|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
770800-M
|
|
COMPANY NAME
|
:
|
ASIA GLOBAL EXIM SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
24/04/2007
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
7711, JALAN TELUK BATU 1, BATU 4, OFF JALAN KEBUN, SECTION 36, 1ST
FLOOR, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 1238/1, BATU 7 1/2, JALAN BUKIT KEMUNING, 42450 KLANG, SELANGOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-51219470
|
|
FAX.NO.
|
:
|
03-51219480
|
|
CONTACT PERSON
|
:
|
VIJAY GHEWARCHANG JAIN ( EXECUTIVE DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51420
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF STAINLESS STEEL PIPE, PLATE, COIL & HARDWARES
|
|
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
1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 25,997,126 [2010]
|
|
NET WORTH
|
:
|
MYR 1,185,760 [2010]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
10 [2012]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
GOOD
|
|
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 stainless steel pipe,
plate, coil & hardwares.
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. VIJAY GHEWARCHANG JAIN +
|
LOT 1238/1, JALAN BUKIT KEMUNING, BATU 7 1/2, 42450 KLANG, SELANGOR,
MALAYSIA.
|
G1955030
|
489,998.00
|
49.00
|
|
REKHA VIJAY JAIN +
|
LOT 1238/1, JALAN BUKIT KEMUNING, BATU 7 1/2, 42450 KLANG, SELANGOR,
MALAYSIA.
|
H2764316
|
2.00
|
0.00
|
|
MR. SRITHEREN A/L NANTHAN
|
52, LORONG BATU NILAM 23A, BANDAR BUKIT TINGGI 2, 41200 KLANG,
SELANGOR, MALAYSIA.
|
760616-10-6041
A3308904
|
510,000.00
|
51.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
1,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
REKHA VIJAY JAIN
|
|
Address
|
:
|
LOT 1238/1, JALAN BUKIT KEMUNING, BATU 7 1/2, 42450 KLANG, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
H2764316
|
|
|
|
|
|
Date of Birth
|
:
|
17/10/1981
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
30/11/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. VIJAY GHEWARCHANG JAIN
|
|
Address
|
:
|
LOT 1238/1, JALAN BUKIT KEMUNING, BATU 7 1/2, 42450 KLANG, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
G1955030
|
|
|
|
|
|
Date of Birth
|
:
|
15/12/1980
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
24/04/2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
VIJAY GHEWARCHANG JAIN
|
|
|
Position
|
:
|
EXECUTIVE DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
LALITHA
|
|
|
Position
|
:
|
SECRETARY
|
|
|
|
|
|
|
Auditor
|
:
|
CN KHOO & ASSOCIATES
|
|
Auditor' Address
|
:
|
1-B-1, LORONG RAJA HASSAN, 41400 KLANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
1)
|
Company Secretary
|
:
|
MS. SHIRIN KAUR A/P GARIB SINGH
|
|
|
IC / PP No
|
:
|
A1536929
|
|
|
New IC No
|
:
|
700918-07-5004
|
|
|
Address
|
:
|
59, JALAN ADANG U8/17, SECTION U8, BUKIT JELUTONG, 40150 SHAH ALAM,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
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
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
Import Countries
|
:
|
ASIA
|
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
INDIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC),CHEQUES
|
|
Type of Customer
|
:
|
END USERS,DISTRIBUTORS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
FERROUS AND NON FERROUS METAL, STEEL AND OTHERS
|
|
|
|
|
|
Competitor(s)
|
:
|
KEJORA TEGUH
SDN BHD
METROD (OFHC) SDN BHD
ORIENTAL SHEET PILING SDN BHD
PMS MARKETING SDN BHD
STAR SHINE MARKETING SDN BHD
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2012
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
10
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of stainless
steel pipe, plate, coil & hardwares.
The SC also specialises in Stainless Steel / Secondary & Scrap, Moly
Scrap, Nickel Scrap, Ti Scrap, Cobalt Scrap and others.
The SC is also able to import from overseas companies for the local
customers.
The SC's products are used for construction, furniture making, engineering as
well as for others.
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
|
:
|
03-51219470
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT 1238/1,
BATU 7 1/2, JALAN BUKIT KEMUNING,42450,KLANG,SELANGOR.
|
|
Current Address
|
:
|
LOT 1238/1, BATU 7 1/2, JALAN BUKIT KEMUNING, 42450 KLANG, 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
|
:
|
Erratic
|
[
|
2007 - 2010
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2010
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
3.68%
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
5.38%
|
]
|
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.The dip in profit could be due to the stiff
market competition which reduced the SC's profit margin. 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
|
[
|
18 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
34 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
35 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
|
:
|
Acceptable
|
[
|
0.92 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.36 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's liquid ratio was slightly low. This could indicate that the
SC's working capital was slightly deficient. The SC will have to improve
its liquidity position either by obtaining short term financing or increase
its paid up capital so that it can meet all its short term obligations as
and when they fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Nil
|
[
|
0.00 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was nil as it did not pay any interest
during the year. The SC had no gearing and hence it had virtually no
financial risk. The SC was financed by its shareholders' funds and
internally generated fund. During the economic downturn, the SC, having a
zero gearing, will be able to compete better than those which are highly
geared in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
The SC recorded lower profits as its turnover showed a erratic
trend. The SC's management was unable to control its costs efficiently as
its profit showed a downward trend. The SC's liquidity was at an acceptable
range. If the SC is able to obtain further short term financing, it should
be able to meet all its short term obligations. The SC did not make any
interest payment during the year. The SC was dependent on its shareholders'
funds to finance its business needs. The SC was a zero gearing company, it
was solely dependant on its shareholders to provide funds to finance its
business. The SC has good chance of getting loans, if the needs arises.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : LIMITED
|
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
|
|
51420 : Wholesale of metals, metal ores and fabricated metals
|
|
|
|
|
INDUSTRY :
|
MANUFACTURING
|
|
|
|
|
|
|
The manufacturing sector is expected to be driven by higher value-added
activities in Malaysia.The GDP growth for first quarter 2012 indicating
manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia
recorded a 12% jump in approved investments in the manufacturing sector in
the first quarter of 2012 compared with the corresponding period 2011.
According to Federation of Malaysian Manufacturers (FMM), manufacturing sector
expected to improve in the third quarter 2012 despite concerns over
external developments and the rising cost of production.
|
|
The rubber products sub-sector is expected to remain resilient supported by
continuous improvements in medical and healthcare standards in emerging
markets as well as demand from niche markets such as the oil and gas sector
for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at
the end of 2012 driven by global demand for medical gloves as well as
rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber
shipments in Malaysia due to hospitals and clinics place more intrest on
rising health and hygiene awareness.
|
|
The Malaysia government has growth target of 6.5% for wood based furniture
where estimated to reach up to RM53 billion by year 2020.The government
providing pioneer status for tax exemption and investment tax allowance for
this industry as a boost up step towards produce good quality product and
to meet the world demand.
|
|
Chemical production are expected to show 6.2% in year 2012 and 7.5 % in
year 2013 inline with Malaysia as one of the largest contributor in world
Chemicals & Chemical industries.
|
|
According to Malaysian Iron and Steel Industry Federation, first half of
2012 would remain weak for the local steel industry due to eurozone crisis,
slowdown in China's economy and less robust construction activities in the
developed countries. At first quarter 2012, the average local steel price
is trading atRM2,300 per tonne compared with the average international
price of US$740 (RM2,331) per tonne.
|
|
According to the Department of Statistics, Malaysia during the first
quarter 2012, the manufacturing output increased due to activities in major
sub-sectors such as petroleum, chemical, rubber and plastic products (10.5
%), and non-metallic mineral products, basic metal and fabricated metal
products (3.9 %). Meanwhile, it's also announced that the manufacturing
sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared
with RM47.7 billion in May 2011. The Industrial Production Index (IPI )
increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).
|
|
Tax and non-tax incentives provided by goverment encourage manufacturers to
move up the value chain of manufacturing industry. The new growth
initiatives by goverment in the manufacturing sector such as solar and
medial services can be important drivers of growth apart from helping to
diversify the manufacturing base and contributing to the resilience of the
sector.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated in 2007, the SC is a Private Limited company, focusing on
trading of stainless steel pipe, plate, coil & hardwares. Throughout
its years of establishment, the SC has slowly been building up contacts
with its clients and competing in the industry. The capital standing of the
SC is fair. With an adequate share capital, the SC has the potential of
expanding its business in future.
|
|
Our investigation revealed that the SC serves both local and overseas
clients. Penetrating into the overseas countries has well diversified its
business risk and at the same time added strength to its capabilities in
capturing higher market shares. 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.
|
|
Financially, the SC registered a higher turnover compared to previous year.
However, its profits showed a reverse trend. The lower profit achieved was
a result of higher operating cost and increased competition. 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 managed to maintain an adequate liquidity level, indicating
that the SC has the ability to meet its financial obligations. Being a zero
geared company, the SC virtually has no financial risk as it is mainly
dependent on its internal funds to finance its business. Given a positive
net worth standing at MYR 1,185,760, the SC should be able to maintain its
business in the near terms.
|
|
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.
|
|
Overall, the SC's payment habit is good as the SC has a good credit control
and it could be taking advantage of the cash discounts while maintaining a
good reputation with its creditors.
|
|
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.
|
|
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)
|
|
ASIA GLOBAL
EXIM SDN BHD
|
|
Financial Year End
|
31/12/2010
|
31/12/2009
|
31/12/2008
|
31/12/2007
|
|
Months
|
12
|
12
|
12
|
8
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
TURNOVER
|
25,997,126
|
20,498,394
|
23,826,294
|
14,029,561
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
25,997,126
|
20,498,394
|
23,826,294
|
14,029,561
|
|
Costs of Goods Sold
|
<25,417,235>
|
<20,031,960>
|
<23,382,318>
|
<13,780,922>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
579,891
|
466,434
|
443,976
|
248,639
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
64,437
|
70,709
|
48,022
|
57,184
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
64,437
|
70,709
|
48,022
|
57,184
|
|
Taxation
|
<20,786>
|
<4,412>
|
<15,320>
|
<14,074>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
43,651
|
66,297
|
32,702
|
43,110
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
As previously reported
|
142,109
|
75,812
|
43,110
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
142,109
|
75,812
|
43,110
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
185,760
|
142,109
|
75,812
|
43,110
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
185,760
|
142,109
|
75,812
|
43,110
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
BALANCE SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
FIXED ASSETS
|
118,853
|
133,732
|
128,160
|
124,459
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
118,853
|
133,732
|
128,160
|
124,459
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
1,316,416
|
1,411,101
|
463,114
|
537,213
|
|
Trade debtors
|
2,445,478
|
1,611,853
|
731,801
|
1,283,021
|
|
Other debtors, deposits & prepayments
|
176,825
|
414,291
|
25,960
|
3,700
|
|
Cash & bank balances
|
137,563
|
33,634
|
424,829
|
41,137
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
4,076,282
|
3,470,879
|
1,645,704
|
1,865,071
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
4,195,135
|
3,604,611
|
1,773,864
|
1,989,530
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
2,402,675
|
1,783,813
|
74,344
|
274,634
|
|
Other creditors & accruals
|
28,006
|
16,933
|
57,540
|
27,230
|
|
Amounts owing to director
|
561,660
|
650,484
|
545,480
|
630,482
|
|
Provision for taxation
|
4,006
|
4,024
|
13,828
|
8,707
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
2,996,347
|
2,455,254
|
691,192
|
941,053
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
1,079,935
|
1,015,625
|
954,512
|
924,018
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
1,198,788
|
1,149,357
|
1,082,672
|
1,048,477
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
1,000,000
|
1,000,000
|
1,000,000
|
1,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
1,000,000
|
1,000,000
|
1,000,000
|
1,000,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
185,760
|
142,109
|
75,812
|
43,110
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
185,760
|
142,109
|
75,812
|
43,110
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
1,185,760
|
1,142,109
|
1,075,812
|
1,043,110
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
Deferred taxation
|
13,028
|
7,248
|
6,860
|
5,367
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
13,028
|
7,248
|
6,860
|
5,367
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
1,198,788
|
1,149,357
|
1,082,672
|
1,048,477
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
FINANCIAL RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
137,563
|
33,634
|
424,829
|
41,137
|
|
Net Liquid Funds
|
137,563
|
33,634
|
424,829
|
41,137
|
|
Net Liquid Assets
|
<236,481>
|
<395,476>
|
491,398
|
386,805
|
|
Net Current Assets/(Liabilities)
|
1,079,935
|
1,015,625
|
954,512
|
924,018
|
|
Net Tangible Assets
|
1,198,788
|
1,149,357
|
1,082,672
|
1,048,477
|
|
Net Monetary Assets
|
<249,509>
|
<402,724>
|
484,538
|
381,438
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
0
|
|
Total Liabilities
|
3,009,375
|
2,462,502
|
698,052
|
946,420
|
|
Total Assets
|
4,195,135
|
3,604,611
|
1,773,864
|
1,989,530
|
|
Net Assets
|
1,198,788
|
1,149,357
|
1,082,672
|
1,048,477
|
|
Net Assets Backing
|
1,185,760
|
1,142,109
|
1,075,812
|
1,043,110
|
|
Shareholders' Funds
|
1,185,760
|
1,142,109
|
1,075,812
|
1,043,110
|
|
Total Share Capital
|
1,000,000
|
1,000,000
|
1,000,000
|
1,000,000
|
|
Total Reserves
|
185,760
|
142,109
|
75,812
|
43,110
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
Cash Ratio
|
0.05
|
0.01
|
0.61
|
0.04
|
|
Liquid Ratio
|
0.92
|
0.84
|
1.71
|
1.41
|
|
Current Ratio
|
1.36
|
1.41
|
2.38
|
1.98
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
18
|
25
|
7
|
14
|
|
Debtors Ratio
|
34
|
29
|
11
|
33
|
|
Creditors Ratio
|
35
|
33
|
1
|
7
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Liabilities Ratio
|
2.54
|
2.16
|
0.65
|
0.91
|
|
Times Interest Earned Ratio
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Assets Backing Ratio
|
1.20
|
1.15
|
1.08
|
1.05
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
0.25
|
0.34
|
0.20
|
0.41
|
|
Net Profit Margin
|
0.17
|
0.32
|
0.14
|
0.31
|
|
Return On Net Assets
|
5.38
|
6.15
|
4.44
|
5.45
|
|
Return On Capital Employed
|
5.38
|
6.15
|
4.44
|
5.45
|
|
Return On Shareholders' Funds/Equity
|
3.68
|
5.80
|
3.04
|
4.13
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
|