MIRA INFORM REPORT

 

 

Report Date :

15.09.2012

 

IDENTIFICATION DETAILS

 

Name :

KEAN CHIEW TRADING CO SDN BHD

 

 

Registered Office :

Acctax Corporate Centre, 2, Jalan Bawasah, Georgetown, 1st Floor, 10050 Pulau Pinang, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

17.10.1984

 

 

Com. Reg. No.:

129085-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Foodstuffs

 

 

No. of Employees :

25

 

 

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 :

Slow but correct

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

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

129085-W

COMPANY NAME

:

KEAN CHIEW TRADING CO SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/10/1984

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

ACCTAX CORPORATE CENTRE, 2, JALAN BAWASAH, GEORGETOWN, 1ST FLOOR, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

1021 SOLOK PERUSAHAAN 2, KAW PERINDUSTRIAN PRAI, 13600 PRAI, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-3998686

FAX.NO.

:

04-3990993

CONTACT PERSON

:

LIM KOOI CHIEW ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51239

PRINCIPAL ACTIVITY

:

TRADING OF FOODSTUFFS

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 800,000 CASH AND 200,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 32,683,068 [2011]

NET WORTH

:

MYR 3,968,731 [2011]

 

 

 

STAFF STRENGTH

:

25 [2012]

BANKER (S)

:

CITIBANK BHD
HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD
PUBLIC BANK BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

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 foodstuffs.

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

(%)

DATO' LIM KOOI CHIEW +

674-H, JALAN WATERFALL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

430413-71-5101 3078872

268,000.00

26.80

MR. LIM AUN GHEE +

674-H, JALAN WATERFALL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

661009-07-5163 A0532899

232,600.00

23.26

MS. LIM AUN LENG

75, WESTERN GARDEN, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

650429-07-5406 A0095211

166,600.00

16.66

DATIN TAN MOOI LUAN +

674-H, JALAN WATERFALL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

420517-07-5090 2197159

166,000.00

16.60

MR. LEOW CHOOI KEONG

71, WESTERN GARDEN, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

710925-07-5327 A1986534

83,400.00

8.34

MS. LIM AUN KIE

71, WESTERN GARDEN, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

731027-07-5256 A2554547

83,400.00

8.34

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

DATIN TAN MOOI LUAN

Address

:

674-H, JALAN WATERFALL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

2197159

New IC No

:

420517-07-5090

Date of Birth

:

17/05/1942

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

07/12/2000

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIM AUN GHEE

Address

:

674-H, JALAN WATERFALL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

A0532899

New IC No

:

661009-07-5163

Date of Birth

:

09/10/1966

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

07/12/2000

 

 

 

Qualification

:

CERT ELECTRICAL ENGINEERING FROM THE FEDERAL INSTITUTE OF TECHNOLOGY IN 1988.

Working Experience

:

SALES & ADMIN EXECUTIVE OF T.H. HIN S/B SINCE 1993. CURRENTLY RESPONSIBLE FOR THE SALES PROMOTION OF THE GROUP IN THE NORTHERN REGION OF MALAYSIA. HE WAS A SALES EXECUTIVE FROM 1988 TO 1991 WITH TAUNG LIANG INDUSTRIES S/B & WAS PROMOTED TO ADMIN EXECUTIVE IN 1991.

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DATO' LIM KOOI CHIEW

Address

:

674-H, JALAN WATERFALL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

3078872

New IC No

:

430413-71-5101

Date of Birth

:

13/04/1943

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

17/10/1984

 

 

 

 

 

 

Working Experience

:

OVER 30 YEARS OF EXPERIENCE IN THE IMPORT & EXPORT BUSINESS & HAS CONTRIBUTED SIGNIFICANTLY TO THE BUSINESS DEVELOPMENT OF THE TH HIN GROUP.

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM KOOI CHIEW

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

C K LEOW

 

Position

:

MARKETING MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KCK & ASSOCIATES

Auditor' Address

:

1-2-5, SUITE A, 1, JALAN P RAMLEE, 10460 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WEE ENG CHIN

 

IC / PP No

:

A3560217

 

New IC No

:

770314-07-5058

 

Address

:

49, LORONG NANGKA 7, TAMAN DESA DAMAI, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. WEE CHEONG POH

 

IC / PP No

:

0150855

 

New IC No

:

401201-03-5099

 

Address

:

49, LORONG NANGKA 7, TAMAN DESA DAMAI, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

3)

Company Secretary

:

MS. WONG MEE CHOON

 

IC / PP No

:

7376295

 

New IC No

:

640707-07-5328

 

Address

:

35, LEBUH RAMBAI 10, PAYA TERUBONG, AYER ITAM, 11060 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CITIBANK BHD

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

3)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

4)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

5)

Name

:

RHB 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

:

14/08/2006

Description Of Charge

:

1ST PARTY 1ST LEGAL CHARGE

 

Amount Secured

:

RM700,000.00

Description Of Property Affected

:

GERAN 20563, LOT NO 508, SEKSYEN 2, BANDAR GEORGETOWN, DAERAH TIMUR LAUT, PULAU PINANG TOGETHER WITH PREMISES ADDRESS NO 22, TAMAN WESTERN, 10450 PULAU PINANG

 

Name & Address Of Chargee

:

RHB BANK BHD
44, LEBUH PANTAI, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 25/08/2006

Registered and Numbered 9 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

28/06/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

31/01/2008

Description Of Charge

:

1ST PARTY 1ST LEGAL CHARGE

 

Amount Secured

:

RM738,000.00

Description Of Property Affected

:

GERAN 20563, LOT NO 508, SEKSYEN 2, BANDAR GEORGETOWN, DAERAH TIMUR LAUT, PULAU PINANG TOGETHER WITH PREMISES ADDRESS NO 22, TAMAN WESTERN, 10450 PULAU PINANG

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

13/05/2008

Description Of Charge

:

1ST PARTY 1ST LEGAL CHARGE

 

Amount Secured

:

RM2,507,500.00

Description Of Property Affected

:

GERAN 9099, LOT 941, SEKSYEN 2, BANDAR GEORGETOWN, DAERAH TIMUR LAUT, PULAU PINANG TOGETHER WITH PREMISES ADDRESS 8-C, JESSELTON ROAD 10450 PULAU PINANG

 

Name & Address Of Chargee

:

RHB BANK BHD
44, LEBUH PANTAI, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 29/05/2008

Registered and Numbered 12 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

15/12/2008

Description Of Charge

:

A TRADE FINANCING GENERAL AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL BILLS, DOCUMENT OF TITLE, TRANSPORTATION, DOCUMENTS, INSURANCE POLICIES & OTHER RELATING TO GOODS

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD
1, DOWNING STREET, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/12/2008

Registered and Numbered 13 In The Register of Charges


ENCUMBRANCE 6

Date of Creation

:

15/12/2008

Description Of Charge

:

A TRADE FINANCING GENERAL AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL BILLS, DOCUMENTS OF TITLE, TRANSPORTATION, DOCUMENTS, INSURANCE POLICIES & OTHER RELATING TO GOODS

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD
1, , DOWNING STREET, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/12/2008

Registered and Numbered 14 In The Register of Charges


ENCUMBRANCE 7

Date of Creation

:

01/04/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,720,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 15 In The Register of Charges


ENCUMBRANCE 8

Date of Creation

:

22/08/2011

Description Of Charge

:

ALL MONIES FIRST PARTY LEGAL CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD
407-A, JALAN JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 16 In The Register of Charges


ENCUMBRANCE 9

Date of Creation

:

30/01/2012

Description Of Charge

:

FACILITIES AGREEMENT DEED OF ASSIGNMENT POWER OF ATTORNEY

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD
MENARA PUBLIC BANK, 146 JALAN AMPANG, 27TH FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 17 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

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

INDIA,CHINA,AUSTRALIA



The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,CASH

Type of Customer

:

DEALERS,DISTRIBUTORS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

SUNDRY GOODS, DRYFOODSTUFF

 

 

 

 

Competitor(s)

:

AURIC CHUN YIP SDN BHD
HARPERS TRADING (MALAYSIA) SDN BHD
LUCKY FROZEN SDN BHD
PGEO GROUP SDN BHD
THYE HUAT CHAN SDN BHD

 

 

 

 

 

 

 

 

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

25

25

25

25

25

25

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of foodstuffs.

The SC's products include mushrooms, nuts, chilies, garlic, beans, onions, spices and others.

The SC is a wholesaler of sundry goods.

The SC also sells canned food.

The SC has a warehouse in its current premises.

The SC has its own transport to deliver the goods to its customers' destinations.


PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

043998686

Current Telephone Number

:

04-3998686

Match

:

YES

 

 

 

Address Provided by Client

:

1021 SOLOK PERUSAHAAN 2, KAW PERINDUSTRIAN PRAI,13600,PRAI,PULAU PINANG.

Current Address

:

1021 SOLOK PERUSAHAAN 2, KAW PERINDUSTRIAN PRAI, 13600 PRAI, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 11th September 2012 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

9.85%

]

 

Return on Net Assets

:

Acceptable

[

13.08%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. 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

[

32 Days

]

 

Debtor Ratio

:

Favourable

[

46 Days

]

 

Creditors Ratio

:

Favourable

[

8 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.30 Times

]

 

Current Ratio

:

Unfavourable

[

0.49 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.47 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.29 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC's gearing 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 : POOR

 

 

 

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 1984, the SC is a Private Limited company, focusing on trading of foodstuffs. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. 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 25 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


We noted that both the turnover and profits have increased compared to the previous year. However, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Nevertheless, given a positive net worth standing at MYR 3,968,731, 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. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. 


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. The SC however faces moderate business risk as it has to compete with many well established players in the same field.


Based on the above condition, we recommend credit be granted to the SC normally.



PROFIT AND LOSS ACCOUNT

 

 

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

KEAN CHIEW TRADING CO SDN BHD

 

Financial Year End

31/03/2011

31/03/2010

31/03/2009

31/03/2008

31/03/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

32,683,068

24,933,424

22,941,954

25,762,998

23,813,869

 

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

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

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

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

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

Total Turnover

32,683,068

24,933,424

22,941,954

25,762,998

23,813,869

Costs of Goods Sold

<30,405,015>

<22,804,354>

-

-

-

 

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

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

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

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

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

Gross Profit

2,278,053

2,129,070

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

544,275

484,019

769,584

478,214

646,159

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

544,275

484,019

769,584

478,214

646,159

Taxation

<153,347>

<129,816>

<108,528>

<140,129>

<131,515>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

390,928

354,203

661,056

338,085

514,644

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,577,803

2,223,600

1,562,544

1,224,459

709,815

 

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

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

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

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

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

As restated

2,577,803

2,223,600

1,562,544

1,224,459

709,815

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,968,731

2,577,803

2,223,600

1,562,544

1,224,459

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,968,731

2,577,803

2,223,600

1,562,544

1,224,459

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

47,029

55,075

96,743

95,803

88,588

Bankers' acceptance

152,405

92,422

84,450

88,752

67,501

Lease interest

-

-

-

3,230

7,045

Term loan / Borrowing

170,341

145,003

113,306

23,667

7,718

 

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

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

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

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

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

 

369,775

292,500

294,499

211,452

170,852

 

 

BALANCE SHEET

 

 

KEAN CHIEW TRADING CO SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

1,876,179

1,878,362

1,881,078

2,038,570

2,152,081

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investment properties

12,755,177

8,479,949

8,172,764

8,585,383

3,897,616

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

12,755,177

8,479,949

8,172,764

8,585,383

3,897,616

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

14,631,356

10,358,311

10,053,842

10,623,953

6,049,697

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

2,872,826

2,152,085

2,206,732

2,337,765

2,765,457

Trade debtors

4,084,057

3,454,653

2,723,582

3,626,918

3,845,108

Other debtors, deposits & prepayments

311,422

746,546

1,715,631

313,911

394,077

Cash & bank balances

42,362

487

11,435

5,114

16,525

Others

51,842

34,962

29,461

12,928

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

7,362,509

6,388,733

6,686,841

6,296,636

7,021,167

 

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

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

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

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

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

TOTAL ASSET

21,993,865

16,747,044

16,740,683

16,920,589

13,070,864

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

705,927

52,483

730,347

2,147,731

3,200,904

Other creditors & accruals

2,820,329

1,276,433

1,915,413

6,498,997

2,575,375

Hire purchase & lease creditors

-

-

-

-

101,640

Bank overdraft

1,387,156

1,137,862

1,525,321

1,034,015

1,010,030

Short term borrowings/Term loans

554,194

481,030

487,339

286,344

69,745

Other borrowings

197,738

94,990

152,895

-

381,072

Bill & acceptances payable

3,605,000

2,463,000

2,639,000

1,675,000

1,881,000

Amounts owing to director

5,735,321

5,283,624

3,747,177

2,791,061

2,024,208

Provision for taxation

-

-

-

-

23,737

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,005,665

10,789,422

11,197,492

14,433,148

11,267,711

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<7,643,156>

<4,400,689>

<4,510,651>

<8,136,512>

<4,246,544>

 

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

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

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

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

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

TOTAL NET ASSETS

6,988,200

5,957,622

5,543,191

2,487,441

1,803,153

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,000,000

1,000,000

500,000

500,000

300,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

500,000

500,000

300,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

2,968,731

2,577,803

2,223,600

1,562,544

1,224,459

 

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

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

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

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

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

TOTAL RESERVES

2,968,731

2,577,803

2,223,600

1,562,544

1,224,459

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,968,731

3,577,803

2,723,600

2,062,544

1,524,459

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

2,988,421

2,358,435

2,806,924

410,375

239,455

Hire purchase creditors

-

-

-

-

17,400

Deferred taxation

31,048

21,384

12,667

14,522

21,839

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,019,469

2,379,819

2,819,591

424,897

278,694

 

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

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

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

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

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

 

6,988,200

5,957,622

5,543,191

2,487,441

1,803,153

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KEAN CHIEW TRADING CO SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

42,362

487

11,435

5,114

16,525

Net Liquid Funds

<1,344,794>

<1,137,375>

<1,513,886>

<1,028,901>

<993,505>

Net Liquid Assets

<10,515,982>

<6,552,774>

<6,717,383>

<10,474,277>

<7,012,001>

Net Current Assets/(Liabilities)

<7,643,156>

<4,400,689>

<4,510,651>

<8,136,512>

<4,246,544>

Net Tangible Assets

6,988,200

5,957,622

5,543,191

2,487,441

1,803,153

Net Monetary Assets

<13,535,451>

<8,932,593>

<9,536,974>

<10,899,174>

<7,290,695>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

5,127,509

4,072,317

4,972,479

1,730,734

1,819,342

Total Liabilities

18,025,134

13,169,241

14,017,083

14,858,045

11,546,405

Total Assets

21,993,865

16,747,044

16,740,683

16,920,589

13,070,864

Net Assets

6,988,200

5,957,622

5,543,191

2,487,441

1,803,153

Net Assets Backing

3,968,731

3,577,803

2,723,600

2,062,544

1,524,459

Shareholders' Funds

3,968,731

3,577,803

2,723,600

2,062,544

1,524,459

Total Share Capital

1,000,000

1,000,000

500,000

500,000

300,000

Total Reserves

2,968,731

2,577,803

2,223,600

1,562,544

1,224,459

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.00

0.00

0.00

0.00

0.00

Liquid Ratio

0.30

0.39

0.40

0.27

0.38

Current Ratio

0.49

0.59

0.60

0.44

0.62

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

32

32

35

33

42

Debtors Ratio

46

51

43

51

59

Creditors Ratio

8

1

12

30

49

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.29

1.14

1.83

0.84

1.19

Liabilities Ratio

4.54

3.68

5.15

7.20

7.57

Times Interest Earned Ratio

2.47

2.65

3.61

3.26

4.78

Assets Backing Ratio

6.99

5.96

5.54

2.49

1.80

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.67

1.94

3.35

1.86

2.71

Net Profit Margin

1.20

1.42

2.88

1.31

2.16

Return On Net Assets

13.08

13.03

19.20

27.73

45.31

Return On Capital Employed

10.91

10.94

15.05

19.58

28.03

Return On Shareholders' Funds/Equity

9.85

9.90

24.27

16.39

33.76

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.72

UK Pound

1

Rs.88.60

Euro

1

Rs.71.34

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.