MIRA INFORM REPORT

 

 

Report Date :

03.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ETIKA GLOBAL RESOURCES SDN. BHD.

 

 

Registered Office :

Suite B-12-01, Plaza Mont' Kiara, 2, Jalan Kiara, Mont' Kiara, 50480 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia.

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

14.10.2005

 

 

Com. Reg. No.:

712752-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Sale and Distribution of Dairy Products

 

 

No. of Employees :

30

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 Malaysia

                       A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

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

Source : CIA

 


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

712752-M

COMPANY NAME

:

ETIKA GLOBAL RESOURCES SDN. BHD.

FORMER NAME

:

WANGSARIN SDN BHD (13/03/2006)

INCORPORATION DATE

:

14/10/2005

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE B-12-01, PLAZA MONT' KIARA, 2, JALAN KIARA, MONT' KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT LS 1 PERSIARAN SATU, MERU INDUSTRIAL PARK, PERSIARAN HAMZAH LANG, 42200 KAPAR, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33922988

FAX.NO.

:

03-33931688

CONTACT PERSON

:

KHOR SIN KOK ( EXECUTIVE DIRECTOR )

 

 

 

INDUSTRY CODE

:

46322

PRINCIPAL ACTIVITY

:

SALE AND DISTRIBUTION OF DAIRY PRODUCTS

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 310,856,918 [2012]

NET WORTH

:

MYR 42,272,074 [2012]

 

 

 

STAFF STRENGTH

:

30 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

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) sale and distribution of dairy products.

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

The immediate and ultimate holding company of the SC is ETIKA INTERNATIONAL HOLDINGS LIMITED, a company incorporated in SINGAPORE.

 

The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

ETIKA INTERNATIONAL HOLDINGS LIMITED

SGX CENTRE II, 17-01, 4, SHENTON WAY, 068807, SINGAPORE.

200313131Z

500,000.00

100.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

DATO' KAMAL Y P TAN

Address

:

30, JALAN TAMAN PANTAI, BUKIT PANTAI, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

H0257258

New IC No

:

520229-71-5071

Date of Birth

:

29/02/1952

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/12/2005

 

 

 

Qualification

:

B.SC IN ECONS (ACCOUNTANCY & FINANCE) LONDON SCHOOL OF ECONS, UK.

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

DATO' JAYA J B TAN

Address

:

27, BANGSAR HILL, JALAN MEDANG SERAI, OFF JALAN MEDANG KAPAS, BUKIT BANDARAYA, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

H0257257

New IC No

:

471015-71-5377

Date of Birth

:

15/10/1947

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/12/2005

 

 

 

Qualification

:

M.MEC.ENG. IN AEROSPACE FROM ARIZONA, USA.

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. KWONG YUEN SENG

Address

:

2379, JALAN POKOK MANGGA, 75200 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

0868966

New IC No

:

390603-04-5125

Date of Birth

:

03/06/1939

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/11/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. MAH WENG CHOONG

Address

:

9, LORONG KEMARIS 6, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

2986453

New IC No

:

380611-10-5125

Date of Birth

:

11/06/1938

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/11/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. KHOR SIN KOK

Address

:

69, JALAN SS 22/27A, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5006331

New IC No

:

560729-07-5011

Date of Birth

:

29/07/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/11/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

MR. TAN SAN MING

Address

:

27, BANGSAR HILL, JALAN MEDANG SERAI, OFF JALAN MEDANG KAPAS, BUKIT BANDARAYA, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

830811-14-5725

Date of Birth

:

11/08/1983

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

06/07/2009

Remark

:

ALTERNATE DIRECTOR TO DATO' JAYA J B TAN

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ALEX TEE

 

Position

:

EXPORT MANAGER

 

 

 

 

 

2)

Name of Subject

:

KHOR SIN KOK

 

Position

:

EXECUTIVE DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

BDO

Auditor' Address

:

MENARA UNI.ASIA, 1008, JALAN SULTAN ISMAIL, 12TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE PEI SHAN

 

IC / PP No

:

A2850801

 

New IC No

:

740725-08-5528

 

Address

:

32-14-3, PANDAN HEIGHT CONDOMINIUM, LINCOLN TOWER, JALAN CHERAS LAMA, 55300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 



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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

AFRICA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

DAIRY PRODUCTS

 

 

 

 

Competitor(s)

:

COTRA ENTERPRISES SDN BHD
DPO MALAYSIA SDN BHD
EXTRA EXCEL (MALAYSIA) SDN BHD
NESTLE PRODUCTS SDN BHD
YEO HIAP SENG TRADING SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

30

30

25

25

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) sale and distribution of dairy products.

The SC's products ranges are including sweetened condensed milk, sweetened condensed filled milk, sweetened creamer, evaporated milk, evaporates filled milk and others.

Besides that, the SC also has a warehouse to keep stocks and materials.

The SC utilizes advanced machineries to ensure production of high quality products.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-33922988

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT LS-1, PERSIARAN SATU, MERU INDUSTRIAL PARK OFF PERSIARAN HAMZAH ALANG, 42200 KLANG, SELANGOR DARUL EHSAN

Current Address

:

LOT LS 1 PERSIARAN SATU, MERU INDUSTRIAL PARK, PERSIARAN HAMZAH LANG, 42200 KAPAR, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 30th September 2013 we contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Favourable

[

55.00%

]

 

Return on Net Assets

:

Favourable

[

55.00%

]

 

 

 

 

 

 

 

 

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. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

54 Days

]

 

Creditors Ratio

:

Favourable

[

3 Days

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

9.03 Times

]

 

Current Ratio

:

Favourable

[

9.03 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

46322 : Wholesale of dairy products

 

 

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 2005, the SC is a Private Limited company, focusing on sale and distribution of dairy products. Having been in business for 8 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC.

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. The SC's business operation is supported by 30 employees. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.

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. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 42,272,074, 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.

We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.

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.

In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.

 



PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

ETIKA GLOBAL RESOURCES SDN. BHD.

 

Financial Year End

2012-09-30

2011-09-30

2010-09-30

2009-09-30

2008-09-30

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

310,856,918

303,584,520

245,636,921

213,738,322

189,845,665

Other Income

4,291,034

4,303,437

140,943

-

-

 

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

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

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

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

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

Total Turnover

315,147,952

307,887,957

245,777,864

213,738,322

189,845,665

Costs of Goods Sold

<278,861,943>

<273,638,017>

<204,170,383>

-

-

 

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

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

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

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

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

Gross Profit

36,286,009

34,249,940

41,607,481

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

23,247,821

21,047,014

25,801,329

25,974,895

17,525,850

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

23,247,821

21,047,014

25,801,329

25,974,895

17,525,850

Taxation

-

-

-

-

<2,830>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

23,247,821

21,047,014

25,801,329

25,974,895

17,523,020

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

34,524,253

22,477,239

26,275,910

14,601,015

2,377,995

 

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

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

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

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

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

As restated

34,524,253

22,477,239

26,275,910

14,601,015

2,377,995

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

57,772,074

43,524,253

52,077,239

40,575,910

19,901,015

DIVIDENDS - Ordinary (paid & proposed)

<16,000,000>

<9,000,000>

<29,600,000>

<14,300,000>

<5,300,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

41,772,074

34,524,253

22,477,239

26,275,910

14,601,015

 

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

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

ETIKA GLOBAL RESOURCES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

847,731

969,128

1,085,314

1,262,181

1,320,569

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Intellectual property and license rights

45,542

62,008

-

-

-

Others

-

-

74,494

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

45,542

62,008

74,494

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

893,273

1,031,136

1,159,808

1,262,181

1,320,569

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

-

96,058

2,501,478

-

Trade debtors

45,639,661

45,803,604

11,955,025

25,668,880

-

Other debtors, deposits & prepayments

901

2,606

3,280

56,247

-

Amount due from related companies

-

-

10,229,494

-

-

Cash & bank balances

891,798

943,138

862,843

99,426

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

46,532,360

46,749,348

23,146,700

28,326,031

27,356,236

 

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

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

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

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

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

TOTAL ASSET

47,425,633

47,780,484

24,306,508

29,588,212

28,676,805

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

2,147,096

10,000,998

-

-

-

Other creditors & accruals

2,438,025

2,122,242

565,887

2,502,046

-

Deposits from customers

-

-

637,016

-

-

Amounts owing to holding company

224,272

168,342

-

-

-

Amounts owing to related companies

330,616

148,010

126,366

310,256

-

Other liabilities

13,550

316,639

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,153,559

12,756,231

1,329,269

2,812,302

13,575,790

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

41,378,801

33,993,117

21,817,431

25,513,729

13,780,446

 

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

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

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

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

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

TOTAL NET ASSETS

42,272,074

35,024,253

22,977,239

26,775,910

15,101,015

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

41,772,074

34,524,253

22,477,239

26,275,910

14,601,015

 

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

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

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

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

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

TOTAL RESERVES

41,772,074

34,524,253

22,477,239

26,275,910

14,601,015

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

42,272,074

35,024,253

22,977,239

26,775,910

15,101,015

 

 

 

 

 

 

 

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

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

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

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

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

 

42,272,074

35,024,253

22,977,239

26,775,910

15,101,015

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

ETIKA GLOBAL RESOURCES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

891,798

943,138

862,843

99,426

-

Net Liquid Funds

891,798

943,138

862,843

99,426

-

Net Liquid Assets

41,378,801

33,993,117

21,721,373

23,012,251

13,780,446

Net Current Assets/(Liabilities)

41,378,801

33,993,117

21,817,431

25,513,729

13,780,446

Net Tangible Assets

42,226,532

34,962,245

22,902,745

26,775,910

15,101,015

Net Monetary Assets

41,378,801

33,993,117

21,721,373

23,012,251

13,780,446

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

-

Total Liabilities

5,153,559

12,756,231

1,329,269

2,812,302

13,575,790

Total Assets

47,425,633

47,780,484

24,306,508

29,588,212

28,676,805

Net Assets

42,272,074

35,024,253

22,977,239

26,775,910

15,101,015

Net Assets Backing

42,272,074

35,024,253

22,977,239

26,775,910

15,101,015

Shareholders' Funds

42,272,074

35,024,253

22,977,239

26,775,910

15,101,015

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

41,772,074

34,524,253

22,477,239

26,275,910

14,601,015

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.17

0.07

0.65

0.04

-

Liquid Ratio

9.03

3.66

17.34

9.18

-

Current Ratio

9.03

3.66

17.41

10.07

2.02

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

0

4

-

Debtors Ratio

54

55

18

44

-

Creditors Ratio

3

13

0

0

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

-

Liabilities Ratio

0.12

0.36

0.06

0.11

0.90

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

-

Assets Backing Ratio

84.45

69.92

45.81

53.55

30.20

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

7.48

6.93

10.50

12.15

9.23

Net Profit Margin

7.48

6.93

10.50

12.15

9.23

Return On Net Assets

55.00

60.09

112.29

97.01

116.06

Return On Capital Employed

54.94

59.99

111.93

97.01

116.06

Return On Shareholders' Funds/Equity

55.00

60.09

112.29

97.01

116.04

Dividend Pay Out Ratio (Times)

0.69

0.43

1.15

0.55

0.30

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.35

UK Pound

1

Rs.101.20

Euro

1

Rs.84.53

 

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.