MIRA INFORM REPORT

 

 

Report Date :

26.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CHIN HUAT TRADING SDN. BHD.

 

 

Registered Office :

36A, Lorong Gelugor, Off Persiaran Sultan Ibrahim, 41300 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.08.2004

 

 

Com. Reg. No.:

663912-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesale of other foodstuffs

 

 

No. of Employees

25

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

663912-H

COMPANY NAME

:

CHIN HUAT TRADING SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/08/2004

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

36A, LORONG GELUGOR, OFF PERSIARAN SULTAN IBRAHIM, 41300 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 8908, JALAN TELOK GONG, KAMPUNG TELOK GONG, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31343261

FAX.NO.

:

03-31343263

CONTACT PERSON

:

TAN CHEE SIANG ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING IN FOODSTUFF

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

SALES

:

MYR 50,554,948 [2012]

NET WORTH

:

MYR 3,157,708 [2012]

STAFF STRENGTH

:

25 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

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 in foodstuff.

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 1,000,000.00

MYR 500,000.00

27/08/2004

MYR 100,000.00

MYR 3.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. TAN CHEE MENG +

26, JALAN PLATINUM 7/36, SEKSYEN 7, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

710829-10-5039 A1935754

250,000.00

50.00

MR. TAN CHEE SIANG +

12, JALAN SETIA DUTA U 13/23U, BANDAR ECO SETIA, SEKSYEN U13, SETIA ALAM, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

830923-10-5189

150,000.00

30.00

MR. TAN CHEE HOW +

3, JALAN SETIA NUSANTARA U 13/22P, BANDAR ECO SETIA, SEKSYEN 13, SETIA ALAM, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

810105-10-5429

100,000.00

20.00

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

------

500,000.00

100.00

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

=====

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. POH AH JAI @ POW AH TAI

Address

:

26, JALAN PLATINUM 7/36, SEKSYEN 7, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

7885773

New IC No

:

460928-10-5502

Date of Birth

:

28/09/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

07/02/2012

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN CHEE HOW

Address

:

3, JALAN SETIA NUSANTARA U 13/22P, BANDAR ECO SETIA, SEKSYEN 13, SETIA ALAM, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

810105-10-5429

Date of Birth

:

05/01/1981

Nationality

:

MALAYSIAN

Date of Appointment

:

06/09/2004

 

DIRECTOR 3

 

Name Of Subject

:

MR. TAN CHEE SIANG

Address

:

12, JALAN SETIA DUTA U 13/23U, BANDAR ECO SETIA, SEKSYEN U13, SETIA ALAM, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

830923-10-5189

Date of Birth

:

23/09/1983

Nationality

:

MALAYSIAN

Date of Appointment

:

25/08/2004

 

DIRECTOR 4

 

Name Of Subject

:

MR. TAN CHEE MENG

Address

:

26, JALAN PLATINUM 7/36, SEKSYEN 7, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A1935754

New IC No

:

710829-10-5039

Date of Birth

:

29/08/1971

Nationality

:

MALAYSIAN

Date of Appointment

:

25/08/2004



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN CHEE SIANG

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

H.K. PHUAH & CO.

Auditor' Address

:

38A, LORONG GELUGOR, OFF PERSIARAN SULTAN IBRAHIM, 41300 KLANG, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. BERNARD LIM BOON SIANG

IC / PP No

:

6096036

New IC No

:

610112-10-6183

Address

:

43, JALAN SUNGAI KERAMAT 13, TAMAN KLANG UTAMA, 42100 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

001

21/02/2012

1.FACILITY AGREEMENTN 2.OPEN ALL MONIES 1ST PARTY LEGAL CHARGE

RHB BANK BERHAD

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

INDIA,CHINA



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

:

N/A

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

RETAIL,END USERS

 

OPERATIONS

 

Goods Traded

:

GROCERIES ITEMS

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2009

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

25

25

25

28

20

 

Branch

:

NO

Other Information:


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

The Subject offers a wide range of products including potatoes, onions, garlics, dried chillies, beans and other grocery items.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31343261

Match

:

N/A

Address Provided by Client

:

LOT 8908, JALAN TELOK GONG, KAMPUNG TELOK GONG, PANDAMARAN,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 8908, JALAN TELOK GONG, KAMPUNG TELOK GONG, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 19th May 2014 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

:

Increased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

10.78%

]

Return on Net Assets

:

Unfavourable

[

9.71%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.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

[

17 Days

]

Debtor Ratio

:

Favourable

[

42 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

:

Unfavourable

[

0.65 Times

]

Current Ratio

:

Unfavourable

[

0.84 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Acceptable

[

5.16 Times

]

Gearing Ratio

:

Acceptable

[

0.90 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.

Overall Assessment :

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.

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
(Source : Department of Statistics / Economic Report / Bank Negara Report)



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 2004, the Subject is a Private Limited company, focusing on trading in foodstuff. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The SC is considered as a medium size company with issued and paid up capital standing at RM500,000.

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 25 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. 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. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 3,157,708, 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 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.

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)

CHIN HUAT TRADING SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

50,554,948

63,081,469

63,642,140

57,598,011

53,315,657

Other Income

12,193

12,866

17,604

117,423

-

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

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

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

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

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

Total Turnover

50,567,141

63,094,335

63,659,744

57,715,434

53,315,657

Costs of Goods Sold

(47,952,404)

(60,358,068)

(60,904,413)

(55,001,160)

-

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

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

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

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

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

Gross Profit

2,614,737

2,736,267

2,755,331

2,714,274

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

456,368

414,743

718,641

530,066

439,336

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

456,368

414,743

718,641

530,066

439,336

Taxation

(115,822)

(91,667)

(162,517)

(115,743)

(98,936)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

340,546

323,076

556,124

414,323

340,400

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,317,162

1,994,086

1,437,962

1,023,639

683,239

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

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

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

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

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

As restated

2,317,162

1,994,086

1,437,962

1,023,639

683,239

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,657,708

2,317,162

1,994,086

1,437,962

1,023,639

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,657,708

2,317,162

1,994,086

1,437,962

1,023,639

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

61

549

279

184

41

Bankers' acceptance

3,686

7,729

5,142

4,928

6,824

Term loan / Borrowing

106,042

-

-

-

-

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

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

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

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

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

109,789

8,278

5,421

5,112

6,865

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

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

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

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

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

 

BALANCE SHEET

 

CHIN HUAT TRADING SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

7,798,626

174,035

251,886

330,001

432,031

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

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

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

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

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

TOTAL LONG TERM ASSETS

7,798,626

174,035

251,886

330,001

432,031

Stocks

2,287,098

1,485,190

2,366,749

1,595,280

1,115,688

Trade debtors

5,851,341

6,446,062

7,771,718

5,742,684

3,994,805

Other debtors, deposits & prepayments

726,115

663,101

673,653

1,243,757

1,299,748

Amount due from director

-

468,121

-

-

-

Cash & bank balances

1,202,961

700,901

1,452,187

2,829,583

2,101,270

Others

36,103

12,973

-

125,738

65,652

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

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

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

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

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

TOTAL CURRENT ASSETS

10,103,618

9,776,348

12,264,307

11,537,042

8,577,163

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

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

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

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

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

TOTAL ASSET

17,902,244

9,950,383

12,516,193

11,867,043

9,009,194

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

8,725,228

6,838,509

9,435,247

9,180,057

5,793,979

Other creditors & accruals

797,422

270,467

275,691

278,729

1,069,321

Short term borrowings/Term loans

246,287

-

-

-

208,000

Amounts owing to director

2,300,000

-

247,632

442,775

386,995

Provision for taxation

-

-

36,407

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

12,068,937

7,108,976

9,994,977

9,901,561

7,458,295

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(1,965,319)

2,667,372

2,269,330

1,635,481

1,118,868

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

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

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

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

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

TOTAL NET ASSETS

5,833,307

2,841,407

2,521,216

1,965,482

1,550,899

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

Retained profit/(loss) carried forward

2,657,708

2,317,162

1,994,086

1,437,962

1,023,639

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

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

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

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

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

TOTAL RESERVES

2,657,708

2,317,162

1,994,086

1,437,962

1,023,639

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,157,708

2,817,162

2,494,086

1,937,962

1,523,639

Long term loans

2,606,954

-

-

-

-

Deferred taxation

68,645

24,245

27,130

27,520

27,260

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,675,599

24,245

27,130

27,520

27,260

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

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

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

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

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

5,833,307

2,841,407

2,521,216

1,965,482

1,550,899

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

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

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

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

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

 

FINANCIAL RATIO

 

CHIN HUAT TRADING SDN. BHD.

 

TYPES OF FUNDS

Cash

1,202,961

700,901

1,452,187

2,829,583

2,101,270

Net Liquid Funds

1,202,961

700,901

1,452,187

2,829,583

2,101,270

Net Liquid Assets

(4,252,417)

1,182,182

(97,419)

40,201

3,180

Net Current Assets/(Liabilities)

(1,965,319)

2,667,372

2,269,330

1,635,481

1,118,868

Net Tangible Assets

5,833,307

2,841,407

2,521,216

1,965,482

1,550,899

Net Monetary Assets

(6,928,016)

1,157,937

(124,549)

12,681

(24,080)

BALANCE SHEET ITEMS

Total Borrowings

2,853,241

0

0

0

208,000

Total Liabilities

14,744,536

7,133,221

10,022,107

9,929,081

7,485,555

Total Assets

17,902,244

9,950,383

12,516,193

11,867,043

9,009,194

Net Assets

5,833,307

2,841,407

2,521,216

1,965,482

1,550,899

Net Assets Backing

3,157,708

2,817,162

2,494,086

1,937,962

1,523,639

Shareholders' Funds

3,157,708

2,817,162

2,494,086

1,937,962

1,523,639

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

2,657,708

2,317,162

1,994,086

1,437,962

1,023,639

LIQUIDITY (Times)

Cash Ratio

0.10

0.10

0.15

0.29

0.28

Liquid Ratio

0.65

1.17

0.99

1.00

1.00

Current Ratio

0.84

1.38

1.23

1.17

1.15

WORKING CAPITAL CONTROL (Days)

Stock Ratio

17

9

14

10

8

Debtors Ratio

42

37

45

36

27

Creditors Ratio

66

41

57

61

40

SOLVENCY RATIOS (Times)

Gearing Ratio

0.90

0.00

0.00

0.00

0.14

Liabilities Ratio

4.67

2.53

4.02

5.12

4.91

Times Interest Earned Ratio

5.16

51.10

133.57

104.69

65.00

Assets Backing Ratio

11.67

5.68

5.04

3.93

3.10

PERFORMANCE RATIO (%)

Operating Profit Margin

0.90

0.66

1.13

0.92

0.82

Net Profit Margin

0.67

0.51

0.87

0.72

0.64

Return On Net Assets

9.71

14.89

28.72

27.23

28.77

Return On Capital Employed

9.71

14.89

28.72

27.23

28.77

Return On Shareholders' Funds/Equity

10.78

11.47

22.30

21.38

22.34

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.48

UK Pound

1

Rs.98.67

Euro

1

Rs.79.80

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

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.