MIRA INFORM REPORT

 

 

Report Date :

17.09.2012

 

IDENTIFICATION DETAILS

 

Name :

SOON CHEONG MARINE PRODUCTS SDN BHD

 

 

Registered Office :

332, Lift 7, Block A, Damansara Intan, 1 Jalan Ss 20/27, Level 3, 47400 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

17.11.1995

 

 

Com. Reg. No.:

367537-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Commodities Mainly Garlic, Onion, Dried Seafood, Dried Chillies & Bean

 

 

No. of Employees :

30

 

 

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.

:

367537-U

COMPANY NAME

:

SOON CHEONG MARINE PRODUCTS SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/11/1995

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

332, LIFT 7, BLOCK A, DAMANSARA INTAN, 1 JALAN SS 20/27, LEVEL 3, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

12 JLN TEMBAGA SD 5/2E, BDR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-62766479

FAX.NO.

:

03-62764557

CONTACT PERSON

:

LIM NGUN SON ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

52212

PRINCIPAL ACTIVITY

:

TRADING OF COMMODITIES MAINLY GARLIC, ONION, DRIED SEAFOOD, DRIED CHILLIES & BEAN

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 83,633,341 [2010]

NET WORTH

:

MYR 5,890,015 [2010]

 

 

 

STAFF STRENGTH

:

30 [2012]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 commodities mainly garlic, onion, dried seafood, dried chillies & bean.

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. LIM NGUN SON +

12, JALAN TEMBAGA SD 5/2E, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

541117-02-5271 8143647

800,000.00

80.00

MS. NG WOON YING +

19, JALAN 52, KEPONG BARU, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

561016-10-5780 5056973

200,000.00

20.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

 

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. NG WOON YING

Address

:

19, JALAN 52, KEPONG BARU, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5056973

New IC No

:

561016-10-5780

Date of Birth

:

16/10/1956

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

17/11/1995

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIM NGUN SON

Address

:

12, JALAN TEMBAGA SD 5/2E, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

8143647

New IC No

:

541117-02-5271

Date of Birth

:

17/11/1954

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

17/11/1995

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM NGUN SON

 

Position

:

DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

YTS & ASSOCIATES

Auditor' Address

:

336, LIFT 7, BLOCK A, DAMANSARA INTAN, 1 JALAN SS 20/27, LEVEL 3, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PAN ENG KIAT

 

IC / PP No

:

A0788368

 

New IC No

:

670805-04-5357

 

Address

:

300, JALAN SELESA 1, HAPPY GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

24/02/1998

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

RM576,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
6 JLN TEMBAGA SD 5/2A, BDR SRI D'SARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 03/03/1998

Registered and Numbered 1 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

16/08/2000

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
6 JLN TEMBAGA SD 5/2A, BDR SRI D'SARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

10/12/2004

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

10/12/2004

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

10/12/2004

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

RM3,000,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges


ENCUMBRANCE 6

Date of Creation

:

10/03/2005

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 6 In The Register of Charges


ENCUMBRANCE 7

Date of Creation

:

26/10/2006

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges


ENCUMBRANCE 8

Date of Creation

:

29/09/2009

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges


ENCUMBRANCE 9

Date of Creation

:

21/04/2010

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges


ENCUMBRANCE 10

Date of Creation

:

21/04/2010

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM1,960,000.00

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 In The Register of Charges


ENCUMBRANCE 11

Date of Creation

:

21/04/2010

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges


ENCUMBRANCE 12

Date of Creation

:

03/05/2011

Description Of Charge

:

1ST PARTY 1ST CHARGE TERM LOAN- RM376,000 O/D- RM200,000

 

Amount Secured

:

N/A

Description Of Property Affected

:

HSD() 85885 PT 23925, MK SG BULUH, DIST PETALING, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated 13/05/2011

Registered and Numbered 12 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


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CASH

Type of Customer

:

DEALERS,WALK IN CUSTOMERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

DRIED SEAFOODS

 

 

 

 

Competitor(s)

:

BOJET HOLDINGS SDN BHD
KWANG YEOW HENG IMPORTER & EXPORTER (MALAYSIA) SDN BHD
SEAPACK FOOD SDN BHD
TM FOODS SDN BHD
TOH TECK LEE MARINE PRODUCTS SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

 

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

30

30

30

 

 

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of commodities mainly garlic, onion, dried seafood, dried chillies & bean.

The SC sells dry and wet seafood.

Besides this, the SC also sells onions, garlics, chilies and other daily food stuff.

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

 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-62766479

Match

:

N/A

 

 

 

Address Provided by Client

:

12 JLN TEMBAGA SD 5/2E, BDR SRI DAMANSARA,52200,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

12 JLN TEMBAGA SD 5/2E, BDR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2010

]

 

Return on Shareholder Funds

:

Acceptable

[

24.73%

]

 

Return on Net Assets

:

Acceptable

[

24.55%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

13 Days

]

 

Debtor Ratio

:

Favourable

[

23 Days

]

 

Creditors Ratio

:

Favourable

[

22 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

[

0.67 Times

]

 

Current Ratio

:

Unfavourable

[

0.97 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

:

Acceptable

[

9.75 Times

]

 

Gearing Ratio

:

Favourable

[

0.49 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 :

 

 

 

 

 

 

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. 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

52212 : Retail sale of fish and other seafood

 

 

INDUSTRY :

AGRICULTURE

 

 

 


The agricultural sector has contributed to the growth and be major contributors to national income and export earnings.The agricultural sector initially derived from the increase in the production of livestock, fisheries, and other miscellaneous crops. The agricultural industry more valuable with the increase in earnings from major commodities such as palm oil, rubber and food commodities.


Palm oil production expected to growth 13.2% at the year 2015/16 which 20.6million tonnes while Poultry production expected to 9.9% at the year 2015/16 which 1.35million tonnes in 2015/16. The 10th Malaysia Economic Plan will boost growth in this industry by attracte more investment. Moreover, sugar consumption expected to reach 7.5% due to contribution of greater disposable income from an average 5.4% real GDP growth over the year 2013-2016 where will allow Malaysians to spend more on processed foods with high sugar content such as soft drinks and sugar confectionery.


The Agriculture sector expanded with a slower pace of 2.1% at the second quarter 2012 compared to 6.9% in the first quarter 2012. The slower growth was attributed by the decline in the production of Rubber and Fishing. However, Livestock showed favourable growth of 11.0% while Forestry turned around to 5.4% as compared to negative 6.3% in the first quarter. Oil Palm registered a growth of 3.5% in second quarter 2012.


The agriculture is a strong contributer to Malaysia's GDP, employment, export revenue, export tax and duty, as well as the economic development. This sector provide income, employment and good investment to the rural areas where enhance the community. Hence, the Government of Malaysia allocated RM1.1bil under the longterm projects (2011-2020) budget 2012 for the development of the agriculture sector and increase productivity and generate higher returns in this sector.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1995, the SC is a Private Limited company, focusing on trading of commodities mainly garlic, onion, dried seafood, dried chillies & bean. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. 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 30 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. 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. 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. 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 5,890,015, 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry has reached its maturity stage and only enjoying a marginal growth. Despite the challenging market condition, the SC has competitive edge against other players in the same field due to its long establishment.


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)

SOON CHEONG MARINE PRODUCTS SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

83,633,341

70,558,153

57,384,904

Other Income

23,355

26,113

29,113

 

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

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

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

Total Turnover

83,656,696

70,584,266

57,414,017

Costs of Goods Sold

<81,505,043>

<69,351,678>

<56,412,543>

 

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

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

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

Gross Profit

2,151,653

1,232,588

1,001,474

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,931,009

1,030,918

813,206

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,931,009

1,030,918

813,206

Taxation

<474,550>

<551,428>

<79,497>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,456,459

479,490

733,709

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

3,833,556

3,354,066

2,620,357

 

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

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

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

As restated

3,833,556

3,354,066

2,620,357

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,290,015

3,833,556

3,354,066

DIVIDENDS - Ordinary (paid & proposed)

<400,000>

-

-

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,890,015

3,833,556

3,354,066

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Bank overdraft

19,846

3,826

10,985

Bankers' acceptance

147,806

109,657

80,750

Hire purchase

31,958

64,273

64,608

Term loan / Borrowing

21,034

23,914

31,925

 

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

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

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

 

220,644

201,670

188,268

 

 

 

BALANCE SHEET

 

 

SOON CHEONG MARINE PRODUCTS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

9,022,885

8,453,069

5,378,113

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

9,022,885

8,453,069

5,378,113

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

3,008,902

2,370,561

1,110,613

Trade debtors

5,270,142

4,460,998

4,786,361

Other debtors, deposits & prepayments

330,153

261,297

164,424

Short term deposits

221,000

1,145,654

999,541

Amount due from director

-

260,437

458,423

Cash & bank balances

750,338

883,544

264,347

 

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

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

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

TOTAL CURRENT ASSETS

9,580,535

9,382,491

7,783,709

 

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

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

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

TOTAL ASSET

18,603,420

17,835,560

13,161,822

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

4,892,841

4,395,588

4,434,585

Other creditors & accruals

566,404

3,526,595

501,902

Hire purchase & lease creditors

186,161

257,001

384,862

Bank overdraft

180,354

236,813

394,088

Short term borrowings/Term loans

175,448

58,246

53,136

Bill & acceptances payable

3,750,000

3,720,000

2,431,000

Provision for taxation

88,978

7,000

-

 

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

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

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

TOTAL CURRENT LIABILITIES

9,840,186

12,201,243

8,199,573

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<259,651>

<2,818,752>

<415,864>

 

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

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

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

TOTAL NET ASSETS

8,763,234

5,634,317

4,962,249

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

1,000,000

1,000,000

1,000,000

 

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

4,890,015

3,833,556

3,354,066

 

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

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

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

TOTAL RESERVES

4,890,015

3,833,556

3,354,066

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,890,015

4,833,556

4,354,066

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Long term loans

2,067,188

278,927

342,982

Hire purchase creditors

253,031

141,406

265,201

Deferred taxation

553,000

380,428

-

 

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

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

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

TOTAL LONG TERM LIABILITIES

2,873,219

800,761

608,183

 

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

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

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

 

8,763,234

5,634,317

4,962,249

 

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SOON CHEONG MARINE PRODUCTS SDN BHD

 

TYPES OF FUNDS

 

 

 

Cash

971,338

2,029,198

1,263,888

Net Liquid Funds

790,984

1,792,385

869,800

Net Liquid Assets

<3,268,553>

<5,189,313>

<1,526,477>

Net Current Assets/(Liabilities)

<259,651>

<2,818,752>

<415,864>

Net Tangible Assets

8,763,234

5,634,317

4,962,249

Net Monetary Assets

<6,141,772>

<5,990,074>

<2,134,660>

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

2,862,182

972,393

1,440,269

Total Liabilities

12,713,405

13,002,004

8,807,756

Total Assets

18,603,420

17,835,560

13,161,822

Net Assets

8,763,234

5,634,317

4,962,249

Net Assets Backing

5,890,015

4,833,556

4,354,066

Shareholders' Funds

5,890,015

4,833,556

4,354,066

Total Share Capital

1,000,000

1,000,000

1,000,000

Total Reserves

4,890,015

3,833,556

3,354,066

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.10

0.17

0.15

Liquid Ratio

0.67

0.57

0.81

Current Ratio

0.97

0.77

0.95

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

13

12

7

Debtors Ratio

23

23

30

Creditors Ratio

22

23

29

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.49

0.20

0.33

Liabilities Ratio

2.16

2.69

2.02

Times Interest Earned Ratio

9.75

6.11

5.32

Assets Backing Ratio

8.76

5.63

4.96

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

2.31

1.46

1.42

Net Profit Margin

1.74

0.68

1.28

Return On Net Assets

24.55

21.88

20.18

Return On Capital Employed

23.57

20.11

17.44

Return On Shareholders' Funds/Equity

24.73

9.92

16.85

Dividend Pay Out Ratio (Times)

0.27

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

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.