MIRA INFORM REPORT

 

 

Report Date :

06.09.2012

 

IDENTIFICATION DETAILS

 

Name :

TYE GUAN CHANG SDN BHD

 

 

Formerly Known As :

YONG YUAN SDN BHD

 

 

Registered Office :

47, Jalan Jubli Perak, 1st Floor, 01000 Kangar, Perlis

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.07.2011

 

 

Date of Incorporation :

16.07.1980

 

 

Com. Reg. No.:

60317-W

 

 

Legal Form :

Private Limited company

 

 

Line of Business :

Dealing in agricultural products, fruits

 

 

No. of Employees :

10 [2012]

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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.

:

60317-W

COMPANY NAME

:

TYE GUAN CHANG SDN BHD

FORMER NAME

:

YONG YUAN SDN BHD (05/09/1993)

INCORPORATION DATE

:

16/07/1980

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

47, JALAN JUBLI PERAK, 1ST FLOOR, 01000 KANGAR, PERLIS, MALAYSIA.

BUSINESS ADDRESS

:

18 & 19, KAWASAN INDUSTRI PADANG BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

TEL.NO.

:

04-9493376

FAX.NO.

:

04-9492525

CONTACT PERSON

:

TAN CHOON PIN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51219 51223

PRINCIPAL ACTIVITY

:

DEALING IN AGRICULTURAL PRODUCTS, FRUITS

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 800,000.00 DIVIDED INTO 
ORDINARY SHARES 2 CASH AND 799,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 26,296,668 [2011]

NET WORTH

:

MYR 2,041,591 [2011]

 

 

 

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

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) dealing in agricultural products, fruits.

 

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. TAN CHOON PIN +

21, JALAN BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

610101-07-6433 6111084

560,000.00

70.00

MR. TAN SEE CHIN +

21, JALAN BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

310112-71-5179 0444834

160,000.00

20.00

MS. TEOH GOEK KHIM +

21, JALAN BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

371228-09-5054 0302804

80,000.00

10.00

 

 

 

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

------

 

 

 

800,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. TEOH GOEK KHIM

Address

:

21, JALAN BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

IC / PP No

:

0302804

New IC No

:

371228-09-5054

Date of Birth

:

28/12/1937

 

 

 

Nationality

:

MALAYSIAN CHINESE

                                 

                                 

                                 

                                 

                                 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN SEE CHIN

Address

:

21, JALAN BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

IC / PP No

:

0444834

New IC No

:

310112-71-5179

Date of Birth

:

12/01/1931

 

 

 

Nationality

:

MALAYSIAN CHINESE

                                 

DIRECTOR 3

 

Name Of Subject

:

MR. TAN CHOON PIN

Address

:

21, JALAN BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

IC / PP No

:

6111084

New IC No

:

610101-07-6433

Date of Birth

:

01/01/1961

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

MANAGEMENT

 

1)

Name of Subject

:

TAN CHOON PIN

 

Position

:

DIRECTOR

 

                              

AUDITOR

 

Auditor

:

S T OOI & ASSOCITES

Auditor' Address

:

SUITE B, 1018-B LORONG MERPATI, 2ND FLOOR, 05200 ALOR SETAR, KEDAH, MALAYSIA.

                          

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. SI AH BA @ SEE KUNG TEONG

 

IC / PP No

:

2379321

 

New IC No

:

460609-02-5097

 

Address

:

39, JALAN MUTIARA, TAMAN MUTIARA, 01000 KANGAR, PERLIS, MALAYSIA.

                                     

                                     

                                     

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING 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

:

14/10/2010

Description Of Charge

:

MEMORANDUM OF DEPOSIT

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

PLEDGE FIXED DEPOSITS

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD
MENARA MAYBANK, 100, JALAN TUN PERAK, 14TH FLOOR, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 20/10/2010

Registered and Numbered 2 In The Register of Charges

 


LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 



PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,CASH

 

OPERATIONS

 

Goods Traded

:

AGRICULTURAL PRODUCTS, FRUITS

 

 

 

 

Competitor(s)

:

ELITE AGRICULTURAL SERVICES SDN BHD
FONNIAN AGRICULTURAL MACHINERY SDN BHD
LECKAT CORPORATION SDN BHD
LIM SENG PHARMACHEM SDN BHD
RISDA PLANTATION SDN BHD

 

 

 

 

 

 

                          

 

Total Number of Employees:

 

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

10

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) dealing in agricultural products, fruits.

The SC sells agricultural products such as onions, garlic and others.

The SC however refused to reveal more information on its operation. 

 

 

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

:

04-9493376

Match

:

N/A

 

 

 

Address Provided by Client

:

18 & 19 KAWASAN INDS PADANG BESAR 02100 PERLIS

Current Address

:

18 & 19, KAWASAN INDUSTRI PADANG BESAR, 02100 PADANG BESAR, PERLIS, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.



FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

27.06%

]

 

Return on Net Assets

:

Favourable

[

33.98%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

19 Days

]

 

Debtor Ratio

:

Favourable

[

12 Days

]

 

Creditors Ratio

:

Favourable

[

24 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

[

0.75 Times

]

 

Current Ratio

:

Unfavourable

[

1.49 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

[

220.20 Times

]

 

Gearing Ratio

:

Favourable

[

0.08 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 :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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 : 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

 

51219 : Wholesale of other agricultural products n.e.c

51223 : Wholesale of fruits

 

 

INDUSTRY :

AGRICULTURE

                    

 


The agricultural sector has contributed to the growth and be major contributors to national income and export earnings.The agricultural sector initially derived from the increase in the production of livestock, fisheries, and other miscellaneous crops. The agricultural industry more valuable with the increase in earnings from major commodities such as palm oil, rubber and food commodities.


Palm oil production expected to growth 13.2% at the year 2015/16 which 20.6million tonnes while Poultry production expected to 9.9% at the year 2015/16 which 1.35million tonnes in 2015/16. The 10th Malaysia Economic Plan will boost growth in this industry by attracte more investment. Moreover, sugar consumption expected to reach 7.5% due to contribution of greater disposable income from an average 5.4% real GDP growth over the year 2013-2016 where will allow Malaysians to spend more on processed foods with high sugar content such as soft drinks and sugar confectionery.


The Agriculture sector expanded with a slower pace of 2.1% at the second quarter 2012 compared to 6.9% in the first quarter 2012. The slower growth was attributed by the decline in the production of Rubber and Fishing. However, Livestock showed favourable growth of 11.0% while Forestry turned around to 5.4% as compared to negative 6.3% in the first quarter. Oil Palm registered a growth of 3.5% in second quarter 2012.


The agriculture is a strong contributer to Malaysia's GDP, employment, export revenue, export tax and duty, as well as the economic development. This sector provide income, employment and good investment to the rural areas where enhance the community. Hence, the Government of Malaysia allocated RM1.1bil under the longterm projects (2011-2020) budget 2012 for the development of the agriculture sector and increase productivity and generate higher returns in this sector.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth




CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1980, the SC is a Private Limited company, focusing on dealing in agricultural products, fruits. 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. Hence, the SC is expected to enjoy a stable market shares. The SC is considered as a medium size company with issued and paid up capital standing at MYR 800,000.


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 10 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. 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. However, 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 2,041,591, the SC should be able to maintain its business in the near terms.


To reduce the risk of component shortages, the SC sources its raw materials locally and imported from overseas countries. Thus, it is subjected to the currency fluctuation risk. Overall the SC has a good control over its resources.


Based on our historical financial data, we concluded that the SC's payment is good. This implies a good credit control and the SC could be taking advantage of the cash discounts and maintain a good reputation with its creditors.


The industry has reached its maturity stage and only enjoying a marginal growth. Despite the challenging market condition, the SC has competitive edge against other players in the same field due to its long establishment.


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)

TYE GUAN CHANG SDN BHD

 

Financial Year End

31/07/2011

31/07/2010

31/07/2009

31/07/2008

31/07/2007

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

26,296,668

21,795,656

12,830,303

7,577,617

1,434,936

 

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

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

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

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

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

Total Turnover

26,296,668

21,795,656

12,830,303

7,577,617

1,434,936

Costs of Goods Sold

<24,353,056>

<20,374,952>

-

-

-

 

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

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

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

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

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

Gross Profit

1,943,612

1,420,704

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

697,262

419,997

310,475

205,688

32,783

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

697,262

419,997

310,475

205,688

32,783

Taxation

<144,906>

<95,391>

<67,526>

<45,526>

<9,588>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

552,356

324,606

242,949

160,162

23,195

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

689,235

364,629

121,680

<38,482>

<61,677>

 

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

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

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

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

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

As restated

689,235

364,629

121,680

<38,482>

<61,677>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,241,591

689,235

364,629

121,680

<38,482>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,241,591

689,235

364,629

121,680

<38,482>

 

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

3,181

-

-

-

-

 

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

 

 

 

 

 

3,181

 

 

 

 

 

 

BALANCE SHEET

 

TYE GUAN CHANG SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

1,142,638

1,057,696

836,935

785,726

739,177

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,142,638

1,057,696

836,935

785,726

739,177

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

1,385,507

950,270

-

-

-

Trade debtors

899,424

-

34,900

-

-

Other debtors, deposits & prepayments

14,570

8,950

-

-

-

Short term deposits

305,356

-

3,950

2,430

-

Cash & bank balances

180,766

330,136

539,119

414,038

124,991

 

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

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

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

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

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

TOTAL CURRENT ASSETS

2,785,623

1,289,356

577,969

416,468

124,991

 

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

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

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

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

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

TOTAL ASSET

3,928,261

2,347,052

1,414,904

1,202,194

864,168

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,570,856

709,653

153,677

42,680

49,642

Other creditors & accruals

24,912

63,952

4,956

156,747

194,405

Bank overdraft

155,302

-

-

-

-

Amounts owing to director

33,666

39,020

39,020

39,020

647,497

Provision for taxation

82,243

39,424

48,805

41,766

11,104

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,866,979

852,049

246,458

280,213

902,648

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

918,644

437,307

331,511

136,255

<777,657>

 

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

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

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

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

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

TOTAL NET ASSETS

2,061,282

1,495,003

1,168,446

921,981

<38,480>

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

800,000

800,000

800,000

800,000

2

 

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

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

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

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

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

TOTAL SHARE CAPITAL

800,000

800,000

800,000

800,000

2

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

1,241,591

689,235

364,629

121,680

<38,482>

 

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

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

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

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

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

TOTAL RESERVES

1,241,591

689,235

364,629

121,680

<38,482>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,041,591

1,489,235

1,164,629

921,680

<38,480>

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

19,691

5,768

3,817

301

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

19,691

5,768

3,817

301

-

 

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

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

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

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

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

 

2,061,282

1,495,003

1,168,446

921,981

<38,480>

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

TYE GUAN CHANG SDN BHD

TYPES OF FUNDS

 

 

 

 

 

Cash

486,122

330,136

543,069

416,468

124,991

Net Liquid Funds

330,820

330,136

543,069

416,468

124,991

Net Liquid Assets

<466,863>

<512,963>

331,511

136,255

<777,657>

Net Current Assets/(Liabilities)

918,644

437,307

331,511

136,255

<777,657>

Net Tangible Assets

2,061,282

1,495,003

1,168,446

921,981

<38,480>

Net Monetary Assets

<486,554>

<518,731>

327,694

135,954

<777,657>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

155,302

0

0

0

0

Total Liabilities

1,886,670

857,817

250,275

280,514

902,648

Total Assets

3,928,261

2,347,052

1,414,904

1,202,194

864,168

Net Assets

2,061,282

1,495,003

1,168,446

921,981

<38,480>

Net Assets Backing

2,041,591

1,489,235

1,164,629

921,680

<38,480>

Shareholders' Funds

2,041,591

1,489,235

1,164,629

921,680

<38,480>

Total Share Capital

800,000

800,000

800,000

800,000

2

Total Reserves

1,241,591

689,235

364,629

121,680

<38,482>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.26

0.39

2.20

1.49

0.14

Liquid Ratio

0.75

0.40

2.35

1.49

0.14

Current Ratio

1.49

1.51

2.35

1.49

0.14

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

19

16

0

0

0

Debtors Ratio

12

0

1

0

0

Creditors Ratio

24

13

4

2

13

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.08

0.00

0.00

0.00

0.00

Liabilities Ratio

0.92

0.58

0.21

0.30

<23.46>

Times Interest Earned Ratio

220.20

0.00

0.00

0.00

0.00

Assets Backing Ratio

2.58

1.87

1.46

1.15

<0.05>

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.65

1.93

2.42

2.71

2.28

Net Profit Margin

2.10

1.49

1.89

2.11

1.62

Return On Net Assets

33.98

28.09

26.57

22.31

<85.19>

Return On Capital Employed

31.60

28.09

26.57

22.31

<85.19>

Return On Shareholders' Funds/Equity

27.06

21.80

20.86

17.38

<60.28>

Dividend Pay Out Ratio (Times)

0.00

0.00

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.55.89

UK Pound

1

Rs.88.63

Euro

1

Rs.70.03

 

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.