MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

MENG SIANG TRADING & SERVICES SDN. BHD.

 

 

Registered Office :

10A, Lebuh Gopeng, 41400 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.07.2012

 

 

Date of Incorporation :

07.04.2004

 

 

Com. Reg. No.:

648154-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Providing of jetty services, forwarding services

 

 

No of Employees :

15

 

 

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, 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.

:

648154-K

COMPANY NAME

:

MENG SIANG TRADING & SERVICES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/04/2004

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

10A, LEBUH GOPENG, 41400 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

JETTY AWAL IDAMAN, SUNGAI RABUAN GURAB, PULAU INDAH, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31015184/31663055

FAX.NO.

:

03-31013251

CONTACT PERSON

:

TAN CHEE MENG ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

52291

PRINCIPAL ACTIVITY

:

PROVIDING OF JETTY SERVICES, FORWARDING SERVICES

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 23,799,581 [2012]

NET WORTH

:

MYR 2,249,274 [2012]

 

 

 

STAFF STRENGTH

:

15 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

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) providing of jetty services, forwarding services.

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 100,000.00

MYR 100,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. TAN SOH HONG +

1, JALAN JELAI 1, KAWASAN 9, OFF JALAN KIM CHUAN PANDAMARAN, 42000 PORT KLANG, MALAYSIA.

700623-10-5528 A1541942

25,000.00

25.00

MR. TAN CHEE KEONG +

1, JALAN JELAI 1, KAWASAN 9, OFF JALAN KIM CHUAN PANDAMARAN, PORT KLANG, 41200 KLANG, SELANGOR, MALAYSIA.

751220-10-5283

25,000.00

25.00

MR. TAN CHEE MENG +

1, JALAN JELAI 1, OFF JALAN KIM CHUAN, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

710829-10-5039 A1935754

25,000.00

25.00

MS. GAN BEE LING +

951, JLN LETCHUMANAN, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

760229-10-5102 A3234465

25,000.00

25.00

 

 

 

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

------

 

 

 

100,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TAN CHEE MENG

Address

:

1, JALAN JELAI 1, OFF JALAN KIM CHUAN, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A1935754

New IC No

:

710829-10-5039

Date of Birth

:

29/08/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/12/2004

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN CHEE KEONG

Address

:

1, JALAN JELAI 1, KAWASAN 9, OFF JALAN KIM CHUAN PANDAMARAN, PORT KLANG, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

751220-10-5283

Date of Birth

:

20/12/1975

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/04/2004

 

DIRECTOR 3

 

Name Of Subject

:

MS. TAN SOH HONG

Address

:

1, JALAN JELAI 1, KAWASAN 9, OFF JALAN KIM CHUAN PANDAMARAN, 42000 PORT KLANG, MALAYSIA.

IC / PP No

:

A1541942

New IC No

:

700623-10-5528

Date of Birth

:

23/06/1970

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/04/2004

 

DIRECTOR 4

 

Name Of Subject

:

MS. GAN BEE LING

Address

:

951, JLN LETCHUMANAN, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A3234465

New IC No

:

760229-10-5102

Date of Birth

:

29/02/1976

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/12/2004

 

 

MANAGEMENT

 

1)

Name of Subject

:

TAN CHEE MENG

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LINDA

 

Position

:

ACCOUNT MANAGER

 

 

AUDITOR

 

Auditor

:

THIANG & CO.

Auditor' Address

:

10, LEBUH GOPENG, 41400 KLANG, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

 

1)

Company Secretary

:

MS. LIM LILY

 

IC / PP No

:

2266045

 

New IC No

:

470602-10-5966

 

Address

:

77, JALAN IBUS, SOUTHERN PARK, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. TONG MEI FONG

 

 

 

 

 

New IC No

:

570621-10-6276

 

Address

:

225, JALAN LADANG PALM GROVE, 41200 KLANG, SELANGOR, 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

09/12/2011

FACILITIES AGREEMENT

PUBLIC BANK BHD

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT

 

* A check has been conducted in our databank against 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

 

 

 


The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

INDONESIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Services

:

JETTY SERVICES, FORWARDING SERVICES

 

 

 

 

Competitor(s)

:

CJ GLS MALAYSIA SDN BHD
KONSORTIUM LOGISTIK BHD
TASCO BHD

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 


 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

15

15

15

15

15

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) providing of jetty services, forwarding services.

The Subject is engaged in the following services:


* Forwarding services

* Jetty handling services


The Subject provides its services according to 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

:

03-31015184/31663055

Match

:

N/A

 

 

 

Address Provided by Client

:

JETTY AWAL IDAMAN, LOT 74080 SEKSYEN 1, JALAN SUNGAI RABUAN GURAB PULAU INDAH 42920 PORT KLANG

Current Address

:

JETTY AWAL IDAMAN, SUNGAI RABUAN GURAB, PULAU INDAH, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

 

We contacted one of the staff from the Subject and she provided some information.

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

9.30%

]

 

Return on Net Assets

:

Acceptable

[

14.90%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the Subject's products / services. The Subject's profit fell sharply because of the high operating costs incurred. 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

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Unfavourable

[

97 Days

]

 

Creditors Ratio

:

Unfavourable

[

88 Days

]

 

 

 

 

 

 

 

 

As the Subject is a service oriented company, the Subject does not need to keep stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.27 Times

]

 

Current Ratio

:

Unfavourable

[

1.27 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

71.68 Times

]

 

Gearing Ratio

:

Favourable

[

0.13 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's performance deteriorated over the years with lower turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : FAIR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

 

52291 : Forwarding of freight

 

 

INDUSTRY :

TRANSPORTATION

 

 

 

The Malaysian transportation industry is forecast to grow at a compound annual growth rate of 11.6% to reach RM203.71 billion in 2016.

 

In 2013, the transportation industry is expected to have a growth of 6.7% due to the implementation of Government Transformation Programme and the Economic Transformation Programme (ETP). According to Budget 2013, RM9.4 billion is allocated for the transportation sector, including RM4.2 billion for improving access and connectivity in urban public transport. Substantial provision is also made for the construction, maintenance and upgrading of roads and bridges, railways, airports, ports and jetties as well as rural infrastructure major ongoing transport projects include the East Coast Highway (LPT) Phase II from Jabor to Kuala Terengganu and the Central Spine Federal Road (Package 3). New projects slated for the year include upgrading of road works between Donggongan to Simpang Jalan Papar Spur (Package 1) (Sabah), Pekan-Nenasi-Endau (Pahang); and Batu Maung to Pulau Pinang Second Bridge (Bayan Lepas Expressway) as well as upgrading of rail infrastructure in Lembah Klang (Phase 1). Construction of the West Coast Highway from Taiping to Banting is also expected to commence in 2013.

 

During the first half of 2012, the transport and storage sector grew 5.9% due to sustained passenger travel and moderate trade activities. Growth was also supported by initiatives to modernise the transport infrastructure, particularly ports, airports and public transport. In 2012, the sector had increased to 5.2% as domestic economic activities remain resilient amid a moderate trade expansion. In addition, Malaysia ranked seventh in the Liner Shipping Connectivity Index (LSCI) by the United Nations Conference on Trade and Development (UNCTAD), underscoring the growing importance of Malaysia as a regional logistics hub. The changing dynamics of the global shipping environment have, however, affected the domestic maritime industry. The introduction of ultra-large ships with a higher carrying capacity has lowered the charter rates due to economies of scale. This has prompted domestic ports to purchase new cranes and build new wharfs to cater for the berth of ultra-large ships in efforts to remain competitive.

 

The performance of the land transport segment is expected to remain steady supported by initiatives to upgrade roads and public transport infrastructure to ensure a seamless movement of goods and services. During the first six months of 2012, the number of vehicles on tolled highways increased 4.5% to 761.4 million. In urban public transport, total ridership on Rapid KL and Rapid Penang bus services rose 3.8% to 67.5 million passengers during the first six months of 2012.

 

The air transport market plays an active role in Malaysia's economic development by supporting the country's trade and tourism. The Malaysia's car rental market developing into one of the most mature kind in the Asia-Pacific region. Malaysia's rail network only covers 1,849km and transports 4-4.5 million passengers per year. As such, the rail transport market accounts for a small share on the total passanger transportation industry. Malaysia also emerging as an important cruise destination in the Asia-Pacific regoin. During the first half of 2012, growth in the air transport segment was moderate despite sustained demand for passenger travel. Total passenger traffic in airports nationwide expanded 4.1% to 33.2 million partly attributed to increased connectivity following the entry of new airlines to Malaysia such as Mandala Airlines and Bangkok Airways.

 

A world-class public transport system is imperative as the nation moves towards a high-income and developed economy. The Sungai Buloh-Kajang Line MY Rapid Transit (SBK-MRT) service, which is expected to be operational by 2017, will transform the urban public transport infrastructure in the Klang Valley. Similarly, there is a need to improve the public transport system in major cities outside Klang Valley to facilitate a seamless and efficient movement of people, goods and services.

 

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 2004, the Subject is a Private Limited company, focusing on providing of jetty services and forwarding services. Having been in the industry for 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.

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. Being a small company, the Subject's business operation is supported by 15 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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 2,249,274, 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.


The Subject's overall payment habit is fair and this clearly implied a weak credit control of the Subject.


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

 

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

MENG SIANG TRADING & SERVICES SDN. BHD.

 

Financial Year End

2012-07-31

2011-07-31

2010-07-31

2009-07-31

2008-07-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

23,799,581

23,849,893

25,839,507

14,626,096

14,766,302

Other Income

-

-

1

-

-

 

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

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

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

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

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

Total Turnover

23,799,581

23,849,893

25,839,508

14,626,096

14,766,302

Costs of Goods Sold

(21,336,647)

(21,662,103)

(24,126,941)

-

-

 

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

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

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

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

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

Gross Profit

2,462,934

2,187,790

1,712,567

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

619,589

728,477

601,105

326,853

269,015

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

(249,999)

-

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

369,590

728,477

601,105

326,853

269,015

Taxation

(160,306)

(157,326)

(110,940)

(58,334)

(62,861)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

209,284

571,151

490,165

268,519

206,154

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,939,990

1,368,839

878,674

610,155

404,001

 

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

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

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

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

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

As restated

1,939,990

1,368,839

878,674

610,155

404,001

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,149,274

1,939,990

1,368,839

878,674

610,155

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,149,274

1,939,990

1,368,839

878,674

610,155

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

-

-

-

9

-

Term loan / Borrowing

5,229

-

-

-

-

 

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

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

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

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

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

 

5,229

-

-

9

-

 

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

 

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

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

 

 

 

BALANCE SHEET

 

MENG SIANG TRADING & SERVICES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

855,419

159,572

244,577

143,735

169,955

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

1

250,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1

250,000

-

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

855,420

409,572

244,577

143,735

169,955

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Trade debtors

6,315,263

6,433,761

3,346,467

4,445,605

-

Other debtors, deposits & prepayments

244,145

563,070

144,039

22,074

-

Short term deposits

85,486

422,989

480,000

200,000

-

Amount due from associated companies

500,000

-

-

-

-

Cash & bank balances

682,796

153,789

1,951,463

316,221

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

7,827,690

7,573,609

5,921,969

4,983,900

4,246,506

 

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

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

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

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

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

TOTAL ASSET

8,683,110

7,983,181

6,166,546

5,127,635

4,416,461

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

5,169,443

5,770,016

4,501,366

3,906,416

-

Other creditors & accruals

933,640

90,208

147,956

114,154

-

Hire purchase & lease creditors

19,752

-

-

-

-

Short term borrowings/Term loans

16,180

-

-

-

-

Amounts owing to director

22,253

-

-

100,000

-

Provision for taxation

5,534

67,567

32,985

12,991

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

6,166,802

5,927,791

4,682,307

4,133,561

3,693,606

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,660,888

1,645,818

1,239,662

850,339

552,900

 

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

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

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

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

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

TOTAL NET ASSETS

2,516,308

2,055,390

1,484,239

994,074

722,855

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

100,000

100,000

100,000

100,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

100,000

100,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

2,149,274

1,939,990

1,368,839

878,674

610,155

 

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

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

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

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

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

TOTAL RESERVES

2,149,274

1,939,990

1,368,839

878,674

610,155

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,249,274

2,039,990

1,468,839

978,674

710,155

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

175,207

-

-

-

-

Hire purchase creditors

71,248

-

-

-

-

Deferred taxation

20,579

15,400

15,400

15,400

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

267,034

15,400

15,400

15,400

12,700

 

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

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

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

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

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

 

2,516,308

2,055,390

1,484,239

994,074

722,855

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

MENG SIANG TRADING & SERVICES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

768,282

576,778

2,431,463

516,221

-

Net Liquid Funds

768,282

576,778

2,431,463

516,221

-

Net Liquid Assets

1,660,888

1,645,818

1,239,662

850,339

552,900

Net Current Assets/(Liabilities)

1,660,888

1,645,818

1,239,662

850,339

552,900

Net Tangible Assets

2,516,308

2,055,390

1,484,239

994,074

722,855

Net Monetary Assets

1,393,854

1,630,418

1,224,262

834,939

540,200

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

282,387

0

0

0

-

Total Liabilities

6,433,836

5,943,191

4,697,707

4,148,961

3,706,306

Total Assets

8,683,110

7,983,181

6,166,546

5,127,635

4,416,461

Net Assets

2,516,308

2,055,390

1,484,239

994,074

722,855

Net Assets Backing

2,249,274

2,039,990

1,468,839

978,674

710,155

Shareholders' Funds

2,249,274

2,039,990

1,468,839

978,674

710,155

Total Share Capital

100,000

100,000

100,000

100,000

100,000

Total Reserves

2,149,274

1,939,990

1,368,839

878,674

610,155

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.12

0.10

0.52

0.12

-

Liquid Ratio

1.27

1.28

1.26

1.21

-

Current Ratio

1.27

1.28

1.26

1.21

1.15

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

0

0

-

Debtors Ratio

97

98

47

111

-

Creditors Ratio

88

97

68

97

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.13

0.00

0.00

0.00

-

Liabilities Ratio

2.86

2.91

3.20

4.24

5.22

Times Interest Earned Ratio

71.68

0.00

0.00

36,318.00

-

Assets Backing Ratio

25.16

20.55

14.84

9.94

7.23

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.55

3.05

2.33

2.23

1.82

Net Profit Margin

0.88

2.39

1.90

1.84

1.40

Return On Net Assets

14.90

35.44

40.50

32.88

37.22

Return On Capital Employed

14.78

35.44

40.50

32.88

37.22

Return On Shareholders' Funds/Equity

9.30

28.00

33.37

27.44

29.03

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.17

UK Pound

1

Rs. 103.38

Euro

1

Rs. 85.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.