MIRA INFORM REPORT

 

 

Report Date :

27.02.2014

 

IDENTIFICATION DETAILS

 

Name :

PERKHIDMATAN KARGO TUMPATAN SDN BHD

 

 

Registered Office :

3 1/2 Miles, Pulau Gadong, 75200 Melaka, Melaka

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

25.06.1984

 

 

Com. Reg. No.:

122317-U

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of Animal Feed Raw Materials

 

 

No of Employees :

50 [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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy''s dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

122317-U

COMPANY NAME

:

PERKHIDMATAN KARGO TUMPATAN SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/06/1984

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

3 1/2 MILES, PULAU GADONG, 75200 MELAKA, MELAKA, MALAYSIA.

BUSINESS ADDRESS

:

3 1/2 MILES, PULAU GADONG, 75200 MELAKA, MELAKA, MALAYSIA.

TEL.NO.

:

06-3357285

FAX.NO.

:

06-3357301

CONTACT PERSON

:

LIOW CHYE HOCK ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46902

PRINCIPAL ACTIVITY

:

TRADING OF ANIMAL FEED RAW MATERIALS

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 2,000,016.00 DIVIDED INTO
ORDINARY SHARES 1,000,008 CASH AND 1,000,008 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 193,763,557 [2012]

NET WORTH

:

MYR 9,059,800 [2012]

 

 

 

STAFF STRENGTH

:

50 [2014]

BANKER (S)

:

BANGKOK BANK BHD
HSBC BANK MALAYSIA BHD
HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

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) trading of animal feed raw materials.

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 5,000,000.00

MYR 2,000,016.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KILANG MEMPROSES BARANG2 TEMPATAN SDN. BHD.

53-J, JALAN ONG KIM WEE, (1ST FLOOR), 75300 MELAKA, MELAKA, MALAYSIA.

29134K

995,000.00

49.75

MS. LILY ONG

17, TAMAN ASEAN, 3 1/2 M.S., MALIM ROAD, 75250 MELAKA, MELAKA, MALAYSIA.

460602-04-5044 0856887

320,000.00

16.00

MS. FATIMAH BINTI AHMAD

C-5035, KLEBANG BESAR, 75200 MELAKA, MELAKA, MALAYSIA.

380515-04-5038 3046963

54,168.00

2.71

MR. LOW ENG GUAN +

9, JALAN SRI MANGGA 1/8, TAMAN SRI MANGGA, SEKSYEN 1, 75250 MELAKA, MELAKA, MALAYSIA.

510826-10-5707 4131665

40,000.00

2.00

MR. LIM YONG POH

25, TAMAN ASEAN, MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

1053881

40,000.00

2.00

MR. CHEW KAI CHUAN

632-I, TAMAN BUKIT MELAKA, 75450 AIR KEROH, MELAKA, MALAYSIA.

510904-01-5185 8154643

40,000.00

2.00

MR. BERNARD ONG CHIN YONG

17, TAMAN ASEAN, MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

681026-04-5087 A1126059

33,333.00

1.67

MR. DZUL ISKANDAR BIN YAHYA +

LOT 979, JALAN MERANTI, OFF TAMAN SAYANG SELASIH, KLEBANG BESAR, 75200 MELAKA, MELAKA, MALAYSIA.

730424-04-5283 A2490195

27,085.00

1.35

MS. NOOR AINI BINTI HASSAN

C-5035, KLEBANG BESAR, 75250 MELAKA, MELAKA, MALAYSIA.

510930-04-5070 4188947

27,084.00

1.35

ONG CHEE JOON

22, JALAN PANTAI EMAS, KLEBANG BESAR, 75200 MELAKA, MELAKA, MALAYSIA.

490820-04-5285 1291845

25,000.00

1.25

LIOW CHAI GUAN.

187, TAMAN ASEAN, MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

580611-04-5341 5441626

20,000.00

1.00

LIM SIAK THOONG

29, TAMAN SRI WANGSA, JALAN SRI WANGSA, 75350 BATU BERENDAM, MELAKA, MALAYSIA.

490719-04-5117 1291452

20,000.00

1.00

REMAINING SHAREHOLDERS

-

-

358,346.00

17.92

 

 

 

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

------

 

 

 

2,000,016.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. ONG BOON BEE @ ONG MUN MEE

Address

:

17, TAMAN ASEAN, JALAN MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

0189749

New IC No

:

441226-04-5177

Date of Birth

:

26/12/1944

Nationality

:

MALAYSIAN

Date of Appointment

:

20/08/1984

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIOW CHYE HOCK

Address

:

295-G, JALAN ASEAN 5, TAMAN ASEAN, JALAN MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

4679130

New IC No

:

541113-04-5005

Date of Birth

:

13/11/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

28/05/2008

DIRECTOR 3

 

Name Of Subject

:

MS. LIM SIEW CHOO

Address

:

19-F, JALAN LORONG BACANG 2, 75300 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

5546810

New IC No

:

590403-04-5194

Date of Birth

:

03/04/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

29/05/2007

 

DIRECTOR 4

 

Name Of Subject

:

MR. DZUL ISKANDAR BIN YAHYA

Address

:

LOT 979, JALAN MERANTI, OFF TAMAN SAYANG SELASIH, KLEBANG BESAR, 75200 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

A2490195

New IC No

:

730424-04-5283

Date of Birth

:

24/04/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

16/06/2010

 

DIRECTOR 5

 

Name Of Subject

:

MR. LOW ENG GUAN

Address

:

9, JALAN SRI MANGGA 1/8, TAMAN SRI MANGGA, SEKSYEN 1, 75250 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

4131665

New IC No

:

510826-10-5707

Date of Birth

:

26/08/1951

Nationality

:

MALAYSIAN

Date of Appointment

:

07/11/1986

 

 

MANAGEMENT

1)

Name of Subject

:

LIOW CHYE HOCK

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LIM SIEW CHOO

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

ONG CHEE JOON

 

Position

:

ACCOUNT MANAGER

 

 

AUDITOR

 

Auditor

:

O.L. YEO & CO.

Auditor' Address

:

110A & B, JALAN MELAKA RAYA 25, TAMAN MELAKA RAYA, 75000 MELAKA, MELAKA, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LIOW CHYE HOCK

 

IC / PP No

:

4679130

 

New IC No

:

541113-04-5005

 

Address

:

295-G, JALAN ASEAN 5, TAMAN ASEAN, JALAN MALIM, 75250 MELAKA, MELAKA, MALAYSIA.

 

2)

Company Secretary

:

MS. LAI FUI YAN

 

IC / PP No

:

A3516309

 

New IC No

:

770526-04-5408

 

Address

:

30, JALAN TMS 2, TAMAN TANJUNG MINYAK SETIA, 75350 BATU BERENDAM, MELAKA, MALAYSIA.

 

 

 

BANKING

 

Banking relations are maintained principally with :

 

1)

Name

:

BANGKOK BANK BHD

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

3)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

05/04/1990

N/A

BANGKOK BANK BERHAD

MYR 2,500,000.00

Satisfied

2

22/07/2008

OPEN CHARGE

BANGKOK BANK BHD

-

Unsatisfied

3

06/05/2009

DEBENTURE

BANGKOK BANK BHD

-

Satisfied

4

04/08/2009

LETTER OF SET OFF

BANGKOK BANK BERHAD

MYR 9,950,000.00

Unsatisfied

5

15/11/2010

DEBENTURE

BANGKOK BANK BERHAD

-

Unsatisfied

6

15/11/2010

LETTER OF SET-OFF

BANGKOK BANK BERHAD

-

Unsatisfied

7

05/03/2012

LETTER OF SET-OFF

BANGKOK BANK BERHAD

-

Unsatisfied

8

15/03/2012

FIRST LEGAL CHARGE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

9

20/03/2012

TRADE FINANCING GENERAL AGREEMENT & CHARGE ON SECURITY OVER DEPOSITS IN RESPECT OF OBLIGATIONS OF THE DEPOSITOR

HSBC BANK MALAYSIA BHD

MYR 5,000,000.00

Unsatisfied

10

30/04/2012

LETTER OF SET OFF FOR FIXED DEPOSIT OF RM1,250,000.00 & LETTER OF SET OFF FOR QUARTERLY FIXED DEPOSIT BUILD UP OF RM20,000.00. THE 1ST FIXED DEPOSIT BUILD-UP IS TO COMMENCE 6 MONTHS FROM THE 1ST RELEASE OF FACILITIES

HONG LEONG BANK BHD

MYR 5,100,000.00

Unsatisfied

11

25/05/2012

LETTER OF SET-OFF

BANGKOK BANK BERHAD

-

Unsatisfied

12

27/06/2012

MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/OR NEGOTIABLE CERTIFICATE OF DEPOSIT (FIRST PARTY) & LETTER OF SET-OFF (FIRST PARTY)

MALAYAN BANKING BERHAD

MYR 7,500,000.00

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

:

INDIA



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

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

 

OPERATIONS

 

Goods Traded

:

ANIMAL FEED RAW MATERIALS

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 


GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

50

50

50

50

54

 

 

 

 

 

Branch

:

YES

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of animal feed raw materials.

The Subject's products ranges are including maize, starch, salt and others.

Besides that the Subject also provides products based on the customers' requirements.

We were informed that the Subject has warehouse located at the same premises to keep its materials and products.

According to the Subject, it repacks its products into small or big quantity based on its customers' requirements.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

06-3357285

Match

:

N/A

 

 

 

Address Provided by Client

:

3 1/2 MILES, PULAU GADONG,75200,MELAKA,MELAKA.

Current Address

:

3 1/2 MILES, PULAU GADONG, 75200 MELAKA, MELAKA, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 9th January 2014 we contacted one of the staff from the Subject and she provided some information

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

17.08%

]

 

Return on Net Assets

:

Favourable

[

38.92%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

19 Days

]

 

Debtor Ratio

:

Favourable

[

33 Days

]

 

Creditors Ratio

:

Favourable

[

7 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in 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

:

Acceptable

[

0.93 Times

]

 

Current Ratio

:

Unfavourable

[

1.19 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.20 Times

]

 

Gearing Ratio

:

Unfavourable

[

3.83 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 :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. 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:

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

 

46902 : Wholesale of animal/pet food

 

 

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 1984, the Subject is a Private Limited company, focusing on trading of animal feed raw materials. The Subject has been in business for 3 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. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. 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 has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is operating on a medium scale and it has approximately 50 employees in its business 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.

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. 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. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. However, the high gearing ratio clearly implied that the Subject was supported by more debt than equity. Nevertheless, given a positive net worth standing at MYR 9,059,800, 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. 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.

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)

PERKHIDMATAN KARGO TUMPATAN SDN BHD

 

Financial Year End

2012-08-31

2011-08-31

2010-08-31

2009-08-31

2008-08-31

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

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

193,763,557

138,717,015

118,333,272

87,655,583

36,591,387

Other Income

-

-

1,984,831

-

-

 

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

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

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

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

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

Total Turnover

193,763,557

138,717,015

120,318,103

87,655,583

36,591,387

Costs of Goods Sold

(184,807,150)

(131,032,757)

(110,092,269)

-

-

 

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

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

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

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

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

Gross Profit

8,956,407

7,684,258

10,225,834

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,062,845

1,937,626

1,551,308

1,484,114

1,049,884

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,062,845

1,937,626

1,551,308

1,484,114

1,049,884

Taxation

(515,464)

(383,904)

(424,362)

(446,747)

(317,561)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,547,381

1,553,722

1,126,946

1,037,367

732,323

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

5,512,403

4,108,682

2,981,736

2,094,370

1,362,047

 

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

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

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

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

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

As restated

5,512,403

4,108,682

2,981,736

2,094,370

1,362,047

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

7,059,784

5,662,404

4,108,682

3,131,737

2,094,370

DIVIDENDS - Ordinary (paid & proposed)

-

(150,001)

-

(150,001)

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

7,059,784

5,512,403

4,108,682

2,981,736

2,094,370

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

22,662

13,073

5,426

14,856

25,125

Hire purchase

39,263

39,279

57,203

34,929

40,946

Term loan / Borrowing

47,582

61,370

-

-

-

Trust receipts

1,606,219

1,063,961

688,794

704,499

613,358

Others

8,969

5,216

4,740

4,987

4,870

 

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

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

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

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

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

 

1,724,695

1,182,899

756,163

759,271

684,299

 

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

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

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

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

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

 

 

 

 

 

 

BALANCE SHEET

 

PERKHIDMATAN KARGO TUMPATAN SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

2,221,568

2,150,342

1,263,591

994,200

660,060

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

500

500

500

500

500

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

500

500

500

500

500

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,222,068

2,150,842

1,264,091

994,700

660,560

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

10,153,621

9,929,469

3,291,543

5,447,675

3,212,299

Trade debtors

17,689,600

11,740,488

10,830,872

10,989,169

11,897,305

Other debtors, deposits & prepayments

6,352,243

557,819

861,511

1,164,639

80,412

Short term deposits

10,413,519

1,274,432

1,265,475

1,088,750

520,000

Amount due from director

-

-

15,809

17,673

-

Cash & bank balances

1,873,830

1,450,048

1,702,588

2,201,110

319,155

Others

90,579

216,579

18,791

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

46,573,392

25,168,835

17,986,589

20,909,016

16,029,171

 

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

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

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

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

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

TOTAL ASSET

48,795,460

27,319,677

19,250,680

21,903,716

16,689,731

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,541,998

2,461,916

1,353,403

10,040,052

2,995,965

Other creditors & accruals

1,492,573

802,330

359,543

302,716

1,317,128

Hire purchase & lease creditors

106,473

324,756

503,650

355,890

174,587

Bank overdraft

725,567

-

-

-

433,381

Short term borrowings/Term loans

208,087

191,478

183,050

166,321

-

Other borrowings

26,604,255

14,465,292

-

-

-

Bill & acceptances payable

6,385,000

1,077,000

9,706,843

4,581,528

6,891,784

Amounts owing to director

-

-

45,000

45,000

300,005

Provision for taxation

-

-

-

131,802

180,255

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

39,063,953

19,322,772

12,151,489

15,623,309

12,293,105

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,509,439

5,846,063

5,835,100

5,285,707

3,736,066

 

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

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

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

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

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

TOTAL NET ASSETS

9,731,507

7,996,905

7,099,191

6,280,407

4,396,626

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,000,016

2,000,016

2,000,016

2,000,016

2,000,016

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,000,016

2,000,016

2,000,016

2,000,016

2,000,016

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

7,059,784

5,512,403

4,108,682

2,981,736

2,094,370

 

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

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

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

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

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

TOTAL RESERVES

7,059,784

5,512,403

4,108,682

2,981,736

2,094,370

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

9,059,800

7,512,419

6,108,698

4,981,752

4,094,386

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

276,139

484,486

670,865

833,679

-

Hire purchase creditors

395,568

-

319,628

464,976

302,240

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

671,707

484,486

990,493

1,298,655

302,240

 

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

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

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

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

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

 

9,731,507

7,996,905

7,099,191

6,280,407

4,396,626

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

PERKHIDMATAN KARGO TUMPATAN SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

12,287,349

2,724,480

2,968,063

3,289,860

839,155

Net Liquid Funds

5,176,782

1,647,480

(6,738,780)

(1,291,668)

(6,486,010)

Net Liquid Assets

(2,644,182)

(4,083,406)

2,543,557

(161,968)

523,767

Net Current Assets/(Liabilities)

7,509,439

5,846,063

5,835,100

5,285,707

3,736,066

Net Tangible Assets

9,731,507

7,996,905

7,099,191

6,280,407

4,396,626

Net Monetary Assets

(3,315,889)

(4,567,892)

1,553,064

(1,460,623)

221,527

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

34,701,089

16,543,012

11,384,036

6,402,394

7,801,992

Total Liabilities

39,735,660

19,807,258

13,141,982

16,921,964

12,595,345

Total Assets

48,795,460

27,319,677

19,250,680

21,903,716

16,689,731

Net Assets

9,731,507

7,996,905

7,099,191

6,280,407

4,396,626

Net Assets Backing

9,059,800

7,512,419

6,108,698

4,981,752

4,094,386

Shareholders' Funds

9,059,800

7,512,419

6,108,698

4,981,752

4,094,386

Total Share Capital

2,000,016

2,000,016

2,000,016

2,000,016

2,000,016

Total Reserves

7,059,784

5,512,403

4,108,682

2,981,736

2,094,370

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.31

0.14

0.24

0.21

0.07

Liquid Ratio

0.93

0.79

1.21

0.99

1.04

Current Ratio

1.19

1.30

1.48

1.34

1.30

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

19

26

10

23

32

Debtors Ratio

33

31

33

46

119

Creditors Ratio

7

7

4

42

30

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

3.83

2.20

1.86

1.29

1.91

Liabilities Ratio

4.39

2.64

2.15

3.40

3.08

Times Interest Earned Ratio

2.20

2.64

3.05

2.95

2.53

Assets Backing Ratio

4.87

4.00

3.55

3.14

2.20

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.06

1.40

1.31

1.69

2.87

Net Profit Margin

0.80

1.12

0.95

1.18

2.00

Return On Net Assets

38.92

39.02

32.50

35.72

39.44

Return On Capital Employed

35.85

37.50

30.35

33.80

34.65

Return On Shareholders' Funds/Equity

17.08

20.68

18.45

20.82

17.89

Dividend Pay Out Ratio (Times)

0.00

0.10

0.00

0.14

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.103.31

Euro

1

Rs.85.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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

 

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.