MIRA INFORM REPORT

 

 

Report Date :

21.08.2014

 

IDENTIFICATION DETAILS

 

Name :

HDM FUTURES SDN. BHD.

 

 

Registered Office :

Wisma Sri Pinang, 60, Green Hall, Level 7, 10200 George Town, Pulau Pinang,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.07.2013

 

 

Date of Incorporation :

16.02.1993

 

 

Com. Reg. No.:

258146-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the licensed future broker dealing in option and future, investment holding, unit trust & others.

 

 

No of Employees :

23 [2014]

 

 

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 :

Slow but correct

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

 

 

 


 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

258146-M

COMPANY NAME

:

HDM FUTURES SDN. BHD.

FORMER NAME

:

HWANG-DBS FUTURES SDN BHD (19/10/1994)

INCORPORATION DATE

:

16/02/1993

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

WISMA SRI PINANG, 60, GREEN HALL, LEVEL 7, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

16TH FLOOR, PLAZA MASALAM, 2 JALAN TENGKU AMPUAN ZABEDAH E9/E, SECTION 9, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

04-2636996

FAX.NO.

:

04-2295832

EMAIL

:

FUTURES@HDBS.COM.MY

WEB SITE

:

WWW.HDBS.COM.MY

CONTACT PERSON

:

TAI SIEW MOI ( ASSISTANT GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

66129 64302

PRINCIPAL ACTIVITY

:

LICENSED FUTURE BROKER DEALING IN OPTION AND FUTURE, INVESTMENT HOLDING, UNIT TRUST & OTHERS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARES 5,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 2,988,790 [2013]

NET WORTH

:

MYR 11,344,820 [2013]

 

 

 

STAFF STRENGTH

:

23 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND


The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) licensed future broker dealing in option and future, investment holding, unit trust & others.

 

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

 


The immediate holding company of the Subject is HWANG CAPITAL (MALAYSIA) BERHAD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the Subject is HWANG-DBS (MALAYSIA) BERHAD, a company incorporated in MALAYSIA.

 


Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 5,000,000.00

MYR 5,000,000.00

 


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

HWANG CAPITAL (MALAYSIA) BERHAD

WISMA SRI PINANG, 60, GREEN HALL, LEVEL 8, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.

238969K

5,000,000.00

100.00

 

 

 

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

------

 

 

 

5,000,000.00

100.00

 

 

 

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

=====

+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. TAI SIEW MOI

Address

:

1, JALAN SS21/36, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5357700

New IC No

:

580510-04-5000

Date of Birth

:

10/05/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/11/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. CHUA BEE CHIN

Address

:

6, JALAN DUTA, U1/12B, GLENHILL SAUJANA, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

5089665

New IC No

:

561207-10-5716

Date of Birth

:

07/12/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/04/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

TAN SRI GEN YAACOB BIN MAT ZAIN (R)

Address

:

7, JALAN MAKTAB LIMA, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

351216-03-5005

Date of Birth

:

16/12/1935

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/04/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

HWANG LIP TEIK

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TAI SIEW MOI

 

Position

:

ASSISTANT GENERAL MANAGER

 

 

 

 

 

3)

Name of Subject

:

TUNKU NADZARUDDIN IBNI TUANKU JAAFAR

 

Position

:

CHAIRMAN

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

BANGUNAN KWSP, JALAN SULTAN AHMAD SHAH, 16TH FLOOR, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

 

1)

Company Secretary

:

MS. MAH YEE WAN

 

IC / PP No

:

A2497871

 

New IC No

:

730304-07-5074

 

Address

:

7-5-1, JALAN GANGSA, GREENLANE HEIGHTS, 11600 PULAU PINANG, PULAU PINANG, 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 SUBJECT

 


* A check has been conducted in our databank againt the Subject 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 SUBJECT

 


* We have checked through the Subject 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

:

N/A

Overseas

:

N/A

 

 

 


The Subject is a service providing company and does not have any trade suppliers.

The Subject 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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

Type of Customer

:

CORPORATES,END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

 

Services

:

OPTIONS AND FINANCIAL FUTURES, INVETSMENT HOLDING, UNIT TRUST AND OTHERS

 

 

 

Competitor(s)

:

SCOPE INTERNATIONAL (M) SDN BHD

SOUTHERN BANK BHD

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

YEAR

2014

2013

 


GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

23

40

 

 

 

 

 

 

 

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) licensed future broker dealing in option and future, investment holding, unit trust & others.

The Subject is a subsidiary company of Hwang-DBS Berhad ("Hwang-DBS").

The group engaged in the following acitivities:

1) Securities and bond trading

2) Dealing in financial futures and options

3) Corporate finance and advisory services

4) Capital financing

5) Fund and unit trust management and other management services

The group's core business is stockbroking which is carried on by its wholly-owned subsidiary Hwang-DBS Securities.

The Subject is one of the leading Futures Brokers in Malaysia. As a General Trading Participant of Bursa Malaysia Derivatives Berhad (BMDB), HDM Futures trades in all BMDB products which include FTSE Bursa Malaysia KLCI futures and options, Single Stock futures, Crude Palm Oil (CPO) futures, Crude Palm Kernel Oil (CPKO) futures, USD denominated Crude Palm Oil (CPO) futures, 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures and Malaysian Government Securities (MGS) futures. HDM Futures is also a Clearing Participant of Bursa Malaysia Derivatives Clearing Berhad.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

03-5511 5198 / 603-5519 3398

Current Telephone Number

:

04-2636996

Match

:

NO

 

 

 

Address Provided by Client

:

16TH FLOOR, PLAZA MASALAM,

NO. 2, JALAN TENGKU AMPUAN ZABEDAH E9/E

SECTION 9, 40100 SHAH ALAM,

SELANGOR DARUL EHSAN,

Current Address

:

16TH FLOOR, PLAZA MASALAM, 2 JALAN TENGKU AMPUAN ZABEDAH E9/E, SECTION 9, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 13th August 2014, we conducted an interview with the Subject's staff from the Subject and she provided some information on the Subject.

The address is incorrect.

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

(11.82%)

]

 

Return on Net Assets

:

Unfavourable

[

(7.98%)

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject incurred losses during the year due to the inefficient control of its operating costs. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

0 Days

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.32 Times

]

 

Current Ratio

:

Unfavourable

[

1.32 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

(10.69 Times)

]

 

Gearing Ratio

:

Favourable

[

0.44 Times

]

 

 

 

 

 

 

 

 

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject 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 Subject : LIMITED

 

 

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 

 

INDUSTRY ANALYSIS

 

 

MSIC CODE

 

66129 : Other financial and commodity futures brokers and dealers

64302 : Unit trust fund excludes REITs

 

 

INDUSTRY :

FINANCIAL SERVICES

 

 

 

The outlook for the financial services industry, particularly in the insurance sector, is positive as Malaysia's increasing population and rising disposable income will result in more people requiring financial services.

 

According to Ministry of Finance, Malaysia's financial services sector forcasted to grow 5.2% to the country's real gross domestic product at the year 2013. This sector targeted to raise Malaysia's total gross national income (GNI) from RM121.5 billion to RM180.2 billion and create 275,400 jobs by 2020. The domestic private banking industry is expected to continue its double-digit growth rates over the 2012-2015.

 

The insurance sector is forecast to see substantial growth in the next 2013-2016 as continued diversification, consolidation and international activity spur rising premiums and uptake of new services. Moderate GDP growth for the rest of the year, however, could pose a challenge to growth as the effects of a weakening global economy trickle down to private consumers. Gross direct premiums are expected to reach RM17.5billion in 2015.

 

At the end of July 2012, total loans outstanding increased 13% to RM1,073.1 billion largely for the purchase of residential properties and working capital, accounting for 27% and 24.7% respectively. The growth in net interest income of the banking system is expected to be complemented by higher fee-based income. The subsector is also anticipated to benefit from the growing Islamic banking market. As at end-July 2012, Islamic financing grew 19.3% to RM294.2 billion and accounted for 26.6% of total loans by the banking system. Meanwhile, stockbroking activity increased with a higher volume of share transactions at 18.4% to 222.2 billion units. In the insurance segment, life and general insurance are anticipated to further contribute to the growth of the subsector supported by an increase in new life insurance, and motor insurance policies.

 

The Government and Bank Negara would be assisting banks to establish meaningful presence in priority markets and expand beyond Asean through the acquisition of banking assets. With the insurance market in the process of dynamic change, due to rising demand and regulatory changes that aim both to increase solidity and allow greater international participation, consolidation, diversification and the rise of the takaful segment.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1993, the Subject is a Private Limited company, focusing on licensed future broker dealing in option and future, investment holding, unit trust & others. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is well backed by a listed company shareholders which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. The Subject's business operation is supported by 23 employees. Overall, we regard that the Subject's management capability is average.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to genrate return. The Subject however 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 Subject 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 11,344,820, the Subject should be able to maintain its business in the near terms.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

 

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

HDM FUTURES SDN. BHD.

 

Financial Year End

2013-07-31

2012-07-31

2011-07-31

2010-07-31

2009-07-31

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

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

2,988,790

3,938,591

5,893,358

5,069,261

7,121,156

Other Income

2,040,883

2,024,495

-

-

-

 

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

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

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

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

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

Total Turnover

5,029,673

5,963,086

5,893,358

5,069,261

7,121,156

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(1,425,761)

35,592

845,982

323,445

2,255,819

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(1,425,761)

35,592

845,982

323,445

2,255,819

Taxation

85,002

(18,603)

(225,248)

(91,098)

(579,451)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(1,340,759)

16,989

620,734

232,347

1,676,368

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

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

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

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

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

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

As restated

7,685,579

7,668,590

7,047,856

6,815,509

5,139,141

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

6,344,820

7,685,579

7,668,590

7,047,856

6,815,509

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

6,344,820

7,685,579

7,668,590

7,047,856

6,815,509

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

121,977

129,319

-

-

-

 

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

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

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

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

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

 

121,977

129,319

-

-

-

 

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

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

 

 

 

 

 

BALANCE SHEET

 

 

HDM FUTURES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

226,160

241,981

366,900

434,281

418,136

 

 

 

 

 

 

Fidelity fund

1,000,000

1,000,000

-

-

-

Others

1,045,000

2,100,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,045,000

3,100,000

-

2,100,000

2,100,000

 

 

 

 

 

 

Others

72,790

-

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

72,790

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,343,950

3,341,981

366,900

2,534,281

2,518,136

 

 

 

 

 

 

Other debtors, deposits & prepayments

505,457

578,237

-

-

-

Short term deposits

13,625,061

13,908,769

-

-

-

Cash & bank balances

104,198

93,597

-

-

-

Others

44,058,006

68,190,890

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

58,292,722

82,771,493

74,773,797

64,251,072

75,771,560

 

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

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

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

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

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

TOTAL ASSET

60,636,672

86,113,474

75,140,697

66,785,353

78,289,696

 

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

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

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

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

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

 

 

 

 

 

 

Other creditors & accruals

288,031

372,595

-

-

-

Other liabilities

44,003,821

68,042,720

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

44,291,852

68,415,315

57,404,767

49,656,277

61,385,472

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

14,000,870

14,356,178

17,369,030

14,594,795

14,386,088

 

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

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

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

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

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

TOTAL NET ASSETS

16,344,820

17,698,159

17,735,930

17,129,076

16,904,224

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

6,344,820

7,685,579

7,668,590

7,047,856

6,815,509

 

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

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

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

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

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

TOTAL RESERVES

6,344,820

7,685,579

7,668,590

7,047,856

6,815,509

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

11,344,820

12,685,579

12,668,590

12,047,856

11,815,509

 

 

 

 

 

 

Long term loans

5,000,000

5,000,000

-

-

-

Others

-

12,580

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

5,000,000

5,012,580

5,067,340

5,081,220

5,088,715

 

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

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

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

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

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

 

16,344,820

17,698,159

17,735,930

17,129,076

16,904,224

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

HDM FUTURES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

13,729,259

14,002,366

-

-

-

Net Liquid Funds

13,729,259

14,002,366

-

-

-

Net Liquid Assets

14,000,870

14,356,178

17,369,030

14,594,795

14,386,088

Net Current Assets/(Liabilities)

14,000,870

14,356,178

17,369,030

14,594,795

14,386,088

Net Tangible Assets

16,272,030

17,698,159

17,735,930

17,129,076

16,904,224

Net Monetary Assets

9,000,870

9,343,598

12,301,690

9,513,575

9,297,373

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

5,000,000

5,000,000

-

-

-

Total Liabilities

49,291,852

73,427,895

62,472,107

54,737,497

66,474,187

Total Assets

60,636,672

86,113,474

75,140,697

66,785,353

78,289,696

Net Assets

16,344,820

17,698,159

17,735,930

17,129,076

16,904,224

Net Assets Backing

11,344,820

12,685,579

12,668,590

12,047,856

11,815,509

Shareholders' Funds

11,344,820

12,685,579

12,668,590

12,047,856

11,815,509

Total Share Capital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total Reserves

6,344,820

7,685,579

7,668,590

7,047,856

6,815,509

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.31

0.20

-

-

-

Liquid Ratio

1.32

1.21

-

-

-

Current Ratio

1.32

1.21

1.30

1.29

1.23

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

-

-

-

Debtors Ratio

0

0

-

-

-

Creditors Ratio

0

0

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.44

0.39

-

-

-

Liabilities Ratio

4.34

5.79

4.93

4.54

5.63

Times Interest Earned Ratio

(10.69)

1.28

-

-

-

Assets Backing Ratio

3.25

3.54

3.55

3.43

3.38

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

(47.70)

0.90

14.35

6.38

31.68

Net Profit Margin

(44.86)

0.43

10.53

4.58

23.54

Return On Net Assets

(7.98)

0.93

4.77

1.89

13.34

Return On Capital Employed

(7.94)

0.93

4.77

1.89

13.34

Return On Shareholders' Funds/Equity

(11.82)

0.13

4.90

1.93

14.19

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.67

UK Pound

1

Rs.100.81

Euro

1

Rs.80.73

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

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.