MIRA INFORM REPORT

 

 

Report Date :

07.06.2013

 

IDENTIFICATION DETAILS

 

Name :

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

 

Registered Office :

5th Floor, Millennium Office Block, 160 Jalan Bukit Bintang, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

17.03.2008

 

 

Com. Reg. No.:

995131-U

 

 

Legal Form :

Foreign

 

 

Line of Business :

Trading of Chemicals, Steel, Iron, Parts For Cars and Other Related Products

 

 

No. of Employees :

60

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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.

:

995131-U

COMPANY NAME

:

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/03/2008

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

FOREIGN

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

5TH FLOOR, MILLENNIUM OFFICE BLOCK, 160 JALAN BUKIT BINTANG, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

5TH FLOOR, MILLENNIUM OFFICE BLOCK, 160 JALAN BUKIT BINTANG, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21418099

FAX.NO.

:

03-21481606

CONTACT PERSON

:

RAVINDREN ( DEPUTY GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

45300

PRINCIPAL ACTIVITY

:

TRADING OF CHEMICALS, STEEL, IRON, PARTS FOR CARS AND OTHER RELATED PRODUCTS

AUTHORISED CAPITAL

:

225,101,415.00 ORDINARY SHARE, OF A VALUE OF SGD 225,101,415.00

 

 

 

 

 

 

SALES

:

MYR 1,343,625,195 [2011]

NET WORTH

:

MYR 75,508,250 [2011]

 

 

 

STAFF STRENGTH

:

60 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND


The SC is principally engaged in the (as a / as an) trading of chemicals, steel, iron, parts for cars and other related products.

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


No shareholders was found in our databank at the time of investigation

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 



Local No

Country

Company

(%)

As At

731407

MALAYSIA

TEJANA TRADING & MANAGEMENT SERVICES SDN. BHD.

70.00

31/03/2011

 

 

 

 

 




 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

ISAO UEDA

Address

:

7 ORANGE GROVE ROAD, #03-169 TREETOPS EXECUTIVE RESIDENCES, 258355, SINGAPORE.

IC / PP No

:

TG7089878

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

20/09/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

TAKASHI YAMAUCHI

Address

:

238 ORCHARD BOULEVARD, #10-07 THE ORCHARD RESIDENCES, 237973, SINGAPORE.

IC / PP No

:

TH3172938

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

28/04/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MASANUBO ITOH

Address

:

7 ORANGE GROVE ROAD, #04-204 TREETOPS EXECUTIVE, RESIDENCES, 258355, SINGAPORE.

IC / PP No

:

TG3782341

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

18/05/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MAKATO KOTO

Address

:

2 KIM SENG WALK, #8-13 GREAT WORLD SERVICE APARTMENT, 239404, SINGAPORE.

IC / PP No

:

TZ0671400

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

13/01/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

SHINJI TSUCHIYA

Address

:

57 B DEVONSHIRE ROAD, #06-04, THE SUITES AT CENTRAL, 239899, SINGAPORE.

IC / PP No

:

MS6662372

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

01/04/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

SHINJI SATO

Address

:

1, ANDERSON ROAD, #08-03 SHANGRI-LA APARTMENTS, 259983, SINGAPORE.

IC / PP No

:

TH1625935

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

02/04/2012

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

RAVINDREN

 

Position

:

DEPUTY GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

SARINA MOHD DERUS

 

Position

:

EXECUTIVE

 

 

 

 

 

3)

Name of Subject

:

SUE ANN

 

Position

:

EXECUTIVE

 

 

 

AUDITOR

 

Auditor

:

DELOITTE KASSIMCHAN

Auditor' Address

:

UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES


No company secretary was found in our databank.

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

:

YES

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

JAPAN



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

ASIA
EUROPE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

CHEMICALS, STEEL, IRON, PARTS FOR CARS AND OTHER RELATED PRODUCTS

 

 

 

 

Competitor(s)

:

AUTO BAVARIA SDN BHD
EON TRADING SDN BHD
PROTON EDAR SDN BHD
WEARNE BROTHERS (1983) SDN BHD
YHI (MALAYSIA) SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

60

60

60

78

 

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of chemicals, steel, iron, parts for cars and other related products.

The SC supplies its products to its related companies as well as to other companies.

According to the SC, it does not keep stocks as it delivers the products directly to customers upon orders.

The SC serves a wide range of customers ranging from trading, manufacturing, construction, engineering, service providers and others.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0321418099

Current Telephone Number

:

03-21418099

Match

:

YES

 

 

 

Address Provided by Client

:

160 JALAN BUKIT BINTANG,55100,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

5TH FLOOR, MILLENNIUM OFFICE BLOCK, 160 JALAN BUKIT BINTANG, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the SC staff from Human Resource Department Ms Sue and she provided some information regarding to the SC.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

19.29%

]

 

Return on Net Assets

:

Acceptable

[

20.79%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

28 Days

]

 

Creditors Ratio

:

Favourable

[

37 Days

]

 

 

 

 

 

 

 

 

As the SC is a service oriented company, the SC does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.32 Times

]

 

Current Ratio

:

Unfavourable

[

1.32 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

[

183.35 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 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 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 recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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 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:

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

45300 : Wholesale and retail sale of all kinds of parts, components, supplies, tools and accessories for motor vehicles

 

 

INDUSTRY :

MOTOR VECHICLE

 

 

 

The total industry volume (TIV) for year 2013 forcasted 640 000 units. This is an increase of 2.0% compared to the year 2012. Sales of passenger vehicles in the year 2013 forcasted increase by 2.0% to 563 000 units compared to 552 189 units at the year 2012. While sales of comercial vehicles in year 2013 forcasted to increase by 2.0% to 77 000 units compared to 75 564 units at the year 2012.

 

It is a big challenge for the TIV of year 2013 to create another high record. However, Malaysia's GPD growth is forcasted to be 5.6% in year 2013. This is driven by exports and domestic demand and is expected to give confidence in consumer sentiments. Besides, multiplier effects from the Economic Transformation Programme's (ETP) projects would give a further boost to the domestic economy and create greater demand for new vehicles.

 

According to the Malaysian Automotive Association (MAA), the implimentation of the Bank Negara's guidelines on responsible financing practices from 1st January 2012 coused a slowdown in new vehicle purchase in first quarter 2012. However, the total industry volume (TIV) of the year 2012 surged to a historical high of 627,753 units which is an all time record achievement for the industry. This record had overtaken the previous highest record of 605,156 units achieved in 2010. It had also outperformed the MAA's TIV forcast of 615,000 units. The main contributors to the growth were led by Perodua and Proton, followed by Toyota, Honda and Nissan.

 

The total registration of new passenger vehicles in year 2012 reached 552,189 unts compare with 535,113 units in year 2011. Which had bring an increase of 3.2% (17,076 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles n 2012 was 75,564 units which is an increase of 6.2% (10,554 units). Besides, the production of new vehicles also recorded an increase of 6.8% (36,105 units) in year 2012. According to the president of Malaysian Automotive Association (MAA), the record new vehicle sales in 2012 was due to factors such as strong economic growth, the implementation of infrastructure projects under the Economic Transformation Programme (ETP), increased consumer spending and consumption due to stable employment and rising disposable income, introduction of new models at competitive prices as well as aggressive sales campaigns by car companies.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2008, the SC is a Foreign company, focusing on trading of chemicals, steel, iron, parts for cars and other related products. Having been in business for 6 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth.

Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a moderate size company, the SC has a total workforce of 60 employees in its business operations. 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.

Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the 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 75,508,250, 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.

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.

Based on the above 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)

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

Financial Year End

31/03/2011

31/03/2010

31/03/2009

Months

12

12

13

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

1,343,625,195

1,148,428,944

1,343,122,722

Other Income

19,042,431

23,551,773

-

 

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

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

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

Total Turnover

1,362,667,626

1,171,980,717

1,343,122,722

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

16,515,907

18,997,909

19,324,524

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

16,515,907

18,997,909

19,324,524

Taxation

<1,953,582>

<1,231,214>

<3,955,018>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

14,562,325

17,766,695

15,369,506

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

33,136,201

15,369,506

-

 

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

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

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

As restated

33,136,201

15,369,506

-

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

47,698,526

33,136,201

15,369,506

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

47,698,526

33,136,201

15,369,506

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Others

90,571

66,684

2,685,853

 

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

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

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

 

90,571

66,684

2,685,853

 

 

BALANCE SHEET

 

 

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

5,892,801

6,724,345

7,925,211

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

Investments

25,918,179

27,682,145

30,088,819

Loans & advances - non-current

264,120

314,795

255,337

Deferred assets

1,484,758

1,606,617

1,442,766

 

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

27,667,057

29,603,557

31,786,922

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

33,559,858

36,327,902

39,712,133

 

 

 

 

CURRENT ASSETS

 

 

 

Trade debtors

103,322,337

63,732,187

126,182,174

Other debtors, deposits & prepayments

941,924

1,043,195

1,370,805

Amount due from holding company

45,374,431

33,448,524

-

Amount due from related companies

22,805,011

25,992,986

4,909,911

Cash & bank balances

15,846,613

8,495,983

23,166,933

Others

817,283

1,096,370

-

 

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

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

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

TOTAL CURRENT ASSETS

189,107,599

133,809,245

155,629,823

 

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

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

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

TOTAL ASSET

222,667,457

170,137,147

195,341,956

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

135,485,724

80,615,338

45,845,768

Other creditors & accruals

3,881,857

4,259,583

5,546,100

Short term borrowings/Term loans

-

-

530,583

Other borrowings

-

11,200,000

-

Amounts owing to holding company

-

-

75,810,045

Amounts owing to related companies

3,419,737

1,521,171

768,153

Provision for taxation

-

-

654,802

Other liabilities

12,881

-

4,584,083

 

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

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

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

TOTAL CURRENT LIABILITIES

142,800,199

97,596,092

133,739,534

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

46,307,400

36,213,153

21,890,289

 

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

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

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

TOTAL NET ASSETS

79,867,258

72,541,055

61,602,422

 

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

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

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

 

 

 

 

RESERVES

 

 

 

Exchange equalisation/fluctuation reserve

<3,158,105>

<149,971>

2,623,886

Retained profit/(loss) carried forward

47,698,526

33,136,201

15,369,506

Others

30,967,829

35,221,629

39,287,641

 

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

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

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

TOTAL RESERVES

75,508,250

68,207,859

57,281,033

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

75,508,250

68,207,859

57,281,033

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Retirement benefits provision

4,359,008

4,333,196

4,321,389

 

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

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

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

TOTAL LONG TERM LIABILITIES

4,359,008

4,333,196

4,321,389

 

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

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

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

 

79,867,258

72,541,055

61,602,422

 

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

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

TYPES OF FUNDS

 

 

 

Cash

15,846,613

8,495,983

23,166,933

Net Liquid Funds

15,846,613

8,495,983

23,166,933

Net Liquid Assets

46,307,400

36,213,153

21,890,289

Net Current Assets/(Liabilities)

46,307,400

36,213,153

21,890,289

Net Tangible Assets

79,867,258

72,541,055

61,602,422

Net Monetary Assets

41,948,392

31,879,957

17,568,900

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

0

11,200,000

530,583

Total Liabilities

147,159,207

101,929,288

138,060,923

Total Assets

222,667,457

170,137,147

195,341,956

Net Assets

79,867,258

72,541,055

61,602,422

Net Assets Backing

75,508,250

68,207,859

57,281,033

Shareholders' Funds

75,508,250

68,207,859

57,281,033

Total Share Capital

0

0

0

Total Reserves

75,508,250

68,207,859

57,281,033

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.11

0.09

0.17

Liquid Ratio

1.32

1.37

1.16

Current Ratio

1.32

1.37

1.16

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

0

0

0

Debtors Ratio

28

20

34

Creditors Ratio

37

26

12

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.00

0.16

0.01

Liabilities Ratio

1.95

1.49

2.41

Times Interest Earned Ratio

183.35

285.89

8.19

Assets Backing Ratio

-

-

-

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

1.23

1.65

1.44

Net Profit Margin

1.08

1.55

1.14

Return On Net Assets

20.79

26.28

35.73

Return On Capital Employed

20.79

26.28

35.73

Return On Shareholders' Funds/Equity

19.29

26.05

26.83

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.87

UK Pound

1

Rs.87.65

Euro

1

Rs.74.52

 

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.