MIRA INFORM REPORT

 

 

Report Date :

08.09.2012

 

IDENTIFICATION DETAILS

 

Name :

SYARIKAT PERNIAGAAN THYE LEAN SDN BHD

 

 

 

Registered Office :

Plot 205, Lorong Perindustrian Bukit Minyak 11, Kawasan Perindustrian Bukit Minyak, Mukim 13, 14000 Bukit Tengah, Pulau Pinang

 

 

Country :

Malaysia

 

 

Date of Incorporation :

28.01.1976

 

 

Com. Reg. No.:

26231-T

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

Trading of Sundry Goods, Food Products

 

 

No. of Employees :

20

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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.

:

26231-T

COMPANY NAME

:

SYARIKAT PERNIAGAAN THYE LEAN SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/01/1976

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

PLOT 205, LORONG PERINDUSTRIAN BUKIT MINYAK 11, KAWASAN PERINDUSTRIAN BUKIT MINYAK, MUKIM 13, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

PLOT 205,LORONG PERINDUSTRIAN BUKIT MINYAK 11, KAWASAN PERINDUSTRIAN BUKIT MINYAK, MUKIM 13,SEBERANG PRAI TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5019933

FAX.NO.

:

04-5019938

CONTACT PERSON

:

KOH CHOON HWA ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51231

PRINCIPAL ACTIVITY

:

TRADING OF SUNDRY GOODS, FOOD PRODUCTS

AUTHORISED CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO 
ORDINARY SHARE 20,000.00 OF MYR 100.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 10,000 CASH OF MYR 100.00 EACH.

 

 

 

SALES

:

N/A

NET WORTH

:

N/A

 

 

 

STAFF STRENGTH

:

20 [2012]

BANKER (S)

:

CIMB BANK BHD
PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The SC is governed by the Companies Act, 1965 and must file in its annual return. The SC need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the SC is able to meet all its obligations as and when they fall due. Although the SC is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The SC is principally engaged in the (as a / as an) trading of sundry goods, food products.

 

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. KOH CHOON HWA +
[APPOINTED AS MD ON 28/7/1998]

1787, JALAN BERAPIT, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

660829-07-5439 A0529673

3,600.00

36.00

MR. KOH CHOON HONG +

1787, JALAN BERAPIT, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

740817-07-5175 A2815686

3,600.00

36.00

MR. KOH CHOONG KIAN

43, JALAN SERULING 57, TAMAN KLANG JAYA, SELANGOR, MALAYSIA.

641002-10-5541 7438994

1,000.00

10.00

MS. CHEW GAIK HONG

43, JALAN SERULING 57, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

671110-07-5386 A0846980

800.00

8.00

MR. TEH HANG KOK

 

620510-07-5211 6782921

500.00

5.00

MS. LEE HOON HONG

1787, MUKIM 9, JALAN BERAPIT, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

740918-07-5676 A2886777

500.00

5.00

 

 

 

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

------

 

 

 

10,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. KOH CHOON HWA

Address

:

1787, JALAN BERAPIT, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

A0529673

New IC No

:

660829-07-5439

Date of Birth

:

29/08/1966

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

25/07/1997

Remark

:

APPOINTED AS MD ON 28/7/1998

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. KOH CHOON HONG

Address

:

1787, JALAN BERAPIT, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

A2815686

New IC No

:

740817-07-5175

Date of Birth

:

17/08/1974

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

25/07/1997



MANAGEMENT

 

 

 

1)

Name of Subject

:

KOH CHOON HWA

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR


No Auditor found in our databank 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG FOOK CHEW

 

IC / PP No

:

3455080

 

New IC No

:

201003-07-5085

 

Address

:

62, JALAN LIM LEAN TENG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. WONG LAI YEN

 

IC / PP No

:

4105031

 

New IC No

:

511028-07-5528

 

Address

:

15, CHURCH STREET, ROOM 3, 10200 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

30/12/1981

Description Of Charge

:

N/A

 

Amount Secured

:

RM350,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED ASIAN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

29/09/1982

Description Of Charge

:

N/A

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED ASIAN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

23/06/1983

Description Of Charge

:

N/A

 

Amount Secured

:

RM450,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED ASIAN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 16 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

09/04/1986

Description Of Charge

:

N/A

 

Amount Secured

:

RM430,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED ASIAN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 19 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

13/10/1987

Description Of Charge

:

N/A

 

Amount Secured

:

RM900,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED ASIAN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 25 In The Register of Charges





ENCUMBRANCE 6

Date of Creation

:

28/09/1989

Description Of Charge

:

N/A

 

Amount Secured

:

RM970,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED ASIAN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 30 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

20/11/2001

Description Of Charge

:

N/A

 

Amount Secured

:

RM3,800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 31 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

25/08/2004

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 32 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

25/08/2004

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 33 In The Register of Charges

 

ENCUMBRANCE 10

Date of Creation

:

25/09/2006

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,200,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 34 In The Register of Charges



ENCUMBRANCE 11

Date of Creation

:

21/05/2008

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 35 In The Register of Charges



ENCUMBRANCE 12

Date of Creation

:

21/05/2008

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 36 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

:

ASIA,INDIA

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES, CASH


OPERATIONS

 

Goods Traded

:

SUNDRY GOODS, FOOD PRODUCTS

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

20

20

20

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of sundry goods, food products.

The SC sells a wide range of food products including flour, sugar, rice, onions, garlics, dried chilies and others.

The SC also sells canned foods including fruit cocktails, sardines, tuna and others.

The SC sells its products both in large and loose quantities.

The SC also provides delivery services for large purchase. 

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

:

04-5019933

Match

:

N/A

 

 

 

Address Provided by Client

:

PLOT 205,LORONG PERINDUSTRIAN BUKIT MINYAK 11, KAWASAN PERINDUSTRIAN BUKIT MINYAK, MUKIM 13,SEBERANG PRAI TENGAH,14000,BUKIT TENGAH,PULAU PINANG.

Current Address

:

PLOT 205,LORONG PERINDUSTRIAN BUKIT MINYAK 11, KAWASAN PERINDUSTRIAN BUKIT MINYAK, MUKIM 13,SEBERANG PRAI TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


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

 

FINANCIAL ANALYSIS

 

 

The SC is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the SC's financial performance.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

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

51231 : Wholesale of rice, other grains, flour and sugar

 

 

INDUSTRY :

TRADING

 

 

 


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


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


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


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


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


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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1976, the SC is an Exempt Private company, focusing on trading of sundry goods, food products. 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. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


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 20 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.


As the SC is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.


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.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. With the promising outlook of the industry performance, the SC business potential should be favourable. The SC however faces moderate business risk as it has to compete with many well established players in the same field.

In view of the above, we recommend credit be granted to the SC with close monitoring.

 

 

 

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 :

PRL

 

 

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.