MIRA INFORM REPORT

 

 

Report Date :

08.09.2012

 

 

 

IDENTIFICATION DETAILS

 

Name :

KEONGCO MALAYSIA SDN BHD

 

 

Registered Office :

11-1, Jalan Kuchai Maju 8, Kuchai Entrepreneurs Park, Off Jalan Kuchai Lama, 58200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

04.07.1988

 

 

Com. Reg. No.:

171699-M

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of food products and groceries

 

 

No. of Employees :

180 [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.

:

171699-M

COMPANY NAME

:

KEONGCO MALAYSIA SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

04/07/1988

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

11-1, JALAN KUCHAI MAJU 8, KUCHAI ENTREPRENEURS PARK, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 8920, JALAN BESAR, TELOK GONG, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31343388

FAX.NO.

:

03-31343288

EMAIL

:

admin@keongco.com.my

WEB SITE

:

www.keongco.com.my

CONTACT PERSON

:

LEE SU KIANG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51239

PRINCIPAL ACTIVITY

:

TRADING OF FOOD PRODUCTS AND GROCERIES

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 2,800,000.00 DIVIDED INTO
ORDINARY SHARES 2,631,995 CASH AND 168,005 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 146,319,363 [2011]

NET WORTH

:

MYR 12,013,333 [2011]

M1000 OVERALL RANKING

:

793[2005]

M1000 INDUSTRY RANKING

:

62[2005]

BANKER (S)

 

BAN HIN LEE BANK BERHAD
CIMB BANK BHD
HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

STAFF STRENGTH

:

180 [2012]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

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 food products and groceries.

 

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2005

 

 

OVERALL RANKING

793

 

 

INDUSTRY RANKING

62

 

 

 

The immediate and ultimate holding company of the SC is KEONGCO HOLDINGS SDN BHD, a company incorporated in MALAYSIA.

 

The major shareholder(s) of the SC are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

(%)

KEONGCO HOLDINGS SDN BHD

11-1, JALAN KUCHAI MAJU 8, KUCHAI ENTREPRENEURS PARK, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

501026

2,800,000.00

100.00

 

 

 

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

------

 

 

 

2,800,000.00

100.00

 

 

 

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

=====

 

+ Also Director

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :



Local No

Company

(%)

As At

256992

CENTRAL EIGHT (M) SDN BHD

100

31/12/2010

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. TAN SORK ENG

Address

:

LOT 680, LOCAL INDUSTRIAL EASTERN, PENGKALAN CHEPA, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

IC / PP No

:

6255921

New IC No

:

610826-07-5008

Date of Birth

:

26/08/1961

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/03/2002

Remark

:

ALT DIR TO LEE SOO EONG

 

DIRECTOR 2

 

Name Of Subject

:

MS. KOK SIEW CHEN

Address

:

1050, JALAN CHE SU, 15000 KOTA BHARU, KELANTAN, MALAYSIA.

IC / PP No

:

6009267

New IC No

:

601005-03-5100

Date of Birth

:

05/10/1960

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/04/1995

 

DIRECTOR 3

 

Name Of Subject

:

MR. LEE SOO EONG

Address

:

LOT 680, LOCAL INDUSTRIAL EASTERN, PENGKALAN CHEPA, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

IC / PP No

:

5470336

New IC No

:

580926-07-5123

Date of Birth

:

26/09/1958

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

11/04/1996

 

DIRECTOR 4

 

Name Of Subject

:

MS. KOK SHY YUNN

Address

:

17, LORONG BATU NILAM 6D, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

740417-03-5238

Date of Birth

:

17/04/1974

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

10/08/2003

Remark

:

ALT DIR TO KOK SIEW CHEN

 

DIRECTOR 5

 

Name Of Subject

:

MR. LEE SU KIANG

Address

:

LOT 680, LOCAL INDUSTRIAL ESTATE, PENGKALAN CHEPA, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

IC / PP No

:

4818443

New IC No

:

550617-07-5077

Date of Birth

:

17/06/1955

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

31/05/1990



MANAGEMENT

 

1)

Name of Subject

:

LEE SU KIANG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

GAN CHEE CHYE

 

Position

:

ACCOUNT MANAGER

 

 

 

 

 

3)

Name of Subject

:

MA

 

Position

:

FINANCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

LEOW KIT HOE

 

Position

:

SALES MANAGER

 

 

AUDITOR

 

Auditor

:

JB LAU & KHOO

Auditor' Address

:

13-M, JALAN SS 21/56B, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. MAH SIEW PENG

 

IC / PP No

:

7456862

 

New IC No

:

641104-03-5356

 

Address

:

2, JALAN ANGGERIK ARANDA 31/7, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. PHOON SOW CHENG

 

IC / PP No

:

4604622

 

New IC No

:

540507-07-5018

 

Address

:

73, JALAN SS 1/23, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BAN HIN LEE BANK BERHAD

 

 

 

 

 

2)

Name

:

CIMB BANK BHD

 

 

 

 

 

3)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

4)

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

:

25/04/2008

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 18 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

09/07/2009

Description Of Charge

:

MEMO OF 1ST LEGAL CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THAT PIECE OF LAND HELD UNDER HSD 518/82, PT 680, MUKIM PANCHOR, JAJAHAN KOTA BHARU, KELANTAN TOGETHER WITH BUILDING ERECTED THEREON

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

2, LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 21/07/2009

Registered and Numbered 19 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

15/02/1990

Description Of Charge

:

FIXED DEPOSIT

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

BAN HIN LEE BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

08/01/1994

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

BAN HIN LEE BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

11/09/1996

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

16/09/1996

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

04/08/1997

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

18/02/1998

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 14 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

22/08/2000

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 15 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

 

Import Countries

:

CHINA,MYANMAR,INDONESIA,INDIA,THAILAND



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

:

BRUNEI DARUSSALAM, THAILAND, SINGAPORE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

GROCERY STORES,DEALERS,SUPERMARKETS

 

 

OPERATIONS

 

Goods Traded

:

GARLIC, ONION, DRIED CHILLIES AND OTHER CULINARY FOODS

 

 

 

Member(s) / Affiliate(s)

:

SELANGOR FREIGHT FORWARDERS AND LOGISTICS ASSOCIATION

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

180

180

100

120

180

185

 

 

 

 

Branch

:

YES

No of Branches

:

1

 

 

 

Branch(es)

:

LOT 680, LOCAL INDUSTRIAL ESTATE, PENGKALAN CHEPA, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

Tel No: 09-7730294

Fax No: 09-7736584/0313

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of food products and groceries.

The SC is one of the largest wholesaler and importer of all kind foodstuffs in Malaysia.

The SC sells a wide range of products which includes:

* Core Products - White garlic, smoked garlic, onions, shallots, potatoes.

* Beans and Pulses - Green mung beans, black eye beans, red beans, chick peas, soya beans, dhal, white millet, cashew nut, pistachios.

* Spices - Cinnamon stick, cumin seeds, coriander seeds, black/white pepper, star anise, dried chili, clove, fennel seeds, ginger, fenugreek seeds, turmeric finger, cardamom, tamarind, candle nut, long pepper, grain, rice, sugar, corn, barley, wheat flour, soya meal.

* Miscellaneous - Groundnuts, sesame seeds, raisin, corn flour, jaggery powder, chili powder.

* Packaging - Fried onions, canned lychee, canned mackerel, curry paste, chili paste.

Besides that the SC also provides services as follows :

* Cold room & Warehousing

- A state-of-the-art cold room with a storage capacity of few thousand metric tons for preserving the quality of products.

* Logistics & Shipping

- Rendering in-house shipping, forwarding, transport services and delivery of cargoes to customer doorstep.

* Pre- Shipment Handling

- Include quality checking, arrangement of vessel, preparation of documentation and other relevant services especially for international trade.

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

:

03-31343388

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 8920, JALAN BESAR, TELOK GONG,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 8920, JALAN BESAR, TELOK GONG, 42000 PELABUHAN 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 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

1.20%

]

 

Return on Net Assets

:

Unfavourable

[

2.38%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.48 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

1.68 Times

]

 

 

 

 

 

 

 

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

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

 

51239 : Wholesale of other foodstuffs e.g mee,kueh teow, wantan skin and related products,cooking oil, tinned food, etc

 

 

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 1988, the SC is a Private Limited company, focusing on trading of food products and groceries. The SC has been in business for over two 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. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. Presently, the issued and paid up capital of the SC stands at MYR 2,800,000.


Besides catering to the local market, the SC also exports to overseas markets. As it concentrates in both local and overseas markets, we believe that the SC has the ability to lower its business risk to meet any uncertainties in the local economy. The SC is a fairly large and rapidly growing company with over 180 staff in its operations. 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.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 12,013,333, 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 imports its raw materials from both local and overseas market. Thus it is affected by foreign currency fluctuation. Having been in the industry for two decades, the SC has built up its rapport with its suppliers. As a result, the SC has reduced its risk in facing shortage of raw materials. 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. 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 normally.

 

 

PROFIT AND LOSS ACCOUNT

 

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

KEONGCO MALAYSIA SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

146,319,363

154,687,647

129,684,820

123,069,809

144,514,941

Other Income

-

1,341,920

1,553,993

-

-

 

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

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

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

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

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

Total Turnover

146,319,363

156,029,567

131,238,813

123,069,809

144,514,941

Costs of Goods Sold

-

<142,255,510>

<117,440,890>

-

-

 

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

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

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

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

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

Gross Profit

-

13,774,057

13,797,923

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

302,913

494,537

1,544,075

599,072

1,055,846

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

302,913

494,537

1,544,075

599,072

1,055,846

Taxation

<159,268>

<140,586>

<306,642>

<1,342,045>

<200,985>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

143,645

353,951

1,237,433

<742,973>

854,861

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

9,069,688

8,715,737

7,478,304

8,221,277

7,366,416

 

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

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

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

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

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

As restated

9,069,688

8,715,737

7,478,304

8,221,277

7,366,416

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

9,213,333

9,069,688

8,715,737

7,478,304

8,221,277

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

9,213,333

9,069,688

8,715,737

7,478,304

8,221,277

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

1,090,585

903,853

1,143,005

1,354,661

 

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

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

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

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

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

 

-

1,090,585

903,853

1,143,005

1,354,661

 

 

BALANCE SHEET

 

KEONGCO MALAYSIA SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

3,328,284

2,779,295

3,728,152

5,551,725

5,899,907

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

-

332,293

332,293

332,293

332,293

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

332,293

332,293

332,293

332,293

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,328,284

3,111,588

4,060,445

5,884,018

6,232,200

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

10,114,529

10,109,696

6,195,102

8,301,696

Trade debtors

-

15,927,437

16,896,524

12,553,969

19,221,904

Other debtors, deposits & prepayments

-

1,191,768

2,800,425

1,437,927

1,543,123

Short term deposits

-

-

2,436,284

3,211,159

6,844,581

Deposits with financial institutions

-

2,419,098

-

-

-

Amount due from holding company

-

250,725

-

-

-

Amount due from subsidiary companies

-

5,848,815

5,996,121

5,654,964

-

Amount due from related companies

-

228,072

186,319

122,342

5,917,048

Cash & bank balances

-

2,532,297

1,702,509

1,844,751

985,178

Others

-

-

250,725

250,725

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

28,834,926

38,512,741

40,378,603

31,270,939

42,813,530

 

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

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

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

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

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

TOTAL ASSET

32,163,210

41,624,329

44,439,048

37,154,957

49,045,730

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

3,506,300

5,455,966

8,171,919

11,510,780

Other creditors & accruals

-

1,416,400

1,347,071

1,103,179

2,694,130

Hire purchase & lease creditors

-

305,890

276,395

422,727

463,331

Bank overdraft

-

1,926,672

1,423,047

1,339,401

1,401,298

Bill & acceptances payable

-

21,911,000

23,349,000

14,222,875

20,814,874

Amounts owing to related companies

-

-

246,296

246,296

246,296

Provision for taxation

-

96,330

218,837

821,117

139,170

Other liabilities

-

37,445

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

19,447,526

29,200,037

32,316,612

26,327,514

37,269,879

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

9,387,400

9,312,704

8,061,991

4,943,425

5,543,651

 

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

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

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

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

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

TOTAL NET ASSETS

12,715,684

12,424,292

12,122,436

10,827,443

11,775,851

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,800,000

2,800,000

2,800,000

2,800,000

2,800,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,800,000

2,800,000

2,800,000

2,800,000

2,800,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

9,213,333

9,069,688

8,715,737

7,478,304

8,221,277

 

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

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

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

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

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

TOTAL RESERVES

9,213,333

9,069,688

8,715,737

7,478,304

8,221,277

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

12,013,333

11,869,688

11,515,737

10,278,304

11,021,277

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

-

406,604

226,699

184,139

399,574

Deferred taxation

-

148,000

380,000

365,000

355,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

702,351

554,604

606,699

549,139

754,574

 

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

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

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

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

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

 

12,715,684

12,424,292

12,122,436

10,827,443

11,775,851

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

KEONGCO MALAYSIA SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

2,532,297

4,138,793

5,055,910

7,829,759

Net Liquid Funds

-

605,625

2,715,746

3,716,509

6,428,461

Net Liquid Assets

9,387,400

<801,825>

<2,047,705>

<1,251,677>

<2,758,045>

Net Current Assets/(Liabilities)

9,387,400

9,312,704

8,061,991

4,943,425

5,543,651

Net Tangible Assets

12,715,684

12,424,292

12,122,436

10,827,443

11,775,851

Net Monetary Assets

8,685,049

<1,356,429>

<2,654,404>

<1,800,816>

<3,512,619>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

2,639,166

1,926,141

1,946,267

2,264,203

Total Liabilities

20,149,877

29,754,641

32,923,311

26,876,653

38,024,453

Total Assets

32,163,210

41,624,329

44,439,048

37,154,957

49,045,730

Net Assets

12,715,684

12,424,292

12,122,436

10,827,443

11,775,851

Net Assets Backing

12,013,333

11,869,688

11,515,737

10,278,304

11,021,277

Shareholders' Funds

12,013,333

11,869,688

11,515,737

10,278,304

11,021,277

Total Share Capital

2,800,000

2,800,000

2,800,000

2,800,000

2,800,000

Total Reserves

9,213,333

9,069,688

8,715,737

7,478,304

8,221,277

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.09

0.13

0.19

0.21

Liquid Ratio

-

0.97

0.94

0.95

0.93

Current Ratio

1.48

1.32

1.25

1.19

1.15

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

24

28

18

21

Debtors Ratio

-

38

48

37

49

Creditors Ratio

-

9

17

24

29

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.22

0.17

0.19

0.21

Liabilities Ratio

1.68

2.51

2.86

2.61

3.45

Times Interest Earned Ratio

-

1.45

2.71

1.52

1.78

Assets Backing Ratio

4.54

4.44

4.33

3.87

4.21

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.21

0.32

1.19

0.49

0.73

Net Profit Margin

0.10

0.23

0.95

<0.60>

0.59

Return On Net Assets

2.38

12.76

20.19

16.09

20.47

Return On Capital Employed

2.38

10.81

17.71

13.84

17.67

Return On Shareholders' Funds/Equity

1.20

2.98

10.75

<7.23>

7.76

Dividend Pay Out Ratio (Times)

-

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.52

UK Pound

1

Rs.88.49

Euro

1

Rs.70.20

 

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.