MIRA INFORM REPORT

 

 

Report Date :

05.10.2013

 

IDENTIFICATION DETAILS

 

Name :

PUBLIC AUTO SUPPLIERS SDN. BHD.

 

 

Registered Office :

Suite 2-2-5, Menara Klh Business Centre, 2, Jalan Kasipillay, 2 1/2 Miles, Jalan Ipoh, 2nd Floor, 51200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

31.12.1971

 

 

Com. Reg. No.:

11578-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Dealer in Motor accessories and Spare Part

 

 

No. of Employees :

18

 

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

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

11578-M

COMPANY NAME

:

PUBLIC AUTO SUPPLIERS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

31/12/1971

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 2-2-5, MENARA KLH BUSINESS CENTRE, 2, JALAN KASIPILLAY, 2 1/2 MILES, JALAN IPOH, 2ND FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

636 BATU 4, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-62512922

FAX.NO.

:

03-62515789

CONTACT PERSON

:

ONG CHIEW KIAT ( DIRECTOR )

INDUSTRY CODE

:

45300

PRINCIPAL ACTIVITY

:

DEALER IN MOTOR ACCESSORIES AND SPARE PART

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 10.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 10.00 EACH.

SALES

:

MYR 4,182,607 [2011]

NET WORTH

:

MYR 3,819,742 [2011]

BANKER (S)

 

PUBLIC BANK BHD
STANDARD CHARTERED BANK MALAYSIA BHD

STAFF STRENGTH

:

18 [2013]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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) dealer in motor accessories and spare part.

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

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. ONG CHIEW KIAT +

53A, JALAN CUMARASAMI, OFF BATU 4, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

360718-04-5048 8122635

33,679.00

33.68

MS. TAN SIEW FOONG +

T.27, JALAN UMBUN DUA, TAMAN SETAPAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

400306-71-5010 7647795

23,433.00

23.43

MR. ONG MENG SOON +

53A, JALAN CUMARASAMI, BATU 3 3/4, JALAN IPOH, 51100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

570928-71-5287 5334872

22,300.00

22.30

MR. ONG SEOW KEE

T-27, JALAN UMBUN DUA, SETAPAK GARDEN, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

670324-10-5347 A0301584

5,900.00

5.90

MS. ONG LAY CHOO

53A, JALAN CUMARASAMI, OFF BATU 4, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

590616-10-6296

5,344.00

5.34

MS. ONG LAY FONG +

55, JALAN KANGSAR, TAMAN RAINBOW, 4 1/2 MILE, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

610908-10-5936 6310811

5,344.00

5.34

MS. ONG KEE LIAN

T.27, JALAN UMBUN DUA, SETAPAK GARDEN, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

731015-14-5384 A2613256

2,000.00

2.00

MS. ONG CHYI YING

T.27, JALAN UMBUN DUA, SETAPAK GARDEN, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

700826-10-5384 A1616552

2,000.00

2.00

 

 

 

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

------

 

 

 

100,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. ONG LAY FONG

Address

:

55, JALAN KANGSAR, TAMAN RAINBOW, 4 1/2 MILE, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

6310811

New IC No

:

610908-10-5936

Date of Birth

:

08/09/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

04/05/2009

 

DIRECTOR 2

 

Name Of Subject

:

MR. ONG MENG SOON

Address

:

53A, JALAN CUMARASAMI, BATU 3 3/4, JALAN IPOH, 51100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5334872

New IC No

:

570928-71-5287

Date of Birth

:

28/09/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

24/02/2009

 

DIRECTOR 3

 

Name Of Subject

:

MS. TAN SIEW FOONG

Address

:

T.27, JALAN UMBUN DUA, TAMAN SETAPAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

7647795

New IC No

:

400306-71-5010

Date of Birth

:

06/03/1940

Nationality

:

MALAYSIAN

Date of Appointment

:

18/01/1972

 

DIRECTOR 4

 

Name Of Subject

:

MS. ONG CHIEW KIAT

Address

:

53A, JALAN CUMARASAMI, OFF BATU 4, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

8122635

New IC No

:

360718-04-5048

Date of Birth

:

18/07/1936

Nationality

:

MALAYSIAN

Date of Appointment

:

10/05/2007




MANAGEMENT

 

 

 

1)

Name of Subject

:

ONG CHIEW KIAT

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

WONG & CO

Auditor' Address

:

SUITES 2-5-6 & 2-5-7, MENARA KLH BUSINESS CENTRE, 2, JALAN KASIPILLAY, 2 1/2 MILES, JALAN IPOH, 5TH FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG WENG FONG @ WONG WING KAI

 

IC / PP No

:

1618409

 

New IC No

:

490629-03-5003

 

Address

:

3, JALAN TENGAS (8/8), 46050 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

15/06/1979

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 1,100,000.00

Satisfied

2

15/06/1979

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 300,000.00

Satisfied

3

15/06/1979

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 400,000.00

Satisfied

4

15/06/1979

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 450,000.00

Satisfied

5

15/06/1979

N/A

STANDART CHARTERED BANK MALAYSIA BERHAD

MYR 550,000.00

Satisfied

8

15/04/1987

N/A

STANDARD CHARTERED BANKMALAYSIA BERHAD

MYR 100,000.00

Satisfied

6

19/04/1989

OPEN CHARGE

PERWIRA HABIB BANK MALAYSIA BERHAD

MYR 300,000.00

Unsatisfied

7

19/04/1989

OPEN CHARGE

PERWIRA HABIB BANK MALAYSIA BERHAD

MYR 150,000.00

Unsatisfied

9

07/08/1990

OPEN CHARGE

PERWIRA HABIB BANK MALAYSIA BERHAD

MYR 200,000.00

Unsatisfied

10

19/10/1994

N/A

STANDARD CHARTERED BANK MALAYSIA BHD

N/A

Unsatisfied

11

20/10/1999

OPEN CHARGE

PERWIRA AFFIN BANK BERHAD

MYR 486,625.66

Unsatisfied

12

01/10/2002

OPEN CHARGE

PUBLIC BANK BERHAD

MYR 568,181.79

Unsatisfied

13

23/10/2003

N/A

PUBLIC BANK BERHAD

N/A

Satisfied

14

26/03/2008

FACILITILIES AGREEMENT

PUBLIC BANK BHD

MYR 800,000.00

Unsatisfied

 

 

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

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

CHINA,INDIA,THAILAND,GERMANY


The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

AUTO PARTS FOR HEAVY VEHICLES SUCH AS BUS AND LORRY ETC

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2010

2009

2008

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

18

15

15

10

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) dealer in motor accessories and spare part.

The SC refused to disclose its operation.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-62512922

Match

:

N/A

 

 

 

Address Provided by Client

:

NO.636 , BATU 4 JALAN IPOH 51200, KUALA LUMPUR

Current Address

:

636 BATU 4, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 2nd October 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

6.22%

]

 

Return on Net Assets

:

Unfavourable

[

6.29%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

87 Days

]

 

Debtor Ratio

:

Unfavourable

[

149 Days

]

 

Creditors Ratio

:

Favourable

[

26 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

[

2.83 Times

]

 

Current Ratio

:

Favourable

[

3.64 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

:

Favourable

[

80.30 Times

]

 

Gearing Ratio

:

Favourable

[

0.13 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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

45300 : Wholesale and retail sale of all kinds of parts, components, supplies, tools and accessories for motor vehicles

 

 

INDUSTRY :

MOTOR VECHICLE

 

 

 

The total industry volume (TIV) for year 2013 forcasted 640 000 units. This is an increase of 2.0% compared to the year 2012. Sales of passenger vehicles in the year 2013 forcasted increase by 2.0% to 563 000 units compared to 552 189 units at the year 2012. While sales of comercial vehicles in year 2013 forcasted to increase by 2.0% to 77 000 units compared to 75 564 units at the year 2012.

 

It is a big challenge for the TIV of year 2013 to create another high record. However, Malaysia's GPD growth is forcasted to be 5.6% in year 2013. This is driven by exports and domestic demand and is expected to give confidence in consumer sentiments. Besides, multiplier effects from the Economic Transformation Programme's (ETP) projects would give a further boost to the domestic economy and create greater demand for new vehicles.

 

According to the Malaysian Automotive Association (MAA), the implimentation of the Bank Negara's guidelines on responsible financing practices from 1st January 2012 coused a slowdown in new vehicle purchase in first quarter 2012. However, the total industry volume (TIV) of the year 2012 surged to a historical high of 627,753 units which is an all time record achievement for the industry. This record had overtaken the previous highest record of 605,156 units achieved in 2010. It had also outperformed the MAA's TIV forcast of 615,000 units. The main contributors to the growth were led by Perodua and Proton, followed by Toyota, Honda and Nissan.

 

The total registration of new passenger vehicles in year 2012 reached 552,189 unts compare with 535,113 units in year 2011. Which had bring an increase of 3.2% (17,076 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles n 2012 was 75,564 units which is an increase of 6.2% (10,554 units). Besides, the production of new vehicles also recorded an increase of 6.8% (36,105 units) in year 2012. According to the president of Malaysian Automotive Association (MAA), the record new vehicle sales in 2012 was due to factors such as strong economic growth, the implementation of infrastructure projects under the Economic Transformation Programme (ETP), increased consumer spending and consumption due to stable employment and rising disposable income, introduction of new models at competitive prices as well as aggressive sales campaigns by car companies.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1971, the SC is a Private Limited company, focusing on dealer in motor accessories and spare part. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up certain goodwill with its clients over times. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC should have build up its clientele base and received supports from its regular customers. Investigation revealed that the SC's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 18 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.


Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC 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 lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 3,819,742, 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.

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


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)

PUBLIC AUTO SUPPLIERS SDN. BHD.

 

Financial Year End

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

4,182,607

4,249,019

4,121,006

4,641,128

Other Income

300

199

-

-

 

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

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

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

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

Total Turnover

4,182,907

4,249,218

4,121,006

4,641,128

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

295,706

243,150

222,982

207,453

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

<58,033>

<71,442>

-

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

237,673

171,708

222,982

207,453

Taxation

-

-

<63,951>

<64,082>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

237,673

171,708

159,031

143,371

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

2,782,069

2,610,361

2,451,330

2,451,331,441,774

Prior year adjustment

-

-

-

1,866,185

 

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

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

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

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

As restated

2,782,069

2,610,361

2,451,330

2,307,959

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

3,019,742

2,782,069

2,610,361

2,451,330

DIVIDENDS - Ordinary (paid & proposed)

<200,000>

-

-

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,819,742

2,782,069

2,610,361

2,451,330

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

2,997

3,290

5,748

5,618

Hire purchase

-

28

433

4,033

Term loan / Borrowing

-

-

-

2,926

Others

-

-

550

8,656

 

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

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

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

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

 

2,997

3,318

6,731

21,233

 

 

 

BALANCE SHEET

 

 

PUBLIC AUTO SUPPLIERS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

594,119

615,356

683,378

734,937

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Deferred assets

-

-

-

2,348

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

2,348

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

594,119

615,356

683,378

737,285

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

992,010

909,983

973,909

1,007,502

Trade debtors

1,706,238

1,669,591

1,795,386

2,178,949

Other debtors, deposits & prepayments

26,387

136,318

254,027

243,021

Short term deposits

1,113,681

1,083,193

1,054,969

1,025,748

Cash & bank balances

610,009

547,591

81,151

89,023

Others

4,512

-

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

4,452,837

4,346,676

4,159,442

4,544,243

 

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

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

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

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

TOTAL ASSET

5,046,956

4,962,032

4,842,820

5,281,528

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

299,764

375,721

252,330

356,554

Other creditors & accruals

142,766

159,168

309,709

556,283

Hire purchase & lease creditors

-

-

1,814

15,887

Bill & acceptances payable

511,760

352,025

131,196

553,992

Amounts owing to director

268,185

268,185

501,471

336,100

Provision for taxation

-

18,504

29,882

9,567

 

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

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

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

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

TOTAL CURRENT LIABILITIES

1,222,475

1,173,603

1,226,402

1,828,383

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,230,362

3,173,073

2,933,040

2,715,860

 

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

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

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

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

TOTAL NET ASSETS

3,824,481

3,788,429

3,616,418

3,453,145

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,000,000

1,000,000

1,000,000

1,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

1,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

2,819,742

2,782,069

2,610,361

2,451,330

 

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

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

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

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

TOTAL RESERVES

2,819,742

2,782,069

2,610,361

2,451,330

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,819,742

3,782,069

3,610,361

3,451,330

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Hire purchase creditors

-

-

-

1,815

Deferred taxation

4,739

6,360

6,057

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

4,739

6,360

6,057

1,815

 

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

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

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

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

 

3,824,481

3,788,429

3,616,418

3,453,145

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

PUBLIC AUTO SUPPLIERS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

1,723,690

1,630,784

1,136,120

1,114,771

Net Liquid Funds

1,211,930

1,278,759

1,004,924

560,779

Net Liquid Assets

2,238,352

2,263,090

1,959,131

1,708,358

Net Current Assets/(Liabilities)

3,230,362

3,173,073

2,933,040

2,715,860

Net Tangible Assets

3,824,481

3,788,429

3,616,418

3,453,145

Net Monetary Assets

2,233,613

2,256,730

1,953,074

1,706,543

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

511,760

352,025

133,010

571,694

Total Liabilities

1,227,214

1,179,963

1,232,459

1,830,198

Total Assets

5,046,956

4,962,032

4,842,820

5,281,528

Net Assets

3,824,481

3,788,429

3,616,418

3,453,145

Net Assets Backing

3,819,742

3,782,069

3,610,361

3,451,330

Shareholders' Funds

3,819,742

3,782,069

3,610,361

3,451,330

Total Share Capital

1,000,000

1,000,000

1,000,000

1,000,000

Total Reserves

2,819,742

2,782,069

2,610,361

2,451,330

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

1.41

1.39

0.93

0.61

Liquid Ratio

2.83

2.93

2.60

1.93

Current Ratio

3.64

3.70

3.39

2.49

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

87

78

86

79

Debtors Ratio

149

143

159

171

Creditors Ratio

26

32

22

28

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.13

0.09

0.04

0.17

Liabilities Ratio

0.32

0.31

0.34

0.53

Times Interest Earned Ratio

80.30

52.75

34.13

10.77

Assets Backing Ratio

3.82

3.79

3.62

3.45

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

5.68

4.04

5.41

4.47

Net Profit Margin

5.68

4.04

3.86

3.09

Return On Net Assets

6.29

4.62

6.35

6.62

Return On Capital Employed

6.29

4.62

6.35

6.59

Return On Shareholders' Funds/Equity

6.22

4.54

4.40

4.15

Dividend Pay Out Ratio (Times)

0.84

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.40

UK Pound

1

Rs.99.28

Euro

1

Rs.83.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.