|
* Adopted abbreviations :
|
SC - Subject Company (the company
enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
48964-V
|
|
COMPANY NAME
|
:
|
CUSTOM FOOD INGREDIENTS SDN. BHD.
|
|
FORMER NAME
|
:
|
ERNSTS FOOD INGREDIENTS SDN BHD (28/09/2005)
WEST ADVANCE SDN BHD (15/12/1999)
SAHARI SDN BHD (15/01/1980)
LIM SOON HOCK & SONS SDN BHD
|
|
INCORPORATION DATE
|
:
|
13/07/1979
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 12-02, 12TH FLOOR, MENARA ZURICH,
170 JALAN ARGYLL, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLOT 8, LORONG JELAWAT 1, KAWASAN
PERINDUSTRIAN SEBERANG JAYA, 13700 PERAI, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3904077
|
|
FAX.NO.
|
:
|
04-3905579
|
|
CONTACT PERSON
|
:
|
SAW BENG LIANG ( EXECUTIVE DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
10
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF FOOD PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARES 7,880,000 CASH AND 2,120,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 3,620,001 [2011]
|
|
NET WORTH
|
:
|
MYR 32,618,339 [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
100 [2013]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
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) manufacturing of food products.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The immediate holding company of the SC is
ORIENTAL CONCEPT SDN. BHD., a company incorporated in MALAYSIA.
The ultimate holding company of the SC is
ORIENTAL CONCEPT SDN BHD, a company incorporated in MALAYSIA.
The major
shareholder(s) of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. SAW BENG LIANG +
|
71, MEDAN TEMBAGA, ISLAND PARK, 11600
PULAU PINANG, PULAU PINANG, MALAYSIA.
|
691201-07-5689
|
78,000.00
|
0.78
|
|
MR. SAW EE CHEE @ SAW KENG WEE +
|
73, MEDAN TEMBAGA, ISLAND PARK, 11600
PULAU PINANG, PULAU PINANG, MALAYSIA.
|
320106-71-5315
|
78,000.00
|
0.78
|
|
ORIENTAL CONCEPT SDN. BHD.
|
|
231761X
|
9,844,000.00
|
98.44
|
|
|
|
|
---------------
|
------
|
|
|
|
|
10,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. SAW BENSON
|
|
Address
|
:
|
2-4-16, TIVOLLI VILLAS, JALAN MEDANG
TANDUK, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
740530-07-5063
|
|
Date of Birth
|
:
|
30/05/1974
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
11/08/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
TAN WANG CHEOW
|
|
Address
|
:
|
115 LENGKONG DUA, 417749, SINGAPORE.
|
|
IC / PP No
|
:
|
S1250811E
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
28/08/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
SAW MENG TEE @ SU MINGZHI
|
|
Address
|
:
|
73 SACARA ROAD, 807405, SINGAPORE.
|
|
IC / PP No
|
:
|
S7120711J
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
28/08/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. SAW EE CHEE @ SAW KENG WEE
|
|
Address
|
:
|
73, MEDAN TEMBAGA, ISLAND PARK, 11600
PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
320106-71-5315
|
|
Date of Birth
|
:
|
06/01/1932
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
03/08/1999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. SAW BENG LIANG
|
|
Address
|
:
|
71, MEDAN TEMBAGA, ISLAND PARK, 11600
PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
691201-07-5689
|
|
Date of Birth
|
:
|
01/12/1969
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
03/08/1999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
SAW BENG LIANG
|
|
|
Position
|
:
|
EXECUTIVE DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
KANG CHYE KEOW
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
LEE CHEAN PHONG
|
|
|
Position
|
:
|
FACTORY MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
LEVEL 23A, MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA,
DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. GUNN CHIT GEOK
|
|
|
IC / PP No
|
:
|
3455868
|
|
|
New IC No
|
:
|
490915-07-5030
|
|
|
Address
|
:
|
23 PERSIARAN MIDLANDS, 10250 GEORGETOWN,
PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. CHEW SIEW CHENG
|
|
|
IC / PP No
|
:
|
A2170032
|
|
|
New IC No
|
:
|
720405-07-5218
|
|
|
Address
|
:
|
1-V, LORONG DELIMA 17, ISLAND GLADES,
11700 GELUGOR, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
The SC enjoys normal banking routine with
above mentioned banker(s). No adverse record was found during our
investigation.
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
15/09/2010
|
|
Description Of Charge
|
:
|
FIXED
|
|
Amount Secured
|
:
|
RM4,500,000.00
|
|
Description Of Property Affected
|
:
|
ALL THAT PIECE OF LAND KNOWN AS PT NO.24 BANDAR
KULIM, DAERAH KULIM, KEDAH HELD UNDER SURATAN HAKMILIK SEMENTARA NO
HS(M)10534
|
|
Name & Address Of Chargee
|
:
|
|
HSBC AMANAH MALAYSIA BERHAD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 21/09/2010
|
|
Registered and Numbered 3 In The Register
of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
15/09/2010
|
|
Description Of Charge
|
:
|
FIXED
|
|
Amount Secured
|
:
|
RM500,000.00
|
|
Description Of Property Affected
|
:
|
ALL THAT PIECE OF LAND KNOWN AS PT NO 24,
BANDAR KULIM, DAERAH KULIM, KEDAH HELD UNDER SURATAN HAKMILIK SEMENTARA NO
HS (M) 10534
|
|
Name & Address Of Chargee
|
:
|
|
HSBC AMANAH MALAYSIA BERHAD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 21/09/2010
|
|
Registered and Numbered 4 In The Register
of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
24/02/2012
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
|
HSBC AMANAH MALAYSIA BERHAD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 29/02/2012
|
|
Registered and Numbered 5 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
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
HONEY, MALT EXTACT, SHORTENING POWDER
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
MALAYSIA EXTERNAL TRADE DEVELOPMENT
CORPORATION (MATRADE)
SMALL & MEDIUM ENTERPRISE
MALAYSIA FOOD & BEVERAGE INDUSTRY
|
|
|
|
|
|
Ownership of premises
|
:
|
LEASED/RENTED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
100
|
100
|
100
|
100
|
110
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of food
products.
We were informed that the SC is involved in the dry ingredients processing which
utilizing one of the latest technology in spray drying, the multi-stage spray
dryer.
The SC's leading edge manufacturing technology ensures a wide range of
quality products include as follows:
* Non-Dairy Creamers (coffee whitener) - for coffee, tea, cereal, chocolate
and etc.
* Soup and Sauce Creamer
* Cappuccino Foaming Agent
* Fat Filled Milk Powder
* Ice Cream Powder
* Counding Agent
* Whipped Topping Bases- for moussers, cheese cakes and adding volume to
cakes and desserts.
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
|
:
|
04-3904077
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLOT 24, LORONG PERUSAHAAN 2B, KAWASAN
PERINDUSTRAIN KULIM 09000 KULIM KEDAH
|
|
Current Address
|
:
|
PLOT 8, LORONG JELAWAT 1, KAWASAN
PERINDUSTRIAN SEBERANG JAYA, 13700 PERAI, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
we contacted one of the staff from the Admin Department. She provided some
information on the SC.
The SC is not aware of the address provided.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
<3.35%>
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<3.84%>
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's turnover increased steadily as
the demand for its products / services increased due to the goodwill built
up over the years.Higher losses before tax during the year could be due to the
higher operating costs incurred. The SC's unfavourable returns on
shareholders' funds indicate the management's inefficiency in utilising its
assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Current Ratio
|
:
|
Favourable
|
[
|
1.51 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC was in good liquidity position
with its current liabilities well covered by its current assets. With its
net current assets, the SC should be able to repay its short term
obligations.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Liability Ratio
|
:
|
Favourable
|
[
|
0.22 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A low liabilities ratio has minimised the
SC's financial risk.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Although the SC's turnover increased its
profits however showed a reverse trend. The losses could be due to the
management's failure to maintain its competitiveness in the market. 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. The SC has high financial risks.
If its shareholders do not inject more capital into the company or if its
business performance does not improve, its going concern may be in
question.
|
|
|
|
|
|
|
|
|
|
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
|
|
10 : MANUFACTURE OF FOOD PRODUCTS
|
|
|
|
|
INDUSTRY :
|
MANUFACTURING
|
|
|
|
|
|
|
The manufacturing sector is expected to be driven by higher value-added
activities in Malaysia.The GDP growth for first quarter 2012 indicating
manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia
recorded a 12% jump in approved investments in the manufacturing sector in
the first quarter of 2012 compared with the corresponding period 2011.
According to Federation of Malaysian Manufacturers (FMM), manufacturing
sector expected to improve in the third quarter 2012 despite concerns over
external developments and the rising cost of production.
|
|
The rubber products sub-sector is expected to remain resilient supported by
continuous improvements in medical and healthcare standards in emerging
markets as well as demand from niche markets such as the oil and gas sector
for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at
the end of 2012 driven by global demand for medical gloves as well as
rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber
shipments in Malaysia due to hospitals and clinics place more intrest on
rising health and hygiene awareness.
|
|
The Malaysia government has growth target of 6.5% for wood based furniture where
estimated to reach up to RM53 billion by year 2020.The government providing
pioneer status for tax exemption and investment tax allowance for this
industry as a boost up step towards produce good quality product and to
meet the world demand.
|
|
Chemical production are expected to show 6.2% in year 2012 and 7.5 % in
year 2013 inline with Malaysia as one of the largest contributor in world
Chemicals & Chemical industries.
|
|
According to Malaysian Iron and Steel Industry Federation, first half of 2012
would remain weak for the local steel industry due to eurozone crisis,
slowdown in China's economy and less robust construction activities in the
developed countries. At first quarter 2012, the average local steel price
is trading atRM2,300 per tonne compared with the average international
price of US$740 (RM2,331) per tonne.
|
|
According to the Department of Statistics, Malaysia during the first
quarter 2012, the manufacturing output increased due to activities in major
sub-sectors such as petroleum, chemical, rubber and plastic products (10.5
%), and non-metallic mineral products, basic metal and fabricated metal
products (3.9 %). Meanwhile, it's also announced that the manufacturing
sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared
with RM47.7 billion in May 2011. The Industrial Production Index (IPI )
increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).
|
|
Tax and non-tax incentives provided by goverment encourage manufacturers to
move up the value chain of manufacturing industry. The new growth
initiatives by goverment in the manufacturing sector such as solar and
medial services can be important drivers of growth apart from helping to
diversify the manufacturing base and contributing to the resilience of the
sector.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
Incorporated in 1979, the SC is a Private Limited company, focusing on manufacturing
of food products. Its long establishment in the market has allowed the SC
to build up a good reputation and gain higher market share against its
rivals. Having strong support from its holding company has enabled the SC
to remain competitive despite the challenging business environment. The SC
is a large entity with strong capital position. We are confident with the
SC's business and its future growth prospect.
|
|
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. To date, the SC has a total
workforce of 100 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.
|
|
Despite the higher turnover, the SC suffered pre-tax losses which reflected
a highly competitive business environment. The SC has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. However, 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. A low liabilities ratio has minimised the
SC's financial risk. Given a positive net worth standing at MYR 32,618,339,
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 industry shows an upward trend and this trend is very likely to sustain
in the near terms. Hence, the SC is expected to benefit from the favourable
outlook of the industry.
|
|
Based on the above condition, we recommend credit be granted to the SC
promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS)
|
|
CUSTOM FOOD INGREDIENTS SDN. BHD.
|
|
Financial Year End
|
31/12/2011
|
31/12/2010
|
31/12/2009
|
31/12/2008
|
31/12/2007
|
|
Months
|
12
|
12
|
12
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean
Opinion)
|
YES
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
SUMMARY
|
SUMMARY
|
FULL
|
FULL
|
SUMMARY
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
3,620,001
|
3,088,845
|
2,908,064
|
2,730,323
|
104,627
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
3,620,001
|
3,088,845
|
2,908,064
|
2,730,323
|
104,627
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<1,420,973>
|
<817,192>
|
<25,269>
|
144,795
|
405,115
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<1,420,973>
|
<817,192>
|
<25,269>
|
144,795
|
405,115
|
|
Taxation
|
329,817
|
176,764
|
358,775
|
1,495
|
<130,328>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
<1,091,156>
|
<640,428>
|
333,506
|
146,290
|
274,787
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
19,065,191
|
19,705,619
|
19,372,113
|
19,225,823
|
18,951,036
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
19,065,191
|
19,705,619
|
19,372,113
|
19,225,823
|
18,951,036
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
17,974,035
|
19,065,191
|
19,705,619
|
19,372,113
|
19,225,823
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
17,974,035
|
19,065,191
|
19,705,619
|
19,372,113
|
19,225,823
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
BALANCE SHEET
|
CUSTOM FOOD INGREDIENTS SDN. BHD.
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
35,258,339
|
31,358,602
|
14,921,547
|
2,416,752
|
1,832,448
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Investments
|
-
|
-
|
777,178
|
191,898
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
275,704
|
-
|
777,178
|
191,898
|
807,834
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
35,534,043
|
31,358,602
|
15,698,725
|
2,608,650
|
2,640,282
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Trade debtors
|
-
|
-
|
320,480
|
292,714
|
-
|
|
Other debtors, deposits & prepayments
|
-
|
-
|
39,555
|
7,031
|
-
|
|
Amount due from holding company
|
-
|
-
|
-
|
22,338,566
|
-
|
|
Amount due from related companies
|
-
|
-
|
20,396,256
|
4,256,734
|
-
|
|
Cash & bank balances
|
-
|
-
|
66,381
|
56,231
|
-
|
|
Others
|
-
|
-
|
52,282
|
45,073
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
4,192,282
|
11,191,930
|
20,874,954
|
26,996,349
|
26,877,544
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
39,726,325
|
42,550,532
|
36,573,679
|
29,604,999
|
29,517,826
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Other creditors & accruals
|
-
|
-
|
135,379
|
232,886
|
-
|
|
Amounts owing to related companies
|
-
|
-
|
899,006
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
2,768,788
|
3,791,266
|
1,034,385
|
232,886
|
292,003
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
1,423,494
|
7,400,664
|
19,840,569
|
26,763,463
|
26,585,541
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
36,957,537
|
38,759,266
|
35,539,294
|
29,372,113
|
29,225,823
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Revaluation reserve
|
4,644,304
|
4,644,304
|
4,644,304
|
-
|
-
|
|
Retained profit/(loss) carried forward
|
17,974,035
|
19,065,191
|
19,705,619
|
19,372,113
|
19,225,823
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
22,618,339
|
23,709,495
|
24,349,923
|
19,372,113
|
19,225,823
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
32,618,339
|
33,709,495
|
34,349,923
|
29,372,113
|
29,225,823
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Deferred taxation
|
-
|
-
|
1,189,371
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
4,339,198
|
5,049,771
|
1,189,371
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
36,957,537
|
38,759,266
|
35,539,294
|
29,372,113
|
29,225,823
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL RATIO
|
CUSTOM FOOD INGREDIENTS SDN. BHD.
|
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
-
|
-
|
66,381
|
56,231
|
-
|
|
Net Liquid Funds
|
-
|
-
|
66,381
|
56,231
|
-
|
|
Net Liquid Assets
|
1,423,494
|
7,400,664
|
19,840,569
|
26,763,463
|
26,585,541
|
|
Net Current Assets/(Liabilities)
|
1,423,494
|
7,400,664
|
19,840,569
|
26,763,463
|
26,585,541
|
|
Net Tangible Assets
|
36,957,537
|
38,759,266
|
35,539,294
|
29,372,113
|
29,225,823
|
|
Net Monetary Assets
|
<2,915,704>
|
2,350,893
|
18,651,198
|
26,763,463
|
26,585,541
|
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Liabilities
|
7,107,986
|
8,841,037
|
2,223,756
|
232,886
|
292,003
|
|
Total Assets
|
39,726,325
|
42,550,532
|
36,573,679
|
29,604,999
|
29,517,826
|
|
Net Assets
|
36,957,537
|
38,759,266
|
35,539,294
|
29,372,113
|
29,225,823
|
|
Net Assets Backing
|
32,618,339
|
33,709,495
|
34,349,923
|
29,372,113
|
29,225,823
|
|
Shareholders' Funds
|
32,618,339
|
33,709,495
|
34,349,923
|
29,372,113
|
29,225,823
|
|
Total Share Capital
|
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
|
Total Reserves
|
22,618,339
|
23,709,495
|
24,349,923
|
19,372,113
|
19,225,823
|
|
|
|
|
|
|
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
-
|
-
|
0.06
|
0.24
|
-
|
|
Liquid Ratio
|
-
|
-
|
20.18
|
115.92
|
-
|
|
Current Ratio
|
1.51
|
2.95
|
20.18
|
115.92
|
92.05
|
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Debtors Ratio
|
-
|
-
|
40
|
39
|
-
|
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Liabilities Ratio
|
0.22
|
0.26
|
0.06
|
0.01
|
0.01
|
|
Assets Backing Ratio
|
3.70
|
3.88
|
3.55
|
2.94
|
2.92
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
<39.25>
|
<26.46>
|
<0.87>
|
5.30
|
387.20
|
|
Net Profit Margin
|
<30.14>
|
<20.73>
|
11.47
|
5.36
|
262.63
|
|
Return On Net Assets
|
<3.84>
|
<2.11>
|
<0.07>
|
0.49
|
1.39
|
|
Return On Capital Employed
|
<3.84>
|
<2.11>
|
<0.07>
|
0.49
|
1.39
|
|
Return On Shareholders' Funds/Equity
|
<3.35>
|
<1.90>
|
0.97
|
0.50
|
0.94
|
|
|
|
|
|
|
|
|