MIRA INFORM REPORT

 

 

Report Date :

21.03.2014

 

IDENTIFICATION DETAILS

 

Name :

YI TAI HUNG ENTERPRISE SDN. BHD.

 

 

Registered Office :

24B, Jalan Dato' Yusof Shahbudin 28, Taman Sentosa, Tingkat 2, 41200 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

08.04.2011

 

 

Com. Reg. No.:

939627-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trader of foodstuffs

 

 

No of Employees :

10

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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.

:

939627-V

COMPANY NAME

:

YI TAI HUNG ENTERPRISE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

08/04/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

24B, JALAN DATO' YUSOF SHAHBUDIN 28, TAMAN SENTOSA, TINGKAT 2, 41200 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

WAREHOUSE D, LOT 4359, JALAN PANDAMARAN, KAMPUNG PENDAMAR, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31658245

FAX.NO.

:

03-31658246

CONTACT PERSON

:

KOH CHOON KHENG ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING OF FOODSTUFFS

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 1,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 17,461,518 [2013]

NET WORTH

:

MYR 1,131,784 [2013]

STAFF STRENGTH

:

10 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

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 foodstuffs.

 

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

20/05/2013

MYR 1,000,000.00

MYR 100,000.00

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. KOH CHOON KHENG +

32, LORONG BENDAHARA 46B, TAMAN MEWAH BARU, BATU 3, JALAN SUNGAI JATI, 41200 KLANG, SELANGOR, MALAYSIA.

700905-07-5232 A1673238

275,000.00

27.50

MR. KHOO SOO CHANG +

32, LORONG BENDAHARA 46B, TAMAN MEWAH BARU, BATU 3, JALAN SUNGAI JATI, 41200 KLANG, SELANGOR, MALAYSIA.

680421-07-5599 A0985253

275,000.00

27.50

MS. BEH YEE PHENG

2, JALAN MULIA 3, TAMAN MULIA, 42700 BANTING, SELANGOR, MALAYSIA.

781122-08-5714

250,000.00

25.00

MR. NG KIAM CHUAN

9, B-2, JALAN MELAKA RAYA 14, TAMAN MELAKA RAYA, 75300 MELAKA, MELAKA, MALAYSIA.

750924-07-5073 A3206198

100,000.00

10.00

MR. KHOO SOO KEAT

32, LORONG BENDAHARA 46B, TAMAN MEWAH BARU, BATU 3, JALAN SUNGAI JATI, 41200 KLANG, SELANGOR, MALAYSIA.

720331-07-5417 A2131432

100,000.00

10.00

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

------

1,000,000.00

100.00

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

=====

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. KOH CHOON KHENG

Address

:

32, LORONG BENDAHARA 46B, TAMAN MEWAH BARU, BATU 3, JALAN SUNGAI JATI, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A1673238

New IC No

:

700905-07-5232

Date of Birth

:

05/09/1970

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

08/04/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. KHOO SOO CHANG

Address

:

32, LORONG BENDAHARA 46B, TAMAN MEWAH BARU, BATU 3, JALAN SUNGAI JATI, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A0985253

New IC No

:

680421-07-5599

Date of Birth

:

21/04/1968

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

08/04/2011



MANAGEMENT

 

 

1)

Name of Subject

:

KOH CHOON KHENG

Position

:

DIRECTOR

 

 

 

 

AUDITOR

 

Auditor

:

H.L.LEE & CO.

Auditor' Address

:

11-2, JALAN BATU NILAM 4, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LAI YOK FOONG

IC / PP No

:

5612231

New IC No

:

590123-10-6925

Address

:

36, LORONG HULUBALANG 10B, TAMAN SENTOSA, 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

15/01/2013

LEGAL CHARGE UNDER THE NATIONAL LAND CODE 1965 DATED 15 JAN 2013

OCBC BANK (MALAYSIA) BERHAD

-

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

[

X

]

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

 

OPERATIONS

 

Goods Traded

:

FOODSTUFFS

 

Total Number of Employees:

 

YEAR

2014

2013

2012


GROUP

N/A

N/A

N/A

COMPANY

10

10

10

 

Branch

:

NO

 

Other Information:


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


The Subject is engaged in the trading of grocery products such as onions, rice, flour and others.


The Subject sells the products according to its customers' orders.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31658245

Match

:

N/A

Address Provided by Client

:

WARE HOUSE D LOT 4359 JLAN PANDAMARAN KAMPUNG PENDAMAR 42000 PORTELANG SELANGOR DARUL EHSAN

Current Address

:

WAREHOUSE D, LOT 4359, JALAN PANDAMARAN, KAMPUNG PENDAMAR, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, 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 incorrect.



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

0.43%

]

Profit/(Loss) Before Tax

:

Increased

[

66.28%

]

Return on Shareholder Funds

:

Unfavourable

[

9.25%

]

Return on Net Assets

:

Unfavourable

[

8.62%

]

The higher turnover could be attributed to the favourable market condition. The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

7 Days

]

Debtor Ratio

:

Favourable

[

54 Days

]

Creditors Ratio

:

Unfavourable

[

66 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 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

:

Acceptable

[

0.95 Times

]

Current Ratio

:

Unfavourable

[

1.04 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

[

4.80 Times

]

Gearing Ratio

:

Favourable

[

0.54 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 :

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

# Based On Manufacturing Production Index



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 2011, the Subject is a Private Limited company, focusing on trading of foodstuffs. The Subject has been in business for 3 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Investigation revealed that the Subject concentrates only on the local market. This narrow market segment has placed the Subject at high business risk and limits its business expansion opportunities. 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 10 employees. Overall, we regard that the Subject's management capability is average.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject however 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 1,131,784, the Subject should be able to maintain its business in the near terms.

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 payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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. Nonetheless, the Subject should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same industry.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

YI TAI HUNG ENTERPRISE SDN. BHD.

 

Financial Year End

2013-06-30

2012-06-30

Months

12

15

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

TURNOVER

17,461,518

17,386,082

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

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

Total Turnover

17,461,518

17,386,082

Costs of Goods Sold

(16,217,500)

(15,928,178)

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

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

Gross Profit

1,244,018

1,457,904

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

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

PROFIT/(LOSS) FROM OPERATIONS

117,373

70,589

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

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

PROFIT/(LOSS) BEFORE TAXATION

117,373

70,589

Taxation

(12,658)

(43,520)

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

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

PROFIT/(LOSS) AFTER TAXATION

104,715

27,069

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

27,069

-

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

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

As restated

27,069

-

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

131,784

27,069

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

131,784

27,069

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

2,255

-

Hire purchase

19,127

17,728

Term loan / Borrowing

9,497

-

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

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

30,879

17,728

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

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

 

 

BALANCE SHEET

 

 

YI TAI HUNG ENTERPRISE SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

1,555,388

601,583

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

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

TOTAL LONG TERM ASSETS

1,555,388

601,583

CURRENT ASSETS

Stocks

347,968

302,790

Trade debtors

2,605,298

2,141,748

Other debtors, deposits & prepayments

14,546

14,651

Cash & bank balances

856,001

166,399

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

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

TOTAL CURRENT ASSETS

3,823,813

2,625,588

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

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

TOTAL ASSET

5,379,201

3,227,171

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

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

CURRENT LIABILITIES

Trade creditors

2,935,652

1,829,013

Other creditors & accruals

65,213

323,394

Short term borrowings/Term loans

26,740

-

Amounts owing to director

522,329

512,435

Provision for taxation

14,165

35,324

Lease payables

95,674

76,497

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

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

TOTAL CURRENT LIABILITIES

3,659,773

2,776,663

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

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

NET CURRENT ASSETS/(LIABILITIES)

164,040

(151,075)

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

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

TOTAL NET ASSETS

1,719,428

450,508

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

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

SHARE CAPITAL

Ordinary share capital

1,000,000

100,000

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

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

TOTAL SHARE CAPITAL

1,000,000

100,000

RESERVES

Retained profit/(loss) carried forward

131,784

27,069

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

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

TOTAL RESERVES

131,784

27,069

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,131,784

127,069

LONG TERM LIABILITIES

Long term loans

341,576

-

Lease obligations

239,217

315,243

Deferred taxation

6,851

8,196

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

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

TOTAL LONG TERM LIABILITIES

587,644

323,439

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

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

1,719,428

450,508

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

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

 

 

FINANCIAL RATIO

 

YI TAI HUNG ENTERPRISE SDN. BHD.

 

TYPES OF FUNDS

Cash

856,001

166,399

Net Liquid Funds

856,001

166,399

Net Liquid Assets

(183,928)

(453,865)

Net Current Assets/(Liabilities)

164,040

(151,075)

Net Tangible Assets

1,719,428

450,508

Net Monetary Assets

(771,572)

(777,304)

BALANCE SHEET ITEMS

Total Borrowings

607,533

315,243

Total Liabilities

4,247,417

3,100,102

Total Assets

5,379,201

3,227,171

Net Assets

1,719,428

450,508

Net Assets Backing

1,131,784

127,069

Shareholders' Funds

1,131,784

127,069

Total Share Capital

1,000,000

100,000

Total Reserves

131,784

27,069

LIQUIDITY (Times)

Cash Ratio

0.23

0.06

Liquid Ratio

0.95

0.84

Current Ratio

1.04

0.95

WORKING CAPITAL CONTROL (Days)

Stock Ratio

7

6

Debtors Ratio

54

45

Creditors Ratio

66

42

SOLVENCY RATIOS (Times)

Gearing Ratio

0.54

2.48

Liabilities Ratio

3.75

24.40

Times Interest Earned Ratio

4.80

4.98

Assets Backing Ratio

1.72

4.51

PERFORMANCE RATIO (%)

Operating Profit Margin

0.67

0.41

Net Profit Margin

0.60

0.16

Return On Net Assets

8.62

19.60

Return On Capital Employed

8.62

19.60

Return On Shareholders' Funds/Equity

9.25

21.30

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.13

UK Pound

1

Rs. 101.17

Euro

1

Rs. 84.59

 

 

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.