.
|
|
We noted that all of the SC's supplies are imported from overseas
countries. Being highly dependent on overseas suppliers, the SC is subjected
to high forex risk. 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 expects to enjoy a marginal growth in the near term. As the market
competition is tight, the SC should adopt more marketing strategies in
order to retain its market position as well as compete with other well
established players in the same field.
|
|
In view of the above and based on our assessment, we recommend credit be
granted to the SC with monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
NAMI CREATIONS
SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
TURNOVER
|
5,110,570
|
4,814,526
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,793
|
7,548
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,793
|
7,548
|
|
Taxation
|
<1,650>
|
<2,959>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
143
|
------------
4,589
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
143
|
------------
4,589
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
143
|
------------
4,589
|
|
As previous reported
|
8,782
|
4,193
|
|
|
|
|
|
As restated
|
------------
8,782
|
------------
4,193
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
8,925
|
8,782
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
8,925
==========
|
------------
8,782
==========
|
|
RETAINED BY: The Company
|
8,925
|
8,782
|
|
|
|
|
|
|
------------
8,925
==========
|
------------
8,782
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Other interest expenses
|
895
|
621
|
|
|
------------
895
==========
|
------------
621
==========
|
|
|
|
|
BALANCE SHEET
|
NAMI CREATIONS
SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
3,816
|
5,296
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
3,816
|
------------
5,296
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
3,251,455
|
4,071,455
|
|
|
|
|
|
|
|
Trade debtors
|
1,979,858
|
1,562,842
|
|
|
Other debtors, deposits & prepayments
|
25,385
|
24,350
|
|
|
Amount due from director
|
84,944
|
-
|
|
|
Cash & bank balances
|
11,177
|
112,522
|
|
TOTAL CURRENT ASSETS
|
------------
5,352,819
|
------------
5,771,169
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
4,841,602
|
5,161,120
|
|
|
Other creditors & accruals
|
3,530
|
3,530
|
|
|
|
|
|
|
|
Amounts owing to director
|
-
|
99,054
|
|
|
Provision for taxation
|
2,276
|
3,677
|
|
TOTAL CURRENT LIABILITIES
|
------------
4,847,408
|
------------
5,267,381
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
505,411
|
------------
503,788
|
|
TOTAL NET ASSETS
|
------------
509,227
==========
|
------------
509,084
==========
|
|
|
|
|
|
|
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
|
8,925
|
8,782
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
8,925
|
------------
8,782
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
508,925
|
------------
508,782
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
302
|
302
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
302
|
------------
302
|
|
|
------------
|
------------
|
|
|
509,227
|
509,084
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
NAMI CREATIONS
SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
11,177
|
112,522
|
|
|
Net Liquid Funds
|
11,177
|
112,522
|
|
|
Net Liquid Assets
|
<2,746,044>
|
<3,567,667>
|
|
|
Net Current Assets/(Liabilities)
|
505,411
|
503,788
|
|
|
Net Tangible Assets
|
509,227
|
509,084
|
|
|
Net Monetary Assets
|
<2,746,346>
|
<3,567,969>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
0
|
0
|
|
|
Total Liabilities
|
4,847,710
|
5,267,683
|
|
|
Total Assets
|
5,356,635
|
5,776,465
|
|
|
Net Assets
|
509,227
|
509,084
|
|
|
Net Assets Backing
|
508,925
|
508,782
|
|
|
Shareholders" Funds
|
508,925
|
508,782
|
|
|
Total Share Capital
|
500,000
|
500,000
|
|
|
Total Reserves
|
8,925
|
8,782
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0
|
0.02
|
|
|
Liquid Ratio
|
0.43
|
0.32
|
|
|
Current Ratio
|
1.10
|
1.10
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
232
|
309
|
|
|
Debtors Ratio
|
141
|
118
|
|
|
Creditors Ratio
|
346
|
391
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
|
|
Liabilities Ratio
|
9.53
|
10.35
|
|
|
Times Interest Earned Ratio
|
3.00
|
13.15
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
0.04
|
0.16
|
|
|
Net Profit Margin
|
0
|
0.10
|
|
|
Return On Net Assets
|
0.53
|
1.60
|
|
|
Return On Capital Employed
|
0.53
|
1.60
|
|
|
Return On Shareholders' Funds/Equity
|
0.03
|
0.90
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
