MIRA INFORM REPORT

 

 

Report Date :

17.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SYARIKAT WELLCHEM SDN. BHD.

 

 

Registered Office :

127b, Jalan Ss21/37, Damansara Utama, 47400 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

21.08.1979

 

 

Com. Reg. No.:

50058-T

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Distributor of Pharmaceutical Speciality Products, and Medical Supplies And Devices

 

 

No. of Employees :

Not Available

 

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, 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

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

50058-T

COMPANY NAME

:

SYARIKAT WELLCHEM SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/08/1979

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

127B, JALAN SS21/37, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 928-929, JALAN 17/38, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-79572449

FAX.NO.

:

03-79568228

EMAIL

:

INFO@WELLCHEM.COM

WEB SITE

:

WWW.WELLCHEM.COM

CONTACT PERSON

:

CHRISTINE YIM PIU LING ( GENERAL MANAGER )

INDUSTRY CODE

:

47721

PRINCIPAL ACTIVITY

:

DISTRIBUTOR OF PHARMACEUTICAL SPECIALITY PRODUCTS, AND MEDICAL SUPPLIES AND DEVICES

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 390,000 CASH AND 110,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

USD 3,428,049 [2011]

NET WORTH

:

USD 2,426,559 [2011]

BANKER (S)

 

PUBLIC BANK BHD

STAFF STRENGTH

:

40 [2013]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) distributor of pharmaceutical speciality products, and medical supplies and devices.

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

valid.

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. TAN LIANG KOOI +

52, LORONG BURUNG SINTAR DUA, TAMAN BUKIT MALURI, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

410820-02-5361 0802860

161,540.00

32.31

MR. YIM HOW KEH +

28, JALAN 20/10, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

460517-04-5031 2775337

132,207.00

26.44

WONG CHIANG KWANG

10 LEEDON ROAD, 02-01, 267833, SINGAPORE.

1073859A

126,940.00

25.39

MR. YIM SOOI SENG @ YIM SHEE WAI +

663, JALAN 17/22B, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

471021-10-5495 2775335

37,011.00

7.40

MS. YIM TAI OI +

A10-C08, ARMANEE TERRACE CONDOMINIUM, 8 JALAN PJU 8/1, BANDAR DAMANSARA PERDANA, 47820 PETALING JAYA, SELANGOR, MALAYSIA.

500113-10-5628 3110269

21,151.00

4.23

MS. YIM TAI YONG @ YIAM TAI YOONG

11A, JALAN SS2/36, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

410303-10-5216 2775336

21,151.00

4.23

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. CHEUNG MINA

Address

:

52, LORONG BURUNG SINTAR DUA, TAMAN BUKIT MALURI, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

8317592

New IC No

:

430609-71-5146

Date of Birth

:

09/06/1943

Nationality

:

MALAYSIAN

Date of Appointment

:

02/01/1987

 

DIRECTOR 2

 

Name Of Subject

:

MS. YIM TAI OI

Address

:

A10-C08, ARMANEE TERRACE CONDOMINIUM, 8 JALAN PJU 8/1, BANDAR DAMANSARA PERDANA, 47820 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

3110269

New IC No

:

500113-10-5628

Date of Birth

:

13/01/1950

Nationality

:

MALAYSIAN

Date of Appointment

:

30/06/1983

 

DIRECTOR 3

 

Name Of Subject

:

MR. YIM SOOI SENG @ YIM SHEE WAI

Address

:

663, JALAN 17/22B, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

2775335

New IC No

:

471021-10-5495

Date of Birth

:

21/10/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

21/08/1979

 

DIRECTOR 4

 

Name Of Subject

:

MR. YIM HOW KEH

Address

:

28, JALAN 20/10, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

2775337

New IC No

:

460517-04-5031

Date of Birth

:

17/05/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

21/08/1979

 

DIRECTOR 5

 

Name Of Subject

:

MR. TAN LIANG KOOI

Address

:

52, LORONG BURUNG SINTAR DUA, TAMAN BUKIT MALURI, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0802860

New IC No

:

410820-02-5361

Date of Birth

:

20/08/1941

Nationality

:

MALAYSIAN

Date of Appointment

:

21/08/1979



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHRISTINE YIM PIU LING

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

WENDY LIAW

 

Position

:

FINANCE & ADMIN MANAGER

 

 

 

AUDITOR

 

Auditor

:

GEP ASSOCIATES

Auditor' Address

:

25-3, JALAN PJU 1/42A, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. CHEAH KEAN HIONG

 

IC / PP No

:

4012727

 

New IC No

:

500613-08-5475

 

Address

:

B15-13A, TROPICS @ TROPICANA CITY, 3, JALAN SS 20/27, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MR. CHEAH KWET HIONG

 

IC / PP No

:

0580007

 

New IC No

:

440506-08-5259

 

Address

:

8, JALAN KAKAK TUA, TAMAN IPOH, 31400 IPOH, PERAK, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

15/12/1989

CHARGE

PUBLIC BANK BERHAD

MYR 260,000.00

Unsatisfied

2

11/11/1991

CHARGE

PUBLIC BANK BERHAD

MYR 80,000.00

Unsatisfied

3

20/02/1995

N/A

PUBLIC BANK BERHAD

MYR 350,000.00

Satisfied

 

 

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

:

UNITED STATES,JAPAN,HONG KONG


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



 

CLIENTELE

 

Local

:

YES

Percentage

:

95%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

5%

Export Market

:

BRUNEI

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

HOSPITALS,CLINICS,PHARMACIES

 

 

OPERATIONS

 

Goods Traded

:

PHARMACEUTICAL SPECIALITY PRODUCTS, AND MEDICAL SUPPLIES AND DEVICES.

 

 

 

 

 

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) distributor of pharmaceutical speciality products, and medical supplies and devices.

The SC sells a wide range of products including as follows:

* Pharmaceuticals - Anti-inflammatories, Anti-vertigo, Urologicals, Hormones for HRT, Neurologicals, Osteoarthritic
* Medical Supplies - Urine bags and Tongue depressors
* Medical Devices - Heat & moisture exchangers/filters, Orthopaedic products, TENS & electrodes, X-ray products

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

The SC sources and supply unique, effective, safe and high quality medical products to serve the needs of the medical professionals and their patients, and ensure that they receive such products at reasonable prices, with the best possible service, and in the quickest possible time.

The SC's primary mission is to source and supply unique, effective, safe and high quality medical products to serve the needs of the medical professionals and their patients, ensuring that they receive such products at reasonable prices, with the best possible service, and in the quickest possible time.



PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0379572449

Current Telephone Number

:

03-79572449

Match

:

YES

 

 

 

Address Provided by Client

:

NO. 928 JELAN 17/38 PETALING JAYA, SELANGOR MALAYSIA

Current Address

:

NO 928-929, JALAN 17/38, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 15th Auugst 2013 we contacted Ms Wendy Liaw, the SC's Finance and Admin Manager, on behalf of DJO GLOBAL'S. She provided limited information on the SC.

The address provided is incomplete.

SPECIAL REQUESTS

* The SC refused to disclose when it has started its business operation but its incorporation date is 21/08/1979.

* The SC does not have branches but it has Associate companies in Singapore and Hong Kong.

* The SC refused to disclose its supplier's names both local and overseas.

* The SC refused to disclose its clients' names.

* The SC refused to disclose any information on its trade references.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

9.83%

]

 

Return on Net Assets

:

Acceptable

[

13.57%

]

 

 

 

 

 

 

 

 

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 unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

127 Days

]

 

Debtor Ratio

:

Acceptable

[

59 Days

]

 

Creditors Ratio

:

Unfavourable

[

66 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

3.12 Times

]

 

Current Ratio

:

Favourable

[

5.34 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

:

Favourable

[

267.35 Times

]

 

Gearing Ratio

:

Favourable

[

0.03 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. 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. 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

 

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

47721 : Stores specialized in retail sale of pharmaceuticals, medical and orthopaedic goods

 

 

INDUSTRY :

TRADING

 

 

 

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

 

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

 

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

 

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.

 

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1979, the SC is a Private Limited company, focusing on distribution of pharmaceutical speciality products, and medical supplies and devices. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up certain goodwill with its clients over times. The SC is considered as a medium size company with issued and paid up capital standing at MYR 500,000.


Apart from supplying its products to the local market, the SC also exports to overseas countries. Its ability to penetrate into the global market has benefited the SC in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. 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. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Fortunately, 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 USD 2,426,559, 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.

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

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


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)

SYARIKAT WELLCHEM SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

USD

USD

USD

USD

USD

 

 

 

 

 

 

TURNOVER

3,428,049

3,376,199

2,923,541

2,942,223

2,496,887

 

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

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

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

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

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

Total Turnover

3,428,049

3,376,199

2,923,541

2,942,223

2,496,887

Costs of Goods Sold

<1,636,872>

<1,730,092>

-

-

-

 

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

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

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

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

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

Gross Profit

1,791,177

1,646,107

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

328,325

251,893

320,162

297,985

198,541

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

328,325

251,893

320,162

297,985

198,541

Taxation

<89,783>

<52,483>

<74,016>

<68,814>

<44,114>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

238,542

199,410

246,146

229,171

154,427

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,095,161

1,990,989

1,804,366

1,625,989

1,500,292

 

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

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

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

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

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

As restated

2,095,161

1,990,989

1,804,366

1,625,989

1,500,292

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,333,702

2,190,399

2,050,512

1,855,160

1,654,719

DIVIDENDS - Ordinary (paid & proposed)

<83,333>

<95,238>

<59,524>

<50,794>

<28,730>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,250,369

2,095,161

1,990,989

1,804,366

1,625,989

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

636

645

-

-

-

Others

597

159

-

-

-

 

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

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

 

 

 

 

1,233

804

 

 

 

 

 

 

BALANCE SHEET

 

 

SYARIKAT WELLCHEM SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

96,568

110,877

102,145

93,763

90,703

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

96,568

110,877

102,145

93,763

90,703

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

1,193,557

933,675

-

-

-

Trade debtors

554,137

558,518

-

-

-

Other debtors, deposits & prepayments

9,389

4,151

-

-

-

Short term deposits

878,345

802,355

-

-

-

Cash & bank balances

171,813

180,625

-

-

-

Others

62,899

73,094

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

2,870,139

2,552,418

2,429,350

2,318,397

2,237,358

 

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

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

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

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

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

TOTAL ASSET

2,966,707

2,663,295

2,531,495

2,412,160

2,328,061

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

298,148

119,782

-

-

-

Other creditors & accruals

171,985

178,232

-

-

-

Bank overdraft

67,282

91,148

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

537,415

389,162

362,096

429,528

525,494

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,332,724

2,163,257

2,067,254

1,888,869

1,711,864

 

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

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

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

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

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

TOTAL NET ASSETS

2,429,292

2,274,134

2,169,399

1,982,633

1,802,567

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

158,730

158,730

158,730

158,730

158,730

 

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

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

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

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

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

TOTAL SHARE CAPITAL

158,730

158,730

158,730

158,730

158,730

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Revaluation reserve

17,460

17,460

17,460

17,460

17,460

Retained profit/(loss) carried forward

2,250,369

2,095,161

1,990,989

1,804,366

1,625,989

 

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

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

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

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

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

TOTAL RESERVES

2,267,829

2,112,621

2,008,449

1,821,826

1,643,449

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,426,559

2,271,351

2,167,179

1,980,557

1,802,179

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

2,733

2,783

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,733

2,783

2,220

2,076

388

 

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

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

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

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

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

 

2,429,292

2,274,134

2,169,399

1,982,633

1,802,567

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

SYARIKAT WELLCHEM SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,050,157

982,980

0

0

0

Net Liquid Funds

982,875

891,832

0

0

0

Net Liquid Assets

1,139,168

1,229,581

2,067,254

1,888,869

1,711,864

Net Current Assets/(Liabilities)

2,332,724

2,163,257

2,067,254

1,888,869

1,711,864

Net Tangible Assets

2,429,292

2,274,134

2,169,399

1,982,633

1,802,567

Net Monetary Assets

1,136,435

1,226,799

2,065,034

1,886,793

1,711,477

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

67,282

91,148

0

0

0

Total Liabilities

540,148

391,944

364,316

431,604

525,882

Total Assets

2,966,707

2,663,295

2,531,495

2,412,160

2,328,061

Net Assets

2,429,292

2,274,134

2,169,399

1,982,633

1,802,567

Net Assets Backing

2,426,559

2,271,351

2,167,179

1,980,557

1,802,179

Shareholders' Funds

2,426,559

2,271,351

2,167,179

1,980,557

1,802,179

Total Share Capital

158,730

158,730

158,730

158,730

158,730

Total Reserves

2,267,829

2,112,621

2,008,449

1,821,826

1,643,449

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.95

2.53

-

-

-

Liquid Ratio

3.12

4.16

-

-

-

Current Ratio

5.34

6.56

6.71

5.40

4.26

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

127

101

-

-

-

Debtors Ratio

59

60

-

-

-

Creditors Ratio

66

25

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.03

0.04

-

-

-

Liabilities Ratio

0.22

0.17

0.17

0.22

0.29

Times Interest Earned Ratio

267.35

314.37

-

-

-

Assets Backing Ratio

15.30

14.33

13.67

12.49

11.36

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

9.58

7.46

10.95

10.13

7.95

Net Profit Margin

6.96

5.91

8.42

7.79

6.18

Return On Net Assets

13.57

11.11

14.76

15.03

11.01

Return On Capital Employed

13.20

10.68

14.76

15.03

11.01

Return On Shareholders' Funds/Equity

9.83

8.78

11.36

11.57

8.57

Dividend Pay Out Ratio (Times)

0.35

0.48

0.24

0.22

0.19

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.82

UK Pound

1

Rs.96.57

Euro

1

Rs.82.45

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.