MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	SOON THYE HANG MARINE PRODUCTS SDN. BHD.
Registered Office :	51, Jalan Bijih Timah, 30000 Ipoh, Perak,
Country :	Malaysia
Financials (as on) :	31.12.2013
Date of Incorporation :	19.12.1979
Com. Reg. No.:	53387-D
Legal Form :	Private Limited
Line of Business :	Trading of dry seafood and other food product
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

Company name and address

REGISTRATION NO.

:

53387-D

COMPANY NAME

:

SOON THYE HANG MARINE PRODUCTS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

19/12/1979

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

51, JALAN BIJIH TIMAH, 30000 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

45-51, JALAN BIJEH TIMAH, 30000 IPOH, PERAK, MALAYSIA.

TEL.NO.

:

05-2557679

FAX.NO.

:

05-2534953

CONTACT PERSON

:

CHUAH SEONG KOK ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING OF DRY SEAFOOD AND OTHER FOOD PRODUCT

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 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH AND 1,500,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 104,656,628 [2013]

NET WORTH

:

MYR 25,118,881 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

CIMB BANK BHD MALAYAN BANKING BHD UNITED OVERSEAS BANK (MALAYSIA) BHD OCBC BANK (MALAYSIA) BHD PUBLIC BANK BHD AMBANK (M) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

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) trading of dry seafood and other food product.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
30/06/2014	MYR 5,000,000.00	MYR 2,000,000.00
26/07/1997	MYR 5,000,000.00	MYR 2,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. CHUAH CHONG CHEAR @ CHUAH CHONG CHEAN +	33-A, LALUAN INDAH TIMUR 5, TAMAN MEGAH, PASIR PUTEH, 31650 IPOH, PERAK, MALAYSIA.	420815-71-5367 0642088	533,400.00	26.67
CHUAH TEONG THEE +	27, JALAN BATIK 12, NEW PASIR PUTIH, 33000 KUALA KANGSAR, PERAK, MALAYSIA.	480810-71-5303 0574116	400,000.00	20.00
CHAI SANG CHEK @ CHUA SEONG KIT +	27, JALAN BATIK 12, NEW PASIR PUTIH, PASIR PUTIH, 31650 IPOH, PERAK, MALAYSIA.	471012-71-5291 0988369	400,000.00	20.00
MR. CHUAH SEONG KOK +	4, JALAN PASIR KUNING, MEDAN PASIR IMPIAN, 31650 IPOH, PERAK, MALAYSIA.	700511-08-5657 A1599181	400,000.00	20.00
MR. CHUAH SEONG SING +	33-A, LALUAN INDAH TIMUR 5, TAMAN MEGAH, PASIR PUTEH, 31650 IPOH, PERAK, MALAYSIA.	721124-08-5027 A2295727	266,600.00	13.33
			---------------	------
			2,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. CHUAH SEONG SING
Address	:	33-A, LALUAN INDAH TIMUR 5, TAMAN MEGAH, PASIR PUTEH, 31650 IPOH, PERAK, MALAYSIA.
IC / PP No	:	A2295727
New IC No	:	721124-08-5027
Date of Birth	:	24/11/1972
Nationality	:	MALAYSIAN
Date of Appointment	:	30/03/1995

DIRECTOR 2

Name Of Subject	:	MR. CHUAH SEONG KOK
Address	:	4, JALAN PASIR KUNING, MEDAN PASIR IMPIAN, 31650 IPOH, PERAK, MALAYSIA.
IC / PP No	:	A1599181
New IC No	:	700511-08-5657
Date of Birth	:	11/05/1970
Nationality	:	MALAYSIAN
Date of Appointment	:	22/09/1998

DIRECTOR 3

Name Of Subject	:	CHAI SANG CHEK @ CHUA SEONG KIT
Address	:	27, JALAN BATIK 12, NEW PASIR PUTIH, PASIR PUTIH, 31650 IPOH, PERAK, MALAYSIA.
IC / PP No	:	0988369
New IC No	:	471012-71-5291
Date of Birth	:	12/10/1947
Nationality	:	MALAYSIAN
Date of Appointment	:	14/09/1993

DIRECTOR 4

Name Of Subject	:	CHUAH TEONG THEE
Address	:	27, JALAN BATIK 12, NEW PASIR PUTIH, 33000 KUALA KANGSAR, PERAK, MALAYSIA.
IC / PP No	:	0574116
New IC No	:	480810-71-5303
Date of Birth	:	10/08/1948
Nationality	:	MALAYSIAN
Date of Appointment	:	21/01/1997

DIRECTOR 5

Name Of Subject	:	MR. CHUAH CHONG CHEAR @ CHUAH CHONG CHEAN
Address	:	33-A, LALUAN INDAH TIMUR 5, TAMAN MEGAH, PASIR PUTEH, 31650 IPOH, PERAK, MALAYSIA.
IC / PP No	:	0642088
New IC No	:	420815-71-5367
Date of Birth	:	15/08/1942
Nationality	:	MALAYSIAN
Date of Appointment	:	14/09/1993

MANAGEMENT

1)	Name of Subject	:	CHUAH SEONG KOK
	Position	:	DIRECTOR

AUDITOR

Auditor	:	YONG & CO.
Auditor' Address	:	150K-1, JALAN SULTAN AZLAN SHAH SELATAN, 31650 IPOH, PERAK, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. WOO KUEONG FOOK
	IC / PP No	:	8168673
	New IC No	:	550416-08-5295
	Address	:	9-B, JALAN CHE TAK, 30300 IPOH, PERAK, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

2)

Name

:

MALAYAN BANKING BHD

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

4)

Name

:

OCBC BANK (MALAYSIA) BHD

5)

Name

:

PUBLIC BANK BHD

6)

Name

:

AMBANK (M) BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	05/05/1994	N/A	UNITED OVERSEAS BAN MALAYSIA BHD	MYR 350,000.00	Satisfied
2	25/07/1995	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	MYR 1,130,000.00	Satisfied
3	25/07/1995	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	-	Satisfied
4	05/08/1995	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	MYR 400,000.00	Satisfied
5	04/06/1996	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	-	Satisfied
6	07/12/1999	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	-	Satisfied
7	13/05/2000	OPEN CHARGE	UNITED OVERSEAS BANK MALAYSIA BHD	MYR 1.00	Satisfied
8	22/08/2003	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	MYR 900,000.00	Satisfied
9	22/08/2003	N/A	UNITED OVERSEAS BANK MALAYSIA BHD	MYR 900,000.00	Satisfied
10	12/10/2005	FACILITY AGREEMENT	MALAYAN BANKING BHD	MYR 14,700,000.00	Unsatisfied
11	29/04/2011	FACILITY AGREEMENT	CIMB BANK BERHAD	-	Unsatisfied
12	15/07/2011	FACILITY AGREEMENT	AMBANK (M) BHD	MYR 456,000.00	Unsatisfied
13	22/09/2011	FACILITY AGREEMENT	MALAYAN BANKING BHD	MYR 3,000,000.00	Unsatisfied
14	22/09/2011	FACILITY AGREEMENT	AMBANK (M) BHD	MYR 140,000.00	Unsatisfied
15	11/06/2012	FACILITY AGREEMENT	PUBLIC BANK BHD	-	Unsatisfied
16	24/10/2012	CASH DEPOSIT AGREEMENT	OCBC BANK (MALAYSIA) BHD	-	Unsatisfied
17	24/02/2014	FACILITIES AGREEMENT	CIMB BANK BERHAD	-	Unsatisfied

LITIGATION 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.

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 refused to disclose it's 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	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	N/A
Overseas	:	N/A
Credit Term	:	N/A
Payment Mode	:	N/A
Type of Customer	:	DEALERS,HYPERMARKETS,SUPERMARKETS

The Subject refused to disclose it's clientele.

OPERATIONS

Goods Traded

:

DRY SEAFOOD AND OTHER FOOD PRODUCTS

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2012	2011	2010	2009
GROUP	N/A	N/A	N/A	N/A
COMPANY	74	65	65	60

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of dry seafood and other food product.

The Subject sells a wide range of groceries include onions, potato, dried chilies, beans canned food, dried mushrooms, Longans, etc.

The Subject's marine products are salted fish, dried prawns, dried cuttle fish and others.

Besides that the Subject has a warehouse located in Lahat, Perak to keep stocks and materials.

We were informed that the Subject imports its products based on the stock and customers' requirements.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	05-2557679
Match	:	N/A
Address Provided by Client	:	45-51 JALAN BIJEH TIMAH (JALAN TREACHER) 30000 IPOH PERAK MALAYSIA
Current Address	:	45-51, JALAN BIJEH TIMAH, 30000 IPOH, PERAK, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

we contacted one of the staff from the Subject and she only provided limited information on the Subject.

The address as per stated in the report.

The Subject refused to disclose it's number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	8.31%	]
Return on Net Assets	:	Acceptable	[	16.53%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	105 Days	]
Debtor Ratio	:	Unfavourable	[	66 Days	]
Creditors Ratio	:	Favourable	[	24 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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	[	0.66 Times	]
Current Ratio	:	Unfavourable	[	1.41 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	:	Unfavourable	[	2.68 Times	]
Gearing Ratio	:	Unfavourable	[	1.38 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : LIMITED

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2011	2012	2013	2014*	2015**
Population ( Million)	28.7	29.3	29.8	30.3	30.5
Gross Domestic Products ( % )	5.1	5.6	5.3	6.0	6.0
Domestic Demand ( % )	8.2	9.4	5.6	6.4	6.2
Private Expenditure ( % )	8.2	8.0	8.6	7.9	6.9
Consumption ( % )	7.1	1.0	5.7	6.5	5.6
Investment ( % )	12.2	11.7	13.3	12.0	10.7
Public Expenditure ( % )	8.4	13.3	4.4	2.3	4.2
Consumption ( % )	16.1	11.3	(1.2)	2.1	3.8
Investment ( % )	(0.3)	15.9	4.2	2.6	4.7
Balance of Trade ( MYR Million )	116,058	106,300	71,298	52,314	-
Government Finance ( MYR Million )	(45,511)	(42,297)	(39,993)	(37,291)	-
Government Finance to GDP / Fiscal Deficit ( % )	(5.4)	(4.5)	(4.0)	(3.5)	(3.0)
Inflation ( % Change in Composite CPI)	3.1	1.6	2.5	3.3	4.0
Unemployment Rate	3.3	3.2	3.0	3.0	3.0
Net International Reserves ( MYR Billion )	415	427	-	417	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.50	2.20	-	-	-
Average 3 Months of Non-performing Loans ( % )	14.80	14.70	-	-	-
Average Base Lending Rate ( % )	6.60	6.53	6.53	-	-
Business Loans Disbursed( % )	15.3	32.2	-	-	-
Foreign Investment ( MYR Million )	23,546.1	26,230.4	38,238.0	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	45,455	45,441	46,321	-	-
Registration of New Companies ( % )	3.0	(0.0)	1.9	-	-
Liquidation of Companies ( No. )	132,485	17,092	26,430	-	-
Liquidation of Companies ( % )	417.8	(87.1)	54.6	-	-
Registration of New Business ( No. )	284,598	324,761	329,895	-	-
Registration of New Business ( % )	5.0	14.0	2.0	-	-
Business Dissolved ( No. )	20,121	20,380	18,161	-	-
Business Dissolved ( % )	1.9	1.3	(10.9)	-	-
Sales of New Passenger Cars (' 000 Unit )	535.1	552.2	576.7	598.4	610.3
Cellular Phone Subscribers ( Million )	35.3	38.5	43.0	43.8	-
Tourist Arrival ( Million Persons )	24.7	25.0	25.7	28.0	-
Hotel Occupancy Rate ( % )	60.6	62.4	62.6	-	-
Credit Cards Spending ( % )	15.6	12.6	-	-	-
Bad Cheque Offenders (No.)	32,627	26,982	28,876	-	-
Individual Bankruptcy ( No.)	19,167	19,575	21,984	-	-
Individual Bankruptcy ( % )	5.8	2.1	12.3	-	-

INDUSTRIES ( % of Growth ):	2011	2012	2013	2014*	2015**
Agriculture	5.8	1.0	2.1	3.8	3.1
Palm Oil	10.8	(0.3)	2.6	6.7	-
Rubber	6.1	(7.9)	(10.1)	(10.4)	-
Forestry & Logging	(7.6)	(4.5)	(7.8)	(4.2)	-
Fishing	2.1	4.3	1.6	2.7	-
Other Agriculture	7.1	6.4	8.2	6.2	-
Industry Non-Performing Loans ( MYR Million )	634.1	-	-	-	-
% of Industry Non-Performing Loans	3.2	-	-	-	-
Mining	(5.4)	1.4	0.9	(0.8)	2.8
Oil & Gas	(1.7)	-	-	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	46.5	-	-	-	-
% of Industry Non-performing Loans	0.1	-	-	-	-
Manufacturing #	4.7	4.8	3.4	6.6	5.5
Exported-oriented Industries	4.1	6.5	3.3	5.6	-
Electrical & Electronics	(4.0)	12.7	6.9	13.3	-
Rubber Products	20.7	3.0	11.7	(0.3)	-
Wood Products	(5.1)	8.7	(2.7)	5.1	-
Textiles & Apparel	13.2	(7.1)	(2.6)	11.5	-
Domestic-oriented Industries	10.7	1.7	6.8	9.4	-
Food, Beverages & Tobacco	4.80	2.70	3.60	6.13	6.13
Chemical & Chemical Products	10.0	10.8	5.6	-	-
Plastic Products	3.8	-	-	-	-
Iron & Steel	2.2	(6.6)	5.0	0.1	-
Fabricated Metal Products	21.8	13.8	9.9	2.9	-
Non-metallic Mineral	12.1	2.9	(2.0)	5.4	-
Transport Equipment	12.0	3.4	13.8	22.9	-
Paper & Paper Products	9.5	3.1	1.8	4.7	-
Crude Oil Refineries	9.3	-	-	-	-
Industry Non-Performing Loans ( MYR Million )	6,537.2	-	-	-	-
% of Industry Non-Performing Loans	25.7	-	-	-	-
Construction	4.7	18.6	10.9	12.7	10.7
Industry Non-Performing Loans ( MYR Million )	3,856.9	-	-	-	-
% of Industry Non-Performing Loans	10.2	-	-	-	-
Services	7.1	6.4	5.9	5.9	5.6
Electric, Gas & Water	3.5	4.4	4.2	3.6	3.9
Transport, Storage & Communication	6.50	7.10	7.30	7.50	7.15
Wholesale, Retail, Hotel & Restaurant	5.2	4.7	5.9	6.9	6.5
Finance, Insurance & Real Estate	6.90	9.70	3.70	4.65	4.25
Government Services	12.4	9.4	8.3	6.1	5.6
Other Services	5.1	3.9	5.1	4.8	4.5
Industry Non-Performing Loans ( MYR Million )	6,825.2	-	-	-	-
% of Industry Non-Performing Loans	23.4	-	-	-	-
* Estimate / Preliminary
** Forecast

INDUSTRY ANALYSIS

MSIC CODE
46329 : Wholesale of other foodstuffs
INDUSTRY :	TRADING
The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.
According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).
The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.
On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).
Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan.
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 1979, the Subject is a Private Limited company, focusing on trading of dry seafood and other food product. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 2,000,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 25,118,881, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

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

The industry 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)

SOON THYE HANG MARINE PRODUCTS SDN. BHD.

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
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	SUMMARY	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	104,656,628	92,370,770	102,577,552	98,316,350	83,661,669
	----------------	----------------	----------------	----------------	----------------
Total Turnover	104,656,628	92,370,770	102,577,552	98,316,350	83,661,669
Costs of Goods Sold	(92,703,293)	(82,930,440)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	11,953,335	9,440,330	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	3,028,621	1,472,851	5,158,028	3,219,413	2,654,144
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	3,028,621	1,472,851	5,158,028	3,219,413	2,654,144
Taxation	(941,121)	(533,555)	(1,243,579)	(1,087,128)	(672,299)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	2,087,500	939,296	3,914,449	2,132,285	1,981,845
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	21,051,058	20,111,762	16,197,313	14,065,028	12,083,183
	----------------	----------------	----------------	----------------	----------------
As restated	21,051,058	20,111,762	16,197,313	14,065,028	12,083,183
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	23,138,558	21,051,058	20,111,762	16,197,313	14,065,028
DIVIDENDS - Ordinary (paid & proposed)	(100,000)	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	23,038,558	21,051,058	20,111,762	16,197,313	14,065,028
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	1,806,578	1,738,928	-	1,293,650	1,038,242
	----------------	----------------	----------------	----------------	----------------
	1,806,578	1,738,928	-	1,293,650	1,038,242
	=============	=============	=============	=============	=============

BALANCE SHEET

SOON THYE HANG MARINE PRODUCTS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	12,990,707	12,922,801	11,873,384	6,840,038	7,183,208
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	12,990,707	12,922,801	11,873,384	6,840,038	7,183,208
Stocks	29,987,139	35,597,497	-	27,923,932	23,049,583
Trade debtors	18,881,628	15,638,081	-	15,861,197	15,696,995
Other debtors, deposits & prepayments	4,350,361	2,871,453	-	1,303,058	1,285,361
Short term deposits	577,360	560,000	-	541,767	489,535
Amount due from director	1,524,793	140,654	-	-	-
Cash & bank balances	421,308	820,097	-	2,360,257	2,209,698
Others	580,879	677,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	56,323,468	56,304,782	51,935,424	47,990,211	42,731,172
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	69,314,175	69,227,583	63,808,808	54,830,249	49,914,380
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	5,981,658	10,012,615	-	6,915,429	7,306,766
Other creditors & accruals	3,127,872	2,047,147	-	2,934,616	2,141,761
Hire purchase & lease creditors	220,731	353,247	-	392,329	211,493
Bank overdraft	17,328,873	17,717,662	-	12,418,087	12,141,530
Short term borrowings/Term loans	437,112	602,174	-	85,507	170,316
Other borrowings	7,117,668	3,041,876	-	2,759,915	1,944,006
Bill & acceptances payable	5,858,000	8,036,000	-	7,915,000	6,947,000
Amounts owing to director	-	-	-	1,699,320	2,030,157
Provision for taxation	-	-	-	478,446	203,446
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	40,071,914	41,810,721	38,601,106	35,598,649	33,096,475
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	16,251,554	14,494,061	13,334,318	12,391,562	9,634,697
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	29,242,261	27,416,862	25,207,702	19,231,600	16,817,905
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,000,000	2,000,000	2,000,000	2,000,000	2,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,000,000	2,000,000	2,000,000	2,000,000	2,000,000
Capital reserve	80,323	80,323	80,323	80,323	80,323
Retained profit/(loss) carried forward	23,038,558	21,051,058	20,111,762	16,197,313	14,065,028
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	23,118,881	21,131,381	20,192,085	16,277,636	14,145,351
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	25,118,881	23,131,381	22,272,408	18,277,636	16,145,351
Long term loans	2,643,905	2,907,553	-	-	72,829
Other long term borrowings	432,605	459,028	-	-	-
Hire purchase creditors	562,870	553,900	-	534,964	149,725
Deferred taxation	484,000	365,000	-	419,000	450,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	4,123,380	4,285,481	3,015,617	953,964	672,554
	----------------	----------------	----------------	----------------	----------------
	29,242,261	27,416,862	25,207,702	19,231,600	16,817,905
	=============	=============	=============	=============	=============

FINANCIAL RATIO

SOON THYE HANG MARINE PRODUCTS SDN. BHD.

TYPES OF FUNDS
Cash	998,668	1,380,097	-	2,902,024	2,699,233
Net Liquid Funds	(22,188,205)	(24,373,565)	-	(17,431,063)	(16,389,297)
Net Liquid Assets	(13,735,585)	(21,103,436)	13,334,318	(15,532,370)	(13,414,886)
Net Current Assets/(Liabilities)	16,251,554	14,494,061	13,334,318	12,391,562	9,634,697
Net Tangible Assets	29,242,261	27,416,862	25,207,702	19,231,600	16,817,905
Net Monetary Assets	(17,858,965)	(25,388,917)	10,318,701	(16,486,334)	(14,087,440)
BALANCE SHEET ITEMS
Total Borrowings	34,601,764	33,671,440	-	24,105,802	21,636,899
Total Liabilities	44,195,294	46,096,202	41,616,723	36,552,613	33,769,029
Total Assets	69,314,175	69,227,583	63,808,808	54,830,249	49,914,380
Net Assets	29,242,261	27,416,862	25,207,702	19,231,600	16,817,905
Net Assets Backing	25,118,881	23,131,381	22,192,085	18,277,636	16,145,351
Shareholders' Funds	25,118,881	23,131,381	22,192,085	18,277,636	16,145,351
Total Share Capital	2,000,000	2,000,000	2,000,000	2,000,000	2,000,000
Total Reserves	23,118,881	21,131,381	20,192,085	16,277,636	14,145,351
LIQUIDITY (Times)
Cash Ratio	0.02	0.03	-	0.08	0.08
Liquid Ratio	0.66	0.50	-	0.56	0.59
Current Ratio	1.41	1.35	1.35	1.35	1.29
WORKING CAPITAL CONTROL (Days)
Stock Ratio	105	141	-	104	101
Debtors Ratio	66	62	-	59	68
Creditors Ratio	24	44	-	26	32
SOLVENCY RATIOS (Times)
Gearing Ratio	1.38	1.46	-	1.32	1.34
Liabilities Ratio	1.76	1.99	1.88	2.00	2.09
Times Interest Earned Ratio	2.68	1.85	-	3.49	3.56
Assets Backing Ratio	14.62	13.71	12.60	9.62	8.41
PERFORMANCE RATIO (%)
Operating Profit Margin	2.89	1.59	5.03	3.27	3.17
Net Profit Margin	1.99	1.02	3.82	2.17	2.37
Return On Net Assets	16.53	11.71	20.46	23.47	21.96
Return On Capital Employed	10.33	7.06	20.40	14.08	12.66
Return On Shareholders' Funds/Equity	8.31	4.06	17.58	11.67	12.28
Dividend Pay Out Ratio (Times)	0.05	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.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	NIS

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%)

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