MIRA INFORM REPORT

 

 

Report Date :

17.09.2012

 

IDENTIFICATION DETAILS

 

Name :

HEAP LEE CHAN TRADING COMPANY SDN BHD

 

 

Registered Office :

395, Mukim 6, Simpang 4, 14000 Bukit Tengah, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.12.1989

 

 

Com. Reg. No.:

190345-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesale of sundry goods, food products

 

 

No. of Employees :

40

 

 

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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

190345-D

COMPANY NAME

:

HEAP LEE CHAN TRADING COMPANY SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

04/12/1989

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

395, MUKIM 6, SIMPANG 4, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

LOT 395, MUKIM 6, SIMPANG EMPAT, SEBERANG PERAI TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5392600 / 5392589

FAX.NO.

:

04-5392594

CONTACT PERSON

:

NG CHENG HOCK ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51239

PRINCIPAL ACTIVITY

:

WHOLESALE OF SUNDRY GOODS, FOOD PRODUCTS

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 1,900,000.00 DIVIDED INTO 
ORDINARY SHARES 1,300,000 CASH AND 600,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 177,296,340 [2011]

NET WORTH

:

MYR 12,763,148 [2011]

 

 

 

STAFF STRENGTH

:

40 [2012]

BANKER (S)

:

RHB BANK BHD
EON BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) wholesale 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. NG CHENG HOCK @ YEAP CHENG HOCK +

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

600501-07-5211 5907841

316,675.00

16.67

MR. NG CHIANG CHONG @ YEAP CHIANG CHONG +

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

620531-07-5499 6782328

316,675.00

16.67

MR. NG SENG LEONG @ YIAP SENG LEONG +

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

670819-07-5039 A0773783

316,675.00

16.67

MR. NG SENG TIEN @ YEAP SENG TIEN +

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

700611-07-5253 A1590804

316,675.00

16.67

MR. NG CHENG GUAN @ YEAP CHENG GUAN +

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

340506-71-5347 4090001

316,650.00

16.67

MS. ONG SIEW HAR +

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

400506-71-5226 7946313

316,650.00

16.67

 

 

 

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

------

 

 

 

1,900,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. NG CHENG GUAN @ YEAP CHENG GUAN

Address

:

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

4090001

New IC No

:

340506-71-5347

Date of Birth

:

06/05/1934

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

04/12/1989

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. ONG SIEW HAR

Address

:

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

7946313

New IC No

:

400506-71-5226

Date of Birth

:

06/05/1940

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. NG CHENG HOCK @ YEAP CHENG HOCK

Address

:

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

5907841

New IC No

:

600501-07-5211

Date of Birth

:

01/05/1960

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

05/01/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. NG CHIANG CHONG @ YEAP CHIANG CHONG

Address

:

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

6782328

New IC No

:

620531-07-5499

Date of Birth

:

31/05/1962

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

05/01/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. NG SENG LEONG @ YIAP SENG LEONG

Address

:

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

A0773783

New IC No

:

670819-07-5039

Date of Birth

:

19/08/1967

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

05/01/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

MR. NG SENG TIEN @ YEAP SENG TIEN

Address

:

395, PERMATANG BATU, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

IC / PP No

:

A1590804

New IC No

:

700611-07-5253

Date of Birth

:

11/06/1970

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

05/01/1990

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

NG CHENG HOCK

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

NG LAI KOOI

 

Position

:

ACCOUNT MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

YEAP GEOK LAKE & CO

Auditor' Address

:

16, CHINA STREET, 10200 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. HO SIEW BEE

 

IC / PP No

:

S1136428D

 

 

 

 

 

Address

:

17 PINHORN ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. OOI ENG CHOO

 

IC / PP No

:

A0531319

 

New IC No

:

660911-07-5710

 

Address

:

10, CHINA STREET, 10200 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

 

 

2)

Name

:

EON 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

:

22/07/1993

Description Of Charge

:

NEGATIVE PLEDGE

 

Amount Secured

:

RM2,522,500.00

Description Of Property Affected

:

FIXED & FLOATING CHARGE

 

Name & Address Of Chargee

:

DEVELOPMENT & COMMERCIAL BANK BHD
3 LEBUH PENANG, 10200 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 07/09/1993

Registered and Numbered 1 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

22/09/1997

Description Of Charge

:

1ST CHARGE

 

Amount Secured

:

RM622,000.00

Description Of Property Affected

:

GM12, LOT 369, MK 12, DIST SEBERANG PRAI TENGAH, PULAU PINANG

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 25/10/1997

Registered and Numbered 2 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

29/03/1998

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

28/02/2000

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

01/12/2003

Description Of Charge

:

LETTER OF SET-OFF

 

Amount Secured

:

RM48,869.00

Description Of Property Affected

:

PLEDGE OF FIXED DEPOSIT

 

Name & Address Of Chargee

:

EON BANK BHD
37, TINGKAT KIKIK 7, TAMAN INDERAWASIH, 13600 PRAI, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 27/01/2004

Registered and Numbered 5 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

:

THAILAND,INDIA



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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CASH,CHEQUES

Type of Customer

:

SUPERMARKETS,WHOLESALERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

SUNDRY GOODS, FOOD PRODUCTS

 

 

 

 

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

40

33

38

40

35

27

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC's products range includes dried chillies, onions, garlics, potatos, ground nuts, green beans and others.

Besides that the SC has warehouse located at the same premises to keep stock and materials.

We were informed that the SC imports products based on the customers' requirements.


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

:

04-5392600 / 5392589

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 395, MUKIM 6, SIMPANG EMPAT, SEBERANG PERAI TENGAH,14000,BUKIT TENGAH,PULAU PINANG.

Current Address

:

LOT 395, MUKIM 6, SIMPANG EMPAT, SEBERANG PERAI TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 11th September 2012 we contacted one of the staff from the Admin Department. She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

14.76%

]

 

Return on Net Assets

:

Acceptable

[

28.63%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

6 Days

]

 

Debtor Ratio

:

Favourable

[

53 Days

]

 

Creditors Ratio

:

Favourable

[

15 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

:

Favourable

[

1.10 Times

]

 

Current Ratio

:

Unfavourable

[

1.17 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

3.12 Times

]

 

Gearing Ratio

:

Favourable

[

0.02 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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 1989, the SC is a Private Limited company, focusing on wholesale of sundry goods and food products. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. 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. The SC is operating on a medium scale and it has approximately 40 employees in its business 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.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 12,763,148, 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. Overall the SC has a good control over its resources.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

HEAP LEE CHAN TRADING COMPANY SDN BHD

 

Financial Year End

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

177,296,340

163,138,705

180,121,216

147,848,928

Other Income

533,765

585,575

-

-

 

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

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

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

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

Total Turnover

177,830,105

163,724,280

180,121,216

147,848,928

Costs of Goods Sold

<167,115,141>

<157,999,328>

-

-

 

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

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

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

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

Gross Profit

10,714,964

5,724,952

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,516,813

2,007,964

1,399,908

1,452,832

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,516,813

2,007,964

1,399,908

1,452,832

Taxation

<632,765>

<505,579>

<472,157>

<345,649>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,884,048

1,502,385

927,751

1,107,183

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

8,979,100

7,476,715

6,548,964

5,441,781

 

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

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

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

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

As restated

8,979,100

7,476,715

6,548,964

5,441,781

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

10,863,148

8,979,100

7,476,715

6,548,964

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

10,863,148

8,979,100

7,476,715

6,548,964

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

-

1,150

4,048

7,582

Hire purchase

12,367

17,195

14,744

14,523

Trust receipts

1,174,197

941,039

1,385,363

1,231,192

 

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

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

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

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

 

1,186,564

959,384

1,404,155

1,253,297

 

 

 

BALANCE SHEET

 

 

HEAP LEE CHAN TRADING COMPANY SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

3,943,887

3,341,235

2,302,222

2,162,733

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Investments

1,870,400

6,001,198

9,050,841

8,064,713

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,870,400

6,001,198

9,050,841

8,064,713

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

5,814,287

9,342,433

11,353,063

10,227,446

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

2,850,680

2,710,880

2,303,179

4,031,025

Trade debtors

25,505,378

21,191,595

20,050,819

22,448,870

Other debtors, deposits & prepayments

135,981

139,263

438,384

595,763

Short term deposits

-

-

-

56,681

Amount due from director

314,402

233,771

486,054

289,215

Cash & bank balances

21,042,458

14,848,993

12,742,524

12,145,036

Others

-

-

207,270

246,255

 

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

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

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

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

TOTAL CURRENT ASSETS

49,848,899

39,124,502

36,228,230

39,812,845

 

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

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

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

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

TOTAL ASSET

55,663,186

48,466,935

47,581,293

50,040,291

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

6,895,615

4,548,610

5,113,564

8,739,537

Other creditors & accruals

57,183

74,854

64,371

42,792

Hire purchase & lease creditors

165,005

152,927

287,510

209,987

Bank overdraft

-

609,811

5,502

300,612

Bill & acceptances payable

35,412,000

32,007,000

32,576,000

31,984,000

Amounts owing to director

-

1,113

-

202,599

Provision for taxation

196,242

153,513

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

42,726,045

37,547,828

38,046,947

41,479,527

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,122,854

1,576,674

<1,818,717>

<1,666,682>

 

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

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

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

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

TOTAL NET ASSETS

12,937,141

10,919,107

9,534,346

8,560,764

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,900,000

1,900,000

1,900,000

1,900,000

 

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

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

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

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

TOTAL SHARE CAPITAL

1,900,000

1,900,000

1,900,000

1,900,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

10,863,148

8,979,100

7,476,715

6,548,964

 

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

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

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

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

TOTAL RESERVES

10,863,148

8,979,100

7,476,715

6,548,964

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

12,763,148

10,879,100

9,376,715

8,448,964

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Hire purchase creditors

133,327

24,975

131,235

100,000

Deferred taxation

40,666

15,032

26,396

11,800

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

173,993

40,007

157,631

111,800

 

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

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

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

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

 

12,937,141

10,919,107

9,534,346

8,560,764

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

HEAP LEE CHAN TRADING COMPANY SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

21,042,458

14,848,993

12,742,524

12,201,717

Net Liquid Funds

21,042,458

14,239,182

12,737,022

11,901,105

Net Liquid Assets

4,272,174

<1,134,206>

<4,121,896>

<5,697,707>

Net Current Assets/(Liabilities)

7,122,854

1,576,674

<1,818,717>

<1,666,682>

Net Tangible Assets

12,937,141

10,919,107

9,534,346

8,560,764

Net Monetary Assets

4,098,181

<1,174,213>

<4,279,527>

<5,809,507>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

298,332

787,713

424,247

610,599

Total Liabilities

42,900,038

37,587,835

38,204,578

41,591,327

Total Assets

55,663,186

48,466,935

47,581,293

50,040,291

Net Assets

12,937,141

10,919,107

9,534,346

8,560,764

Net Assets Backing

12,763,148

10,879,100

9,376,715

8,448,964

Shareholders' Funds

12,763,148

10,879,100

9,376,715

8,448,964

Total Share Capital

1,900,000

1,900,000

1,900,000

1,900,000

Total Reserves

10,863,148

8,979,100

7,476,715

6,548,964

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.49

0.40

0.33

0.29

Liquid Ratio

1.10

0.97

0.89

0.86

Current Ratio

1.17

1.04

0.95

0.96

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

6

6

5

10

Debtors Ratio

53

47

41

55

Creditors Ratio

15

11

10

22

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.02

0.07

0.05

0.07

Liabilities Ratio

3.36

3.46

4.07

4.92

Times Interest Earned Ratio

3.12

3.09

2.00

2.16

Assets Backing Ratio

6.81

5.75

5.02

4.51

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

1.42

1.23

0.78

0.98

Net Profit Margin

1.06

0.92

0.52

0.75

Return On Net Assets

28.63

27.18

29.41

31.61

Return On Capital Employed

28.27

25.40

28.53

29.83

Return On Shareholders' Funds/Equity

14.76

13.81

9.89

13.10

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.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.