|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
548467-H
|
|
COMPANY NAME
|
:
|
ENTEX CARPET INDUSTRIES SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
23/05/2001
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
3-2, JALAN METRO PERDANA TIMUR 1, TAMAN USAHAWAN KEPONG, 52100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
AL 59J, KAMPUNG BARU, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-61562608
|
|
FAX.NO.
|
:
|
03-61572608
|
|
CONTACT PERSON
|
:
|
HENRY YEE ( CEO )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
17220
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURER OF CARPET
|
|
AUTHORISED
CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 300,000.00
DIVIDED INTO
ORDINARY SHARES 300,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 5,553,515 [2010]
|
|
NET WORTH
|
:
|
MYR 757,987 [2010]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
30 [2012]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
LOW
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
MYR 62,000 (USD 20,000)
|
|
|
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) manufacturer of carpet.
The SC is not
listed on Bursa Malaysia (Malaysia Stock Exchange).
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. YEE LIANG KWANG +
|
11, LORONG SERI BENANG 10, TAMAN ANDALAS JAYA, 41200 KLANG,
SELANGOR, MALAYSIA.
|
591103-01-5879
5757384
|
180,000.00
|
60.00
|
|
MS. TEH BOH DING +
|
11, LORONG SERI BENANG 10, TAMAN ANDALAS JAYA, 41200 KLANG, SELANGOR,
MALAYSIA.
|
630418-10-6352
7027078
|
90,000.00
|
30.00
|
|
MS. TEH POH KWAN
|
56 LORONG TIONG, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.
|
690810-10-6546
|
30,000.00
|
10.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
300,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. TEH BOH DING
|
|
Address
|
:
|
11, LORONG SERI BENANG 10, TAMAN ANDALAS JAYA, 41200 KLANG,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
7027078
|
|
New IC No
|
:
|
630418-10-6352
|
|
Date of Birth
|
:
|
18/04/1963
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
23/05/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. YEE LIANG KWANG
|
|
Address
|
:
|
11, LORONG SERI BENANG 10, TAMAN ANDALAS JAYA, 41200 KLANG,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5757384
|
|
New IC No
|
:
|
591103-01-5879
|
|
Date of Birth
|
:
|
03/11/1959
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
23/05/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
HENRY YEE
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
Auditor
|
:
|
C H BOR & CO
|
|
Auditor' Address
|
:
|
38D, JALAN SS 22/21, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LOW BEE LENG
|
|
|
IC / PP No
|
:
|
A3056221
|
|
|
New IC No
|
:
|
750508-14-5298
|
|
|
Address
|
:
|
1408, JALAN 36, TAMAN KEPONG, 52100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, 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
|
:
|
N/A
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
The SC refused to disclose its suppliers.
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
|
:
|
95%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
5%
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES, TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Brand Name
|
:
|
DELMAITS,ENTEX
|
|
|
|
|
|
Competitor(s)
|
:
|
CARPET RAYA
MANUFACTURING SDN BHD
CARPETS INTERNATIONAL MALAYSIA MANUFACTURING SDN BHD
PARAGON CARPETMAKER SDN BHD
PREMIER WEAVERS SDN BHD
TAI-AM LUGGAGE SDN BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)
|
|
|
|
|
|
Ownership of premises
|
:
|
LEASED/RENTED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2012
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
30
|
30
|
30
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer of carpet.
The SC's products are mainly used in automotive industry, commercial and
industrial sectors.
Besides, the SC also produces the mats for automotive industry.
PROJECTS
No projects found in our databank
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
0361562608
|
|
Current Telephone Number
|
:
|
03-61562608
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
AL 59J, KAMPUNG BARU,47000,SUNGAI BULOH,SELANGOR.
|
|
Current Address
|
:
|
AL 59J, KAMPUNG BARU, 47000 SUNGAI BULOH, SELANGOR, 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
|
[
|
45.80%
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
<2,480.34%>
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
12.20%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
16.58%
|
]
|
|
|
|
|
|
|
|
|
|
|
The increase in turnover could be due to the SC adopting an
aggressive marketing strategy.The management had succeeded in turning the
SC into a profit making company. The profit could be due to better control
of its operating costs and efficiency in utilising its resources. The SC's
management had generated acceptable return for its shareholders using its
assets.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
53 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
50 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
19 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus reducing its holding cost.
This had reduced funds being tied up in stocks. The favourable debtors'
days could be due to the good credit control measures implemented by the
SC. The SC had a favourable creditors' ratio as evidenced by its favourable
collection days. The SC could be taking advantage of the cash discounts and
also wanting to maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.36 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.61 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
|
:
|
Favourable
|
[
|
27.62 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.10 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The interest cover showed that the SC was able to service the
interest. The favourable interest cover could indicate that the SC was
making enough profit to pay for the interest accrued. The SC 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 :
|
|
|
|
|
|
|
|
The higher turnover had helped to reduce the SC's losses. Due to its
weak liquidity position, the SC will be faced with problems in meeting all
its short term obligations if no short term loan is obtained or additional
capital injected into the SC. With the favourable interest cover, the SC
could be able to service all the accrued interest without facing any
difficulties. 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 : FAIR
|
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
|
|
17220 : Manufacture of carpets and rugs
|
|
|
|
|
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 2001, the SC is a Private Limited company, focusing on
manufacture of carpet. 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. It should have received supports from its regular
customers. However, with a small paid up capital, the SC should put more
efforts on its business to gain higher market share while competing
aggressively in the market.
|
|
Apart from supplying its products to the local market, the SC also exports
to overseas countries. Its ability to penetrate into the global market has
benefited the SC in terms of higher profitability and well diversified its
business risk. Hence, better growth prospect can be expected. 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. 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. 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. However, due to its
weak liquidity position, the SC may face working capital deficiency in
meeting its short term financial obligations if no fresh capital are
injected into the SC. Given a positive net worth standing at MYR 757,987,
the SC should be able to maintain its business in the near terms.
|
|
The SC's payment habit is average. With its adequate working capital, the
SC should be able to pay its short term debts.
|
|
The industry shows an upward trend and this trend is very likely to sustain
in the near terms. Hence, the SC is expected to benefit from the favourable
outlook of the industry. The SC however faces moderate business risk as it
has to compete with many well established players in the same field.
|
|
Based on the above condition, we recommend credit be granted to the SC
normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS)
|
|
ENTEX CARPET
INDUSTRIES SDN BHD
|
|
Financial Year End
|
31/12/2010
|
31/12/2009
|
|
Months
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
|
|
|
|
|
TURNOVER
|
5,553,515
|
3,808,988
|
|
Other Income
|
8,167
|
158,975
|
|
|
----------------
|
----------------
|
|
Total Turnover
|
5,561,682
|
3,967,963
|
|
Costs of Goods Sold
|
<4,722,889>
|
<3,256,325>
|
|
|
----------------
|
----------------
|
|
Gross Profit
|
838,793
|
711,638
|
|
|
----------------
|
----------------
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
152,318
|
<6,399>
|
|
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
152,318
|
<6,399>
|
|
Taxation
|
<59,881>
|
6,107
|
|
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
92,437
|
<292>
|
|
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
As previously reported
|
365,551
|
365,843
|
|
|
----------------
|
----------------
|
|
As restated
|
365,550
|
365,842
|
|
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
457,987
|
365,550
|
|
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
457,987
|
365,550
|
|
|
=============
|
=============
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
Bank overdraft
|
-
|
3,385
|
|
Bankers' acceptance
|
-
|
1,343
|
|
Hire purchase
|
5,722
|
2,031
|
|
Term loan / Borrowing
|
-
|
3,905
|
|
|
----------------
|
----------------
|
|
|
5,722
|
10,664
|
BALANCE SHEET
|
ENTEX CARPET
INDUSTRIES SDN BHD
|
|
ASSETS EMPLOYED:
|
|
|
|
FIXED ASSETS
|
2,221,202
|
2,074,298
|
|
|
|
|
|
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
2,221,202
|
2,074,297
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
Stocks
|
811,462
|
512,670
|
|
Trade debtors
|
758,666
|
852,721
|
|
Other debtors, deposits & prepayments
|
149,075
|
128,175
|
|
Cash & bank balances
|
184,584
|
451,808
|
|
Others
|
67,415
|
60,081
|
|
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
1,971,202
|
2,005,455
|
|
|
----------------
|
----------------
|
|
TOTAL ASSET
|
4,192,404
|
4,079,752
|
|
|
=============
|
=============
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
245,341
|
199,740
|
|
Other creditors & accruals
|
796,333
|
862,855
|
|
Hire purchase & lease creditors
|
24,000
|
12,252
|
|
Amounts owing to director
|
2,173,692
|
2,259,690
|
|
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
3,239,365
|
3,334,537
|
|
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
<1,268,163>
|
<1,329,082>
|
|
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
953,039
|
745,215
|
|
|
=============
|
=============
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
300,000
|
300,000
|
|
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
300,000
|
300,000
|
|
|
|
|
|
RESERVES
|
|
|
|
Retained profit/(loss) carried forward
|
457,987
|
365,550
|
|
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
457,987
|
365,550
|
|
|
|
|
|
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
757,987
|
665,550
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
Hire purchase creditors
|
55,506
|
-
|
|
Deferred taxation
|
139,547
|
79,665
|
|
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
195,052
|
79,665
|
|
|
----------------
|
----------------
|
|
|
953,039
|
745,215
|
|
|
=============
|
=============
|
|
|
|
|
FINANCIAL RATIO
|
ENTEX CARPET
INDUSTRIES SDN BHD
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
184,584
|
451,808
|
|
Net Liquid Funds
|
184,584
|
451,808
|
|
Net Liquid Assets
|
<2,079,625>
|
<1,841,752>
|
|
Net Current Assets/(Liabilities)
|
<1,268,163>
|
<1,329,082>
|
|
Net Tangible Assets
|
953,039
|
745,215
|
|
Net Monetary Assets
|
<2,274,677>
|
<1,921,417>
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
79,506
|
12,252
|
|
Total Liabilities
|
3,434,417
|
3,414,202
|
|
Total Assets
|
4,192,404
|
4,079,752
|
|
Net Assets
|
953,039
|
745,215
|
|
Net Assets Backing
|
757,987
|
665,550
|
|
Shareholders' Funds
|
757,987
|
665,550
|
|
Total Share Capital
|
300,000
|
300,000
|
|
Total Reserves
|
457,987
|
365,550
|
|
LIQUIDITY (Times)
|
|
|
|
Cash Ratio
|
0.06
|
0.14
|
|
Liquid Ratio
|
0.36
|
0.45
|
|
Current Ratio
|
0.61
|
0.60
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
53
|
49
|
|
Debtors Ratio
|
50
|
82
|
|
Creditors Ratio
|
19
|
22
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0.10
|
0.02
|
|
Liabilities Ratio
|
4.53
|
5.13
|
|
Times Interest Earned Ratio
|
27.62
|
0.40
|
|
Assets Backing Ratio
|
3.18
|
2.48
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
2.74
|
<0.17>
|
|
Net Profit Margin
|
1.66
|
<0.01>
|
|
Return On Net Assets
|
16.58
|
0.57
|
|
Return On Capital Employed
|
16.18
|
0.56
|
|
Return On Shareholders' Funds/Equity
|
12.20
|
<0.04>
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0
|
0
|
|