MIRA INFORM REPORT

 

 

Report Date :

18.07.2013

 

IDENTIFICATION DETAILS

 

Name :

LEAD SPICE SDN. BHD.

 

 

Registered Office :

Lot 551, Lorong 5, Jalan Teng Kung Suk, Upper Lanang Industrial Estate, 96000 Sibu, Sarawak

 

 

Country :

Malaysia.

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.11.2003

 

 

Com. Reg. No.:

635486-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Spices

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

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 – 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.

:

635486-V

COMPANY NAME

:

LEAD SPICE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/11/2003

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 551, LORONG 5, JALAN TENG KUNG SUK, UPPER LANANG INDUSTRIAL ESTATE, 96000 SIBU, SARAWAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 551, LORONG 5, JALAN TENG KUNG SUK, UPPER LANANG INDUSTRIAL ESTATE,, 96000 SIBU, SARAWAK, MALAYSIA.

TEL.NO.

:

084-218618

FAX.NO.

:

084-218658

CONTACT PERSON

:

YII SIN KEE ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

47219

PRINCIPAL ACTIVITY

:

TRADING OF SPICES

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 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 22,221,174 [2011]

NET WORTH

:

MYR 675,202 [2011]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
AMBANK (M) BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

N/A

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 spices.

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. YII SIN KEE +

1, JALAN HUA TAI, 96100 SARIKEI, SARAWAK, MALAYSIA.

520822-13-5625 K150162

200,000.00

40.00

MR. YII SEE SING +

1, JALAN HUA TAI,, 96100 SARIKEI, SARAWAK, MALAYSIA.

770120-13-6211 K0500593

50,000.00

10.00

MR. YII SEE JING +

17, REPOK ROAD, 96100 SARIKEI, SARAWAK, MALAYSIA.

781016-13-5589

50,000.00

10.00

MS. HII SUI LING

17, REPOK ROAD, 96100 SARIKEI, SARAWAK, MALAYSIA.

530723-13-5442 K150149

200,000.00

40.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director




DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. YII SEE JING

Address

:

17, REPOK ROAD, 96100 SARIKEI, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

781016-13-5589

Date of Birth

:

16/10/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/11/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. YII SEE SING

Address

:

1, JALAN HUA TAI,, 96100 SARIKEI, SARAWAK, MALAYSIA.

IC / PP No

:

K0500593

New IC No

:

770120-13-6211

Date of Birth

:

20/01/1977

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/11/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. YII SIN KEE

Address

:

1, JALAN HUA TAI, 96100 SARIKEI, SARAWAK, MALAYSIA.

IC / PP No

:

K150162

New IC No

:

520822-13-5625

Date of Birth

:

22/08/1952

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/11/2003

 

 

 

 

 

 

 

 

 

 

 

 




 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

YII SIN KEE

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

WONG KOH ING & CO

Auditor' Address

:

39, JALAN MAJU, 1ST FLOOR, 96000 SIBU, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TIONG THAI KIM

 

IC / PP No

:

K701101

 

New IC No

:

590211-13-5419

 

Address

:

9C, JALAN RUBY, LORONG 1, TINGKAT 1, 96000 SIBU, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

AMBANK (M) BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

20/06/2008

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 200,000.00

Unsatisfied

2

12/01/2011

N/A

AMBANK (M) BHD

MYR 1,000,000.00

Unsatisfied

3

24/07/2012

ALL MONIES FACILITY AGREEMENT, ALL MONIES DEED OF ASSIGNMENT AND POWER OF ATTORNEY, JOINT AND SEVERAL GUARANTEE

ALLIANCE BANK MALAYSIA BHD

N/A

Unsatisfied

 

 

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

:

YES

Overseas

:

YES

 

 

 



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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The SC refused to disclose its clientele.

 

OPERATIONS

 

Goods Traded

:

SPICES

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC sells all kinds of spices and food products.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

6 (084) 218618, 218628

Current Telephone Number

:

084-218618

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 551, LORONG TENG KUNG SUK 5 UPPER LANANG INDUSTRIAL ESTATE 96000 SIBU SARAWAK, MALAYSIA.

Current Address

:

LOT 551, LORONG 5, JALAN TENG KUNG SUK, UPPER LANANG INDUSTRIAL ESTATE,, 96000 SIBU, SARAWAK, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the SC and she provided some information on the SC.

She refused to disclose the SC's number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

77.77%

]

 

Profit/(Loss) Before Tax

:

Increased

[

1,959.97%

]

 

Return on Shareholder Funds

:

Acceptable

[

26.86%

]

 

Return on Net Assets

:

Favourable

[

32.68%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

1 Days

]

 

Debtor Ratio

:

Favourable

[

15 Days

]

 

Creditors Ratio

:

Favourable

[

16 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

:

Acceptable

[

0.83 Times

]

 

Current Ratio

:

Unfavourable

[

0.87 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

8.84 Times

]

 

Gearing Ratio

:

Favourable

[

0.54 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 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 :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. 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 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 : FAIR

 

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

47219 : Retail sale of other food products n.e.c.

 

 

INDUSTRY :

TRADING

 

 

 

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

 

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

 

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

 

Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.

 

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

 

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2003, the SC is a Private Limited company, focusing on trading of spices. Having been in the industry for a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The SC is considered as a medium size company with issued and paid up capital standing at MYR 500,000.

Overall, we regard that the SC's management capability is average.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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 managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its 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 675,202, the SC should be able to maintain its business in the near terms.

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 average.

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)

LEAD SPICE SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

22,221,174

12,499,672

Other Income

12,000

7,400

 

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

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

Total Turnover

22,233,174

12,507,072

Costs of Goods Sold

<21,314,904>

<12,026,289>

 

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

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

Gross Profit

918,270

480,783

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

226,926

11,016

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

226,926

11,016

Taxation

<45,559>

<6,384>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

181,367

4,632

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

<6,165>

<10,797>

 

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

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

As restated

<6,165>

<10,797>

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

175,202

<6,165>

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

175,202

<6,165>

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Hire purchase

2,837

749

Term loan / Borrowing

5,282

7,448

Others

20,824

23,533

 

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

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

 

28,943

31,730

 

BALANCE SHEET

 

 

LEAD SPICE SDN. BHD.

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

976,287

954,425

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

976,287

954,425

 

 

 

CURRENT ASSETS

 

 

Stocks

63,079

13,888

Trade debtors

929,727

283,923

Other debtors, deposits & prepayments

246,203

89,490

Amount due from director

64,881

104,515

Cash & bank balances

3,138

19,930

 

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

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

TOTAL CURRENT ASSETS

1,307,028

511,746

 

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

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

TOTAL ASSET

2,283,315

1,466,171

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

919,500

39,653

Other creditors & accruals

266,680

266,822

Hire purchase & lease creditors

92,580

54,861

Bank overdraft

198,340

480,776

Provision for taxation

23,157

-

 

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

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

TOTAL CURRENT LIABILITIES

1,500,257

842,112

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

<193,229>

<330,366>

 

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

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

TOTAL NET ASSETS

783,058

624,059

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

500,000

500,000

 

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

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

TOTAL SHARE CAPITAL

500,000

500,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

175,202

<6,165>

 

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

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

TOTAL RESERVES

175,202

<6,165>

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

675,202

493,835

 

 

 

LONG TERM LIABILITIES

 

 

Long term loans

73,941

114,511

Deferred taxation

33,915

15,713

 

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

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

TOTAL LONG TERM LIABILITIES

107,856

130,224

 

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

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

 

783,058

624,059

 

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

 

LEAD SPICE SDN. BHD.

 

TYPES OF FUNDS

 

 

Cash

3,138

19,930

Net Liquid Funds

<195,202>

<460,846>

Net Liquid Assets

<256,308>

<344,254>

Net Current Assets/(Liabilities)

<193,229>

<330,366>

Net Tangible Assets

783,058

624,059

Net Monetary Assets

<364,164>

<474,478>

BALANCE SHEET ITEMS

 

 

Total Borrowings

364,861

650,148

Total Liabilities

1,608,113

972,336

Total Assets

2,283,315

1,466,171

Net Assets

783,058

624,059

Net Assets Backing

675,202

493,835

Shareholders' Funds

675,202

493,835

Total Share Capital

500,000

500,000

Total Reserves

175,202

<6,165>

LIQUIDITY (Times)

 

 

Cash Ratio

0.00

0.02

Liquid Ratio

0.83

0.59

Current Ratio

0.87

0.61

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

1

0

Debtors Ratio

15

8

Creditors Ratio

16

1

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.54

1.32

Liabilities Ratio

2.38

1.97

Times Interest Earned Ratio

8.84

1.35

Assets Backing Ratio

1.57

1.25

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

1.02

0.09

Net Profit Margin

0.82

0.04

Return On Net Assets

32.68

6.85

Return On Capital Employed

23.82

3.69

Return On Shareholders' Funds/Equity

26.86

0.94

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.36

UK Pound

1

Rs.89.69

Euro

1

Rs.77.98

 

 

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.