MIRA INFORM REPORT

 

 

Report Date :

23.11.2013

 

IDENTIFICATION DETAILS

 

Name :

MIN TIEN & COMPANY SDN BHD

 

 

Formerly Known As :

MIN TIEN AND COMPANY LIMITED

 

 

Registered Office :

17, Jalan Bakti / Petaling, Larkin Industrial Estate, 80350 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

06.03.1955

 

 

Com. Reg. No.:

2595-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in distribution of rice, sugar and sundry provisions

 

 

No. of Employees :

20

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy''s dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests

Source : CIA

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

2595-K

COMPANY NAME

:

MIN TIEN & COMPANY SDN BHD

FORMER NAME

:

MIN TIEN AND COMPANY LIMITED (12/09/1970)

INCORPORATION DATE

:

06/03/1955

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

17, JALAN BAKTI / PETALING, LARKIN INDUSTRIAL ESTATE, 80350 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

17, JALAN PETALING, LARKIN INDUSTRIAL AREA, 80350 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-2385218

FAX.NO.

:

07-2372679

CONTACT PERSON

:

LIEW YEW TIEN ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

46321

PRINCIPAL ACTIVITY

:

DISTRIBUTION OF RICE, SUGAR AND SUNDRY PROVISIONS

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 2,180,000.00 DIVIDED INTO
ORDINARY SHARES 840,000 CASH AND 1,340,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 255,240,298 [2012]

NET WORTH

:

MYR 73,335,957 [2012]

 

 

 

STAFF STRENGTH

:

20 [2013]

BANKER (S)

:

MALAYAN BANKING BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

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) distribution of rice, sugar and sundry provisions.

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

The immediate holding company of the SC is KUOK BROTHERS 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

(%)

KUOK BROTHERS SDN BHD

UBN TOWER, 10, JALAN P. RAMLEE, 15TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

1765T

1,128,000.00

51.74

HOE SENG COMPANY PTE. LIMITED

19, NEW BRIDGE ROAD, 059387, SINGAPORE.

195600133H

880,000.00

40.37

ANG TOON CHEW & SONS (MALAYSIA) SDN BHD

WISMA GOSHEN, 2ND FLOOR, 60 & 62, JALAN SS 22/21, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

8640W

50,000.00

2.29

MR. GHUI CHAN KIM

68, JALAN DANAU, TAMAN TASEK, 80200 JOHOR BAHRU, JOHOR, MALAYSIA.

350920-01-5329

30,000.00

1.38

MR. HO CHO HING @ HO CHEW LING

18-A, JALAN KEMUNTING, KEBUN TEH PARK, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

390720-01-5267

14,000.00

0.64

MR. ZID BIN KHALID

14, JALAN SS 19/4, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

4506239

10,000.00

0.46

LIAN MENG HUA

18A, JALAN KEMUNTING, KEBUN TEH PARK, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

3516533

10,000.00

0.46

NG HUAT @ NG MENG HUAT

54, JALAN HARIMAU, CENTURY GARDEN, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

0675387

10,000.00

0.46

SOH KIM SWEE

7A, JALAN BADIK SATU, TAMAN SRI TEBRAU, 80350 JOHOR BAHRU, JOHOR, MALAYSIA.

5551561

10,000.00

0.46

MS. KUOK CHIEW HUA

8, JALAN TERENTANG, KEBUN TEH PARK, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

500923-01-5130 3519486

10,000.00

0.46

MR. PRABHAKARAN A/L R. KORAN

32-D-1, JALAN KEBUN TEH, 80205 JOHOR BAHRU, JOHOR, MALAYSIA.

520320-01-5033

6,000.00

0.28

MR. LIEW YEW TIEN +

7, JALAN KUNING MUDA 2, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

5162790

6,000.00

0.28

MS. KOH BENG HIANG

52, JALAN DAMAI, SERENE PARK, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

500525-01-5266 3011533

6,000.00

0.28

THE ESTATE OF LIAM SIAM PENG

35, JALAN JERAU SATU, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

00029576

4,000.00

0.18

MR. WONG LEONG HONG +

18, JALAN TIRAM JAYA 4, TAMAN TIRAM JAYA, 81800 ULU TIRAM, JOHOR, MALAYSIA.

630801-01-5189

2,000.00

0.09

KIM MEOW INN

1C, JALAN ABDUL SAMAD, KAMPUNG BARAU, 80100 JOHOR BAHRU, JOHOR, MALAYSIA.

5441054

2,000.00

0.09

MR. ITHNIN BIN YUNOS

8, JALAN SENANG, KAMPUNG MELAYU MAJIDEE, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

521116-01-5479

2,000.00

0.09

 

 

 

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

------

 

 

 

2,180,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

18131T

MALAYSIA

PENGEDAR BEKALAN SDN. BHD.

49.13

31/12/2008

 

 

 

 

 



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHAN SWEE HONG

Address

:

142, JALAN TERATAI, TAMAN AMPANG PRIMA, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

5238646

New IC No

:

571204-01-5845

Date of Birth

:

04/12/1957

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. KUOK OON KWONG

Address

:

26, VICTORIA PARK ROAD, 266505, SINGAPORE.

IC / PP No

:

S2512238G

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

30/05/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. WONG LEONG HONG

Address

:

18, JALAN TIRAM JAYA 4, TAMAN TIRAM JAYA, 81800 ULU TIRAM, JOHOR, MALAYSIA.

 

 

 

New IC No

:

630801-01-5189

Date of Birth

:

01/08/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/08/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LIEW YEW TIEN

Address

:

7, JALAN KUNING MUDA 2, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5162790

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

04/06/1988

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIEW YEW TIEN

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

WONG LEONG HONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

LIM CHUN LAN

 

Position

:

FINANCE & ADMIN 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. KOH BENG HIANG

 

IC / PP No

:

3011533

 

New IC No

:

500525-01-5266

 

Address

:

52, JALAN DAMAI, SERENE PARK, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. CHIA LING WEI

 

 

 

 

 

New IC No

:

720920-14-5081

 

Address

:

PS-5-22,PRIMA SAUJANA APARTMENT, NO 2 JALAN WANGSA 2/6, TAMAN WANGSA PERMAI, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

08/10/1979

N/A

DEVELOPMENT COMMERCIAL BANK LTD

MYR 700,000.00

Satisfied

3

12/04/1982

N/A

DEVELOPMENT COMMERCIAL BANK LTD

MYR 300,000.00

Satisfied

4

10/01/1983

N/A

DEVELOPMENT COMMERCIAL BANK LTD

MYR 200,000.00

Satisfied

 

 

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

:

THAILAND,SINGAPORE,MYANMAR,CHINA,VIETNAM,SRI LANKA





 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CASH
CHEQUES

Type of Customer

:

WHOLESALERS,RETAIL,MINI-MARKETS,END USERS

 

 

 

 

 

 

 

 

 

 

 

 



OPERATIONS

 

Goods Traded

:

RICE, SUGAR AND SUNDRY PROVISIONS

 

 

 

 

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

20

20

25

25

25

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) distribution of rice, sugar and sundry provisions.

The SC is maintaining a warehouse larger than 40,000 square feet in Jalan Petaling in Larkin Industrial Estate and it also a distributor of sundry products and animal feeds.

We were informed that the SC does their owned packaging works based on the customers' requirements.

The SC's wide range products are rice, sugar, flour and animal feeds such as wheat bran, soya bean, wheat pollard and etc.

The SC sells its products both in loose and large quantities.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

60 7 2385218/ 2371678

Current Telephone Number

:

07-2385218

Match

:

YES

 

 

 

Address Provided by Client

:

INDUSTRIAL AREA 80350 JOHOR BAHRU, JOHOR

Current Address

:

17, JALAN PETALING, LARKIN INDUSTRIAL AREA, 80350 JOHOR BAHRU, JOHOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.70%

]

 

Return on Net Assets

:

Unfavourable

[

5.96%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

3.31 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

[

0.27 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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 a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)



INDUSTRY ANALYSIS

 

MSIC CODE

46321 : Wholesale of rice, other grains, flour and sugars

 

 

INDUSTRY :

TRADING

 

 

 

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

 

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

 

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

 

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

 

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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1955, the SC is a Private Limited company, focusing on distribution of rice, sugar and sundry provisions. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

Information revealed that the SC solely focuses on domestic market rather than overseas market. We believe that this narrow market segment would limit the SC's business opportunities and the SC is likely to be affected by the uncertainties in local economy. However, its long presence in the market has enabled the SC to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. The SC's business operation is supported by 20 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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 73,335,957, 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)

MIN TIEN & COMPANY SDN BHD

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

SUMMARY

SUMMARY

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

255,240,298

249,764,037

231,031,994

214,383,096

256,991,398

 

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

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

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

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

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

Total Turnover

255,240,298

249,764,037

231,031,994

214,383,096

256,991,398

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

4,377,960

3,922,074

10,576,578

6,818,982

8,679,391

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

-

-

-

-

<302,814>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,377,960

3,922,074

10,576,578

6,818,982

8,376,577

Taxation

<932,792>

<881,426>

<2,378,025>

<1,487,018>

<2,150,941>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,445,168

3,040,648

8,198,553

5,331,964

6,225,636

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

55,837,731

53,614,583

46,233,530

41,419,316

35,734,320

 

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

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

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

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

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

As restated

55,837,731

53,614,583

46,233,530

41,419,316

35,734,320

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

59,282,899

56,655,231

54,432,083

46,751,280

41,959,956

DIVIDENDS - Ordinary (paid & proposed)

<490,500>

<817,500>

<817,500>

<517,750>

<540,640>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

58,792,399

55,837,731

53,614,583

46,233,530

41,419,316

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Trust receipts

-

-

-

-

135,927

Others

-

-

-

-

192,748

 

 

 

 

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

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

 

 

 

 

-

328,675

 

 

 

BALANCE SHEET

 

 

MIN TIEN & COMPANY SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

435,932

536,614

32,247,300

30,679,343

428,620

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

-

-

-

-

7,241,388

Investment properties

-

-

-

-

4,553,446

Investments

-

-

-

-

2,276,955

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

26,469,947

31,899,061

-

-

14,071,789

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

26,905,879

32,435,675

32,247,300

30,679,343

14,500,409

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

-

-

-

9,851,342

Trade debtors

-

-

-

-

28,165,056

Other debtors, deposits & prepayments

-

-

-

-

167,386

Short term deposits

-

-

-

-

509,749

Cash & bank balances

-

-

-

-

4,856,510

 

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

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

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

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

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

TOTAL CURRENT ASSETS

66,594,070

71,218,875

56,666,432

44,006,381

43,550,043

 

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

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

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

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

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

TOTAL ASSET

93,499,949

103,654,550

88,913,732

74,685,724

58,050,452

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

-

-

-

8,256,628

Other creditors & accruals

-

-

-

-

658,848

Bill & acceptances payable

-

-

-

-

5,000,000

Provision for taxation

-

-

-

-

507,660

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

20,091,992

27,675,673

15,568,167

10,208,192

14,423,136

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

46,502,078

43,543,202

41,098,265

33,798,189

29,126,907

 

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

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

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

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

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

TOTAL NET ASSETS

73,407,957

75,978,877

73,345,565

64,477,532

43,627,316

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,180,000

2,180,000

2,180,000

2,180,000

2,180,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,180,000

2,180,000

2,180,000

2,180,000

2,180,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

12,363,558

17,831,146

17,451,982

16,036,002

-

Retained profit/(loss) carried forward

58,792,399

55,837,731

53,614,583

46,233,530

41,419,316

 

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

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

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

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

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

TOTAL RESERVES

71,155,957

73,668,877

71,066,565

62,269,532

41,419,316

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

73,335,957

75,848,877

73,246,565

64,449,532

43,599,316

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

-

-

-

-

28,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

72,000

130,000

99,000

28,000

28,000

 

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

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

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

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

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

 

73,407,957

75,978,877

73,345,565

64,477,532

43,627,316

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

MIN TIEN & COMPANY SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

-

-

-

5,366,259

Net Liquid Funds

-

-

-

-

366,259

Net Liquid Assets

46,502,078

43,543,202

41,098,265

33,798,189

19,275,565

Net Current Assets/(Liabilities)

46,502,078

43,543,202

41,098,265

33,798,189

29,126,907

Net Tangible Assets

73,407,957

75,978,877

73,345,565

64,477,532

43,627,316

Net Monetary Assets

46,430,078

43,413,202

40,999,265

33,770,189

19,247,565

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

-

-

-

5,000,000

Total Liabilities

20,163,992

27,805,673

15,667,167

10,236,192

14,451,136

Total Assets

93,499,949

103,654,550

88,913,732

74,685,724

58,050,452

Net Assets

73,407,957

75,978,877

73,345,565

64,477,532

43,627,316

Net Assets Backing

73,335,957

75,848,877

73,246,565

64,449,532

43,599,316

Shareholders' Funds

73,335,957

75,848,877

73,246,565

64,449,532

43,599,316

Total Share Capital

2,180,000

2,180,000

2,180,000

2,180,000

2,180,000

Total Reserves

71,155,957

73,668,877

71,066,565

62,269,532

41,419,316

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

-

-

-

0.37

Liquid Ratio

-

-

-

-

2.34

Current Ratio

3.31

2.57

3.64

4.31

3.02

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

-

-

-

14

Debtors Ratio

-

-

-

-

40

Creditors Ratio

-

-

-

-

12

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

-

-

-

0.11

Liabilities Ratio

0.27

0.37

0.21

0.16

0.33

Times Interest Earned Ratio

-

-

-

-

26.49

Assets Backing Ratio

33.67

34.85

33.64

29.58

20.01

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.72

1.57

4.58

3.18

3.26

Net Profit Margin

1.35

1.22

3.55

2.49

2.42

Return On Net Assets

5.96

5.16

14.42

10.58

19.95

Return On Capital Employed

5.96

5.16

14.42

10.58

19.95

Return On Shareholders' Funds/Equity

4.70

4.01

11.19

8.27

14.28

Dividend Pay Out Ratio (Times)

0.14

0.27

0.10

0.10

0.09

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

 

 

 

-

0




 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.02

UK Pound

1

Rs.102.04

Euro

1

Rs.84.92

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.