MIRA INFORM REPORT

 

 

Report Date :

27.01.2014

 

IDENTIFICATION DETAILS

 

Name :

KILANG MEMPROSES BARANG2 TEMPATAN SDN. BHD.

 

 

Registered Office :

311A, Taman Melaka Raya, 75000 Melaka, Melaka,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.01.2013

 

 

Date of Incorporation :

07.09.1976

 

 

Com. Reg. No.:

29134-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of animal feed

 

 

No. of Employees :

20 (2014)

 

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.

:

29134-K

COMPANY NAME

:

KILANG MEMPROSES BARANG2 TEMPATAN SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/09/1976

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

311A, TAMAN MELAKA RAYA, 75000 MELAKA, MELAKA, MALAYSIA.

BUSINESS ADDRESS

:

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

TEL.NO.

:

06-3357285

FAX.NO.

:

06-3357301

CONTACT PERSON

:

LIM SIEW CHOO ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46902

PRINCIPAL ACTIVITY

:

TRADING OF ANIMAL FEED

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

 

 

 

SALES

:

MYR 65,306,643 [2013]

NET WORTH

:

MYR 7,711,423 [2013]

 

 

 

STAFF STRENGTH

:

20 [2014]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
EON BANK BHD
HONG LEONG BANK BHD
RHB BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

PROMPT

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 animal feed.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

18/12/2013

MYR 5,000,000.00

MYR 2,500,000.00

15/02/2013

MYR 5,000,000.00

MYR 1,500,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

L.P.H.REALTY SDN.BHD.

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

113489A

1,250,000.00

50.00

LIM SIAK CHIEW SDN. BHD.

19-F, JALAN BACHANG, 75350 BATU BERENDAM, MELAKA, MALAYSIA.

50056M

1,250,000.00

50.00

 

 

 

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

------

 

 

 

2,500,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIOW CHAI GUAN

Address

:

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

 

 

 

New IC No

:

580611-04-5341

Date of Birth

:

11/06/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/07/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

LIM SIEW CHOO

Address

:

19-F, JALAN BANCANG, 75200 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

5546810

New IC No

:

590403-04-5194

Date of Birth

:

03/04/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/07/1987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM SIEW CHOO

 

Position

:

DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

YEO & PIONG

Auditor' Address

:

311B, TAMAN MELAKA RAYA , 75000 MELAKA, MELAKA, MALAYSIA.

 

COMPANY SECRETARIES

 

 

1)

Company Secretary

:

MR. YEO YAN

 

 

 

 

 

New IC No

:

450927-01-5469

 

Address

:

656D, JALAN UJONG PASIR, 75050 MELAKA, MELAKA, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

EON BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

 

 

 

 

4)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

 

 

5)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

15/01/1986

N/A

UMBC BHD

MYR 155,000.00

Unsatisfied

4

25/01/2008

LETTER OF SET-OFF

RHB BANK BHD

MYR 300,000.00

Unsatisfied

2

06/02/2008

1ST LEGAL CHARGE

RHB BANK BHD

-

Unsatisfied

3

06/02/2008

N/A

RHB BANK BHD

-

Satisfied

5

07/07/2009

2ND LEGAL CHARGE

RHB BANK BHD

-

Unsatisfied

6

20/11/2009

FIXED DEPOSIT BUILD-UP OF RM20,000.00

EON BANK BHD

MYR 500,000.00

Unsatisfied

7

01/11/2010

N/A

EON BANK BHD

MYR 3,100,000.00

Unsatisfied

8

25/08/2011

MEMORANDUM OF DEPOSIT

ALLIANCE BANK MALAYSIA BHD

-

Unsatisfied

9

21/10/2011

FIXED DEPOSIT

HONG LEONG BANK BERHAD

MYR 2,500,000.00

Unsatisfied

10

02/03/2012

LETTER OF SET OFF

RHB BANK BHD

MYR 3,000,000.00

Unsatisfied

11

28/12/2012

LEGAL OF SET OFF

HONG LEONG BANK BERHAD

-

Unsatisfied

12

20/03/2013

MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT & LETTER OF SET-OFF

MALAYAN BANKING BHD

-

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

 

 

 


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

[

X

]

 

Good 31-60 Days

[

 

]

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

ANIMAL FEED

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2012

2011

2010

2009

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

20

30

15

15

20

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The Subject sells animal feed.

The products including corn, maze, flour, salt and other related products


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 MILLS, PULAU GAD ONG, 75300, MELAKA

Current Address

:

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

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

11.55%

]

 

Return on Net Assets

:

Favourable

[

128.52%

]

 

 

 

 

 

 

 

 

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

[

2 Days

]

 

Debtor Ratio

:

Unfavourable

[

118 Days

]

 

Creditors Ratio

:

Favourable

[

29 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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

:

Favourable

[

1.17 Times

]

 

Current Ratio

:

Unfavourable

[

1.19 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

:

Unfavourable

[

1.13 Times

]

 

Gearing Ratio

:

Unfavourable

[

2.71 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 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. 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

 

 

 

 

 



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 1976, the Subject is a Private Limited company, focusing on trading of animal feed. The Subject has been in business for over 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 holding company 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 should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. The Subject's business operation is supported by 20 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.

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 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. 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 7,711,423, 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.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

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)

KILANG MEMPROSES BARANG2 TEMPATAN SDN. BHD.

 

Financial Year End

2013-01-31

2012-01-31

2011-01-31

2010-01-31

2009-01-31

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

65,306,643

56,537,102

35,028,740

27,746,583

25,586,222

Other Income

849,210

510,292

-

-

-

 

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

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

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

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

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

Total Turnover

66,155,853

57,047,394

35,028,740

27,746,583

25,586,222

Costs of Goods Sold

(61,629,420)

(52,574,690)

(32,398,090)

(24,929,758)

-

 

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

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

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

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

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

Gross Profit

4,526,433

4,472,704

2,630,650

2,816,825

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,220,964

1,062,095

764,734

701,367

795,006

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,220,964

1,062,095

764,734

701,367

795,006

Taxation

(330,396)

(275,841)

(169,832)

(178,535)

(168,750)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

890,568

786,254

594,902

522,832

626,256

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

5,101,700

4,315,446

4,395,544

4,277,714

3,651,458

 

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

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

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

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

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

As restated

5,101,700

4,315,446

4,395,544

4,277,714

3,651,458

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,992,268

5,101,700

4,990,446

4,800,546

4,277,714

DIVIDENDS - Ordinary (paid & proposed)

-

-

(675,000)

(405,002)

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,992,268

5,101,700

4,315,446

4,395,544

4,277,714

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

-

-

6,374

1,843

-

Term loan / Borrowing

-

-

66,837

33,719

-

Trust receipts

-

-

145,607

111,306

-

Others

9,139,829

560,221

1,431

219

147,088

 

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

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

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

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

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

 

9,139,829

560,221

220,249

147,087

147,088

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

KILANG MEMPROSES BARANG2 TEMPATAN SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

2,287,576

2,386,643

611,770

509,371

418,551

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

655,000

655,000

655,000

655,000

655,000

Investments

180,000

180,000

180,000

180,000

180,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

835,000

835,000

835,000

835,000

835,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,122,576

3,221,643

1,446,770

1,344,371

1,253,551

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

436,822

1,041,142

732,303

931,811

779,094

Trade debtors

21,090,372

16,219,158

12,948,485

9,911,457

11,281,165

Other debtors, deposits & prepayments

116,879

54,479

294,975

507,923

42,985

Short term deposits

6,931,958

4,481,341

1,693,735

512,878

403,020

Cash & bank balances

2,128,502

483,827

705,442

964,878

897,878

Others

-

-

116,772

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

30,704,533

22,279,947

16,491,712

12,828,947

13,404,142

 

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

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

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

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

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

TOTAL ASSET

33,827,109

25,501,590

17,938,482

14,173,318

14,657,693

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

4,891,001

2,760,479

5,134,281

3,813,472

7,142,693

Other creditors & accruals

275,990

1,210,495

231,591

374,863

250,126

Hire purchase & lease creditors

58,070

58,071

87,998

64,006

-

Bank overdraft

5,017

1,079,616

-

-

-

Short term borrowings/Term loans

14,944,288

7,011,326

181,698

172,551

-

Bill & acceptances payable

5,506,000

5,704,000

5,659,227

3,168,949

1,850,000

Amounts owing to director

-

33,000

-

45,000

45,000

Provision for taxation

85,293

39,853

-

73,336

68,003

Other liabilities

-

160,000

-

153,000

265,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

25,765,659

18,056,840

11,294,795

7,865,177

9,620,822

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,938,874

4,223,107

5,196,917

4,963,770

3,783,320

 

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

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

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

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

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

TOTAL NET ASSETS

8,061,450

7,444,750

6,643,687

6,308,141

5,036,871

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,500,000

1,500,000

1,500,000

900,000

540,002

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,500,000

1,500,000

1,500,000

900,000

540,002

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Capital reserve

219,155

219,155

219,155

219,155

219,155

Retained profit/(loss) carried forward

5,992,268

5,101,700

4,315,446

4,395,544

4,277,714

 

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

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

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

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

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

TOTAL RESERVES

6,211,423

5,320,855

4,534,601

4,614,699

4,496,869

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

7,711,423

6,820,855

6,034,601

5,514,699

5,036,871

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

185,512

401,310

-

-

-

Hire purchase creditors

164,515

222,585

9,322

31,991

-

Deferred taxation

-

-

599,764

761,451

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

350,027

623,895

609,086

793,442

-

 

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

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

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

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

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

 

8,061,450

7,444,750

6,643,687

6,308,141

5,036,871

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KILANG MEMPROSES BARANG2 TEMPATAN SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

9,060,460

4,965,168

2,399,177

1,477,756

1,300,898

Net Liquid Funds

3,549,443

(1,818,448)

(3,260,050)

(1,691,193)

(549,102)

Net Liquid Assets

4,502,052

3,181,965

4,464,614

4,031,959

3,004,226

Net Current Assets/(Liabilities)

4,938,874

4,223,107

5,196,917

4,963,770

3,783,320

Net Tangible Assets

8,061,450

7,444,750

6,643,687

6,308,141

5,036,871

Net Monetary Assets

4,152,025

2,558,070

3,855,528

3,238,517

3,004,226

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

20,863,402

14,476,908

5,938,245

3,437,497

1,850,000

Total Liabilities

26,115,686

18,680,735

11,903,881

8,658,619

9,620,822

Total Assets

33,827,109

25,501,590

17,938,482

14,173,318

14,657,693

Net Assets

8,061,450

7,444,750

6,643,687

6,308,141

5,036,871

Net Assets Backing

7,711,423

6,820,855

6,034,601

5,514,699

5,036,871

Shareholders' Funds

7,711,423

6,820,855

6,034,601

5,514,699

5,036,871

Total Share Capital

1,500,000

1,500,000

1,500,000

900,000

540,002

Total Reserves

6,211,423

5,320,855

4,534,601

4,614,699

4,496,869

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.35

0.27

0.21

0.19

0.14

Liquid Ratio

1.17

1.18

1.40

1.51

1.31

Current Ratio

1.19

1.23

1.46

1.63

1.39

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

2

7

8

12

11

Debtors Ratio

118

105

135

130

161

Creditors Ratio

29

19

58

56

102

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

2.71

2.12

0.98

0.62

0.37

Liabilities Ratio

3.39

2.74

1.97

1.57

1.91

Times Interest Earned Ratio

1.13

2.90

4.47

5.77

6.40

Assets Backing Ratio

5.37

4.96

4.43

7.01

9.33

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.87

1.88

2.18

2.53

3.11

Net Profit Margin

1.36

1.39

1.70

1.88

2.45

Return On Net Assets

128.52

21.79

14.83

13.45

18.70

Return On Capital Employed

127.52

18.90

14.63

13.32

18.70

Return On Shareholders' Funds/Equity

11.55

11.53

9.86

9.48

12.43

Dividend Pay Out Ratio (Times)

0.00

0.00

1.13

0.77

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0




 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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.