|
|
* Adopted abbreviations :
|
SC - Subject
Company (the company enquired by you)
|
|
|
|
|
N/A - Not
Applicable
|
|
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION
NO.
|
:
|
236868-D
|
|
COMPANY NAME
|
:
|
TIAN SENG HANG
TRADING COMPANY SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION
DATE
|
:
|
24/03/1992
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
EXEMPT PRIVATE
(LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED
ADDRESS
|
:
|
851, JALAN PERMATANG
PAUH, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
BUSINESS
ADDRESS
|
:
|
851, JALAN
PERMATANG PAUH, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3325666
|
|
FAX.NO.
|
:
|
04-3310310
|
|
WEB SITE
|
:
|
WWW.BEANS-SPICES.COM
|
|
CONTACT PERSON
|
:
|
TAN TI HOR (
MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
46329
|
|
PRINCIPAL
ACTIVITY
|
:
|
TRADING OF
DRIED FOOD STUFF
|
|
AUTHORISED
CAPITAL
|
:
|
MYR 5,000,000.00
DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
1,500,000.00 DIVIDED INTO
ORDINARY SHARES 1,500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
N/A
|
|
NET WORTH
|
:
|
N/A
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
15 [2013]
|
|
BANKER (S)
|
:
|
|
MALAYAN
BANKING BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
|
|
LITIGATION
|
:
|
TRACED
|
|
DEFAULTER
CHECK
|
:
|
CLEAR
|
|
FINANCIAL
CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT
CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL
RISK
|
:
|
HIGH
|
|
CURRENCY
EXPOSURE
|
:
|
MODERATE
|
|
GENERAL
REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY
OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY / BACKGROUND
The SC is an exempt private company which
is allowed to have a minimum of two and a maximum of twenty shareholders and
all the shareholders must be individuals. An exempt company is a type of
private limited company. 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, suing or be sued by other companies.
The SC is governed by the Companies Act, 1965 and must file in its annual
return. The SC need not file in its financial statements but it has to file
in a document duly signed by its director in charge of its finance, the
secretary and its auditor stating that the SC is able to meet all its
obligations as and when they fall due. Although the SC is not required to
file in its financial statements, it also has to prepare its financial
account which must be presented at the Annual General Meeting.
The SC is principally engaged in the (as a
/ as an) trading of dried food stuff.
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. TAN TI HOR
+
|
2A, RESIDENCY
ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
630323-07-5565
|
680,000.00
|
45.33
|
|
MR. TAN AH KOW
@ TAN AIK CHEAH +
|
2A, RESIDENCY
ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
2050229
|
650,000.00
|
43.33
|
|
TAN SAI HOAY
|
2-A, RESIDENCY
ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
1752921
|
50,000.00
|
3.33
|
|
TAN LEE SWAN
|
2A, RESIDENCY
ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
2548578
|
30,000.00
|
2.00
|
|
TAN SIEW YONG
@ TAN KANG YONG
|
2A, RESIDENCY ROAD,
10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
7323252
|
30,000.00
|
2.00
|
|
TAN LEE CHIN
|
NO. 2-A,
RESIDENCY ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
A0253045
|
30,000.00
|
2.00
|
|
LAU SIEW KHIM
|
2A, RESIDENCY ROAD,
10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
0531206
|
30,000.00
|
2.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
1,500,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of
Subject
|
:
|
MR. TAN AH KOW
@ TAN AIK CHEAH
|
|
Address
|
:
|
2A, RESIDENCY
ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
2050229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
CHINESE
|
|
Date of
Appointment
|
:
|
24/03/1992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of
Subject
|
:
|
MR. TAN TI HOR
|
|
Address
|
:
|
2A, RESIDENCY
ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
630323-07-5565
|
|
Date of Birth
|
:
|
23/03/1963
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of
Appointment
|
:
|
24/03/1992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of
Subject
|
:
|
TAN TI HOR
|
|
|
Position
|
:
|
MANAGING
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
YAT CHEONG
& CO.
|
|
Auditor'
Address
|
:
|
ROOM A, GROUND
FLOOR, NO. 47, LENGKOK CANNING, IPOH GARDEN, 31400 IPOH, PERAK, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company
Secretary
|
:
|
MS. TAN MOY
ENG
|
|
|
|
|
|
|
|
New IC No
|
:
|
530222-07-5090
|
|
|
Address
|
:
|
11, JALAN
PANTAI JERJAK 16, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN
BANKING BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
UNITED
OVERSEAS BANK (MALAYSIA) BHD
|
|
|
|
|
|
|
The SC enjoys
normal banking routine with above mentioned banker(s). The SC has bank
charges with above mentioned banker(s).
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of
Creation
|
:
|
16/06/2008
|
|
Description Of
Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of
Property Affected
|
:
|
|
|
Name &
Address Of Chargee
|
:
|
|
UNITED
OVERSEAS BANK (MALAYSIA) BHD
|
|
4072, JALAN
BAGAN LUAR, P O BOX 29, 12700 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
08/07/2008
|
|
Registered and
Numbered 5 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of
Creation
|
:
|
04/05/2012
|
|
Description Of
Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of
Property Affected
|
:
|
|
|
Name & Address
Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
08/05/2012
|
|
Registered and
Numbered 6 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank against the SC whether the
subject has been involved in any litigation.
|
LEGAL ACTION
|
|
|
|
|
|
Code No
|
:
|
22
|
Case No
|
:
|
1957
|
|
|
|
|
|
|
Year
|
:
|
2003
|
Place
|
:
|
KUALA LUMPUR
|
|
|
|
|
|
|
Court
|
:
|
HIGH COURT
|
|
|
|
|
|
|
|
|
|
Solicitor
|
:
|
ALBAR &
PARTNERS
|
|
|
|
|
|
|
|
|
|
Plaintiff
|
:
|
DANAHARTA URUS
SDN BHD
|
|
|
|
|
Defendants
|
:
|
|
TIAN SENG
HANG TRADING CO SDN BHD (236868)
|
|
851 JLN PERMATANG
PAUH, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
|
|
TAN AH KOW
(2050229 /331118-07-5195)
|
|
2A JLN
RESIDENCY, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
TAN TI HOR
(7080372 /630323-07-5565)
|
|
2A JLN RESIDENCY,
10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
TAN IT SONG
(A0774138)
|
|
2A JLN
RESIDENCY, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
TAN SAI HOAY
(1752921)
|
|
2A JLN
RESIDENCY, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
Amount Claimed
|
:
|
1,470,000.00
|
|
|
|
|
|
|
|
|
|
Nature of
Claim
|
:
|
LOAN
|
|
|
|
|
|
|
|
|
|
Remark
|
:
|
LIST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE:
|
Please check with
creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed. The person wo has been sued has the same
name as the subject. However, we are unable to determine whether the person
sued is the one and the same person.
|
|
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
|
:
|
CHINA,INDIA,CANADA,MYANMAR
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic
Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
WHOLESALERS,FOOD
MANUFACTURERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
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
|
15
|
20
|
20
|
21
|
15
|
12
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of dried food
stuff.
We were informed that the SC mainly focuses on spices and dry beans.
The SC's spices such as cummin seeds, fennel seeds, black & white
peppers, cloves, cinnamon sticks, star anises, coriander seeds, white
millets, mushrooms, blade fungus, tamarind sliced.
Besides that the SC trades wide range of beans including green mung beans,
red kidney beans, black beans, soya beans, black eye beans, blanched peanut,
groundnuts, almonds, chick peas, cashew nuts, topiaco pearls (sago), tapioca
and others.
The SC also has a warehouse located at the same premises to keep stocks and
materials.
PROJECTS
No projects found in our databank
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone
Number Provided By Client
|
:
|
043325666
|
|
Current
Telephone Number
|
:
|
04-3325666
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address
Provided by Client
|
:
|
NO 851, JALAN PERMATANG
PAUH,13400,BUTTERWORTH,PULAU PINANG.
|
|
Current
Address
|
:
|
851, JALAN
PERMATANG PAUH, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest
Financial Accounts
|
:
|
NO
|
Other
Investigations
we contacted one of the staff
from the SC and she provided some information on the SC.
FINANCIAL ANALYSIS
|
The SC is a
private exempt company which does not need to file in its accounts with the
Registrar of Companies for the information of the public. Therefore, we are
not able to comment on the SC's financial performance.
|
|
|
|
|
|
|
|
|
|
Overall
financial condition of the SC : N/A
|
MALAYSIA ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic
Indicators:
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Population (
Million)
|
27.73
|
28.13
|
28.35
|
28.70
|
29.10
|
|
Gross Domestic
Products ( % )
|
4.6
|
<0.5>
|
7.2
|
5.5
|
5.3
|
|
Domestic
Demand ( % )
|
6.9
|
2.9
|
6.3
|
4.8
|
7.6
|
|
Private
Expenditure ( % )
|
7.1
|
<2.7>
|
8.1
|
7.0
|
8.7
|
|
Consumption (
% )
|
8.4
|
0.7
|
6.7
|
6.3
|
7.1
|
|
Investment ( %
)
|
1.5
|
<17.2>
|
17.7
|
16.2
|
15.9
|
|
Public
Expenditure ( % )
|
6.5
|
5.2
|
3.8
|
7.6
|
4.7
|
|
Consumption (
% )
|
11.6
|
3.1
|
0.2
|
8.9
|
3.0
|
|
Investment ( %
)
|
0.7
|
8.0
|
2.8
|
0.6
|
7.0
|
|
|
|
|
|
|
|
|
Balance of
Trade ( MYR Million )
|
129,563
|
89,650
|
118,356
|
116,058
|
-
|
|
Government
Finance ( MYR Million )
|
<34,462>
|
<28,450>
|
<40,482>
|
<45,511>
|
<43,021>
|
|
Government Finance
to GDP / Fiscal Deficit ( % )
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
<4.7>
|
|
Inflation ( %
Change in Composite CPI)
|
<3.3>
|
<5.2>
|
5.1
|
3.1
|
-
|
|
Unemployment
Rate
|
3.7
|
4.5
|
3.9
|
3.3
|
-
|
|
|
|
|
|
|
|
|
Net International
Reserves ( MYR Billion )
|
388
|
331
|
329
|
415
|
-
|
|
Average
Risk-Weighted Capital Adequacy Ratio ( % )
|
1.91
|
2.87
|
2.20
|
3.50
|
-
|
|
Average 3
Months of Non-performing Loans ( % )
|
13.24
|
11.08
|
15.30
|
14.80
|
-
|
|
Average Base Lending
Rate ( % )
|
6.72
|
5.53
|
6.30
|
6.60
|
-
|
|
Business Loans
Disbursed( % )
|
11.6
|
10.5
|
14.7
|
15.3
|
-
|
|
Foreign
Investment ( MYR Million )
|
23,261.4
|
22,156.8
|
22,517.9
|
23,546.1
|
-
|
|
Consumer Loans
( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration
of New Companies ( No. )
|
41,599
|
41,578
|
44,148
|
-
|
-
|
|
Registration
of New Companies ( % )
|
<4.0>
|
<0.1>
|
6.2
|
-
|
-
|
|
Liquidation of
Companies ( No. )
|
27,992
|
39,075
|
25,585
|
-
|
-
|
|
Liquidation of
Companies ( % )
|
23.7
|
39.6
|
<34.5>
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration
of New Business ( No. )
|
269,866
|
312,581
|
271,414
|
-
|
-
|
|
Registration
of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business
Dissolved ( No. )
|
18,885
|
19,345
|
19,738
|
-
|
-
|
|
Business
Dissolved ( % )
|
<7.6>
|
2.4
|
2.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New
Passenger Cars (' 000 Unit )
|
497.5
|
486.3
|
543.6
|
363.0
|
-
|
|
Cellular Phone
Subscribers ( Million )
|
25.1
|
30.1
|
32.8
|
35.3
|
-
|
|
Tourist Arrival
( Million Persons )
|
21.5
|
23.6
|
24.6
|
25.3
|
-
|
|
Hotel
Occupancy Rate ( % )
|
68.0
|
58.0
|
63.0
|
51.3
|
-
|
|
|
|
|
|
|
|
|
Credit Cards
Spending ( % )
|
17.1
|
12.8
|
14.1
|
15.6
|
-
|
|
Bad Cheque
Offenders (No.)
|
34,834
|
36,667
|
33,568
|
27,208
|
-
|
|
Individual
Bankruptcy ( No.)
|
13,907
|
16,228
|
18,119
|
16,155
|
-
|
|
Individual
Bankruptcy ( % )
|
5.1
|
16.7
|
11.7
|
<10.8>
|
-
|
|
INDUSTRIES ( %
of Growth ):
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.6
|
0.4
|
2.1
|
4.7
|
4.1
|
|
Palm Oil
|
7.0
|
<1.1>
|
<3.4>
|
7.3
|
-
|
|
Rubber
|
<1.1>
|
<19.8>
|
9.9
|
6.4
|
-
|
|
Forestry &
Logging
|
<1.5>
|
<5.9>
|
<3.3>
|
<4.7>
|
-
|
|
Fishing
|
4.0
|
5.5
|
5.6
|
2.8
|
-
|
|
Other
Agriculture
|
5.9
|
9.0
|
7.9
|
8.5
|
-
|
|
Industry
Non-Performing Loans ( MYR Million )
|
393.0
|
413.7
|
508.4
|
634.1
|
-
|
|
% of Industry
Non-Performing Loans
|
<2.0>
|
1.3
|
2.1
|
3.2
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.8>
|
<3.8>
|
0.2
|
<2.4>
|
2.5
|
|
Oil & Gas
|
12.7
|
2.1
|
0.5
|
<1.7>
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry
Non-performing Loans ( MYR Million )
|
36.0
|
44.2
|
49.7
|
46.5
|
-
|
|
% of Industry
Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing
#
|
1.3
|
<9.4>
|
11.4
|
5.6
|
4.5
|
|
Exported-oriented
Industries
|
2.7
|
<19.0>
|
12.1
|
2.8
|
-
|
|
Electrical
& Electronics
|
2.4
|
<30.3>
|
28.4
|
<4.9>
|
-
|
|
Rubber
Products
|
4.2
|
<10.1>
|
25.3
|
15.4
|
-
|
|
Wood Products
|
<6.0>
|
<24.1>
|
20.1
|
<7.3>
|
-
|
|
Textiles &
Apparel
|
1.9
|
<19.5>
|
<0.4>
|
14.8
|
-
|
|
Domestic-oriented
Industries
|
9.9
|
<9.8>
|
16.3
|
6.3
|
-
|
|
Food,
Beverages & Tobacco
|
9.5
|
0.2
|
3.0
|
4.2
|
-
|
|
Chemical &
Chemical Products
|
1.4
|
<7.7>
|
16.2
|
5.6
|
-
|
|
Plastic
Products
|
6.5
|
<9.1>
|
2.4
|
3.8
|
-
|
|
Iron &
Steel
|
16.8
|
<32.7>
|
29.3
|
2.4
|
-
|
|
Fabricated
Metal Products
|
14.7
|
<2.5>
|
14.9
|
25.2
|
-
|
|
Non-metallic
Mineral
|
8.3
|
<15.5>
|
20.2
|
16.3
|
-
|
|
Transport
Equipment
|
27.1
|
<13.5>
|
36.5
|
<9.4>
|
-
|
|
Paper &
Paper Products
|
8.6
|
<5.0>
|
18.7
|
15.6
|
-
|
|
Crude Oil
Refineries
|
7.8
|
0.2
|
<11.4>
|
9.3
|
-
|
|
Industry
Non-Performing Loans ( MYR Million )
|
5,729.4
|
6,007.3
|
6,217.5
|
6,537.2
|
-
|
|
% of Industry
Non-Performing Loans
|
16.8
|
18.3
|
23.8
|
25.7
|
-
|
|
|
|
|
|
|
|
|
Construction
|
2.1
|
5.8
|
5.1
|
4.4
|
7.0
|
|
Industry
Non-Performing Loans ( MYR Million )
|
4,149.8
|
3,241.8
|
4,038.5
|
3,856.9
|
-
|
|
% of Industry
Non-Performing Loans
|
12.2
|
9.9
|
10.7
|
10.2
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.3
|
2.6
|
6.5
|
6.4
|
6.5
|
|
Electric, Gas
& Water
|
5.0
|
0.4
|
8.5
|
5.6
|
4.8
|
|
Transport,
Storage & Communication
|
7.8
|
1.6
|
7.7
|
6.5
|
7.3
|
|
Wholesale,
Retail, Hotel & Restaurant
|
10.0
|
2.8
|
4.7
|
5.2
|
6.9
|
|
Finance,
Insurance & Real Estate
|
9.2
|
3.8
|
6.1
|
6.3
|
6.5
|
|
Government
Services
|
8.6
|
2.0
|
6.7
|
7.6
|
5.6
|
|
Other Services
|
5.9
|
4.4
|
4.2
|
5.4
|
5.7
|
|
Industry Non-Performing
Loans ( MYR Million )
|
8,281.4
|
6,631.3
|
7,384.6
|
6,825.2
|
-
|
|
% of Industry
Non-Performing Loans
|
24.3
|
20.2
|
25.7
|
23.4
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY ANALYSIS
|
MSIC CODE
|
|
46329 :
Wholesale of other foodstuffs
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
The wholesale and retail trade sector grew 7.1% in the first half of the
year 2011 supported by strong consumer spending amid favourable labour market
conditions and sustained disposable income. This was reflected in the
higher distributive trade index which increased 15.9%, with wholesale and
retail trade indices increasing 19.2% and 7.8%, respectively.
|
|
It is anticipated that the retail industry will grow 6.0 per cent in the
year 2012.
|
|
Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59
billion worth of retail sales, similar to the year 2010, due to concerns of
high oil prices, declining purchasing power and high cost of doing
business. The Middle East and North Africa civil wars have caused the world
oil prices to climb. This has led to further rise in the cost of running
retail businesses, especially in terms of transportation cost. Many
retailers have no choice but to pass the increased cost to end consumers.
At the same time, natural disasters (tsunamis, floods, droughts, snow
storms, tornadoes and earthquakes) that occurred in all parts of the world
has also led to a shortage in the supply of food and raw materials. The
phenomenon has pushed retail prices up.In addition, the continual removal
of government subsidies since 2010 has pushed inflation upwards.
Consequently, rising prices of retail goods contributed to an expectation
of moderate performance.
|
|
During the first seven months of 2011, other consumption indicators such as
imports of consumption goods and credit card spending increased 12.8% and
11.8%, respectively. Sales of motor vehicles declined 3% on account of
supply chain disruptions following devastating March 2011 earthquake and
tsunami in Japan.
|
|
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.
|
|
Meanwhile, the Government has introduced the Retail Shop Transformation
(TUKAR) programme. Under this programme, selected large format retailers
will assist small retailers to improve their premises and layout which
include attractive product display shelves, enhanced lighting and
point-of-sales system to manage product inventory,
|
|
|
|
|
OVERALL
INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK EVALUATION & RECOMMENDATION
|
Incorporated
in 1992, the SC is an Exempt Private company, focusing on trading of dried food
stuff. With over 2 decades of experience in the business, the SC has fairly
rich experiences in the business and has achieved a certain market share.
The capital standing of the SC is fair. With an adequate share capital, the
SC has the potential of expanding its business in future. However, with a
weak shareholders' backing, the SC's capital position is weak.
|
|
Investigation revealed that the SC concentrates only on the local market.
This narrow market segment has placed the SC at high business risk and
limits its business expansion opportunities. Any adverse changes to the
local economy might have a negative impact on the SC's business
performance. Being a small company, the SC's business operation is
supported by 15 employees. Overall, we regard that the SC's management
capability is average.
|
|
As the SC is registered as an Exempt Private company, it is not required to
file financial statements for public review. As such, we are unable to
ascertain its present financial health.
|
|
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.
|
|
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. However, we are of the opinion that there are
large numbers of other companies in the same industry. In another words, we
believe that the SC faces stiff competitions from other local and foreign
players.
|
|
In view of the above, we only recommend credit be proceeded to the SC with
guarantee.
|
|