MIRA INFORM REPORT

 

 

Report Date :

29.08.2014

 

IDENTIFICATION DETAILS

 

Name :

HANIFFA SDN. BHD.

 

 

Formerly Known As :

HANIFFA TEXTILES SDN BHD (21/05/2007)

 

 

Registered Office :

Wisma Haniffa, 149, Jalan Masjid India, 50100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.12.1976

 

 

Com. Reg. No.:

30840-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesalers and Retailers of Textiles & Running of Departmental Stores

 

 

No. of Employees

170

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

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

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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.

:

30840-D

COMPANY NAME

:

HANIFFA SDN. BHD.

FORMER NAME

:

HANIFFA TEXTILES SDN BHD (21/05/2007)

INCORPORATION DATE

:

29/12/1976

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

WISMA HANIFFA, 149, JALAN MASJID INDIA, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

WISMA HANIFFA, 149 JALAN MASJID INDIA, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-26938620

FAX.NO.

:

03-26912909

EMAIL

:

ADMIN@HANIFFA.COM

CONTACT PERSON

:

O K MOHAMED HANIFFA ( MANAGING DIRECTOR )

INDUSTRY CODE

:

47192

PRINCIPAL ACTIVITY

:

WHOLESALERS AND RETAILERS OF TEXTILES & RUNNING OF DEPARTMENTAL STORES

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 10.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 30,000,000.00 DIVIDED INTO
ORDINARY SHARES 860,100 CASH AND 2,139,900 OTHERWISE OF MYR 10.00 EACH.

SALES

:

MYR 222,637,462 [2012]

NET WORTH

:

MYR 44,803,202 [2012]

BANKER (S)

 

CIMB BANK BHD

STAFF STRENGTH

:

170 [2014]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

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) wholesalers and retailers of textiles & running of departmental stores.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

01/04/2013

MYR 50,000,000.00

MYR 30,000,000.00

31/12/2011

MYR 25,000,000.00

MYR 15,300,000.00

17/12/2002

MYR 25,000,000.00

MYR 12,000,000.00

27/10/1999

MYR 10,000,000.00

MYR 10,000,000.00

20/10/1995

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

(%)

ABDUL SAMAD BIN O K MOHAMED HANIFFA +

118, KENG LEE ROAD, 10 - 01, 308404, SINGAPORE.

S7712397J

1,893,292.00

63.11

MS. RAZINAH BEGUM BINTI O K MOHAMED HANIFFA +

149, JALAN MASJID INDIA, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

850130-66-5168

909,688.00

30.32

SITI ZUBAIDAH HANIFFA +

118, KENG LEE ROAD, 308404, SINGAPORE.

S1077315F

98,510.00

3.28

LUHU FARDHIBA BINTI RA ABU BACKER

118, KENG LEE ROAD, 308404, SINGAPORE.

S8072976F

98,510.00

3.28

 

 

 

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

------

 

 

 

3,000,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. O K MOHAMED HANIFFA @ MOHAMED HANIFFA

Address

:

149, JALAN MASJID INDIA, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

400701-75-5055

Date of Birth

:

01/07/1940

Nationality

:

MALAYSIAN

Date of Appointment

:

29/12/1976

 

DIRECTOR 2

 

Name Of Subject

:

SITI ZUBAIDAH HANIFFA

Address

:

118, KENG LEE ROAD, 308404, SINGAPORE.

IC / PP No

:

S1077315F

Nationality

:

SINGAPOREAN

Date of Appointment

:

29/12/1976

 

DIRECTOR 3

 

Name Of Subject

:

MS. RAZINAH BEGUM BINTI O K MOHAMED HANIFFA

Address

:

149, JALAN MASJID INDIA, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

850130-66-5168

Date of Birth

:

30/01/1985

Nationality

:

MALAYSIAN

Date of Appointment

:

27/06/2005

 

DIRECTOR 4

 

Name Of Subject

:

ABDUL SAMAD BIN O K MOHAMED HANIFFA

Address

:

118, KENG LEE ROAD, 10 - 01, 308404, SINGAPORE.

IC / PP No

:

S7712397J

Nationality

:

SINGAPOREAN

Date of Appointment

:

17/01/1996



MANAGEMENT

 

 

 

1)

Name of Subject

:

O K MOHAMED HANIFFA

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

MOHAMMAD IBRAHIM

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

RAFIQ

 

Position

:

MARKETING MANAGER

 

 

 

 

AUDITOR

 

Auditor

:

AHAMAD NAINA MYDIN & ASSOCIATES

Auditor' Address

:

LOT 1, 14, JALAN KEMUJA, BANGSAR UTAMA, 1ST FLOOR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SURINA JENNY BINTI ABDULLAH

 

IC / PP No

:

5648847

 

New IC No

:

590403-10-6700

 

Address

:

LOT 3-306, CEMPAKA APARTMENT, JALAN 3/9, BANDAR BARU SELAYANG, 68100 BATU CAVES, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/12/1978

LETTER OF HYPOTHECATION

UNITED ASIAN BANK BHD

MYR 335,000.00

Unsatisfied

2

27/12/1978

DEBENTURE & LETTER OF HYPOTHECATION

UNITED ASIAN BANK BERHAD

MYR 165,000.00

Unsatisfied

3

01/12/1982

DEBENTURE

UNITED ASIAN BANK BERHAD

MYR 755,000.00

Unsatisfied

3U1

01/12/1982

SUPPLEMENTAL DEBENTURE

UNITED ASIAN BANK BERHAD

MYR 430,000.00

Unsatisfied

4

03/03/1987

DEED OF ASSIGNMENT OF BOOK DEBTS

UNITED ASIAN BANK BERHAD

MYR 920,000.00

Unsatisfied

5

01/11/2000

N/A

BSN COMMERCIAL BANK MALAYSIA BERHAD

MYR 300,000.00

Satisfied

6

28/01/2003

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 2,850,000.00

Satisfied

7

28/06/2007

FACILITIES AGREEMENT & DEED OF ASSIGNMENT

CIMB BANK BERHAD

MYR 5,000,000.00

Unsatisfied

 

 

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

:

YES

Overseas

:

YES

Import Countries

:

SINGAPORE,TAIWAN,CHINA,JAPAN


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

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CASH
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

WALK IN CUSTOMERS,END USERS,DEALERS

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

TEXTILES

 

 

 

 

Services

:

DEPARTMENTAL STORE

 

 

 

 

Product Brand Name

:

PASAR RAYA HANIFFA SDN BHD

 

 

 

Competitor(s)

:

AEON CO. (M) BHD

 

 

Total Number of Employees:

 

YEAR

2014

2012

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

170

100

80

70

102

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) wholesalers and retailers of textiles & running of departmental stores.

The Subject has department stores in Klang and Pulau Pinang. The Subject acts as the headquarters.

The Subject's products can be categorized into the followings:

1) Textiles
2) Ready made garments
3) Fabrics
4) Consumer goods

The Subject sells all kinds of fashionable ready made garments for children, men and women.

The Subject's Consumer Goods division consists of watches, cosmetics, electrical goods and others.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-26938620

Match

:

N/A

 

 

 

Address Provided by Client

:

149 JALAN MASJID 50100 KUALA LUMPUR MALAYSIA

Current Address

:

WISMA HANIFFA, 149 JALAN MASJID INDIA, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 18th August 2014, we contacted one of the staff from HR Department of the Subject and she provided some information.

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

14.64%

]

 

Return on Net Assets

:

Acceptable

[

21.02%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

75 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

9 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

:

Unfavourable

[

0.55 Times

]

 

Current Ratio

:

Favourable

[

4.82 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

24.16 Times

]

 

Gearing Ratio

:

Favourable

[

0.07 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :

 

 

 

 

 

 

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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



INDUSTRY ANALYSIS

 

MSIC CODE

47192 : Department stores and supermarket

 

 

INDUSTRY :

TRADING

 

 

 

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

 

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

 

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

 

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

 

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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1976, the Subject is a Private Limited company, focusing on wholesalers and retailers of textiles & running of departmental stores. With its long track record in the industry, the Subject should have set up pretty sound supply channels and is able to meet the demands of its customers to a large extent. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

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 is a fairly large and rapidly growing company with over 170 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 44,803,202, the Subject should be able to maintain its business in the near terms.

The Subject'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 Subject has a good control over its resources.

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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

HANIFFA SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

222,637,462

200,308,532

178,695,227

135,338,522

123,780,290

Other Income

1,688,015

1,250,980

-

-

-

 

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

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

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

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

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

Total Turnover

224,325,477

201,559,512

178,695,227

135,338,522

123,780,290

Costs of Goods Sold

(204,284,564)

(182,855,646)

(165,223,844)

(123,889,156)

-

 

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

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

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

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

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

Gross Profit

20,040,913

18,703,866

13,471,383

11,449,366

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

9,026,295

9,094,235

6,319,187

4,760,929

3,649,750

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

9,026,295

9,094,235

6,319,187

4,760,929

3,649,750

Taxation

(2,465,409)

(2,401,312)

(1,843,463)

(968,923)

(973,780)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

6,560,886

6,692,923

4,475,724

3,792,006

2,675,970

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

22,942,316

16,249,393

11,773,669

11,281,663

8,605,693

 

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

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

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

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

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

As restated

22,942,316

16,249,393

11,773,669

11,281,663

8,605,693

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

29,503,202

22,942,316

16,249,393

15,073,669

11,281,663

CAPITALISATION FOR BONUS ISSUES

-

-

-

(3,300,000)

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

29,503,202

22,942,316

16,249,393

11,773,669

11,281,663

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

389,664

378,632

332,938

173,168

-

 

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

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

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

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

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

 

389,664

378,632

332,938

173,168

-

 

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

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

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

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

 

 

 

BALANCE SHEET

 

 

HANIFFA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,134,026

4,551,431

4,966,286

4,994,008

312,077

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,134,026

4,551,431

4,966,286

4,994,008

312,077

 

 

 

 

 

 

Stocks

45,467,661

33,518,507

25,749,561

25,217,395

-

Other debtors, deposits & prepayments

211,486

580,345

521,368

1,036,654

-

Amount due from related companies

2,823,748

5,606,698

8,552,000

7,039,837

-

Cash & bank balances

2,799,511

5,245,807

680,113

801,154

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

51,302,406

44,951,357

35,503,042

34,095,040

32,792,336

 

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

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

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

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

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

TOTAL ASSET

55,436,432

49,502,788

40,469,328

39,089,048

33,104,413

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

5,168,067

3,830,993

3,008,454

4,605,462

-

Other creditors & accruals

62,828

86,919

271,259

286,214

-

Bank overdraft

-

-

347,242

19,895

-

Bill & acceptances payable

3,018,000

3,631,000

2,675,000

2,902,000

-

Amounts owing to related companies

-

-

-

1,682,859

-

Amounts owing to director

2,133,087

2,658,489

2,082,945

2,434,931

-

Provision for taxation

251,248

1,053,071

535,035

48,018

-

Other liabilities

-

-

-

36,000

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

10,633,230

11,260,472

8,919,935

12,015,379

9,822,750

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

40,669,176

33,690,885

26,583,107

22,079,661

22,969,586

 

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

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

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

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

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

TOTAL NET ASSETS

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

15,300,000

15,300,000

15,300,000

15,300,000

12,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

15,300,000

15,300,000

15,300,000

15,300,000

12,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

29,503,202

22,942,316

16,249,393

11,773,669

11,281,663

 

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

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

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

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

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

TOTAL RESERVES

29,503,202

22,942,316

16,249,393

11,773,669

11,281,663

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

 

 

 

 

 

 

 

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

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

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

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

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

 

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

HANIFFA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

2,799,511

5,245,807

680,113

801,154

-

Net Liquid Funds

(218,489)

1,614,807

(2,342,129)

(2,120,741)

-

Net Liquid Assets

(4,798,485)

172,378

833,546

(3,137,734)

22,969,586

Net Current Assets/(Liabilities)

40,669,176

33,690,885

26,583,107

22,079,661

22,969,586

Net Tangible Assets

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

Net Monetary Assets

(4,798,485)

172,378

833,546

(3,137,734)

22,969,586

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

3,018,000

3,631,000

3,022,242

2,921,895

-

Total Liabilities

10,633,230

11,260,472

8,919,935

12,015,379

9,822,750

Total Assets

55,436,432

49,502,788

40,469,328

39,089,048

33,104,413

Net Assets

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

Net Assets Backing

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

Shareholders' Funds

44,803,202

38,242,316

31,549,393

27,073,669

23,281,663

Total Share Capital

15,300,000

15,300,000

15,300,000

15,300,000

12,000,000

Total Reserves

29,503,202

22,942,316

16,249,393

11,773,669

11,281,663

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.26

0.47

0.08

0.07

-

Liquid Ratio

0.55

1.02

1.09

0.74

-

Current Ratio

4.82

3.99

3.98

2.84

3.34

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

75

61

53

68

-

Debtors Ratio

0

0

0

0

-

Creditors Ratio

9

8

7

14

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.07

0.09

0.10

0.11

-

Liabilities Ratio

0.24

0.29

0.28

0.44

0.42

Times Interest Earned Ratio

24.16

25.02

19.98

28.49

-

Assets Backing Ratio

2.93

2.50

2.06

1.77

1.94

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.05

4.54

3.54

3.52

2.95

Net Profit Margin

2.95

3.34

2.50

2.80

2.16

Return On Net Assets

21.02

24.77

21.08

18.22

15.68

Return On Capital Employed

21.02

24.77

20.86

18.21

15.68

Return On Shareholders' Funds/Equity

14.64

17.50

14.19

14.01

11.49

Dividend Pay Out Ratio (Times)

0.00

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.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

                

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.