MIRA INFORM REPORT

 

 

Report Date :

07.12.2012

 

IDENTIFICATION DETAILS

 

Name :

KILANG MEMPROSES BARANG2 TEMPATAN SDN BHD

 

 

Registered Office :

311a, Taman Melaka Raya, 75000 Melaka, Melaka

 

 

 

 

Country :

Malaysia

 

 

 

 

Financials (as on) :

31.01.2011

 

 

 

 

Date of Incorporation :

07.09.1976

 

 

 

 

Com. Reg. No.:

29134-K

 

 

 

 

Legal Form :

Private Limited

 

 

 

 

Line of Business :

Trading of Animal Feed

 

 

 

 

No. of Employees :

30

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

29134-K

COMPANY NAME

:

KILANG MEMPROSES BARANG2 TEMPATAN SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/09/1976

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

311A, TAMAN MELAKA RAYA, 75000 MELAKA, MELAKA, MALAYSIA.

BUSINESS ADDRESS

:

BATU 3 1/2, PULAU GADONG, 75200 MELAKA, MELAKA, MALAYSIA.

TEL.NO.

:

06-3357285/357288

FAX.NO.

:

06-3357301

CONTACT PERSON

:

LIM SIEW CHOO ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51912

PRINCIPAL ACTIVITY

:

TRADING OF ANIMAL FEED

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 1,500,000.00 DIVIDED INTO 
ORDINARY SHARES 1,500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 35,028,740 [2011]

NET WORTH

:

MYR 6,034,601 [2011]

 

 

 

STAFF STRENGTH

:

30 [2012]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
EON BANK BHD
HONG LEONG BANK BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE 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) trading of animal feed.

 

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

(%)

LIM SIAK CHIEW SDN BHD

3 1/2 MILES, PULAU GADONG, 75200 MELAKA, MELAKA, MALAYSIA.

50056

750,000.00

50.00

L.P.H.REALTY SDN BHD

100-G, JALAN KESIDANG 2/24, LORONG PANDAN, 75200 MELAKA, MELAKA, MALAYSIA.

113489

750,000.00

50.00

 

 

 

---------------

------

 

 

 

1,500,000.00

100.00

 

 

 

============

=====

+ Also Director

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. LIM SIEW CHOO

Address

:

19-F, JALAN LORONG BACHANG, 75350 BATU BERENDAM, MELAKA, MALAYSIA.

IC / PP No

:

5546810

New IC No

:

590403-04-5194

Date of Birth

:

03/04/1959

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

08/07/1987

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIOW CHAI GUAN

Address

:

187 TAMAN ASEAN, JALAN MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

5441626

New IC No

:

580611-04-5341

Date of Birth

:

11/06/1958

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

23/07/2007



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM SIEW CHOO

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

YEO & PIONG

Auditor' Address

:

311B, TAMAN MELAKA RAYA, 75000 MELAKA, MELAKA, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. YEO YAN

 

IC / PP No

:

3520977

 

New IC No

:

450927-01-5469

 

Address

:

656D, JALAN UJONG PASIR, 75050 MELAKA, MELAKA, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

EON BANK BHD

 

 

 

 

 

3)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

4)

Name

:

RHB 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

:

06/02/2008

Description Of Charge

:

1ST LEGAL CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THOSE 2 PIECES OF LAND HELD UNDER TITLE NOS GM 33 & GM 35, LOT 574 & 570 BOTH IN MK KLEBANG BSR, MELAKA TENGAH, MELAKA

 

Name & Address Of Chargee

:

RHB BANK BHD
5 & 6, JALAN DR 1, TAMAN DELIMA RAYA, BUKIT BARU, GROUND FLOOR, 75150 MELAKA, MELAKA, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 13/02/2008

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

25/01/2008

Description Of Charge

:

LETTER OF SET-OFF

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

FIXED DEPOSIT OF RM300,000.00 ACC 3-04027-0016751

 

Name & Address Of Chargee

:

RHB BANK BHD
5 & 6, JALAN DR 1, TAMAN DELIMA RAYA, BUKIT BARU, GROUND FLOOR, 75150 MELAKA, MELAKA, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 27/02/2008

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

07/07/2009

Description Of Charge

:

2ND LEGAL CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

GRN MK HAKMILIK 35 & 33, LOT 570 & LOT 574, ALL IN MK KLEBANG BESAR, MELAKA TENGAH, MELAKA

 

Name & Address Of Chargee

:

RHB BANK BHD
477, PLAZA MELAKA, JALAN HANG TUAH, 75300 MELAKA, MELAKA, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 14/07/2009

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

20/11/2009

Description Of Charge

:

FIXED DEPOSIT BUILD-UP OF RM20,000.00

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

QUARTELY FIXED DEPOSIT BUILD-UP OF RM20,000.00 EACH UNTIL TOTAL FIXED DEPOSIT PLEDGED REACHES RM500,000.00

 

Name & Address Of Chargee

:

EON BANK BHD
1 & 3, JALAN MALIM JAYA 2/7A, TAMAN MALIM PERMAI, 75250 MELAKA, MELAKA, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 02/12/2009

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

01/11/2010

Description Of Charge

:

N/A

 

Amount Secured

:

RM3,100,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

EON BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

15/01/1986

Description Of Charge

:

N/A

 

Amount Secured

:

RM155,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UMBC BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

25/08/2011

Description Of Charge

:

MEMORANDUM OF DEPOSIT

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
MENARA MULTI-PURPOSE, CALIPTAL SQUARE, 8 JALAN MUNSHI ABDULLAH, 3RD FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

21/10/2011

Description Of Charge

:

FIXED DEPOSIT

 

Amount Secured

:

RM2,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HONG LEONG BANK BHD
1 & 3, JALAN MALIM JAYA 2/7A, TAMAN MALIM PERMAI, 75250 MELAKA, MELAKA, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

02/03/2012

Description Of Charge

:

LETTER OF SET OFF

 

Amount Secured

:

RM3,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD
TOWER ONE, RHB CENTRE, JALAN TUN RAZAK, LEVEL 10, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 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

Overseas

:

YES

 

 

 



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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

ANIMAL FEED

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

30

15

15

20

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of animal feed.

The SC sells animal feed.

The products including corn, maze, flour, salt and other related products 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

06-3357285/357288

Match

:

N/A

 

 

 

Address Provided by Client

:

BATU 3 1/2, PULAU GADONG,75200,MELAKA,MELAKA.

Current Address

:

BATU 3 1/2, PULAU GADONG, 75200 MELAKA, MELAKA, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the SC and she provided some information on the SC.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

9.86%

]

 

Return on Net Assets

:

Acceptable

[

14.83%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

8 Days

]

 

Debtor Ratio

:

Unfavourable

[

135 Days

]

 

Creditors Ratio

:

Favourable

[

58 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 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

[

1.40 Times

]

 

Current Ratio

:

Unfavourable

[

1.46 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

:

Acceptable

[

4.47 Times

]

 

Gearing Ratio

:

Favourable

[

0.05 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 was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

51912 : Wholesale of animal/pet food

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively. 


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1976, the SC is a Private Limited company, focusing on trading of animal feed. The SC has been in business for over three decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. Thus, the SC is expected to enjoy a stable market shares. Presently, the issued and paid up capital of the SC stands at MYR 1,500,000.


Over the years, the SC should have build up its clientele base and received supports from its regular customers. 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. Being a small company, the SC's business operation is supported by 30 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 6,034,601, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. Investigation revealed that the SC's raw materials are sourced from both local and overseas suppliers. Hence, the SC is subjected to currency fluctuation risk. Overall the SC has a good control over its resources.


Based on our historical financial data, the SC's payment is average. The SC should be able to meet its small and medium commitments.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC promptly.


PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

KILANG MEMPROSES BARANG2 TEMPATAN SDN BHD

 

Financial Year End

31/01/2011

31/01/2010

31/01/2009

31/01/2008

31/01/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

35,028,740

27,746,583

25,586,222

18,057,568

14,874,356

 

----------------

----------------

----------------

----------------

----------------

Total Turnover

35,028,740

27,746,583

25,586,222

18,057,568

14,874,356

Costs of Goods Sold

<32,398,090>

<24,929,758>

-

-

-

 

----------------

----------------

----------------

----------------

----------------

Gross Profit

2,630,650

2,816,825

-

-

-

 

----------------

----------------

----------------

----------------

----------------

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

764,734

701,367

795,006

236,970

163,692

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

764,734

701,367

795,006

236,970

163,692

Taxation

<169,832>

<178,535>

<168,750>

<52,009>

<25,393>

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

594,902

522,832

626,256

184,961

138,299

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

4,395,544

4,277,714

3,651,458

3,466,497

3,328,198

 

----------------

----------------

----------------

----------------

----------------

As restated

4,395,544

4,277,714

3,651,458

3,466,497

3,328,198

 

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

4,990,446

4,800,546

4,277,714

3,651,458

3,466,497

DIVIDENDS - Ordinary (paid & proposed)

<675,000>

<405,002>

-

-

-

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,315,446

4,395,544

4,277,714

3,651,458

3,466,497

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

6,374

1,843

-

-

-

Term loan / Borrowing

66,837

33,719

-

-

-

Trust receipts

145,607

111,306

-

-

24,850

Others

1,431

219

147,088

48,521

503

 

----------------

----------------

----------------

----------------

----------------

 

220,249

147,087

147,088

48,521

25,353

 

 

 

BALANCE SHEET

 

 

KILANG MEMPROSES BARANG2 TEMPATAN SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

611,770

509,371

418,551

406,846

416,042

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

655,000

655,000

655,000

655,000

655,000

Investments

180,000

180,000

180,000

180,000

180,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

835,000

835,000

835,000

835,000

835,000

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

1,446,770

1,344,371

1,253,551

1,241,846

1,251,042

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

732,303

931,811

779,094

426,653

172,339

Trade debtors

12,948,485

9,911,457

11,281,165

10,247,782

8,450,776

Other debtors, deposits & prepayments

294,975

507,923

42,985

20,163

11,491

Short term deposits

1,693,735

512,878

403,020

302,423

294,905

Cash & bank balances

705,442

964,878

897,878

208,332

472,798

Others

116,772

-

-

89,226

95,410

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

16,491,712

12,828,947

13,404,142

11,294,579

9,497,719

 

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

17,938,482

14,173,318

14,657,693

12,536,425

10,748,761

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

5,134,281

3,813,472

7,142,693

7,045,239

6,018,567

Other creditors & accruals

231,591

374,863

250,126

33,268

64,046

Hire purchase & lease creditors

87,998

64,006

-

-

-

Bank overdraft

-

-

-

49,303

67,339

Short term borrowings/Term loans

181,698

172,551

-

-

-

Other borrowings

-

-

-

-

373,155

Bill & acceptances payable

5,659,227

3,168,949

1,850,000

878,000

-

Amounts owing to director

-

45,000

45,000

-

-

Provision for taxation

-

73,336

68,003

-

-

Other liabilities

-

153,000

265,000

120,000

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

11,294,795

7,865,177

9,620,822

8,125,810

6,523,107

 

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

5,196,917

4,963,770

3,783,320

3,168,769

2,974,612

 

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

6,643,687

6,308,141

5,036,871

4,410,615

4,225,654

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,500,000

900,000

540,002

540,002

540,002

 

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

1,500,000

900,000

540,002

540,002

540,002

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Capital reserve

219,155

219,155

219,155

219,155

219,155

Retained profit/(loss) carried forward

4,315,446

4,395,544

4,277,714

3,651,458

3,466,497

 

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

4,534,601

4,614,699

4,496,869

3,870,613

3,685,652

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

6,034,601

5,514,699

5,036,871

4,410,615

4,225,654

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

9,322

31,991

-

-

-

Deferred taxation

599,764

761,451

-

-

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

609,086

793,442

-

-

-

 

----------------

----------------

----------------

----------------

----------------

 

6,643,687

6,308,141

5,036,871

4,410,615

4,225,654

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KILANG MEMPROSES BARANG2 TEMPATAN SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

2,399,177

1,477,756

1,300,898

510,755

767,703

Net Liquid Funds

2,399,177

1,477,756

1,300,898

461,452

700,364

Net Liquid Assets

4,464,614

4,031,959

3,004,226

2,742,116

2,802,273

Net Current Assets/(Liabilities)

5,196,917

4,963,770

3,783,320

3,168,769

2,974,612

Net Tangible Assets

6,643,687

6,308,141

5,036,871

4,410,615

4,225,654

Net Monetary Assets

3,855,528

3,238,517

3,004,226

2,742,116

2,802,273

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

279,018

268,548

0

49,303

440,494

Total Liabilities

11,903,881

8,658,619

9,620,822

8,125,810

6,523,107

Total Assets

17,938,482

14,173,318

14,657,693

12,536,425

10,748,761

Net Assets

6,643,687

6,308,141

5,036,871

4,410,615

4,225,654

Net Assets Backing

6,034,601

5,514,699

5,036,871

4,410,615

4,225,654

Shareholders' Funds

6,034,601

5,514,699

5,036,871

4,410,615

4,225,654

Total Share Capital

1,500,000

900,000

540,002

540,002

540,002

Total Reserves

4,534,601

4,614,699

4,496,869

3,870,613

3,685,652

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.21

0.19

0.14

0.06

0.12

Liquid Ratio

1.40

1.51

1.31

1.34

1.43

Current Ratio

1.46

1.63

1.39

1.39

1.46

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

8

12

11

9

4

Debtors Ratio

135

130

161

207

207

Creditors Ratio

58

56

102

142

148

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.05

0.05

0.00

0.01

0.10

Liabilities Ratio

1.97

1.57

1.91

1.84

1.54

Times Interest Earned Ratio

4.47

5.77

6.40

5.88

7.46

Assets Backing Ratio

4.43

4.21

3.36

2.94

2.82

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.18

2.53

3.11

1.31

1.10

Net Profit Margin

1.70

1.88

2.45

1.02

0.93

Return On Net Assets

14.83

13.45

18.70

6.47

4.47

Return On Capital Employed

14.63

13.32

18.70

6.40

4.40

Return On Shareholders' Funds/Equity

9.86

9.48

12.43

4.19

3.27

Dividend Pay Out Ratio (Times)

1.13

0.77

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.47

UK Pound

1

Rs.87.63

Euro

1

Rs.71.12

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.