MIRA INFORM REPORT

 

 

Report Date :

07.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SENG ELECTRIC CO. (M) SDN. BHD.

 

 

Registered Office :

44-2-2,Jalan 2/101c, Cheras Business Centre, 56100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

16.08.1976

 

 

Com. Reg. No.:

28825-K

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

Trader of electrical appliances and apparatus

 

 

No. of Employees :

08 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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.

:

28825-K

COMPANY NAME

:

SENG ELECTRIC CO. (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/08/1976

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

44-2-2,JALAN 2/101C, CHERAS BUSINESS CENTRE, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

6, LORONG YAP HIN, OFF JALAN PASAR, PUDU, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21418222

FAX.NO.

:

03-21419412

CONTACT PERSON

:

CHENG ONN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46496

PRINCIPAL ACTIVITY

:

TRADING OF ELECTRICAL APPLIANCES AND APPARATUS

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 400,000.00 DIVIDED INTO 
ORDINARY SHARES 400,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

N/A

NET WORTH

:

N/A

 

 

 

STAFF STRENGTH

:

8 [2013]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND

 

The SC is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The SC is governed by the Companies Act, 1965 and must file in its annual return. The SC need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the SC is able to meet all its obligations as and when they fall due. Although the SC is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The SC is principally engaged in the (as a / as an) trading of electrical appliances and apparatus.

 

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

(%)

MR. CHENG ONN +

NO 2 JALAN BAYU 2A, BUKIT GITA BAYU, 43300 BALAKONG, SELANGOR, MALAYSIA.

551122-10-6489

219,999.00

55.00

CHENG WONG TRUST OF CHENG YEE LIAN

34 JLN TR 8/2, TROPICANA COURT & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

00018060

45,000.00

11.25

MS. KHOR AI SOOK

47 JALAN 7/149J, BANDAR BARU SRI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690312-02-5890

45,000.00

11.25

CHENG WONG, TRUST OF BENEFICIARY CHENG HAN YANG

NO.34 JLN TR 8/2, TROPICANA COURT & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

00018873

45,000.00

11.25

MS. LOOI LIN

LOT PT37132, 2 JALAN BAYU 2A, BUKIT GITA BAYU, SERI KEMBANGAN, 43300 BALAKONG, SELANGOR, MALAYSIA.

210407-71-5194

22,500.00

5.63

CHENG AH TIANG BENEFICIARY CHENG HAN YANG

6 LORONG YAP HIN, OFF JALAN PASAR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

00020293

11,250.00

2.81

MS. CHENG SIEW FONG +

NO. 2, JALAN BAYU 2A, BUKIT GITA BAYU, 43300 BALAKONG, SELANGOR, MALAYSIA.

820803-10-5898

1.00

0.00

CHENG AH TIANG BENEFICIARY CHENG YEE LIAN

6 LORONG YAP HIN, OFF JALAN PASAR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

00020292

11,250.00

2.81

 

 

 

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

------

 

 

 

400,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. CHENG SIEW FONG

Address

:

NO. 2, JALAN BAYU 2A, BUKIT GITA BAYU, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

820803-10-5898

Date of Birth

:

03/08/1982

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/06/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHENG ONN

Address

:

NO 2 JALAN BAYU 2A, BUKIT GITA BAYU, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

551122-10-6489

Date of Birth

:

22/11/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

16/06/1981

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHENG ONN

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PHANG & CO

Auditor' Address

:

46-2-2, JALAN 2/101C, CHERAS BUSINESS CENTRE, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PANG CHIN CHONG

 

 

 

 

 

New IC No

:

580210-01-5571

 

Address

:

NO.67, JALAN SAGA 27, TAMAN SAGA, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

2

08/03/1979

N/A

THE CHARTERED BANK

MYR 1.00

Satisfied

3

24/10/1979

N/A

THE PACIFIC BANK BHD

MYR 420,000.00

Unsatisfied

3(BK 87/76)

24/10/1979

CHARGE

THE PACIFIC BANK BHD

$ 420,000.00

Unsatisfied

4

28/12/1981

N/A

PUBLIC BANK BHD

MYR 340,000.00

Unsatisfied

4 (BK 87/76)

28/12/1981

CHARGE

PUBLIC BANK BHD

$ 340,000.00

Unsatisfied

5

28/12/1981

N/A

PUBLIC BANK BERHAD

MYR 240,000.00

Unsatisfied

5 (BK 87/76)

28/12/1981

CHARGE

THE CHARTERED BANK

$ 240,000.00

Unsatisfied

6

20/04/1983

N/A

PUBLIK BANK BHD

MYR 200,000.00

Unsatisfied

6 (BK 208/32)

20/04/1983

CHARGE

PUBLIC BANK BHD

$ 200,000.00

Unsatisfied

7

27/02/1985

N/A

PUBLIK BANK BHD

MYR 100,000.00

Unsatisfied

7 (BK 208/32)

27/02/1985

CHARGE

PUBLIC BANK BHD

$ 100,000.00

Unsatisfied

8

06/12/1985

N/A

PUBLIK BANK BHD

MYR 100,000.00

Unsatisfied

8 (BK 208/32)

06/12/1985

CHARGE

PUBLIC BANK BHD

$ 100,000.00

Unsatisfied

9

03/10/1990

N/A

PUBLIC BANK BERHAD

MYR 1,200,000.00

Satisfied

10

01/09/1992

N/A

PUBLIC BANK BHD

MYR 150,000.00

Satisfied

11

01/09/1992

CHARGE

PUBLIC BANK BHD

MYR 150,000.00

Unsatisfied

12

28/09/1994

DEBENTURE & CHARGE

PUBLIC BANK BERHAD

MYR 300,000.00

Unsatisfied

13

04/12/1995

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Unsatisfied

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against 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

:

100%

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

 

 

 

 

 

 

Credit Term

:

120 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

ELECTRICAL APPLIANCES AND APPARATUS

 

 

 

 

Member(s) / Affiliate(s)

:

THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)

 

 

 

 

Total Number of Employees:

YEAR

2013

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

8

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of electrical appliances and apparatus. 

The SC is involved in trading of electrical and electronic appliances and apparatus.

However, the SC refused to disclose any information on its business operations. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

603-21418222

Current Telephone Number

:

03-21418222

Match

:

YES

 

 

 

Address Provided by Client

:

10 6 LORONG YAP HIN OFF JALAN PASAR PUDU 55100 KULALUMPUR

Current Address

:

6, LORONG YAP HIN, OFF JALAN PASAR, PUDU, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

NO


We have contacted the SC's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

 

 

Other Investigations


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

The address provided is incorrect. 



FINANCIAL ANALYSIS

 

 

The SC is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the SC's financial performance.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

 

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

46496 : Wholesale of electrical and electronic goods

 

 

INDUSTRY :

ELECTRICAL & ELECTRONIC

 

 

 

The Electrical & Electronics (E&E) industry is the leading industry within the manufacturing sector and is the largest contributor to manufacturing output, employment, investment, exports and imports. Malaysia is a key player in the fast expanding Asia Pacific E&E market, its major export destinations include Singapore, United States, Europe, Japan and Taiwan. The E&E industry is targeted under the National Key Economic Areas ( NKEA ) to gear the nation towards high-income economy by focusing on high-value and high-growth manufacturing activities.

 

According to Ministry of Finance, in the year 2013 the electrical and electronic (E&E) subsector is expected to grow further, driven by higher demand for electronic equipment and parts as well as semiconductors in line with recovery in advanced economies.

 

Output of E&E rebounded 1.6% during the first seven months of 2012 mainly driven by the higher production of semiconductor devices (14.5%) as well as audio, visual and communication apparatus (6%). The improved performance of E&E was partly due to chip vendors and storage producers taking advantage of stable prices and supply of parts to replenish inventories as well as the launching of new products which was delayed by massive floods in Thailand during the fourth quarter of 2011. 

 

Despite the slowdown in global demand, E&E manufacturers continued to invest in new technology and product development to upscale the value chain. Approved capital spending in the E&E subsector amounted to RM1.72 billion in 46 projects, of which RM1.35 billion were from foreign investors. This further reaffirms Malaysia as an attractive and cost-efficient E&E manufacturing base in the region. The continued strong investments will further strengthen growth in the E&E subsector and create more skilled jobs.

 

Softening of world demand for solar panels impact Malaysia on it's downturn in small scale compared to China where it facing great impact. The decline in E&E products was also due to the weak global demand.

 

E&E has been instrumental in the development of the Northern Corridor Klang Valley, Johor and Sarawak, contributing significantly to the socio-economic development of the relevant communities.However, the E&E sector faces significant challenges in maintaining growth with intense competition from China, Taiwan, Singapore and other Asian countries. Over the last 10 years, E&E's share of Malaysian exports has gradually declined. 

 

Malaysia's E&E sector remains focused on assembly, the lower value-added part of the industry while Taiwan, South Korea and Singapore have captured the higher value-added activities in research and development, design and manufacturing. 

 

To propel the E&E industry to a higher level, under the Economic Transformation Programme (ETP) launched by the Government, a few sub-sectors namely integrated circuits, solar photovoltaics, light emitting diodes, and solid state lighting & integrated electronics have been identified for greater promotion based on their potential to contribute significantly towards Gross National Income (GNI) targets 2020.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1976, the SC is a Exempt Private company, focusing on trading of electrical appliances and apparatus. With over 3 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. Being a small company with a share capital of RM400,000 contributed from individual shareholders, the SC does not have strong shareholders' backing. 

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 8 employees. Overall, we regard that the SC's management capability is average. 

As the SC is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health. 

We noted that the SC's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage. 

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. 

In view of the above, we only recommend credit be proceeded to the SC with guarantee.

 


PROFIT AND LOSS ACCOUNT

 

 

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

SENG ELECTRIC CO. (M) SDN. BHD.

 

Financial Year End

2006-12-31

2005-12-31

2004-12-31

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

NO

Financial Type

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

7,336,965

6,469,427

5,970,858

 

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

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

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

Total Turnover

7,336,965

6,469,427

5,970,858

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

169,018

96,687

54,852

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

169,018

96,687

54,852

Taxation

<39,872>

<25,532>

<16,944>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

129,146

71,155

37,908

 

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

129,146

71,155

37,908

 

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

129,146

71,155

37,908

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

478,233

407,078

369,170

 

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

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

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

As restated

478,233

407,078

369,170

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

607,379

478,233

407,078

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

607,379

478,233

407,078

 

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

 

SENG ELECTRIC CO. (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

509,341

539,646

532,102

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

509,341

539,646

532,102

 

 

 

 

CURRENT ASSETS

 

 

 

TOTAL CURRENT ASSETS

4,266,103

3,475,401

3,381,272

 

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

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

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

TOTAL ASSET

4,775,444

4,015,047

3,913,374

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

TOTAL CURRENT LIABILITIES

3,756,083

3,110,825

3,092,696

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

510,020

364,576

288,576

 

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

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

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

TOTAL NET ASSETS

1,019,361

904,222

820,678

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

400,000

400,000

400,000

 

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

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

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

TOTAL SHARE CAPITAL

400,000

400,000

400,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

607,378

478,233

407,078

Others

-

<1>

-

 

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

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

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

TOTAL RESERVES

607,378

478,232

407,078

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,007,378

878,232

807,078

 

 

 

 

LONG TERM LIABILITIES

 

 

 

TOTAL LONG TERM LIABILITIES

11,983

25,990

13,600

 

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

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

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

 

1,019,361

904,222

820,678

 

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

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

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

 

 

 

FINANCIAL RATIO

 

 

SENG ELECTRIC CO. (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

Net Liquid Assets

510,020

364,576

288,576

Net Current Assets/(Liabilities)

510,020

364,576

288,576

Net Tangible Assets

1,019,361

904,222

820,678

Net Monetary Assets

498,037

338,586

274,976

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

Total Liabilities

3,768,066

3,136,815

3,106,296

Total Assets

4,775,444

4,015,047

3,913,374

Net Assets

1,019,361

904,222

820,678

Net Assets Backing

1,007,378

878,232

807,078

Shareholders' Funds

1,007,378

878,233

807,078

Total Share Capital

400,000

400,000

400,000

Total Reserves

607,378

478,233

407,078

 

 

 

 

LIQUIDITY (Times)

 

 

 

Current Ratio

1.14

1.12

1.09

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

Liabilities Ratio

3.74

3.57

3.85

Assets Backing Ratio

2.55

2.26

2.05

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

2.30

1.49

0.92

Net Profit Margin

1.76

1.10

0.63

Return On Net Assets

16.58

10.69

6.68

Return On Capital Employed

16.58

10.69

6.68

Return On Shareholders' Funds/Equity

12.82

8.10

4.70

 

 

 

 





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.96

UK Pound

1

Rs.102.91

Euro

1

Rs.86.58

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.