MIRA INFORM REPORT

 

 

Report Date :

25.01.2013

 

IDENTIFICATION DETAILS

 

Name :

TTSJ TRADING SDN BHD

 

 

Registered Office :

40-B, Jalan Lumut, Kompleks Damai, 2nd Floor, 50400 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.05.2012

 

 

Date of Incorporation :

13.05.2009

 

 

Com. Reg. No.:

856697-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Commodity Products Such As Palm Oil

 

 

No. of Employees :

5

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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. 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 more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

856697-V

COMPANY NAME

:

TTSJ TRADING SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

13/05/2009

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

40-B, JALAN LUMUT, KOMPLEKS DAMAI, 2ND FLOOR, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 53, 1ST FLOOR, DAMAI COMPLEX, JALAN DATUK HAJI EUSOFF, OFF JALAN IPOH, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-40503374

FAX.NO.

:

03-40423103

CONTACT PERSON

:

MUHAMMAD SHARIQ ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF COMMODITY PRODUCTS SUCH AS PALM OIL

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 1,270,583 [2012]

NET WORTH

:

MYR 858,528 [2012]

 

 

 

STAFF STRENGTH

:

5 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

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) trading of commodity products such as palm oil.

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

(%)

MUHAMMAD SHARIQ ATHAR QURESHI +

APARTMENT 4-15, PANGSAPURI SRI BANDAR, 30, LORONG KASIPILLAY, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

AG4914802

350,000.00

35.00

SULTANA RAHMAT +

APARTMENT 4-15, PANGSAPURI SRI BANDAR, 30, LORONG KASIPILLAY, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

KH363160

50,000.00

5.00

MR. RAJAVIJAYAN A/L THUVENGADAM

23/3422, JALAN WATERFALL, GREENPARK, 48000 RAWANG, SELANGOR, MALAYSIA.

640929-08-5353

600,000.00

60.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MUHAMMAD ABU MUSHARRAF

Address

:

1-1A, JALAN PANDAN PERDANA, CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

AB0846831

 

 

 

Date of Birth

:

10/06/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/05/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

SULTANA RAHMAT

Address

:

APARTMENT 4-15, PANGSAPURI SRI BANDAR, 30, LORONG KASIPILLAY, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

KH363160

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

05/07/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MUHAMMAD SHARIQ ATHAR QURESHI

Address

:

APARTMENT 4-15, PANGSAPURI SRI BANDAR, 30, LORONG KASIPILLAY, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

AG4914802

 

 

 

Date of Birth

:

08/08/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/05/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

MUHAMMAD SHARIQ

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

ARI & CO.

Auditor' Address

:

24-4-2, JALAN 4/50, DIOMAND SQUARE BUSINESS CENTRE, JALAN GOMBAK BATU 31/2,, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. SUBRAMANIAM A/L KANDASAMY

 

 

 

 

 

New IC No

:

430228-08-5259

 

Address

:

9, JALAN SIBU 7, TAMAN WAHYU, JALAN IPOH, 68100 BATU CAVES, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA, MIDDLE EAST

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

COMMODITY PRODUCTS SUCH AS PALM OIL

 

 

 

 

Competitor(s)

:

AMBROSIA SDN BHD
FELDA MARKETING SERVICES SDN. BHD.
PACIFIC OILS & FATS INDUSTRIES SDN BHD
PALMBASE (M) SDN BHD
SIME DARBY FUTURES TRADING SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 


GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

5

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of commodity products such as palm oil.

The SC mainly sells palm oil.

The SC however refused to disclose further 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

:

60 10 2595692

Current Telephone Number

:

03-40503374

Match

:

NO

 

 

 

Address Provided by Client

:

OFFICE LOT 53, 1ST FLOOR, DAMI COMPLEX, JALAN DATUK HAJI EUOSUFF OFF

Current Address

:

LOT 53, 1ST FLOOR, DAMAI COMPLEX, JALAN DATUK HAJI EUSOFF, OFF JALAN IPOH, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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 incomplete and incorrect.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Acceptable

[

14.52%

]

 

Return on Net Assets

:

Acceptable

[

14.64%

]

 

 

 

 

 

 

 

 

The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

10 Days

]

 

Debtor Ratio

:

Favourable

[

55 Days

]

 

Creditors Ratio

:

Favourable

[

21 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in 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

:

Favourable

[

10.99 Times

]

 

Current Ratio

:

Favourable

[

11.45 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

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. 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 :

 

 

 

 

 

 

The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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 : STRONG

 

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

46202 : Wholesale of palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 


Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts inthe growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals.


According to MPOB ( Malaysian Palm Oil Board ) statistics in May/June 2012,imports of processed palm oil continue to rise from 88,000 tonnes (May 2012) and 112,000 tonnes (June 2012).Due to the biological stress on oil palm trees and following by the bumper harvest in 2011, Oil production is expected to decline at the end of 2012. The number of palm oil mills in operation in the malaysia has increased from 53 (Dec 31, 2011) to 55 (second quarter 2012), with another 14 new mills at various stages of construction.


The outlook for the palm oil industry is bright, with its price range between RM3,100 and RM3,840 per tonne in first quarter 2012.This is equivalent to about 26.6 % of the global oils and fats trade. Furthemore, at the end of 2012, the demand and the price of palm oil are expected to be increased due to the adverse weather conditions of the production soy bean in South America is expected to be declined by 3 to 5% at the end of 2012.


The unfreezing of India's base import price of refined palm olein is expected to cause insignificant impact to Malaysian refiners as they have already established other downstream markets for their refined crude palm oil (CPO) exports. Furthermore, Malaysia has produced 18.91 million tonnes or 37.65% of the total palm oil production on 2011 and it has accounted for 17.99 million tonnes or 46.27% of the world exports.


Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more.


In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2009, the SC is a Private Limited company, focusing on trading of commodity products such as palm oil. The SC 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. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. Presently, the issued and paid up capital of the SC stands at RM1 million.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 5 employees. Overall, we regard that the SC's management capability is average.


Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 858,528, the SC should be able to maintain its business in the near terms.


We regard that the SC's overall payment habit is prompt. The SC 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 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)

TTSJ TRADING SDN BHD

 

Financial Year End

31/05/2012

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

 

 

TURNOVER

1,270,583

 

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

Total Turnover

1,270,583

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

125,706

 

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

PROFIT/(LOSS) BEFORE TAXATION

125,706

Taxation

<1,015>

 

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

PROFIT/(LOSS) AFTER TAXATION

124,691

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

<266,163>

 

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

As restated

<266,163>

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<141,472>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<141,472>

 

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

 

 

 

BALANCE SHEET

 

 

TTSJ TRADING SDN BHD

 

ASSETS EMPLOYED:

 

FIXED ASSETS

38,759

 

 

 

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

TOTAL LONG TERM ASSETS

38,759

 

 

CURRENT ASSETS

 

Stocks

36,092

Trade debtors

190,628

Other debtors, deposits & prepayments

5,000

Amount due from director

628,053

Cash & bank balances

38,445

 

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

TOTAL CURRENT ASSETS

898,218

 

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

TOTAL ASSET

936,977

 

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

 

 

CURRENT LIABILITIES

 

Trade creditors

72,184

Other creditors & accruals

5,250

Provision for taxation

1,015

 

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

TOTAL CURRENT LIABILITIES

78,449

 

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

NET CURRENT ASSETS/(LIABILITIES)

819,769

 

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

TOTAL NET ASSETS

858,528

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

1,000,000

 

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

TOTAL SHARE CAPITAL

1,000,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

<141,472>

 

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

TOTAL RESERVES

<141,472>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

858,528

 

 

 

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

 

858,528

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

TTSJ TRADING SDN BHD

 

TYPES OF FUNDS

 

Cash

38,445

Net Liquid Funds

38,445

Net Liquid Assets

783,677

Net Current Assets/(Liabilities)

819,769

Net Tangible Assets

858,528

Net Monetary Assets

783,677

BALANCE SHEET ITEMS

 

Total Borrowings

0

Total Liabilities

78,449

Total Assets

936,977

Net Assets

858,528

Net Assets Backing

858,528

Shareholders' Funds

858,528

Total Share Capital

1,000,000

Total Reserves

<141,472>

LIQUIDITY (Times)

 

Cash Ratio

0.49

Liquid Ratio

10.99

Current Ratio

11.45

WORKING CAPITAL CONTROL (Days)

 

Stock Ratio

10

Debtors Ratio

55

Creditors Ratio

21

SOLVENCY RATIOS (Times)

 

Gearing Ratio

0.00

Liabilities Ratio

0.09

Times Interest Earned Ratio

0.00

Assets Backing Ratio

0.86

PERFORMANCE RATIO (%)

 

Operating Profit Margin

9.89

Net Profit Margin

9.81

Return On Net Assets

14.64

Return On Capital Employed

14.64

Return On Shareholders' Funds/Equity

14.52

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

 

Contingent Liabilities

0



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.85

UK Pound

1

Rs.85.25

Euro

1

Rs.71.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

 

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

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