|
* Adopted abbreviations :
|
SC - Subject Company (the company
enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
543625-H
|
|
COMPANY NAME
|
:
|
LYNX TRADING SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
02/04/2001
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
24B, PERSIARAN ZAABA, TAMAN TUN DR ISMAIL,
60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
A15-5, JALAN SELAMAN 1/1, DATARAN PALMA,
68000 AMPANG, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-42705068
|
|
FAX.NO.
|
:
|
03-42705085
|
|
CONTACT PERSON
|
:
|
HASNAIN ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
68101
|
|
PRINCIPAL ACTIVITY
|
:
|
PROPERTY INVESTMENT, IMPORT AND EXPORT OF COMMODITIES, MACHINERY AND
EQUIPMENT
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 250,002.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 250,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 577,023 [2011]
|
|
NET WORTH
|
:
|
MYR <232,313> [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
N/A
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
N/A
|
|
CURRENCY EXPOSURE
|
:
|
N/A
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
HISTORY
/ BACKGROUND
The SC is a private limited company and is allowed
to have a minimum of one and a maximum of forty-nine shareholders. As a
private limited company, the SC must have at least two directors. A private
limited company is a separate legal entity from its shareholders. As a
separate legal entity, the SC is capable of owning assets, entering into
contracts, sue or be sued by other companies. The liabilities of the
shareholders are to the extent of the equity they have taken up and the
creditors cannot claim on shareholders' personal assets even if the SC is
insolvent. The SC is governed by the Companies Act, 1965 and the company must
file its annual returns, together with its financial statements with the
Registrar of Companies.
The SC is principally engaged in the (as a
/ as an) property investment, import and export of commodities, machinery and
equipment.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The major
shareholder(s) of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. WONG SIEW KAN +
|
12, JALAN KELAB UKAY 9, TAMAN KELAB UKAY,
68000 AMPANG, SELANGOR, MALAYSIA.
|
560323-10-6025 8207798
|
1.00
|
0.00
|
|
HASNAIN AKBAR ALI NANJEE +
|
D-2-19, PANGSAPURI TIARA DUTA, PERSIARAN PUTRA,
TAMAN PUTRA SULAIMAN, 68000 AMPANG, SELANGOR, MALAYSIA.
|
AA9788262
|
1.00
|
0.00
|
|
BATOOL HASNAIN
|
65/1, 9TH STREET, PHASE V, D.H.A KARACHI,
PAKISTAN.
|
AD6809311
|
250,000.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
250,002.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
HASNAIN AKBAR ALI NANJEE
|
|
Address
|
:
|
D-2-19, PANGSAPURI TIARA DUTA, PERSIARAN PUTRA,
TAMAN PUTRA SULAIMAN, 68000 AMPANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
AA9788262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
02/04/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. WONG SIEW KAN
|
|
Address
|
:
|
12, JALAN KELAB UKAY 9, TAMAN KELAB UKAY,
68000 AMPANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
8207798
|
|
New IC No
|
:
|
560323-10-6025
|
|
Date of Birth
|
:
|
23/03/1956
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
02/04/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
HASNAIN
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
KIAT & ASSOCIATES
|
|
Auditor' Address
|
:
|
24A, PERSIARAN ZAABA, TAMAN TUN DR
ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. YAP KIM SING
|
|
|
IC / PP No
|
:
|
5115499
|
|
|
New IC No
|
:
|
570317-10-5439
|
|
|
Address
|
:
|
9, JALAN 12/17, 46200 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
|
[
|
X
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
N/A
|
|
|
|
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The SC refused to disclose its clientele.
OPERATIONS
|
Services
|
:
|
PROPERTY INVESTMENT
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) property investment,
import and export of commodities, machinery and equipment.
The SC refused to disclose any information on its operation.
PROJECTS
No projects found in our databank
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-42705068
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT A 15-5 5TH FLOOR JALAN SELAMAN 68000
AMPANG SELANGOR DARUL EHSAN
|
|
Current Address
|
:
|
A15-5, JALAN SELAMAN 1/1, DATARAN PALMA,
68000 AMPANG, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the SC and she provided some information
on the SC.
The address provided is incorrect.
She refused to disclose the SC's number of employees.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
<58.64%>
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<79.90%>
|
]
|
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the
fierce competition among the existing and new market players.The higher
profit could be attributed to the increase in turnover. The SC's unfavourable
returns on shareholders' funds indicate the management's inefficiency in
utilising its assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Nil
|
[
|
0 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
0 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
0 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
As the SC is a service oriented company,
the SC does not need to keep stocks. The favourable debtors' days could be due
to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.43 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.43 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the SC may be
facing working capital deficiency. If the SC cannot obtain additional
financing or injection of fresh capital, it may face difficulties in
meeting its short term obligations.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Acceptable
|
[
|
3.76 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was slightly low.
If there is no sharp fall in its profit or sudden increase in the interest rates,
we believe the SC is able to generate sufficient income to service its
interest and repay the loans. The SC had no gearing and hence it had
virtually no financial risk. The SC was financed by its shareholders' funds
and internally generated fund. During the economic downturn, the SC, having
a zero gearing, will be able to compete better than those which are highly
geared in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Although the turnover was erratic, the SC
had maintained a steady growth in its profit. This indicate the
management's efficiency in controlling its costs and profitability. Due to
its weak liquidity position, the SC will be faced with problems in meeting all
its short term obligations if no short term loan is obtained or additional
capital injected into the SC. The SC had an acceptable interest cover. If
there is no sudden sharp increase in interest rate or fall in the SC's
profit, we do believe the SC is able to generate sufficient cash flow to
service its interest payment. The SC was a zero gearing company, it was
solely dependant on its shareholders to provide funds to finance its
business. The SC has good chance of getting loans, if the needs arises.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC :
POOR
|
MALAYSIA
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.73
|
28.13
|
28.35
|
28.70
|
29.10
|
|
Gross Domestic Products ( % )
|
4.6
|
<0.5>
|
7.2
|
5.5
|
5.3
|
|
Domestic Demand ( % )
|
6.9
|
2.9
|
6.3
|
4.8
|
7.6
|
|
Private Expenditure ( % )
|
7.1
|
<2.7>
|
8.1
|
7.0
|
8.7
|
|
Consumption ( % )
|
8.4
|
0.7
|
6.7
|
6.3
|
7.1
|
|
Investment ( % )
|
1.5
|
<17.2>
|
17.7
|
16.2
|
15.9
|
|
Public Expenditure ( % )
|
6.5
|
5.2
|
3.8
|
7.6
|
4.7
|
|
Consumption ( % )
|
11.6
|
3.1
|
0.2
|
8.9
|
3.0
|
|
Investment ( % )
|
0.7
|
8.0
|
2.8
|
0.6
|
7.0
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
129,563
|
89,650
|
118,356
|
116,058
|
-
|
|
Government Finance ( MYR Million )
|
<34,462>
|
<28,450>
|
<40,482>
|
<45,511>
|
<43,021>
|
|
Government Finance to GDP / Fiscal
Deficit ( % )
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
<4.7>
|
|
Inflation ( % Change in Composite CPI)
|
<3.3>
|
<5.2>
|
5.1
|
3.1
|
-
|
|
Unemployment Rate
|
3.7
|
4.5
|
3.9
|
3.3
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion
)
|
388
|
331
|
329
|
415
|
-
|
|
Average Risk-Weighted Capital Adequacy
Ratio ( % )
|
1.91
|
2.87
|
2.20
|
3.50
|
-
|
|
Average 3 Months of Non-performing Loans
( % )
|
13.24
|
11.08
|
15.30
|
14.80
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
5.53
|
6.30
|
6.60
|
-
|
|
Business Loans Disbursed( % )
|
11.6
|
10.5
|
14.7
|
15.3
|
-
|
|
Foreign Investment ( MYR Million )
|
23,261.4
|
22,156.8
|
22,517.9
|
23,546.1
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
41,599
|
41,578
|
44,148
|
-
|
-
|
|
Registration of New Companies ( % )
|
<4.0>
|
<0.1>
|
6.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
27,992
|
39,075
|
25,585
|
-
|
-
|
|
Liquidation of Companies ( % )
|
23.7
|
39.6
|
<34.5>
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
269,866
|
312,581
|
271,414
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
18,885
|
19,345
|
19,738
|
-
|
-
|
|
Business Dissolved ( % )
|
<7.6>
|
2.4
|
2.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
497.5
|
486.3
|
543.6
|
363.0
|
-
|
|
Cellular Phone Subscribers ( Million )
|
25.1
|
30.1
|
32.8
|
35.3
|
-
|
|
Tourist Arrival ( Million Persons )
|
21.5
|
23.6
|
24.6
|
25.3
|
-
|
|
Hotel Occupancy Rate ( % )
|
68.0
|
58.0
|
63.0
|
51.3
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
17.1
|
12.8
|
14.1
|
15.6
|
-
|
|
Bad Cheque Offenders (No.)
|
34,834
|
36,667
|
33,568
|
27,208
|
-
|
|
Individual Bankruptcy ( No.)
|
13,907
|
16,228
|
18,119
|
16,155
|
-
|
|
Individual Bankruptcy ( % )
|
5.1
|
16.7
|
11.7
|
<10.8>
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.6
|
0.4
|
2.1
|
4.7
|
4.1
|
|
Palm Oil
|
7.0
|
<1.1>
|
<3.4>
|
7.3
|
-
|
|
Rubber
|
<1.1>
|
<19.8>
|
9.9
|
6.4
|
-
|
|
Forestry & Logging
|
<1.5>
|
<5.9>
|
<3.3>
|
<4.7>
|
-
|
|
Fishing
|
4.0
|
5.5
|
5.6
|
2.8
|
-
|
|
Other Agriculture
|
5.9
|
9.0
|
7.9
|
8.5
|
-
|
|
Industry Non-Performing Loans ( MYR
Million )
|
393.0
|
413.7
|
508.4
|
634.1
|
-
|
|
% of Industry Non-Performing Loans
|
<2.0>
|
1.3
|
2.1
|
3.2
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.8>
|
<3.8>
|
0.2
|
<2.4>
|
2.5
|
|
Oil & Gas
|
12.7
|
2.1
|
0.5
|
<1.7>
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR
Million )
|
36.0
|
44.2
|
49.7
|
46.5
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
1.3
|
<9.4>
|
11.4
|
5.6
|
4.5
|
|
Exported-oriented Industries
|
2.7
|
<19.0>
|
12.1
|
2.8
|
-
|
|
Electrical & Electronics
|
2.4
|
<30.3>
|
28.4
|
<4.9>
|
-
|
|
Rubber Products
|
4.2
|
<10.1>
|
25.3
|
15.4
|
-
|
|
Wood Products
|
<6.0>
|
<24.1>
|
20.1
|
<7.3>
|
-
|
|
Textiles & Apparel
|
1.9
|
<19.5>
|
<0.4>
|
14.8
|
-
|
|
Domestic-oriented Industries
|
9.9
|
<9.8>
|
16.3
|
6.3
|
-
|
|
Food, Beverages & Tobacco
|
9.5
|
0.2
|
3.0
|
4.2
|
-
|
|
Chemical & Chemical Products
|
1.4
|
<7.7>
|
16.2
|
5.6
|
-
|
|
Plastic Products
|
6.5
|
<9.1>
|
2.4
|
3.8
|
-
|
|
Iron & Steel
|
16.8
|
<32.7>
|
29.3
|
2.4
|
-
|
|
Fabricated Metal Products
|
14.7
|
<2.5>
|
14.9
|
25.2
|
-
|
|
Non-metallic Mineral
|
8.3
|
<15.5>
|
20.2
|
16.3
|
-
|
|
Transport Equipment
|
27.1
|
<13.5>
|
36.5
|
<9.4>
|
-
|
|
Paper & Paper Products
|
8.6
|
<5.0>
|
18.7
|
15.6
|
-
|
|
Crude Oil Refineries
|
7.8
|
0.2
|
<11.4>
|
9.3
|
-
|
|
Industry Non-Performing Loans ( MYR
Million )
|
5,729.4
|
6,007.3
|
6,217.5
|
6,537.2
|
-
|
|
% of Industry Non-Performing Loans
|
16.8
|
18.3
|
23.8
|
25.7
|
-
|
|
|
|
|
|
|
|
|
Construction
|
2.1
|
5.8
|
5.1
|
4.4
|
7.0
|
|
Industry Non-Performing Loans ( MYR
Million )
|
4,149.8
|
3,241.8
|
4,038.5
|
3,856.9
|
-
|
|
% of Industry Non-Performing Loans
|
12.2
|
9.9
|
10.7
|
10.2
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.3
|
2.6
|
6.5
|
6.4
|
6.5
|
|
Electric, Gas & Water
|
5.0
|
0.4
|
8.5
|
5.6
|
4.8
|
|
Transport, Storage & Communication
|
7.8
|
1.6
|
7.7
|
6.5
|
7.3
|
|
Wholesale, Retail, Hotel & Restaurant
|
10.0
|
2.8
|
4.7
|
5.2
|
6.9
|
|
Finance, Insurance & Real Estate
|
9.2
|
3.8
|
6.1
|
6.3
|
6.5
|
|
Government Services
|
8.6
|
2.0
|
6.7
|
7.6
|
5.6
|
|
Other Services
|
5.9
|
4.4
|
4.2
|
5.4
|
5.7
|
|
Industry Non-Performing Loans ( MYR
Million )
|
8,281.4
|
6,631.3
|
7,384.6
|
6,825.2
|
-
|
|
% of Industry Non-Performing Loans
|
24.3
|
20.2
|
25.7
|
23.4
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY
ANALYSIS
|
MSIC CODE
|
|
68101 : Buying, selling, renting and operating
of self-owned or leased real estate - residential buildings
|
|
|
|
|
INDUSTRY :
|
PROPERTY DEVELOPMENT
|
|
|
|
|
|
|
Malaysia's property development sector remain stable, suggesting the Malaysia
is performing well compared to its regional peers, and even larger markets
like the US. The market is not yet saturated, and investment may continue
to increase as players look to more stable markets than the US and
eurozone. In April 2012 , the Economic Transformation Programme (ETP) had
exceeded its 2011 target and achieving 23% of its Key Performance
Indicators (KPIs) at the 3rd quarter 2012.
|
|
The property development sector faced downgrade of GDP growth from 4.2% to
3.2% in 2012, from 4.5% in 2011. The sector forecasts remain below
consensus, but that headwinds are dragging on exports and manufacturing
activity seems to have slowed. This subdued growth outlook for 2012 may
also cause a loss in optimism for the ETP and wider real estate market.
|
|
Infrastructure plans formed by the ETP will boost the profile of a number
of local companies involved in their development. These are also serving to
increase investor perception of Kuala Lumpur and its surrounding area in
particular. Moderation of growth in the economy could cause a slowdown in
investment, while companies wait for conditions to improve at a better
rate.
|
|
A number of Malaysian property developers are looking overseas, following rising
domestic land costs that hamper their ability to find new development
opportunities. Furthermore, Malaysia is forcasted to experience an
oversupply in office property in 2012, which could damage rental levels
that have until now remained fairly raise up.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal
Growth
|
CREDIT RISK EVALUATION & RECOMMENDATION
|
Incorporated in 2001, the SC is a Private Limited company, focusing on property
investment, import and export of commodities, machinery and equipment.
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. With a
weak shareholders' backing, the SC's capital position is weak. Inadequate
capital may be a constraint to the SC as it limits its ability to expand
its business in future. The capital standing of the SC is weak. The SC may
face difficulties to expand its business compared to other large
corporation. Without a strong capital, the business expansion opportunities
of the SC is limited.
|
|
Overall, we regard that the SC's management capability is weak. Without capable
management, the SC is unlikely to be successful and often contribute to
unacceptable levels of accountability. Weak management can affect
productivity, profitability, sales growth and ultimately can result in the
failure of a business.
|
|
We noted that both the turnover and profits have increased compared to the
previous year. However, 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. A zero
gearing ratio indicates that the SC is mainly dependent on its internal
funds to finance its business. The SC's unfavourable financial performance
over the years has wiped out its shareholders' funds to a deficit of MYR
232,313. Therefore, the SC as a going concern is much dependent on its
ability to generate sufficient cash flow and obtain additional financing to
meet its future obligations.
|
|
Without a strong assets backing, the SC may face difficulties in getting
loans for its future expansion and continued growth.
|
|
We regard that the SC's overall payment habit is fair. With poor financial
condition, the SC may unable to pay its creditors on the given period of
time.
|
|
The industry has reached its maturity stage and only enjoying a marginal
growth. The steady growth of the country's economy will further enhance the
industry activities. Thus, the SC's future performance is very much depend
on its marketing strategies in order to retain its position in the market.
|
|
Based on the above unfavourable condition, we regard granting credit to the
SC to be quite risky. Hence, credit is not recommended.
|
PROFIT
AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS)
|
|
LYNX TRADING 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
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
577,023
|
217,269
|
3,846,088
|
171,154
|
176,207
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
577,023
|
217,269
|
3,846,088
|
171,154
|
176,207
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
136,235
|
4,679
|
207,454
|
<251,133>
|
<243,359>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
136,235
|
4,679
|
207,454
|
<251,133>
|
<243,359>
|
|
Taxation
|
-
|
-
|
<275>
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
136,235
|
4,679
|
207,179
|
<251,133>
|
<243,359>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
<335,916>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
<335,916>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<482,315>
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
<482,315>
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to
P&L)
|
|
|
|
|
|
|
Term loan / Borrowing
|
49,392
|
46,248
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
|
|
|
|
|
49,392
|
46,248
|
|
|
|
BALANCE
SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
364,010
|
368,692
|
373,374
|
378,056
|
382,738
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
364,010
|
368,692
|
373,374
|
378,056
|
382,738
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Other debtors, deposits & prepayments
|
64,670
|
96,464
|
-
|
-
|
-
|
|
Cash & bank balances
|
383,393
|
163,027
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
448,063
|
259,491
|
202,882
|
3,641,536
|
3,627,348
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
812,073
|
628,183
|
576,256
|
4,019,592
|
4,010,086
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Other creditors & accruals
|
759,871
|
713,141
|
-
|
-
|
-
|
|
Amounts owing to director
|
284,515
|
283,315
|
-
|
-
|
-
|
|
Provision for taxation
|
-
|
275
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
1,044,386
|
996,731
|
949,483
|
4,599,998
|
4,339,359
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
<596,323>
|
<737,240>
|
<746,601>
|
<958,462>
|
<712,011>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
250,002
|
250,002
|
250,002
|
250,002
|
250,002
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
250,002
|
250,002
|
250,002
|
250,002
|
250,002
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
<482,315>
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
<482,315>
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
383,393
|
163,027
|
-
|
-
|
-
|
|
Net Liquid Funds
|
383,393
|
163,027
|
-
|
-
|
-
|
|
Net Liquid Assets
|
<596,323>
|
<737,240>
|
<746,601>
|
<958,462>
|
<712,011>
|
|
Net Current Assets/(Liabilities)
|
<596,323>
|
<737,240>
|
<746,601>
|
<958,462>
|
<712,011>
|
|
Net Tangible Assets
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
Net Monetary Assets
|
<596,323>
|
<737,240>
|
<746,601>
|
<958,462>
|
<712,011>
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
-
|
-
|
-
|
|
Total Liabilities
|
1,044,386
|
996,731
|
949,483
|
4,599,998
|
4,339,359
|
|
Total Assets
|
812,073
|
628,183
|
576,256
|
4,019,592
|
4,010,086
|
|
Net Assets
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
Net Assets Backing
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
Shareholders' Funds
|
<232,313>
|
<368,548>
|
<373,227>
|
<580,406>
|
<329,273>
|
|
Total Share Capital
|
250,002
|
250,002
|
250,002
|
250,002
|
250,002
|
|
Total Reserves
|
<482,315>
|
<618,550>
|
<623,229>
|
<830,408>
|
<579,275>
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.37
|
0.16
|
-
|
-
|
-
|
|
Liquid Ratio
|
0.43
|
0.26
|
-
|
-
|
-
|
|
Current Ratio
|
0.43
|
0.26
|
0.21
|
0.79
|
0.84
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
0
|
0
|
-
|
-
|
-
|
|
Debtors Ratio
|
0
|
0
|
-
|
-
|
-
|
|
Creditors Ratio
|
0
|
0
|
-
|
-
|
-
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
-
|
-
|
-
|
|
Liabilities Ratio
|
<4.50>
|
<2.70>
|
<2.54>
|
<7.93>
|
<13.18>
|
|
Times Interest Earned Ratio
|
3.76
|
1.10
|
-
|
-
|
-
|
|
Assets Backing Ratio
|
<0.93>
|
<1.47>
|
<1.49>
|
<2.32>
|
<1.32>
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
23.61
|
2.15
|
5.39
|
<146.73>
|
<138.11>
|
|
Net Profit Margin
|
23.61
|
2.15
|
5.39
|
<146.73>
|
<138.11>
|
|
Return On Net Assets
|
<79.90>
|
<13.82>
|
<55.58>
|
43.27
|
73.91
|
|
Return On Capital Employed
|
<79.90>
|
<13.82>
|
<55.58>
|
43.27
|
73.91
|
|
Return On Shareholders' Funds/Equity
|
<58.64>
|
<1.27>
|
<55.51>
|
43.27
|
73.91
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
-
|
-
|
-
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
|
|
|
|