MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

TEXMATE TRADING SDN. BHD.

 

 

Registered Office :

28B, Jalan Tapah, Off Jalan Goh Hock Huat, 41400 Klang, Selangor, Malaysia

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

08.12.2010

 

 

Com. Reg. No.:

924550-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Textiles

 

 

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 :

Slow but correct

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.

:

924550-A

COMPANY NAME

:

TEXMATE TRADING SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

08/12/2010

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

28B, JALAN TAPAH, OFF JALAN GOH HOCK HUAT, 41400 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO.10, BLOK 1, GROUND FLOOR, JALAN TINJU 13/50, PUSAT PERNIAGAAN WORLWIDE, SECTION 13, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-55111569

FAX.NO.

:

03-55111537

CONTACT PERSON

:

CHEW YIH HONG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46419

PRINCIPAL ACTIVITY

:

TRADING OF TEXTILES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

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

 

 

 

SALES

:

MYR 16,368,596 [2012]

NET WORTH

:

MYR 2,200,664 [2012]

 

 

 

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

NIL

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

 

HISTORY / BACKGROUND

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) trading of textiles.

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 1,000,000.00

MYR 1,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHEW YIT HONG +

29, JALAN DUSUN KUBUN 27/83, TAMAN ALAM MEGAH, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

770519-08-6375 A3729204

250,000.00

25.00

MR. CHEW YEE SEONG +

102, JALAN UNDAN PUTIH, TAMAN BERKELEY, 41150 KLANG, SELANGOR, MALAYSIA.

630131-08-5857 6967905

250,000.00

25.00

MR. CHEW YIT MOON +

38, JALAN BRP 6/7, BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

720622-08-5009 A2124539

250,000.00

25.00

MR. CHEW YIT LOON +

13, JALAN SC1, 3/16, SUNWAY CITY, GARDEN VILLA, 31400 IPOH, PERAK, MALAYSIA.

750429-08-6453 A3083155

250,000.00

25.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

+ Also Director




DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHEW YIT HONG

Address

:

29, JALAN DUSUN KUBUN 27/83, TAMAN ALAM MEGAH, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A3729204

New IC No

:

770519-08-6375

Date of Birth

:

19/05/1977

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/12/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHEW YEE SEONG

Address

:

102, JALAN UNDAN PUTIH, TAMAN BERKELEY, 41150 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

6967905

New IC No

:

630131-08-5857

Date of Birth

:

31/01/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/12/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHEW YIT MOON

Address

:

38, JALAN BRP 6/7, BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

IC / PP No

:

A2124539

New IC No

:

720622-08-5009

Date of Birth

:

22/06/1972

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/12/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHEW YIT LOON

Address

:

13, JALAN SC1, 3/16, SUNWAY CITY, GARDEN VILLA, 31400 IPOH, PERAK, MALAYSIA.

IC / PP No

:

A3083155

New IC No

:

750429-08-6453

Date of Birth

:

29/04/1975

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/12/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHEW YIH HONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

NEK & ASSOCIATES

Auditor' Address

:

28A, JALAN TAPAH, OFF JALAN GOH HOCK HUAT, 41400 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. NG THIAM SEONG

 

IC / PP No

:

7626243

 

New IC No

:

440430-10-5363

 

Address

:

125 & 127, JALAN BATU NILAM 26, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. WONG SIEW LING

 

IC / PP No

:

A2833159

 

New IC No

:

740722-14-5046

 

Address

:

125 & 127, JALAN BATU NILAM 26, BANDAR BUKIT TINGGI, 41200 KLANG, 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 SUBJECT


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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

Percentage

:

100%

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 


CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

TEXTILES

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of textiles.

The Subject refused to disclose any information on its operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-55111569

Match

:

N/A

 

 

 

Address Provided by Client

:

SELANGOR DARUL ESHAN PORT KLANG MALAYSIA

Current Address

:

NO.10, BLOK 1, GROUND FLOOR, JALAN TINJU 13/50, PUSAT PERNIAGAAN WORLWIDE, SECTION 13, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 16th December 2013 we contacted one of the staff from the Subject and she provided some information on the Subject.

We were unable to verify the address provided as it is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

4.27%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

23.64%

]

 

Return on Shareholder Funds

:

Acceptable

[

23.71%

]

 

Return on Net Assets

:

Acceptable

[

29.78%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

11 Days

]

 

Debtor Ratio

:

Unfavourable

[

128 Days

]

 

Creditors Ratio

:

Favourable

[

11 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.30 Times

]

 

Current Ratio

:

Unfavourable

[

1.39 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

348.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.03 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject 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 Subject : STABLE

 

 

 

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

46419 : Wholesale of textiles, clothing n.e.c.

 

 

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 2010, the Subject is a Private Limited company, focusing on trading of textiles. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Apart from supplying its products to the local market, the Subject also exports to overseas countries. Its ability to penetrate into the global market has benefited the Subject in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 Subject 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 2,200,664, the Subject should be able to maintain its business in the near terms.

We noted that the Subject's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage.

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

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

Based on the above condition, we recommend credit be granted to the Subject normally.


PROFIT AND LOSS ACCOUNT

 

 

 

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

TEXMATE TRADING SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

Months

12

13

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

16,368,596

15,698,787

 

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

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

Total Turnover

16,368,596

15,698,787

Costs of Goods Sold

<14,326,420>

<13,866,781>

 

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

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

Gross Profit

2,042,176

1,832,006

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

668,675

875,687

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

668,675

875,687

Taxation

<146,818>

<196,880>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

521,857

678,807

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

678,807

-

 

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

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

As restated

678,807

-

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,200,664

678,807

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,200,664

678,807

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Hire purchase

1,927

-

 

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

 

 

1,927

 

 

 

 

BALANCE SHEET

 

 

TEXMATE TRADING SDN. BHD.

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

87,539

-

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

87,539

-

 

 

 

CURRENT ASSETS

 

 

Stocks

504,576

364,434

Trade debtors

5,755,223

4,763,491

Other debtors, deposits & prepayments

410,356

162,631

Cash & bank balances

1,108,934

2,701,526

 

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

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

TOTAL CURRENT ASSETS

7,779,089

7,992,082

 

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

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

TOTAL ASSET

7,866,628

7,992,082

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

413,544

1,315,726

Other creditors & accruals

12,021

11,951

Hire purchase & lease creditors

5,062

-

Amounts owing to director

5,036,963

4,788,719

Provision for taxation

146,818

196,879

 

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

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

TOTAL CURRENT LIABILITIES

5,614,408

6,313,275

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,164,681

1,678,807

 

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

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

TOTAL NET ASSETS

2,252,220

1,678,807

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,000,000

1,000,000

 

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

1,200,664

678,807

 

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

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

TOTAL RESERVES

1,200,664

678,807

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,200,664

1,678,807

 

 

 

LONG TERM LIABILITIES

 

 

Hire purchase creditors

51,556

-

 

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

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

TOTAL LONG TERM LIABILITIES

51,556

-

 

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

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

 

2,252,220

1,678,807

 

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

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

 

 

 

FINANCIAL RATIO

 

 

TEXMATE TRADING SDN. BHD.

 

TYPES OF FUNDS

 

 

Cash

1,108,934

2,701,526

Net Liquid Funds

1,108,934

2,701,526

Net Liquid Assets

1,660,105

1,314,373

Net Current Assets/(Liabilities)

2,164,681

1,678,807

Net Tangible Assets

2,252,220

1,678,807

Net Monetary Assets

1,608,549

1,314,373

BALANCE SHEET ITEMS

 

 

Total Borrowings

56,618

0

Total Liabilities

5,665,964

6,313,275

Total Assets

7,866,628

7,992,082

Net Assets

2,252,220

1,678,807

Net Assets Backing

2,200,664

1,678,807

Shareholders' Funds

2,200,664

1,678,807

Total Share Capital

1,000,000

1,000,000

Total Reserves

1,200,664

678,807

LIQUIDITY (Times)

 

 

Cash Ratio

0.20

0.43

Liquid Ratio

1.30

1.21

Current Ratio

1.39

1.27

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

11

8

Debtors Ratio

128

111

Creditors Ratio

11

35

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.03

0.00

Liabilities Ratio

2.57

3.76

Times Interest Earned Ratio

348.00

0.00

Assets Backing Ratio

2.25

1.68

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

4.09

5.58

Net Profit Margin

3.19

4.32

Return On Net Assets

29.78

52.16

Return On Capital Employed

29.71

52.16

Return On Shareholders' Funds/Equity

23.71

40.43

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.101.80

Euro

1

Rs.84.87

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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

 

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

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

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