MIRA INFORM REPORT

 

 

Report Date :

13.08.2013

 

IDENTIFICATION DETAILS

 

Name :

HDM FUTURES SDN. BHD.

 

 

Formerly Known As :

HWANG-DBS FUTURES SDN BHD (19/10/1994)

 

 

Registered Office :

Level 8, Wisma Sri Pinang, 60 Green Hall, 10200 George Town, Pulau Pinang,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.07.2012

 

 

Date of Incorporation :

16.02.1993

 

 

Com. Reg. No.:

258146-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Licensed Future Broker Dealing In Option And Future, Investment Holding, Unit Trust & Others

 

 

No. of Employees :

40

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

258146-M

COMPANY NAME

:

HDM FUTURES SDN. BHD.

FORMER NAME

:

HWANG-DBS FUTURES SDN BHD (19/10/1994)

INCORPORATION DATE

:

16/02/1993

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LEVEL 8, WISMA SRI PINANG, 60 GREEN HALL, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

16TH FLOOR, PLAZA MASALAM, 2 JALAN TENGKU AMPUAN ZABEDAH E9/E, SECTION 9, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-55193398

FAX.NO.

:

03-55115002

CONTACT PERSON

:

TAI SIEW MOI ( ASSISTANT GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

66129 64302

PRINCIPAL ACTIVITY

:

LICENSED FUTURE BROKER DEALING IN OPTION AND FUTURE, INVESTMENT HOLDING, UNIT TRUST & OTHERS

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 5,000,000.00 DIVIDED INTO
ORDINARY SHARES 5,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 3,938,591 [2012]

NET WORTH

:

MYR 12,685,579 [2012]

 

 

 

STAFF STRENGTH

:

40 [2013]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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) licensed future broker dealing in option and future, investment holding, unit trust & others.

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

The immediate and ultimate holding company of the SC is HWANG-DBS (MALAYSIA) BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

HWANG-DBS (MALAYSIA) BERHAD

LEVEL 8,WISMA SRI PENANG, 60 GREEN HALL, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.

238969K

5,000,000.00

100.00

 

 

 

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

------

 

 

 

5,000,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. NADZARUDDIN IBNI ALMARHUM TUANKU JA'AFAR

Address

:

57, JALAN BATAI UTARA, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

591026-10-6055

Date of Birth

:

26/10/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

16/02/1993

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. TAI SIEW MOI

Address

:

NO.1,JALAN SS21/36, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

580510-04-5000

Date of Birth

:

10/05/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/11/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. HWANG LIP TEIK

Address

:

8 BELL ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

571021-07-5511

Date of Birth

:

21/10/1957

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

21/11/1995

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAI SIEW MOI

 

Position

:

ASSISTANT GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

HWANG LIP TEIK

 

Position

:

DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

TUNKU NADZARUDDIN IBNI TUANKU JAAFAR

 

Position

:

CHAIRMAN

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P O BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. MUSTHAPA @ TAN LEE PENG

 

 

 

 

 

New IC No

:

500205-07-5008

 

Address

:

1, JALAN C.O.LIM, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. MAH YEE WAN

 

 

 

 

 

New IC No

:

730304-07-5074

 

Address

:

7-5-1 JALAN GANGSA,GREENLANE HEIGHTS, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

3)

Company Secretary

:

MS. OOI HUI LING

 

 

 

 

 

New IC No

:

771223-08-7162

 

Address

:

18-23-03 SERINA BAY, HILIR SUNGAI PINANG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

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

:

N/A

Overseas

:

N/A

 

 

 


The SC is a service providing company and does not have any trade suppliers.

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

Type of Customer

:

CORPORATES,END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

OPTIONS AND FINANCIAL FUTURES, INVETSMENT HOLDING, UNIT TRUST AND OTHERS

 

 

 

 

Competitor(s)

:

SCOPE INTERNATIONAL (M) SDN BHD
SOUTHERN BANK BHD

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

YEAR

2013

 


 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

40

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) licensed future broker dealing in option and future, investment holding, unit trust & others.

The SC is a subsidiary company of Hwang-DBS Berhad ("Hwang-DBS").

The group engaged in the following acitivities:

1) Securities and bond trading

2) Dealing in financial futures and options

3) Corporate finance and advisory services

4) Capital financing

5) Fund and unit trust management and other management services

The group's core business is stockbroking which is carried on by its wholly-owned subsidiary Hwang-DBS Securities.

The SC is one of the leading Futures Brokers in Malaysia. As a General Trading Participant of Bursa Malaysia Derivatives Berhad (BMDB), HDM Futures trades in all BMDB products which include FTSE Bursa Malaysia KLCI futures and options, Single Stock futures, Crude Palm Oil (CPO) futures, Crude Palm Kernel Oil (CPKO) futures, USD denominated Crude Palm Oil (CPO) futures, 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures and Malaysian Government Securities (MGS) futures. HDM Futures is also a Clearing Participant of Bursa Malaysia Derivatives Clearing Berhad.

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.

 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0355193398

Current Telephone Number

:

03-55193398

Match

:

YES

 

 

 

Address Provided by Client

:

16TH FLOOR, PLAZA MASALAM,. 2, JALAN TENGKU AMPUAN ZABEDAH E9/E, SECTION 9. 40100 SHAH ALAM, SELANGOR DARUL

Current Address

:

16TH FLOOR, PLAZA MASALAM, 2 JALAN TENGKU AMPUAN ZABEDAH E9/E, SECTION 9, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

We conducted an interview with the SC's staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

0.13%

]

 

Return on Net Assets

:

Unfavourable

[

0.20%

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.26 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

5.79 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

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

66129 : Other financial and commodity futures brokers and dealers

64302 : Unit trust fund excludes REITs

 

 

INDUSTRY :

FINANCIAL SERVICES

 

 

 

The outlook for the financial services industry, particularly in the insurance sector, is positive as Malaysia's increasing population and rising disposable income will result in more people requiring financial services.

 

According to Ministry of Finance, Malaysia's financial services sector forcasted to grow 5.2% to the country's real gross domestic product at the year 2013. This sector targeted to raise Malaysia's total gross national income (GNI) from RM121.5 billion to RM180.2 billion and create 275,400 jobs by 2020. The domestic private banking industry is expected to continue its double-digit growth rates over the 2012-2015.

 

The insurance sector is forecast to see substantial growth in the next 2013-2016 as continued diversification, consolidation and international activity spur rising premiums and uptake of new services. Moderate GDP growth for the rest of the year, however, could pose a challenge to growth as the effects of a weakening global economy trickle down to private consumers. Gross direct premiums are expected to reach RM17.5billion in 2015.

 

At the end of July 2012, total loans outstanding increased 13% to RM1,073.1 billion largely for the purchase of residential properties and working capital, accounting for 27% and 24.7% respectively. The growth in net interest income of the banking system is expected to be complemented by higher fee-based income. The subsector is also anticipated to benefit from the growing Islamic banking market. As at end-July 2012, Islamic financing grew 19.3% to RM294.2 billion and accounted for 26.6% of total loans by the banking system. Meanwhile, stockbroking activity increased with a higher volume of share transactions at 18.4% to 222.2 billion units. In the insurance segment, life and general insurance are anticipated to further contribute to the growth of the subsector supported by an increase in new life insurance, and motor insurance policies.

 

The Government and Bank Negara would be assisting banks to establish meaningful presence in priority markets and expand beyond Asean through the acquisition of banking assets. With the insurance market in the process of dynamic change, due to rising demand and regulatory changes that aim both to increase solidity and allow greater international participation, consolidation, diversification and the rise of the takaful segment.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1993, the SC is a Private Limited company, focusing on licensed future broker dealing in option and future, investment holding, unit trust & others. Over the years, the SC's paid up capital stands at RM5 million. The SC has been in the industry for more than a decade. Its reputation in the market is satisfactory. Being backed by Hwang-DBS (Malaysia) Berhad, the SC is expected to enjoy timely financial assistance when the needs arise.

The SC's business operations are predominantly in Malaysia. As such, any adverse developments in the economic environment and uncertainties in Malaysia could adversely affect the business prospects of the SC. Its commercial risk is high. The management of the SC is headed by Tai Siew Moi, assisted by a team of management personnel and 40 employees.

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 12,685,579, 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 is a service providing company and does not have any trade suppliers.

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 normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

HDM FUTURES SDN. BHD.

 

Financial Year End

31/07/2012

31/07/2011

31/07/2010

31/07/2009

31/07/2008

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

3,938,591

5,893,358

5,069,261

7,121,156

7,077,223

 

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

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

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

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

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

Total Turnover

3,938,591

5,893,358

5,069,261

7,121,156

7,077,223

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

35,592

845,982

323,445

2,255,819

2,219,159

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

35,592

845,982

323,445

2,255,819

2,219,159

Taxation

<18,603>

<225,248>

<91,098>

<579,451>

<621,869>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

16,989

620,734

232,347

1,676,368

1,597,290

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

7,668,590

7,047,856

6,815,509

5,139,141

3,541,851

 

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

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

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

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

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

As restated

7,668,590

7,047,856

6,815,509

5,139,141

3,541,851

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

HDM FUTURES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

241,981

366,900

434,281

418,136

579,223

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

2,100,000

2,100,000

2,100,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

241,981

366,900

2,534,281

2,518,136

2,679,223

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

TOTAL CURRENT ASSETS

85,871,493

74,773,797

64,251,072

75,771,560

106,209,230

 

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

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

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

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

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

TOTAL ASSET

86,113,474

75,140,697

66,785,353

78,289,696

108,888,453

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

TOTAL CURRENT LIABILITIES

68,415,315

57,404,767

49,656,277

61,385,472

88,625,782

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

17,456,178

17,369,030

14,594,795

14,386,088

17,583,448

 

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

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

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

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

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

TOTAL NET ASSETS

17,698,159

17,735,930

17,129,076

16,904,224

20,262,671

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

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

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

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

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

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

TOTAL RESERVES

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

12,685,579

12,668,590

12,047,856

11,815,509

10,139,141

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

TOTAL LONG TERM LIABILITIES

5,012,580

5,067,340

5,081,220

5,088,715

10,123,530

 

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

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

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

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

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

 

17,698,159

17,735,930

17,129,076

16,904,224

20,262,671

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

HDM FUTURES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Net Liquid Assets

17,456,178

17,369,030

14,594,795

14,386,088

17,583,448

Net Current Assets/(Liabilities)

17,456,178

17,369,030

14,594,795

14,386,088

17,583,448

Net Tangible Assets

17,698,159

17,735,930

17,129,076

16,904,224

20,262,671

Net Monetary Assets

12,443,598

12,301,690

9,513,575

9,297,373

7,459,918

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Liabilities

73,427,895

62,472,107

54,737,497

66,474,187

98,749,312

Total Assets

86,113,474

75,140,697

66,785,353

78,289,696

108,888,453

Net Assets

17,698,159

17,735,930

17,129,076

16,904,224

20,262,671

Net Assets Backing

12,685,579

12,668,590

12,047,856

11,815,509

10,139,141

Shareholders' Funds

12,685,579

12,668,590

12,047,856

11,815,509

10,139,141

Total Share Capital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total Reserves

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Current Ratio

1.26

1.30

1.29

1.23

1.20

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Liabilities Ratio

5.79

4.93

4.54

5.63

9.74

Assets Backing Ratio

3.54

3.55

3.43

3.38

4.05

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.90

14.35

6.38

31.68

31.36

Net Profit Margin

0.43

10.53

4.58

23.54

22.57

Return On Net Assets

0.20

4.77

1.89

13.34

10.95

Return On Capital Employed

0.20

4.77

1.89

13.34

10.95

Return On Shareholders' Funds/Equity

0.13

4.90

1.93

14.19

15.75

 

 

 

 

 

 



 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.80

UK Pound

1

Rs.94.21

Euro

1

Rs.81.03

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.