MIRA INFORM REPORT

 

 

Report Date :

15.03.2013

 

IDENTIFICATION DETAILS

 

Name :

TEONG FATT COMMODITIES (M) SDN. BHD.

 

 

Registered Office :

35, Jalan Kelisa Emas 1, Taman Kelisa Emas, Seberang Jaya, 1st Floor, 13700 Perai, Pulau Pinang

 

 

Country :

Malaysia.

 

 

Financials (as on) :

31.08.2011

 

 

Date of Incorporation :

27.05.1991

 

 

Com. Reg. No.:

217777-X

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading Agricultural Product

 

 

No. of Employees :

25

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

 Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

 

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

217777-X

COMPANY NAME

:

TEONG FATT COMMODITIES (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/05/1991

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

35, JALAN KELISA EMAS 1, TAMAN KELISA EMAS, SEBERANG JAYA, 1ST FLOOR, 13700 PERAI, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

NO 4181, LORONG PERDA UTAMA 7, BANDAR PERDA, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5379996

FAX.NO.

:

04-5376669

CONTACT PERSON

:

NG CHUN LAI ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING AGRICULTURAL PRODUCT

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 1,150,000.00 DIVIDED INTO
ORDINARY SHARES 1,150,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 31,045,592 [2011]

NET WORTH

:

MYR 6,170,040 [2011]

 

 

 

STAFF STRENGTH

:

25 [2013]

BANKER (S)

:

EON BANK BHD
HONG LEONG BANK BHD
MALAYAN BANKING BHD
OCBC BANK (MALAYSIA) BHD
PUBLIC BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

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 agricultural product.

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

(%)

TEOH SIAM LOH

KEDAH, KEDAH, MALAYSIA.

0977434

259,337.00

22.55

MR. NG CHUN LAI +

11, LORONG TAMBUN INDAH 8, TAMAN TAMBUN INDAH, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.

490824-02-5337

224,171.00

19.49

MR. NG CHOON CHOOI

326, LORONG KENANGAN 9, TAMAN KENANGAN, 09410 PADANG SERAI, KEDAH, MALAYSIA.

441209-08-5011

177,789.00

15.46

MR.NG CHONG SENG +

5 TGKT BINJAI 30, TMN SRI RAMBAI, 14000 BKT MERTAJAM, MALAYSIA.

1610035

165,718.00

14.41

MR. NG TENG SEAH +

11, LORONG TAMBUN INDAH 8, TAMAN TAMBUN INDAH, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.

800709-07-5057

100,000.00

8.70

NG CHYE HOCK

KEDAH, KEDAH, MALAYSIA.

7013666

81,114.00

7.05

TAN SWEE LENG

PERLIS, PERLIS, MALAYSIA.

2958896

70,936.00

6.17

TAN SWEE PHENG

31, TAMAN SENTOSA, 02000 KUALA PERLIS, PERLIS, MALAYSIA.

A0706802

70,935.00

6.17

 

 

 

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

------

 

 

 

1,150,000.00

100.00

 

 

 

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

=====

 

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. NG CHONG SENG

Address

:

5 TINGKAT BINJAI 30, TAMAN SRI RAMBAI, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

480615-02-5235

Date of Birth

:

15/06/1948

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/04/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. NG SWEE LUANG

Address

:

429 JALAN PASAR, 09800 SERDANG, KEDAH, MALAYSIA.

 

 

 

New IC No

:

650907-02-5666

Date of Birth

:

07/09/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/08/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. NG TENG SEAH

Address

:

11, LORONG TAMBUN INDAH 8, TAMAN TAMBUN INDAH, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

800709-07-5057

Date of Birth

:

09/07/1980

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/11/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. NG CHUN LAI

Address

:

11, LORONG TAMBUN INDAH 8, TAMAN TAMBUN INDAH, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

490824-02-5337

Date of Birth

:

24/08/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/05/1991

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

NG CHUN LAI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

SH YEOH & CO

Auditor' Address

:

37, JALAN KELISA EMAS 1, TAMAN KELISA EMAS, 13700 PERAI, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LIM KIM TECK

 

 

 

 

 

New IC No

:

590613-07-5607

 

Address

:

40 HALAMAN BUKIT GAMBIER 5, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. KONG SOWN KAEY

 

 

 

 

 

New IC No

:

731205-07-5225

 

Address

:

121, JALAN BINJAI, TAMAN SRI RAMBAI, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EON BANK BHD

 

 

 

 

 

2)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

3)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

4)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

5)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

6)

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

:

30/10/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,175,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

EON BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

30/10/2002

Description Of Charge

:

THIRD LEGAL CHARGE

 

Amount Secured

:

RM125,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND AND HEREDITAMENTS KNOWN AS LOT 652, GERAN MUKIM 611, MUKIM OF SERDANG, DAERAH BANDAR BAHARU, NEGERI KEDAH

 

Name & Address Of Chargee

:

EON BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

25/05/2004

Description Of Charge

:

THIRD LEGAL CHARGE

 

Amount Secured

:

RM250,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND AND HEREDITAMENTS KNOWN AS LOT 652, GERAN MUKIM 611, MUKIM OF SERDANG, DAERAH BANDAR BAHARU, NEGERI KEDAH

 

Name & Address Of Chargee

:

EON BANK BHD
WISMA CYCLECARRI, 288 JALAN RAJA LAUT, 12TH FLOOR, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 18/08/2004

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

03/10/2005

Description Of Charge

:

FOURTH LEGAL CHARGE

 

Amount Secured

:

RM800,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND AND HEREDITAMENTS KNOWN AS LOT 652, GERAN MUKIM 99(FORMERLY KNOW AS GM 611), MUKIM OF SERDANG, TEMPAT AYER PUTEH, DAERAH BANDAR BARU, NEGERI KEDAH

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated 15/02/2006

Registered and Numbered 15 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

15/05/2006

Description Of Charge

:

FOURTH LEGAL CHARGE

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND AND HEREDITAMENTS KNOWN AS LOT 652, GERAN MUKIM 99(FORMERLY KNOW AS GM 611), MUKIM OF SERDANG, TEMPAT AYER PUTEH, DAERAH BANDAR BARU, NEGERI KEDAH

 

Name & Address Of Chargee

:

EON BANK BHD
MENARA EON BANK, 288 JALAN RAJA LAUT, 12TH FLOOR, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 25/05/2006

Registered and Numbered 16 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

03/10/2005

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM1,700,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

03/10/2005

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM950,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

03/10/2005

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 14 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

17/09/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM5,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 17 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

17/09/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM5,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 18 In The Register of Charges



ENCUMBRANCE 11

Date of Creation

:

17/10/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 19 In The Register of Charges



ENCUMBRANCE 12

Date of Creation

:

17/10/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 20 In The Register of Charges

 

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

Import Countries

:

CHINA,INDIA,THAILAND



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

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

WHOLESALERS,DISTRIBUTORS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

AGRICULTURAL PRODUCTS

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

25

25

30

30

30

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading agricultural product.

The SC offers a wide range of agricultural food products including beans, herbs, spices, essential oils and others.

Besides that the SC also provides products based on the customers' requirements.

We have verified and confirmed that the SC has a warehouse located at the same premises to keep stocks and materials.

The SC sells its products in large quantities.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-5379996

Match

:

N/A

 

 

 

Address Provided by Client

:

NO 4181, LORONG PERDA UTAMA 7, BANDAR PERDA,14000,BUKIT TENGAH,PULAU PINANG.

Current Address

:

NO 4181, LORONG PERDA UTAMA 7, BANDAR PERDA, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 8th March 2013 we contacted one of the staff from the SC and she provided some information on the SC.



FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.56%

]

 

Return on Net Assets

:

Acceptable

[

16.03%

]

 

 

 

 

 

 

 

 

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 unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

23 Days

]

 

Debtor Ratio

:

Unfavourable

[

72 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 high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

:

Acceptable

[

0.85 Times

]

 

Current Ratio

:

Unfavourable

[

1.04 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

:

Unfavourable

[

2.46 Times

]

 

Gearing Ratio

:

Favourable

[

0.20 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. 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 :

 

 

 

 

 

 

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'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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. 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:

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 1991, the SC is a Private Limited company, focusing on trading agricultural product. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. With an adequate share capital, the SC has the potential of expanding its business in future. The SC business position much depends on its shareholders.


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 25 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.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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 6,170,040, 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.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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)

TEONG FATT COMMODITIES (M) SDN. BHD.

 

Financial Year End

31/08/2011

31/08/2010

31/08/2009

31/08/2008

31/08/2007

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

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

31,045,592

31,932,626

30,655,153

27,319,659

18,078,498

 

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

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

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

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

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

Total Turnover

31,045,592

31,932,626

30,655,153

27,319,659

18,078,498

Costs of Goods Sold

-

-

-

-

<18,078,498>

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

690,353

719,284

697,854

400,235

677,181

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

690,353

719,284

697,854

400,235

677,181

Taxation

<161,955>

<205,068>

<186,797>

<178,848>

<174,264>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

528,398

514,216

511,057

221,387

502,917

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

4,491,642

4,264,926

4,041,369

4,394,982

3,892,065

 

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

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

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

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

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

As restated

4,491,642

4,264,926

4,041,369

4,394,982

3,892,065

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,020,040

4,779,142

4,552,426

4,616,369

4,394,982

DIVIDENDS - Ordinary (paid & proposed)

-

<287,500>

<287,500>

<575,000>

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,020,040

4,491,642

4,264,926

4,041,369

4,394,982

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

472,301

550,708

724,718

744,098

-

 

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

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

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

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

 

 

472,301

550,708

724,718

744,098

 

 

 

BALANCE SHEET

 

TEONG FATT COMMODITIES (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

6,661,171

6,761,418

7,089,433

7,029,654

6,798,058

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

190,987

502,421

606,339

609,273

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

190,987

502,421

606,339

609,273

452,228

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

6,852,158

7,263,839

7,695,772

7,638,927

7,250,286

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

1,949,887

2,304,046

3,077,046

4,101,280

-

Trade debtors

6,132,854

6,460,348

7,084,292

6,466,777

-

Other debtors, deposits & prepayments

883,559

912,627

932,147

893,352

-

Short term deposits

-

-

323,149

848,286

-

Deposits with financial institutions

649,483

330,205

-

-

-

Amount due from director

755,303

676,618

716,377

680,683

-

Cash & bank balances

360,761

405,958

653,363

394,490

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

10,731,847

11,089,802

12,786,374

13,384,868

9,416,178

 

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

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

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

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

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

TOTAL ASSET

17,584,005

18,353,641

20,482,146

21,023,795

16,666,464

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,367,100

275,343

701,997

1,089,311

-

Other creditors & accruals

572,999

606,012

416,263

466,941

-

Hire purchase & lease creditors

139,761

123,678

124,936

75,128

-

Bank overdraft

-

398,038

-

643,318

-

Short term borrowings/Term loans

94,319

172,285

151,938

124,961

-

Bill & acceptances payable

8,148,000

8,628,000

10,517,000

10,374,746

-

Amounts owing to director

-

39,236

41,430

43,291

-

Provision for taxation

9,079

53,136

30,817

23,826

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

10,331,258

10,295,728

11,984,381

12,841,522

8,010,162

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

400,589

794,074

801,993

543,346

1,406,016

 

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

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

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

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

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

TOTAL NET ASSETS

7,252,747

8,057,913

8,497,765

8,182,273

8,656,302

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,150,000

1,150,000

1,150,000

1,150,000

1,150,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,150,000

1,150,000

1,150,000

1,150,000

1,150,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

-

-

4,394,982

Retained profit/(loss) carried forward

5,020,040

4,491,642

4,264,926

4,041,369

-

 

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

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

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

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

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

TOTAL RESERVES

5,020,040

4,491,642

4,264,926

4,041,369

4,394,982

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

6,170,040

5,641,642

5,414,926

5,191,369

5,544,982

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

745,521

2,119,529

2,713,174

2,749,224

-

Hire purchase creditors

236,186

199,742

283,665

161,680

-

Deferred taxation

101,000

97,000

86,000

80,000

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,082,707

2,416,271

3,082,839

2,990,904

3,111,320

 

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

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

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

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

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

 

7,252,747

8,057,913

8,497,765

8,182,273

8,656,302

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

TEONG FATT COMMODITIES (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

360,761

405,958

976,512

1,242,776

795,613

Net Liquid Funds

360,761

7,920

824,574

474,497

<1,163,330>

Net Liquid Assets

<1,549,298>

<1,509,972>

<2,275,053>

<3,557,934>

<1,091,900>

Net Current Assets/(Liabilities)

400,589

794,074

801,993

543,346

1,406,016

Net Tangible Assets

7,252,747

8,057,913

8,497,765

8,182,273

8,656,302

Net Monetary Assets

<2,632,005>

<3,926,243>

<5,357,892>

<6,548,838>

<4,203,220>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,215,787

3,013,272

3,273,713

3,754,311

10,180,297

Total Liabilities

11,413,965

12,711,999

15,067,220

15,832,426

11,121,482

Total Assets

17,584,005

18,353,641

20,482,146

21,023,795

16,666,464

Net Assets

7,252,747

8,057,913

8,497,765

8,182,273

8,656,302

Net Assets Backing

6,170,040

5,641,642

5,414,926

5,191,369

5,544,982

Shareholders' Funds

6,170,040

5,641,642

5,414,926

5,191,369

5,544,982

Total Share Capital

1,150,000

1,150,000

1,150,000

1,150,000

1,150,000

Total Reserves

5,020,040

4,491,642

4,264,926

4,041,369

4,394,982

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.03

0.04

0.08

0.10

0.10

Liquid Ratio

0.85

0.85

0.81

0.72

0.86

Current Ratio

1.04

1.08

1.07

1.04

1.18

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

23

26

37

55

50

Debtors Ratio

72

74

84

86

89

Creditors Ratio

16

3

8

15

9

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.20

0.53

0.60

0.72

1.84

Liabilities Ratio

1.85

2.25

2.78

3.05

2.01

Times Interest Earned Ratio

2.46

2.31

1.96

1.54

2.34

Assets Backing Ratio

7.46

8.29

7.39

7.12

0.00

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.22

2.25

2.28

1.47

3.75

Net Profit Margin

1.70

1.61

1.67

0.81

2.78

Return On Net Assets

16.03

15.76

16.74

13.99

13.68

Return On Capital Employed

15.73

14.80

16.21

12.68

11.09

Return On Shareholders' Funds/Equity

8.56

9.11

9.44

4.26

9.07

Dividend Pay Out Ratio (Times)

0.00

0.56

0.56

2.60

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.81.33

Euro

1

Rs.70.50

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.