|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
584246-U
|
|
COMPANY NAME
|
:
|
C. & S. GEMS & JEWELS (M) SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
25/06/2002
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
LETTER BOX CP5-01, MENARA CITY ONE, 3, JALAN MUNSHI ABDULLAH, LEVEL
5, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
A-23-10, LEVEL 23, TOWER A MENARA UOA BANGSAR, 5 JALAN BANGSAR UTAMA
1, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
N/A
|
|
FAX.NO.
|
:
|
N/A
|
|
HP.NO.
|
:
|
0122298255
|
|
CONTACT PERSON
|
:
|
JIGNESHKUMAR NAROTAMDAS SHAH ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
46444
|
|
PRINCIPAL ACTIVITY
|
:
|
WHOLESALE OF DIAMOND
|
|
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 500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 14,213,908 [2012]
|
|
NET WORTH
|
:
|
MYR 1,195,158 [2012]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
N/A
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
POOR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
N/A
|
|
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) wholesale of diamond.
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
|
(%)
|
|
MS. NOORHAYATI BINTI ABDUL RAHIM +
|
6407, BANGUNAN SRI LAYANG, JALAN THAMBY ABDULLAH, OFF JALAN TUN
SAMBANTHAN, BRICKFILEDS, TINGKAT 4, 50470 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
761116-08-5808
A3554466
|
255,000.00
|
51.00
|
|
MR. JIGNESHKUMAR NAROTAMDAS SHAH +
|
LETTER BOX CP5-01, MENARA CITY ONE, 3 JALAN MUNSHI ABDULLAH, LEVEL
5, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
Z1690417
|
150,000.00
|
30.00
|
|
ANIL BABULAL SHAH
|
902 EARTH PRIDE, OPPOSITE SICKA NAGAR, VP ROAD MUMBAI 400004, INDIA.
|
J1995127
|
95,000.00
|
19.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
500,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. JIGNESHKUMAR NAROTAMDAS SHAH
|
|
Address
|
:
|
LETTER BOX CP5-01, MENARA CITY ONE, 3 JALAN MUNSHI ABDULLAH, LEVEL
5, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1690417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
05/08/2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. NOORHAYATI BINTI ABDUL RAHIM
|
|
Address
|
:
|
6407, BANGUNAN SRI LAYANG, JALAN THAMBY ABDULLAH, OFF JALAN TUN
SAMBANTHAN, BRICKFILEDS, TINGKAT 4, 50470 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
A3554466
|
|
New IC No
|
:
|
761116-08-5808
|
|
Date of Birth
|
:
|
16/11/1976
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
31/12/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
JIGNESHKUMAR NAROTAMDAS SHAH
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
RAM J & CO.
|
|
Auditor' Address
|
:
|
SUITE 4-04, BANGUNAN SRI WELD, 3A, PENGKALAN SRI WELD, 10300 GEORGE
TOWN, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. M RAMANATHAN A/L S M MEYYAPPAN
|
|
|
IC / PP No
|
:
|
6057502
|
|
|
New IC No
|
:
|
600923-10-6815
|
|
|
Address
|
:
|
15, JALAN DATO ABDUL AZIZ 14/29, 46100 PETALING JAYA, SELANGOR,
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 refused to disclose its suppliers.
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
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
X
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
N/A
|
|
|
|
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
|
Credit Term
|
:
|
N/A
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The SC refuse to disclose its clientele.
OPERATIONS
Other Information:
The SC is principally engaged in the (as a / as an) wholesale of diamond.
The SC refused to disclose its business operation.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
0122298255
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
A-23-10 LEVEL 23 TOWER A MENARA UOA BANGSAR NO 5 JALAN BANGSAR UTAMA
1 KUALALUMPUR 59000 MALAYSIA
|
|
Current Address
|
:
|
A-23-10, LEVEL 23, TOWER A MENARA UOA BANGSAR, 5 JALAN BANGSAR UTAMA
1, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted the SC's director and he provided a limited information on the
SC.
The address provided belongs to register office.
The SC refused to disclose its number of employees and its bankers.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2008 - 2012
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2008 - 2012
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
3.93%
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
5.12%
|
]
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Unfavourable
|
[
|
128 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
104 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
217 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 debtors ratio
was high. The SC should tighten its credit control and improve its
collection period. 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
|
:
|
Unfavourable
|
[
|
0.53 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.13 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
|
:
|
Favourable
|
[
|
168.46 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.08 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 :
|
|
|
|
|
|
|
|
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. 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.
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 : LIMITED
|
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
|
|
|
|
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 2002, the SC is a Private Limited company, focusing on
wholesale of diamond. 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 SC is considered as a medium size company with issued and
paid up capital standing at MYR 500,000.
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.
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. 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. Fortunately, 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 1,195,158, the SC should be able to maintain its business in the near
terms.
The poor payment habit may affect the goodwill between the SC and its
suppliers and the SC may inadvertently have to pay more for its future
supplies.
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)
|
|
C. & S.
GEMS & JEWELS (M) SDN. BHD.
|
|
Financial Year End
|
2012-06-30
|
2011-06-30
|
2010-06-30
|
2009-06-30
|
2008-06-30
|
|
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
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
14,213,908
|
17,180,706
|
16,414,502
|
13,958,386
|
11,843,142
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
14,213,908
|
17,180,706
|
16,414,502
|
13,958,386
|
11,843,142
|
|
Costs of Goods Sold
|
<13,663,165>
|
<16,490,881>
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
550,743
|
689,825
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
64,807
|
264,966
|
189,192
|
165,013
|
136,611
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
64,807
|
264,966
|
189,192
|
165,013
|
136,611
|
|
Taxation
|
<17,891>
|
<54,674>
|
<37,885>
|
<32,663>
|
<30,254>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
46,916
|
210,292
|
151,307
|
132,350
|
106,357
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
648,242
|
437,950
|
286,643
|
133,100
|
26,743
|
|
Prior year adjustment
|
-
|
-
|
-
|
21,193
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
648,242
|
437,950
|
286,643
|
154,293
|
26,743
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
695,158
|
648,242
|
437,950
|
286,643
|
133,100
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
695,158
|
648,242
|
437,950
|
286,643
|
133,100
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
|
Hire purchase
|
387
|
-
|
-
|
-
|
-
|
|
|
----------------
|
|
|
|
|
|
|
387
|
|
|
|
|
BALANCE SHEET
|
C. & S.
GEMS & JEWELS (M) SDN. BHD.
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
180,798
|
98,640
|
17,155
|
19,314
|
18,542
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
180,798
|
98,640
|
17,155
|
19,314
|
18,542
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
4,965,450
|
5,829,658
|
-
|
-
|
-
|
|
Trade debtors
|
4,067,968
|
5,423,161
|
-
|
-
|
-
|
|
Other debtors, deposits & prepayments
|
22,701
|
22,701
|
-
|
-
|
-
|
|
Amount due from director
|
102,475
|
132,871
|
-
|
-
|
-
|
|
Cash & bank balances
|
168,226
|
171,254
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
9,326,820
|
11,579,645
|
8,854,954
|
7,335,853
|
8,598,815
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
9,507,618
|
11,678,285
|
8,872,109
|
7,355,167
|
8,617,357
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
8,121,745
|
10,349,457
|
-
|
-
|
-
|
|
Other creditors & accruals
|
82,038
|
125,912
|
-
|
-
|
-
|
|
Hire purchase & lease creditors
|
13,290
|
-
|
-
|
-
|
-
|
|
Provision for taxation
|
17,891
|
54,674
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
8,234,964
|
10,530,043
|
7,934,159
|
6,568,524
|
7,984,257
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
1,091,856
|
1,049,602
|
920,795
|
767,329
|
614,558
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
1,272,654
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
500,000
|
500,000
|
500,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
500,000
|
500,000
|
500,000
|
500,000
|
500,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
695,158
|
648,242
|
437,950
|
286,643
|
133,100
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
695,158
|
648,242
|
437,950
|
286,643
|
133,100
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
1,195,158
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Hire purchase creditors
|
77,496
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
77,496
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
1,272,654
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
FINANCIAL RATIO
|
C. & S.
GEMS & JEWELS (M) SDN. BHD.
|
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
168,226
|
171,254
|
-
|
-
|
-
|
|
Net Liquid Funds
|
168,226
|
171,254
|
-
|
-
|
-
|
|
Net Liquid Assets
|
<3,873,594>
|
<4,780,056>
|
920,795
|
767,329
|
614,558
|
|
Net Current Assets/(Liabilities)
|
1,091,856
|
1,049,602
|
920,795
|
767,329
|
614,558
|
|
Net Tangible Assets
|
1,272,654
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
Net Monetary Assets
|
<3,951,090>
|
<4,780,056>
|
920,795
|
767,329
|
614,558
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
90,786
|
0
|
-
|
-
|
-
|
|
Total Liabilities
|
8,312,460
|
10,530,043
|
7,934,159
|
6,568,524
|
7,984,257
|
|
Total Assets
|
9,507,618
|
11,678,285
|
8,872,109
|
7,355,167
|
8,617,357
|
|
Net Assets
|
1,272,654
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
Net Assets Backing
|
1,195,158
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
Shareholders' Funds
|
1,195,158
|
1,148,242
|
937,950
|
786,643
|
633,100
|
|
Total Share Capital
|
500,000
|
500,000
|
500,000
|
500,000
|
500,000
|
|
Total Reserves
|
695,158
|
648,242
|
437,950
|
286,643
|
133,100
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.02
|
0.02
|
-
|
-
|
-
|
|
Liquid Ratio
|
0.53
|
0.55
|
-
|
-
|
-
|
|
Current Ratio
|
1.13
|
1.10
|
1.12
|
1.12
|
1.08
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
128
|
124
|
-
|
-
|
-
|
|
Debtors Ratio
|
104
|
115
|
-
|
-
|
-
|
|
Creditors Ratio
|
217
|
229
|
-
|
-
|
-
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.08
|
0.00
|
-
|
-
|
-
|
|
Liabilities Ratio
|
6.96
|
9.17
|
8.46
|
8.35
|
12.61
|
|
Times Interest Earned Ratio
|
168.46
|
0.00
|
-
|
-
|
-
|
|
Assets Backing Ratio
|
2.55
|
2.30
|
1.88
|
1.57
|
1.27
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
0.46
|
1.54
|
1.15
|
1.18
|
1.15
|
|
Net Profit Margin
|
0.33
|
1.22
|
0.92
|
0.95
|
0.90
|
|
Return On Net Assets
|
5.12
|
23.08
|
20.17
|
20.98
|
21.58
|
|
Return On Capital Employed
|
5.07
|
23.08
|
20.17
|
20.98
|
21.58
|
|
Return On Shareholders' Funds/Equity
|
3.93
|
18.31
|
16.13
|
16.82
|
16.80
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
-
|
-
|
-
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
|
|
|
|