MIRA INFORM REPORT

 

 

Report Date :

04.01.2014

 

IDENTIFICATION DETAILS

 

Name :

THYE SHEN HUNG SDN. BHD.

 

 

Formerly Known As :

IRAMA SEPAKAT SDN BHD

 

 

Registered Office :

2248, Plot 11, Lorong IKS, Bukit Minyak 2, Taman IKS, Bukit Minyak, 14100 Simpang Ampat, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

22.03.1995

 

 

Com. Reg. No.:

336991-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of Food Products

 

 

No. of Employees :

25

 

 

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 :

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, 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.

:

336991-M

COMPANY NAME

:

THYE SHEN HUNG SDN. BHD.

FORMER NAME

:

IRAMA SEPAKAT SDN BHD (08/01/2007)

INCORPORATION DATE

:

22/03/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

2248, PLOT 11, LORONG IKS, BUKIT MINYAK 2, TAMAN IKS, BUKIT MINYAK, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

2248, PLOT 11, LORONG IKS, BUKIT MINYAK 2, TAMAN IKS, BUKIT MINYAK, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5076423

FAX.NO.

:

04-5076422

CONTACT PERSON

:

TAN KIM HOCK ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING OF FOOD PRODUCTS

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 800,000 CASH AND 200,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 47,950,362 [2011]

NET WORTH

:

MYR 4,691,349 [2011]

 

 

 

STAFF STRENGTH

:

25 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

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 food products.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

16/08/2013

MYR 1,000,000.00

MYR 1,000,000.00

15/02/2013

MYR 1,000,000.00

MYR 800,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

TAN KIM EYAM +

NO. 1, LINTANG INDAH 2, TAMAN BUKIT INDAH, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

4269359

220,000.00

22.00

MR. TAN KIM ANG +

49, LORONG DESA PALMA 2, TAMAN DESA PALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

531007-07-5375

200,000.00

20.00

MR. TAN KIM HOCK +

2052, MK. 9, JALAN BERAPIT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

550701-07-5379

170,000.00

17.00

TAN SOON HENG +

NO. 2052, MUKIM 9, JALAN BERAPIT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

5393787

170,000.00

17.00

MR. TAN SOON SENG +

NO. 12, LORONG MARKISAH 7, TAMAN MARKISAH, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

600517-07-5267

145,000.00

14.50

TAN KEAT KHENG

NO. 1, LINTANG INDAH 2, TAMAN BUKIT INDAH, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

3701508

70,000.00

7.00

TAN LI HEANG

NO. 12, LORONG MARKISAH 7, TAMAN MARKISAH, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

7016085

25,000.00

2.50

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. TAN SOON SENG

Address

:

NO. 12, LORONG MARKISAH 7, TAMAN MARKISAH, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

600517-07-5267

Date of Birth

:

17/05/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

22/03/1995

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN KIM HOCK

Address

:

2052, MK. 9, JALAN BERAPIT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

550701-07-5379

Date of Birth

:

01/07/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/03/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

TAN SOON HENG

Address

:

NO. 2052, MUKIM 9, JALAN BERAPIT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

IC / PP No

:

5393787

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

25/05/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. TAN KIM ANG

Address

:

49, LORONG DESA PALMA 2, TAMAN DESA PALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

531007-07-5375

Date of Birth

:

07/10/1953

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/01/2001

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

TAN KIM EYAM

Address

:

NO. 1, LINTANG INDAH 2, TAMAN BUKIT INDAH, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

IC / PP No

:

4269359

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

25/05/1999

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN KIM HOCK

 

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

CHI-LLTC

Auditor' Address

:

37 LINTASAN PERAJURIT 6, TAMAN PERAK, 31400 IPOH, PERAK, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. KEE BEE AI

 

 

 

 

 

New IC No

:

570124-07-5798

 

Address

:

17 PERSIARAN KOTA PERMAI 2,, TAMAN KOTA PERMAI,, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

23/08/2007

N/A

MALAYAN BANKING BHD

MYR 3,000,000.00

Unsatisfied

2

23/08/2007

N/A

MALAYAN BANKING BHD

MYR 3,560,000.00

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.

 

DEFAULTER

Defaulter

:

THYE SHEN HUNG SDN BHD

(336991M)

Last Followup Date

:

15/09/2012

Amount Default

:

MYR 21,476.00

Full Settlement

:

No

Type of Debt

:

Goods Sold / Services Rendered

Status

:

F/UP

Remark

:

PENDING F/UP VISIT

 

NOTE

:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

 

 

 

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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

DEALERS

 

 

 

 

 

 

 

 

 

 

 

 




OPERATIONS

 

Goods Traded

:

FOOD PRODUCTS

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

25

25

25

25

30

 

 

 

 

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of food products.


The Subject offers a wide range of agricultural products, spices, sugar, rice, rice vermicelli, starch, beans, sundry food products


We were informed that the Subject also repacks the goods according to its customers' requirements.


Besides that the Subject also has a warehouse located at the same premises to keep stocks and materials.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

604 507 8899

Current Telephone Number

:

04-5076423

Match

:

YES

 

 

 

Address Provided by Client

:

2248, PLOT 11, LORONG IKS, BUKIT MINYAK 2, TAMAN IKS, BUKIT MINYAK,14100,SEBERANG PERAI TENGAH,PULAU PINANG.

Current Address

:

2248, PLOT 11, LORONG IKS, BUKIT MINYAK 2, TAMAN IKS, BUKIT MINYAK, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 20th December 2013 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

33.39%

]

 

Return on Net Assets

:

Favourable

[

42.94%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

15 Days

]

 

Debtor Ratio

:

Favourable

[

35 Days

]

 

Creditors Ratio

:

Favourable

[

27 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

[

0.82 Times

]

 

Current Ratio

:

Unfavourable

[

1.15 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

:

Acceptable

[

9.86 Times

]

 

Gearing Ratio

:

Favourable

[

0.23 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

46329 : Wholesale of other foodstuffs

 

 

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 1995, the Subject is a Private Limited company, focusing on trading of food products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future


Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a small company, the Subject's business operation is supported by 25 employees. 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.


The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. However, the Subject has generated a favourable return based on its existing shareholders' funds 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. 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 4,691,349, 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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2011-06-30

2010-06-30

2009-06-30

2008-06-30

2007-06-30

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

47,950,362

51,105,956

42,282,672

52,729,119

7,312,368

 

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

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

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

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

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

Total Turnover

47,950,362

51,105,956

42,282,672

52,729,119

7,312,368

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,080,635

2,143,170

738,700

1,341,829

218,750

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,080,635

2,143,170

738,700

1,341,829

218,750

Taxation

<514,154>

<533,855>

<194,108>

<332,041>

<42,301>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,566,481

1,609,315

544,592

1,009,788

176,449

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,724,868

1,515,553

1,370,961

361,173

184,724

 

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

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

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

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

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

As restated

2,724,868

1,515,553

1,370,961

361,173

184,724

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,291,349

3,124,868

1,915,553

1,370,961

361,173

DIVIDENDS - Ordinary (paid & proposed)

<400,000>

<400,000>

<400,000>

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,891,349

2,724,868

1,515,553

1,370,961

361,173

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

2,591

2,068

4,140

2,386

1,015

Bankers' acceptance

134,484

100,414

29,613

29,106

23,005

Hire purchase

11,205

20,703

15,272

6,612

2,966

Term loan / Borrowing

86,637

155,420

149,835

39,172

-

 

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

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

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

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

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

 

234,917

278,605

198,860

77,276

26,986

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,498,128

4,670,895

4,872,104

3,886,164

623,956

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,498,128

4,670,895

4,872,104

3,886,164

623,956

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

1,954,012

1,880,582

1,786,828

1,815,467

991,701

Trade debtors

4,574,044

5,448,834

4,507,834

4,412,156

900,809

Other debtors, deposits & prepayments

53,917

-

-

189,105

21,048

Cash & bank balances

218,037

820,575

276,515

1,202,751

128,224

 

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

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

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

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

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

TOTAL CURRENT ASSETS

6,800,010

8,149,991

6,571,177

7,619,479

2,041,782

 

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

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

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

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

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

TOTAL ASSET

11,298,138

12,820,886

11,443,281

11,505,643

2,665,738

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,573,148

2,170,166

2,543,380

4,022,875

1,014,268

Other creditors & accruals

879,957

826,500

1,289,894

1,320,065

26,097

Hire purchase & lease creditors

124,257

97,103

91,150

60,057

16,103

Bank overdraft

220

-

19,583

-

-

Short term borrowings/Term loans

279,570

250,700

147,218

78,559

-

Bill & acceptances payable

971,000

3,497,000

1,655,000

875,000

379,000

Amounts owing to director

-

1,000

-

-

-

Provision for taxation

77,800

236,862

20,634

299,163

56,746

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,905,952

7,079,331

5,766,859

6,655,719

1,492,214

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

894,058

1,070,660

804,318

963,760

549,568

 

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

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

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

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

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

TOTAL NET ASSETS

5,392,186

5,741,555

5,676,422

4,849,924

1,173,524

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

800,000

800,000

800,000

800,000

800,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

800,000

800,000

800,000

800,000

800,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

3,891,349

2,724,868

1,515,553

1,370,961

361,173

 

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

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

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

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

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

TOTAL RESERVES

3,891,349

2,724,868

1,515,553

1,370,961

361,173

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

4,691,349

3,524,868

2,315,553

2,170,961

1,161,173

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

640,089

2,083,873

3,133,488

2,541,781

-

Hire purchase creditors

28,726

85,059

175,381

130,782

8,051

Deferred taxation

32,022

47,755

52,000

6,400

4,300

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

700,837

2,216,687

3,360,869

2,678,963

12,351

 

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

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

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

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

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

 

5,392,186

5,741,555

5,676,422

4,849,924

1,173,524

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

218,037

820,575

276,515

1,202,751

128,224

Net Liquid Funds

217,817

820,575

256,932

1,202,751

128,224

Net Liquid Assets

<1,059,954>

<809,922>

<982,510>

<851,707>

<442,133>

Net Current Assets/(Liabilities)

894,058

1,070,660

804,318

963,760

549,568

Net Tangible Assets

5,392,186

5,741,555

5,676,422

4,849,924

1,173,524

Net Monetary Assets

<1,760,791>

<3,026,609>

<4,343,379>

<3,530,670>

<454,484>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,072,862

2,516,735

3,566,820

2,811,179

24,154

Total Liabilities

6,606,789

9,296,018

9,127,728

9,334,682

1,504,565

Total Assets

11,298,138

12,820,886

11,443,281

11,505,643

2,665,738

Net Assets

5,392,186

5,741,555

5,676,422

4,849,924

1,173,524

Net Assets Backing

4,691,349

3,524,868

2,315,553

2,170,961

1,161,173

Shareholders' Funds

4,691,349

3,524,868

2,315,553

2,170,961

1,161,173

Total Share Capital

800,000

800,000

800,000

800,000

800,000

Total Reserves

3,891,349

2,724,868

1,515,553

1,370,961

361,173

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.04

0.12

0.05

0.18

0.09

Liquid Ratio

0.82

0.89

0.83

0.87

0.70

Current Ratio

1.15

1.15

1.14

1.14

1.37

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

15

13

15

13

50

Debtors Ratio

35

39

39

31

45

Creditors Ratio

27

15

22

28

51

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.23

0.71

1.54

1.29

0.02

Liabilities Ratio

1.41

2.64

3.94

4.30

1.30

Times Interest Earned Ratio

9.86

8.69

4.71

18.36

9.11

Assets Backing Ratio

6.74

7.18

7.10

6.06

1.47

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.34

4.19

1.75

2.54

2.99

Net Profit Margin

3.27

3.15

1.29

1.92

2.41

Return On Net Assets

42.94

42.18

16.52

29.26

20.94

Return On Capital Employed

41.97

41.48

16.20

28.90

20.66

Return On Shareholders' Funds/Equity

33.39

45.66

23.52

46.51

15.20

Dividend Pay Out Ratio (Times)

0.26

0.25

0.73

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.41

UK Pound

1

Rs.102.54

Euro

1

Rs.85.20

 

 

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

----

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.