MIRA INFORM REPORT

 

 

Report Date :

04.07.2013

 

IDENTIFICATION DETAILS

 

Name :

CHEMICAL MATE SDN. BHD.

 

 

Registered Office :

Tower 1, Avenue 5, Bangsar South City, Level 2, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

06.04.1995

 

 

Com. Reg. No.:

339140-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trader of chemicals

Subject sells mainly the olechemicals

 

 

No. of Employees :

05

 

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 :

Good

 

 

Payment Behaviour :

Regular 

 

 

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

 

 

 

 

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

339140-K

COMPANY NAME

:

CHEMICAL MATE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

06/04/1995

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

TOWER 1, AVENUE 5, BANGSAR SOUTH CITY, LEVEL 2, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

B-1-16, BLOCK B, TAIPAN 2, DAMANSARA, JALAN PJU1A/3, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78427228

FAX.NO.

:

03-78427128

EMAIL

:

CHEMSALEZ@CHEMICALMATE.COM

WEB SITE

:

WWW.CHEMICALMATE.COM

CONTACT PERSON

:

KENNETH CHANG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46691

PRINCIPAL ACTIVITY

:

TRADING OF CHEMICALS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 300,000.00 DIVIDED INTO 
ORDINARY SHARES 200,000 CASH AND 100,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 167,995,671 [2011]

NET WORTH

:

MYR 7,955,955 [2011]

 

 

 

STAFF STRENGTH

:

5 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

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 chemicals.

 

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. KENNETH CHANG BOON KIT +

19, JALAN UBIN U8/19F, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

690924-07-5119

270,000.00

90.00

MR. CHANG CHOO CHAU @ TEOW HER KOK +

2, JALAN BU 11/9, BANDAR UTAMA DAMANSARA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

391116-05-5005 3020590

30,000.00

10.00

 

 

 

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

------

 

 

 

300,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. R SHARIFUDDIN HIZAN BIN R ZAINAL ABIDIN

Address

:

NO. 7, LORONG 7A, TAMAN SRI UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

460121-08-5395

Date of Birth

:

21/01/1946

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/01/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHANG CHOO CHAU @ TEOW HER KOK

Address

:

2, JALAN BU 11/9, BANDAR UTAMA DAMANSARA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

3020590

New IC No

:

391116-05-5005

Date of Birth

:

16/11/1939

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

06/04/1995

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. KENNETH CHANG BOON KIT

Address

:

19, JALAN UBIN U8/19F, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

690924-07-5119

Date of Birth

:

24/09/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/11/2006

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KENNETH CHANG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TERRI HING

 

Position

:

SALES MANAGER

 

 

 

AUDITOR

 

Auditor

:

BAKER TILLY MONTEIRO HENG

Auditor' Address

:

BAKER TILLY MH TOWER, LEVEL 10,TOWER 1,AVENUE 5, BANGSAR SOUTH CITY, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG YOUN KIM

 

IC / PP No

:

A1617285

 

New IC No

:

700823-10-5530

 

Address

:

1014, JALAN KUANG GUNUNG 4, TAMAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. SIN MAY PENG

 

 

 

 

 

New IC No

:

651206-10-6046

 

Address

:

70, JALAN SS 24/2, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

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 against the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

ASIA,EUROPE

 


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

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

CHEMICALS

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

5

5

5

4

4

2

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of chemicals. 

The SC sells mainly the olechemicals.

The products are one of the crucial ingredients for producing cosmetics, hair care products and others.

The SC's products are in liquid and glycerine form.

The SC sells the products based on the customers' requirements.

Besides, the SC also sells other industrial chemicals depends on the customers orders.

The SC also sells chemicals for the following industry:
1) Plastic
2) Rubber
3) Personal care 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0378427228

Current Telephone Number

:

03-78427228

Match

:

YES

 

 

 

Address Provided by Client

:

B-1-16, BLOCK B, TAIPAN 2 DAMANSARA, JALAN PJU 1A/3, ARA DAMANSARA 4730 PETALING

Current Address

:

B-1-16, BLOCK B, TAIPAN 2, DAMANSARA, JALAN PJU1A/3, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the Admin Department. She provided some information on the SC.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

39.25%

]

 

Return on Net Assets

:

Favourable

[

52.57%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's management have been efficient in controlling its operating costs. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

2 Days

]

 

Debtor Ratio

:

Favourable

[

33 Days

]

 

Creditors Ratio

:

Favourable

[

24 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 where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.42 Times

]

 

Current Ratio

:

Unfavourable

[

1.47 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

79.73 Times

]

 

Gearing Ratio

:

Favourable

[

0.09 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 :

 

 

 

 

 

 

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. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

46691 : Wholesale of industrial chemicals

 

 

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 1995, the SC is a Private Limited company, focusing on trading of chemicals. 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. 

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. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds 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 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 7,955,955, the SC should be able to maintain its business in the near terms. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources. 

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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

CHEMICAL MATE 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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

167,995,671

187,469,770

117,534,582

137,761,171

57,108,009

 

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

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

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

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

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

Total Turnover

167,995,671

187,469,770

117,534,582

137,761,171

57,108,009

Costs of Goods Sold

<157,641,058>

<176,196,041>

-

-

-

 

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

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

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

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

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

Gross Profit

10,354,613

11,273,729

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

4,253,345

3,496,780

2,825,646

2,976,636

1,031,655

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,253,345

3,496,780

2,825,646

2,976,636

1,031,655

Taxation

<1,130,349>

<909,755>

<798,071>

<697,386>

<251,559>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,122,996

2,587,025

2,027,575

2,279,250

780,096

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

4,532,959

2,947,934

2,420,359

955,849

175,753

 

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

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

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

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

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

As restated

4,532,959

2,947,934

2,420,359

955,849

175,753

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

7,655,955

5,534,959

4,447,934

3,235,099

955,849

DIVIDENDS - Ordinary (paid & proposed)

-

<1,002,000>

<1,500,000>

<814,740>

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

7,655,955

4,532,959

2,947,934

2,420,359

955,849

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bankers' acceptance

16,121

104,162

-

-

-

Hire purchase

11,873

4,264

8,775

10,492

6,680

Others

26,031

19,288

40,364

12,788

-

 

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

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

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

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

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

 

54,025

127,714

49,139

23,280

6,680

 

 

 

BALANCE SHEET

 

 

CHEMICAL MATE SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

977,350

1,160,897

850,319

448,334

450,842

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

977,350

1,160,897

850,319

448,334

450,842

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

795,761

-

262,338

-

-

Trade debtors

15,002,023

30,207,628

12,890,880

12,398,588

9,035,058

Other debtors, deposits & prepayments

30,429

11,550

969,720

1,104,062

421,239

Short term deposits

-

-

-

1,752,152

5,114,440

Cash & bank balances

6,642,375

6,595,061

6,571,083

6,309,118

4,845,153

Others

206,797

255,299

569,000

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

22,677,385

37,069,538

21,263,021

21,563,920

19,415,890

 

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

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

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

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

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

TOTAL ASSET

23,654,735

38,230,435

22,113,340

22,012,254

19,866,732

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

10,406,701

23,194,539

12,091,317

12,680,165

15,068,710

Other creditors & accruals

1,801,407

2,524,409

2,094,236

3,517,785

2,140,110

Hire purchase & lease creditors

89,037

36,635

90,344

108,486

103,388

Other borrowings

531,150

3,670,688

-

1,996,631

-

Bill & acceptances payable

-

1,169,000

3,368,000

608,000

-

Amounts owing to director

2,632,094

2,742,698

1,141,453

271,556

980,744

Provision for taxation

-

-

-

37,980

151,559

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,460,389

33,337,969

18,785,350

19,220,603

18,444,511

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,216,996

3,731,569

2,477,671

2,343,317

971,379

 

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

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

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

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

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

TOTAL NET ASSETS

8,194,346

4,892,466

3,327,990

2,791,651

1,422,221

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

300,000

300,000

300,000

300,000

300,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

300,000

300,000

300,000

300,000

300,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

7,655,955

4,532,959

2,947,934

2,420,359

955,849

 

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

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

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

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

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

TOTAL RESERVES

7,655,955

4,532,959

2,947,934

2,420,359

955,849

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

7,955,955

4,832,959

3,247,934

2,720,359

1,255,849

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

84,447

12,036

49,579

57,886

166,372

Deferred taxation

153,944

47,471

30,477

13,406

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

238,391

59,507

80,056

71,292

166,372

 

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

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

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

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

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

 

8,194,346

4,892,466

3,327,990

2,791,651

1,422,221

 

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

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

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

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

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

 

 

 

 

 

 

Contingent Liabilities

5,501,090

4,500,000

4,000,000

 

 

 

 

 

FINANCIAL RATIO

 

 

CHEMICAL MATE SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

6,642,375

6,595,061

6,571,083

8,061,270

9,959,593

Net Liquid Funds

6,642,375

5,426,061

3,203,083

7,453,270

9,959,593

Net Liquid Assets

6,421,235

3,731,569

2,215,333

2,343,317

971,379

Net Current Assets/(Liabilities)

7,216,996

3,731,569

2,477,671

2,343,317

971,379

Net Tangible Assets

8,194,346

4,892,466

3,327,990

2,791,651

1,422,221

Net Monetary Assets

6,182,844

3,672,062

2,135,277

2,272,025

805,007

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

704,634

4,888,359

3,507,923

2,771,003

269,760

Total Liabilities

15,698,780

33,397,476

18,865,406

19,291,895

18,610,883

Total Assets

23,654,735

38,230,435

22,113,340

22,012,254

19,866,732

Net Assets

8,194,346

4,892,466

3,327,990

2,791,651

1,422,221

Net Assets Backing

7,955,955

4,832,959

3,247,934

2,720,359

1,255,849

Shareholders' Funds

7,955,955

4,832,959

3,247,934

2,720,359

1,255,849

Total Share Capital

300,000

300,000

300,000

300,000

300,000

Total Reserves

7,655,955

4,532,959

2,947,934

2,420,359

955,849

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.43

0.20

0.35

0.42

0.54

Liquid Ratio

1.42

1.11

1.12

1.12

1.05

Current Ratio

1.47

1.11

1.13

1.12

1.05

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

2

0

1

0

0

Debtors Ratio

33

59

40

33

58

Creditors Ratio

24

48

38

34

96

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.09

1.01

1.08

1.02

0.21

Liabilities Ratio

1.97

6.91

5.81

7.09

14.82

Times Interest Earned Ratio

79.73

28.38

58.50

128.86

155.44

Assets Backing Ratio

27.31

16.31

11.09

9.31

4.74

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.53

1.87

2.40

2.16

1.81

Net Profit Margin

1.86

1.38

1.73

1.65

1.37

Return On Net Assets

52.57

74.08

86.38

107.46

73.01

Return On Capital Employed

52.00

73.53

84.10

103.44

68.06

Return On Shareholders' Funds/Equity

39.25

53.53

62.43

83.78

62.12

Dividend Pay Out Ratio (Times)

0.00

0.39

0.74

0.36

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

5,501,090

4,500,000

4,000,000

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.91.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.