MIRA INFORM REPORT

 

 

Report Date :

01.11.2014

 

IDENTIFICATION DETAILS

 

Name :

CHEMICAL MATE SDN. BHD.

 

 

Registered Office :

Tower 1, Avenue 5, Bangsar South City, Level 2, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

06.04.1995

 

 

Com. Reg. No.:

339140-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is principally engaged in the trading of chemicals.

 

 

No of Employees :

10 [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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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.

:

339140-K

COMPANY NAME

:

CHEMICAL MATE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

06/04/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

TOWER 1, AVENUE 5, BANGSAR SOUTH CITY, LEVEL 2, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

B-1-16, BLOCK B, TAIPAN 2, DAMANSARA, JALAN PJU1A/3, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78427228

FAX.NO.

:

03-78427128

WEB SITE

:

WWW.CHEMICALMATE.COM

CONTACT PERSON

:

KENNETH CHANG BOON KIT ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46691

PRINCIPAL ACTIVITY

:

TRADING OF CHEMICALS

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 300,000.00 DIVIDED INTO
ORDINARY SHARES 200,000 CASH AND 100,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 96,631,102 [2013]

NET WORTH

:

MYR 10,525,235 [2013]

STAFF STRENGTH

:

10 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 


HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

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

 

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 500,000.00

MYR 300,000.00

19/06/2007

MYR 500,000.00

MYR 200,000.00

29/04/2002

MYR 100,000.00

MYR 100,000.00

29/12/2000

MYR 100,000.00

MYR 33,000.00

06/04/1995

MYR 100,000.00

MYR 2.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. KENNETH CHANG BOON KIT +

19, JALAN UBIN U8/19F, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

690924-07-5119

270,000.00

90.00

MR. TEOW HER KOK @ CHANG CHOO CHAU +

B1-07-1, BUKIT UTAMA 1 CONDOMINIUM, 3, CHANGKAT BUKIT UTAMA PJU 6, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

391116-05-5005 3020590

30,000.00

10.00

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

------

300,000.00

100.00

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

=====

+ Also Director

 

 





DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. R SHARIFUDDIN HIZAN BIN R ZAINAL ABIDIN

Address

:

7, LORONG 7A, TAMAN SRI UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

1697749

New IC No

:

460121-08-5395

Date of Birth

:

21/01/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

07/01/2010

Profile

:

PENGARAH URUSAN KHIDMAT PERBADANAN KHIDMAT KORPORAT

Other Info

:

JOHAN SETIA MAHKOTA (J.S.M.)

 

DIRECTOR 2

 

Name Of Subject

:

MR. TEOW HER KOK @ CHANG CHOO CHAU

Address

:

B1-07-1, BUKIT UTAMA 1 CONDOMINIUM, 3, CHANGKAT BUKIT UTAMA PJU 6, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

3020590

New IC No

:

391116-05-5005

Date of Birth

:

16/11/1939

Nationality

:

MALAYSIAN

Date of Appointment

:

06/04/1995

 

DIRECTOR 3

 

Name Of Subject

:

MR. KENNETH CHANG BOON KIT

Address

:

19, JALAN UBIN U8/19F, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

690924-07-5119

Date of Birth

:

24/09/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

09/11/2006



MANAGEMENT

 

 

1)

Name of Subject

:

KENNETH CHANG BOON KIT

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

BAKER TILLY MONTEIRO HENG

Auditor' Address

:

TOWER 1, AVENUE 5, BANGSAR SOUTH CITY, LEVEL 10, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG YOUN KIM

IC / PP No

:

A1617285

New IC No

:

700823-10-5530

Address

:

1041, JALAN KUANG GUNUNG 4, TAMAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MS. SIN MAY PENG

New IC No

:

651206-10-6046

Address

:

70, JALAN SS 24/2, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LITIGATION 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.


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

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

ASIA,EUROPE



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

CHEMICALS

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

10

10

5

5

4

 

Branch

:

NO

Other Information:


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


The Subject sells mainly the olechemicals.

The products are one of the crucial ingredients for producing cosmetics, hair care products and others.

The Subject's products are in liquid and glycerine form.


The Subject sells the products based on the customers' requirements.


Besides, the Subject also sells other industrial chemicals depends on the customers orders.

The Subject also sells chemicals for the following industry:


1) Plastic

2) Rubber

3) Personal care

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78427228

Match

:

N/A

Address Provided by Client

:

B-1-16, BLOCK B, TAIPAN 2, DAMANSARA, JALAN PJU1A/3, ARA DAMANSARA,47301,PETALING JAYA,SELANGOR.

Current Address

:

B-1-16, BLOCK B, TAIPAN 2, DAMANSARA, JALAN PJU1A/3, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 30th October 2014 we contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Decreased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

21.21%

]

Return on Net Assets

:

Acceptable

[

27.42%

]

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

[

0 Days

]

Debtor Ratio

:

Unfavourable

[

74 Days

]

Creditors Ratio

:

Favourable

[

37 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

1.69 Times

]

Current Ratio

:

Unfavourable

[

1.70 Times

]

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

Solvency

Interest Cover

:

Favourable

[

148.50 Times

]

Gearing Ratio

:

Favourable

[

0.46 Times

]

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

Overall Assessment :

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the Subject : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2010

2011

2012

2013

2014**

Population ( Million)

28.35

28.70

29.30

29.80

30.30

Gross Domestic Products ( % )

7.2

5.1

5.6

5.3

6.0

Domestic Demand ( % )

6.3

8.2

9.4

5.6

6.4

Private Expenditure ( % )

8.1

8.2

8.0

7.4

7.9

Consumption ( % )

6.7

7.1

1.0

5.7

6.5

Investment ( % )

17.7

12.2

11.7

13.3

12.0

Public Expenditure ( % )

3.8

8.4

13.3

1.2

2.3

Consumption ( % )

0.2

16.1

11.3

(1.2)

2.1

Investment ( % )

2.8

(0.3)

15.9

4.2

2.6

Balance of Trade ( MYR Million )

118,356

116,058

106,300

110,700

52,314

Government Finance ( MYR Million )

(40,482)

(45,511)

(42,297)

(39,993)

(37,291)

Government Finance to GDP / Fiscal Deficit ( % )

(5.6)

(5.4)

(4.5)

(4.0)

(3.5)

Inflation ( % Change in Composite CPI)

5.1

3.1

1.6

2.5

3.3

Unemployment Rate

3.9

3.3

3.2

3.0

3.0

Net International Reserves ( MYR Billion )

329

415

427

-

417

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.20

3.50

2.20

-

-

Average 3 Months of Non-performing Loans ( % )

15.30

14.80

14.70

-

-

Average Base Lending Rate ( % )

6.30

6.60

6.53

6.53

-

Business Loans Disbursed( % )

14.7

15.3

32.2

-

-

Foreign Investment ( MYR Million )

22,517.9

23,546.1

26,230.4

38,238.0

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

44,148

45,455

45,441

46,321

-

Registration of New Companies ( % )

6.2

3.0

(0.0)

1.9

-

Liquidation of Companies ( No. )

25,585

132,476

-

-

-

Liquidation of Companies ( % )

(34.5)

417.8

-

-

-

Registration of New Business ( No. )

271,414

284,598

324,761

329,895

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,738

20,121

-

-

-

Business Dissolved ( % )

2.0

1.9

-

-

-

Sales of New Passenger Cars (' 000 Unit )

543.6

535.1

552.2

-

-

Cellular Phone Subscribers ( Million )

32.8

35.3

38.5

43.0

-

Tourist Arrival ( Million Persons )

24.6

24.7

25.0

25.7

-

Hotel Occupancy Rate ( % )

63.0

60.6

62.4

62.6

-

Credit Cards Spending ( % )

14.1

15.6

12.6

-

-

Bad Cheque Offenders (No.)

33,568

32,627

26,982

28,876

-

Individual Bankruptcy ( No.)

18,119

19,167

19,575

21,984

-

Individual Bankruptcy ( % )

11.7

5.8

2.1

12.3

-



INDUSTRIES ( % of Growth ):

2010

2011

2012

2013

2014**

Agriculture

2.4

5.8

1.0

2.1

3.8

Palm Oil

(3.4)

10.8

(0.3)

2.6

-

Rubber

9.9

6.1

(7.9)

(10.1)

-

Forestry & Logging

(3.3)

(7.6)

(4.5)

(7.8)

-

Fishing

5.6

2.1

4.3

1.6

-

Other Agriculture

7.9

7.1

6.4

8.2

-

Industry Non-Performing Loans ( MYR Million )

508.4

634.1

-

-

-

% of Industry Non-Performing Loans

2.1

3.2

-

-

-

Mining

(0.3)

(5.4)

1.4

0.9

(0.8)

Oil & Gas

0.5

(1.7)

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

49.7

46.5

-

-

-

% of Industry Non-performing Loans

0.1

0.1

-

-

-

Manufacturing #

11.9

4.7

4.8

3.4

6.6

Exported-oriented Industries

12.1

4.1

6.5

3.3

5.6

Electrical & Electronics

28.4

(4.0)

12.7

6.9

13.3

Rubber Products

25.3

20.7

3.0

11.7

(0.3)

Wood Products

20.1

(5.1)

8.7

(2.7)

5.1

Textiles & Apparel

(0.4)

13.2

(7.1)

(2.6)

11.5

Domestic-oriented Industries

16.3

10.7

1.7

6.8

9.4

Food, Beverages & Tobacco

3.0

4.8

2.7

3.6

6.1

Chemical & Chemical Products

16.2

10.0

10.8

5.6

-

Plastic Products

2.4

3.8

-

-

-

Iron & Steel

29.3

2.2

(6.6)

5.0

0.1

Fabricated Metal Products

14.9

21.8

13.8

9.9

2.9

Non-metallic Mineral

20.2

12.1

2.9

(2.0)

5.4

Transport Equipment

36.5

12.0

3.4

13.8

22.9

Paper & Paper Products

18.7

9.5

3.1

1.8

4.7

Crude Oil Refineries

(11.4)

9.3

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,217.5

6,537.2

-

-

-

% of Industry Non-Performing Loans

23.8

25.7

-

-

-

Construction

11.4

4.7

18.6

10.9

10.0

Industry Non-Performing Loans ( MYR Million )

4,038.5

3,856.9

-

-

-

% of Industry Non-Performing Loans

10.7

10.2

-

-

-

Services

7.4

7.0

6.4

5.9

6.2

Electric, Gas & Water

7.8

3.5

4.4

4.2

3.6

Transport, Storage & Communication

7.7

6.5

7.1

7.3

7.5

Wholesale, Retail, Hotel & Restaurant

4.7

5.2

4.7

5.9

6.9

Finance, Insurance & Real Estate

6.10

6.90

9.70

3.70

4.65

Government Services

5.9

12.4

9.4

8.3

6.1

Other Services

4.4

5.1

3.9

5.1

4.8

Industry Non-Performing Loans ( MYR Million )

7,384.6

6,825.2

-

-

-

% of Industry Non-Performing Loans

25.7

23.4

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

46691 : Wholesale of industrial chemicals

INDUSTRY :

TRADING

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1995 as a Private Limited company, the Subject is principally engaged in the trading of chemicals. Having been in the industry for 18 years, the Subject should have received strong support from its regular customers. A paid up capital of MYR 300,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

Our investigation revealed that the Subject serves both local and overseas clients. Penetrating into the overseas countries has well diversified its business risk. 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. 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. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 10,525,235, the Subject should be able to maintain its business in the near terms.


Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.


Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the Subject promptly.

 

 

 

PROFIT AND LOSS ACCOUNT

 

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

CHEMICAL MATE SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

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

96,631,102

113,185,170

167,995,671

187,469,770

117,534,582

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

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

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

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

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

Total Turnover

96,631,102

113,185,170

167,995,671

187,469,770

117,534,582

Costs of Goods Sold

(90,171,979)

(108,517,034)

(157,641,058)

(176,196,041)

-

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

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

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

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

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

Gross Profit

6,459,123

4,668,136

10,354,613

11,273,729

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

2,892,859

1,840,811

4,253,345

3,496,780

2,825,646

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,892,859

1,840,811

4,253,345

3,496,780

2,825,646

Taxation

(659,999)

(502,391)

(1,130,349)

(909,755)

(798,071)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,232,860

1,338,420

3,122,996

2,587,025

2,027,575

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

8,994,375

7,655,955

4,532,959

2,947,934

2,420,359

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

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

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

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

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

As restated

8,994,375

7,655,955

4,532,959

2,947,934

2,420,359

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

11,227,235

8,994,375

7,655,955

5,534,959

4,447,934

DIVIDENDS - Ordinary (paid & proposed)

(1,002,000)

-

-

(1,002,000)

(1,500,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

10,225,235

8,994,375

7,655,955

4,532,959

2,947,934

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

-

8,997

16,121

104,162

-

Hire purchase

2,372

6,691

11,873

4,264

8,775

Letter of credit

17,240

16,839

-

-

-

Others

-

3,657

26,031

19,288

40,364

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

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

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

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

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

19,612

36,184

54,025

127,714

49,139

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

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

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

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

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

 


 

BALANCE SHEET

 

CHEMICAL MATE SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

363,383

710,424

977,350

1,160,897

850,319

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

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

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

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

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

TOTAL LONG TERM ASSETS

363,383

710,424

977,350

1,160,897

850,319

Stocks

86,914

-

795,761

-

262,338

Trade debtors

19,706,141

5,481,383

15,002,023

30,207,628

12,890,880

Other debtors, deposits & prepayments

77,000

78,377

30,429

11,550

969,720

Short term deposits

3,687,882

1,639,331

-

-

-

Cash & bank balances

1,380,900

6,858,742

6,642,375

6,595,061

6,571,083

Others

-

-

206,797

255,299

569,000

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

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

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

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

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

TOTAL CURRENT ASSETS

24,938,837

14,057,833

22,677,385

37,069,538

21,263,021

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

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

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

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

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

TOTAL ASSET

25,302,220

14,768,257

23,654,735

38,230,435

22,113,340

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

9,258,265

3,913,809

10,406,701

23,194,539

12,091,317

Other creditors & accruals

367,887

740,920

1,801,407

2,524,409

2,094,236

Hire purchase & lease creditors

6,631

87,463

89,037

36,635

90,344

Short term borrowings/Term loans

4,787,519

-

-

-

-

Other borrowings

-

-

531,150

3,670,688

-

Bill & acceptances payable

-

-

-

1,169,000

3,368,000

Amounts owing to director

55,703

524,865

2,632,094

2,742,698

1,141,453

Provision for taxation

204,715

190,664

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

14,680,720

5,457,721

15,460,389

33,337,969

18,785,350

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

10,258,117

8,600,112

7,216,996

3,731,569

2,477,671

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

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

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

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

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

TOTAL NET ASSETS

10,621,500

9,310,536

8,194,346

4,892,466

3,327,990

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

300,000

300,000

300,000

300,000

300,000

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

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

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

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

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

TOTAL SHARE CAPITAL

300,000

300,000

300,000

300,000

300,000

Retained profit/(loss) carried forward

10,225,235

8,994,375

7,655,955

4,532,959

2,947,934

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

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

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

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

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

TOTAL RESERVES

10,225,235

8,994,375

7,655,955

4,532,959

2,947,934

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

10,525,235

9,294,375

7,955,955

4,832,959

3,247,934

Hire purchase creditors

-

-

84,447

12,036

49,579

Deferred taxation

96,265

16,161

153,944

47,471

30,477

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

96,265

16,161

238,391

59,507

80,056

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

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

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

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

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

10,621,500

9,310,536

8,194,346

4,892,466

3,327,990

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

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

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

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

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

Contingent Liabilities

5,501,090

4,500,000

4,000,000

 

 

FINANCIAL RATIO

 

CHEMICAL MATE SDN. BHD.

 

TYPES OF FUNDS

Cash

5,068,782

8,498,073

6,642,375

6,595,061

6,571,083

Net Liquid Funds

5,068,782

8,498,073

6,642,375

5,426,061

3,203,083

Net Liquid Assets

10,171,203

8,600,112

6,421,235

3,731,569

2,215,333

Net Current Assets/(Liabilities)

10,258,117

8,600,112

7,216,996

3,731,569

2,477,671

Net Tangible Assets

10,621,500

9,310,536

8,194,346

4,892,466

3,327,990

Net Monetary Assets

10,074,938

8,583,951

6,182,844

3,672,062

2,135,277

BALANCE SHEET ITEMS

Total Borrowings

4,794,150

87,463

704,634

4,888,359

3,507,923

Total Liabilities

14,776,985

5,473,882

15,698,780

33,397,476

18,865,406

Total Assets

25,302,220

14,768,257

23,654,735

38,230,435

22,113,340

Net Assets

10,621,500

9,310,536

8,194,346

4,892,466

3,327,990

Net Assets Backing

10,525,235

9,294,375

7,955,955

4,832,959

3,247,934

Shareholders' Funds

10,525,235

9,294,375

7,955,955

4,832,959

3,247,934

Total Share Capital

300,000

300,000

300,000

300,000

300,000

Total Reserves

10,225,235

8,994,375

7,655,955

4,532,959

2,947,934

LIQUIDITY (Times)

Cash Ratio

0.35

1.56

0.43

0.20

0.35

Liquid Ratio

1.69

2.58

1.42

1.11

1.12

Current Ratio

1.70

2.58

1.47

1.11

1.13

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

2

0

1

Debtors Ratio

74

18

33

59

40

Creditors Ratio

37

13

24

48

38

SOLVENCY RATIOS (Times)

Gearing Ratio

0.46

0.01

0.09

1.01

1.08

Liabilities Ratio

1.40

0.59

1.97

6.91

5.81

Times Interest Earned Ratio

148.50

51.87

79.73

28.38

58.50

Assets Backing Ratio

35.41

31.04

27.31

16.31

11.09

PERFORMANCE RATIO (%)

Operating Profit Margin

2.99

1.63

2.53

1.87

2.40

Net Profit Margin

2.31

1.18

1.86

1.38

1.73

Return On Net Assets

27.42

20.16

52.57

74.08

86.38

Return On Capital Employed

27.40

19.97

52.00

73.53

84.10

Return On Shareholders' Funds/Equity

21.21

14.40

39.25

53.53

62.43

Dividend Pay Out Ratio (Times)

0.45

0.00

0.00

0.39

0.74

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

5,501,090

4,500,000

4,000,000

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.77.19              

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

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.