MIRA INFORM REPORT

 

 

Report Date :

27.11.2014

 

IDENTIFICATION DETAILS

 

Name :

FINN CHEMICALS SDN. BHD.

 

 

Registered Office :

54B, Damai Complex, Jalan Lumut, 50400 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.12.1988

 

 

Com. Reg. No.:

176784-D

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

Subject is engaged in the trading of industrial chemicals.

 

 

No of Employees :

20 [2014]

 

 

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 :

Unknown

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.

:

176784-D

COMPANY NAME

:

FINN CHEMICALS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

13/12/1988

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

54B, Damai Complex, Jalan Lumut, 50400 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

BUSINESS ADDRESS

:

7b, Persiaran Jubli Perak, Seksyen 22, 40300 Shah Alam, Selangor, Malaysia.

TEL.NO.

:

03-51918881

FAX.NO.

:

03-51922227

EMAIL

:

ENQUIRY@FINNCHEM.COM.MY

WEB SITE

:

WWW.FINNCHEM.COM.MY

CONTACT PERSON

:

LEONG BUH KWONG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46691

PRINCIPAL ACTIVITY

:

TRADING OF INDUSTRIAL CHEMICALS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,500,000.00 DIVIDED INTO 
ORDINARY SHARES 1,202,067 CASH AND 1,297,933 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 94,645,624 [2011]

NET WORTH

:

MYR 30,093,087 [2011]

 

 

 

STAFF STRENGTH

:

20 [2014]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD
PUBLIC BANK BHD
RHB BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The Subject is principally engaged in the (as a / as an) trading of industrial 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 5,000,000.00

MYR 2,500,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. LEONG BUH KWONG +

11 JALAN USJ5/1C, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

580430-08-5993 5312317

1,150,000.00

46.00

MR. KAM KAR CHEONG +

22, JALAN DATUK SULAIMAN 3, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

601218-10-5723 6124355

1,150,000.00

46.00

MR. YANG CHUN KUANG

40, JALAN PP 3/6, TAMAN PUTRA PRIMA, 47100 PUCHONG, SELANGOR, MALAYSIA.

730216-06-5183

200,000.00

8.00

 

 

 

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

------

 

 

 

2,500,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 



Local No

Country

Company

(%)

As At

593287D

MALAYSIA

GF PROPERTIES SDN. BHD.

50.00

29/03/2013

 

 

 

 

 


 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. LEONG BUH KWONG

Address

:

11 JALAN USJ5/1C, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5312317

New IC No

:

580430-08-5993

Date of Birth

:

30/04/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/12/1988

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. KAM KAR CHEONG

Address

:

22, JALAN DATUK SULAIMAN 3, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

6124355

New IC No

:

601218-10-5723

Date of Birth

:

18/12/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/12/1988

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

LEONG BUH KWONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

WONG WENG FOO & CO.

Auditor' Address

:

41, DAMAI COMPLEX, JALAN DATO HAJI EUSOFF, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. HOH CHEE MUN

 

IC / PP No

:

A0235185

 

New IC No

:

651007-10-5657

 

Address

:

17, JALAN CHERAS MEWAH 1, TAMAN CHERAS MEWAH, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. HOH LEONG CHING

 

IC / PP No

:

A0654781

 

New IC No

:

670228-10-5830

 

Address

:

20, JALAN PERDANA 2/6, TAMAN PANDAN PERDANA, 55300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

 

 

4)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/10/1995

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 300,000.00

Unsatisfied

2

09/08/1999

OPEN CHARGE

UNITED OVERSEAS BANK MALAYSIA BHD

-

Satisfied

3

09/08/1999

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 800,000.00

Unsatisfied

4

13/02/2004

AGREEMENT, MEMO OF DEPOSIT & LETTER OF SET-OFF

AMFINANCE BERHAD

MYR 800,000.00

Unsatisfied

5

11/10/2004

N/A

RHB BANK BERHAD

MYR 750,000.00

Unsatisfied

6

23/03/2005

MEMO OF DEPOSIT & 1ST PARTY LETTER OF SET-OFF

AMBANK (M) BHD

MYR 2,600,000.00

Unsatisfied

7

21/08/2006

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

8

29/05/2009

CASH DEPOSIT AGREEMENT DATED 29TH MAY 2009

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

 

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

:

UNITED STATES,EUROPE,CHINA

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

INDUSTRIAL CHEMICALS

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

20

20

23

20

20

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


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

The Subject offers a wide range of chemicals includes epoxy curing amine, polyamide, PU additives, catalysts, coating resins, acrylic flow additive, dibasic ester, EEP solvent and others.

Besides that the Subjet also acts as a distributor for :

BASF - Beta Carotene 
BASF Petronas - Phthalate based plasticizer, Na Hydrosulphite, NMP 
Keim Additec - Wax emulsion, dispersion (Ultraluble) 
Shell Chemical - Propylene Glycol - USP 

We were informed that the Subject has a warehouse located at the same premises to keep stocks and materials.

The Subject also providing transportation services and keep its products safely for timely delivery to its clients. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-51918881

Match

:

N/A

 

 

 

Address Provided by Client

:

7B, PERSIARAN JUBLI PERAK, SEKSYEN 22,40300,SHAH ALAM,SELANGOR.

Current Address

:

7B, PERSIARAN JUBLI PERAK, SEKSYEN 22, 40300 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


On 26th November 2014 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

The Subject's latest financial accounts are up to 2011 which is out dated in our opinion. Therefore, our comment on the Subject financial performance is restricted thereto.

 

 

 

 

 

 

 

Overall financial condition of the Subject : N/A

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

 

 

 

 

 

 

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

 

 

 

 

 

 

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

 

 

 

 

 

 

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

 

 

 

 

 

 

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

 

 

 

 

 

 

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

 

 

 

 

 

 

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

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 1988, the Subject is an Exempt Private company, focusing on trading of industrial chemicals. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. A paid up capital of MYR 2,500,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.The Subject is expected to enjoy a stable market shares. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a small company, the Subject's business operation is supported by 20 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health. 

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 industry shows an upward trend and this trend is very likely to sustain in the near terms. 

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)

FINN CHEMICALS SDN. BHD.

 

Financial Year End

2011-12-31

2010-12-31

2009-12-31

2008-12-31

2007-12-31

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

94,645,624

81,410,201

65,369,877

78,757,448

54,517,233

 

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

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

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

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

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

Total Turnover

94,645,624

81,410,201

65,369,877

78,757,448

54,517,233

Costs of Goods Sold

(80,128,069)

(68,735,692)

(55,300,453)

-

(51,121,154)

 

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

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

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

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

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

Gross Profit

14,517,555

12,674,509

10,069,424

-

3,396,079

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

8,323,385

8,350,386

6,138,531

6,566,720

3,969,466

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

8,323,385

8,350,386

6,138,531

6,566,720

3,969,466

Taxation

(2,165,540)

(2,117,483)

(1,554,848)

(1,733,154)

(1,096,009)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

6,157,845

6,232,903

4,583,683

4,833,566

2,873,457

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

23,435,242

19,202,339

17,028,156

12,194,590

9,321,133

 

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

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

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

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

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

As restated

23,435,242

19,202,339

17,028,156

12,194,590

9,321,133

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

29,593,087

25,435,242

21,611,839

17,028,156

12,194,590

DIVIDENDS - Ordinary (paid & proposed)

(2,000,000)

(2,000,000)

(2,409,500)

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

27,593,087

23,435,242

19,202,339

17,028,156

12,194,590

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

24,218

929

4,027

51,745

45,064

Bankers' acceptance

257,427

128,188

-

-

280,435

Hire purchase

16,478

21,968

17,324

19,374

16,590

Lease interest

-

-

-

-

1,894

Term loan / Borrowing

241,665

296,810

164,541

-

-

Trust receipts

74,508

36,108

123,930

238,126

106,501

Others

-

-

107,230

309,487

-

 

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

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

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

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

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

 

614,296

484,003

417,052

618,732

450,484

 

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

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

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

 

FINN CHEMICALS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

1,221,505

1,403,221

975,239

1,061,328

685,033

 

 

 

 

 

 

Associated companies

2,250,500

2,250,500

2,250,500

2,000,500

1,000,500

Investments

427,300

400,800

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,677,800

2,651,300

2,250,500

2,000,500

1,000,500

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,899,305

4,054,521

3,225,739

3,061,828

1,685,533

 

 

 

 

 

 

Stocks

12,322,626

12,953,396

7,568,076

10,921,532

8,311,170

Trade debtors

21,356,301

20,635,702

14,484,690

15,786,166

15,614,598

Other debtors, deposits & prepayments

1,408,878

1,678,223

272,384

38,616

198,868

Short term deposits

6,522,273

4,320,649

2,388,209

2,125,782

2,050,021

Amount due from associated companies

-

-

-

-

1,000,000

Cash & bank balances

2,760,010

1,844,863

7,046,282

1,655,322

786,572

 

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

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

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

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

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

TOTAL CURRENT ASSETS

44,370,088

41,432,833

31,759,641

30,527,418

27,961,229

 

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

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

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

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

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

TOTAL ASSET

48,269,393

45,487,354

34,985,380

33,589,246

29,646,762

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

8,738,262

9,569,743

6,237,161

4,358,390

5,585,500

Other creditors & accruals

1,293,402

1,054,043

539,876

671,538

605,238

Hire purchase & lease creditors

157,209

140,470

155,313

155,104

60,920

Bank overdraft

3,062

5,685

588

294,453

897,067

Short term borrowings/Term loans

996,666

930,695

886,060

-

-

Bill & acceptances payable

4,426,415

3,943,241

1,337,000

7,434,165

7,912,623

Amounts owing to director

-

-

-

840,841

-

Provision for taxation

381,168

659,084

239,174

424,587

167,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,996,184

16,302,961

9,395,172

14,179,078

15,228,348

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

28,373,904

25,129,872

22,364,469

16,348,340

12,732,881

 

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

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

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

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

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

TOTAL NET ASSETS

32,273,209

29,184,393

25,590,208

19,410,168

14,418,414

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,500,000

2,500,000

2,500,000

2,100,000

2,100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,500,000

2,500,000

2,500,000

2,100,000

2,100,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

27,593,087

23,435,242

19,202,339

17,028,156

12,194,590

 

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

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

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

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

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

TOTAL RESERVES

27,593,087

23,435,242

19,202,339

17,028,156

12,194,590

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

30,093,087

25,935,242

21,702,339

19,128,156

14,294,590

 

 

 

 

 

 

Long term loans

1,819,962

2,826,687

3,756,930

-

-

Hire purchase creditors

275,160

353,464

79,939

235,012

82,824

Deferred taxation

85,000

69,000

51,000

47,000

41,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,180,122

3,249,151

3,887,869

282,012

123,824

 

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

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

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

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

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

 

32,273,209

29,184,393

25,590,208

19,410,168

14,418,414

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

FINN CHEMICALS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

9,282,283

6,165,512

9,434,491

3,781,104

2,836,593

Net Liquid Funds

4,852,806

2,216,586

8,096,903

(3,947,514)

(5,973,097)

Net Liquid Assets

16,051,278

12,176,476

14,796,393

5,426,808

4,421,711

Net Current Assets/(Liabilities)

28,373,904

25,129,872

22,364,469

16,348,340

12,732,881

Net Tangible Assets

32,273,209

29,184,393

25,590,208

19,410,168

14,418,414

Net Monetary Assets

13,871,156

8,927,325

10,908,524

5,144,796

4,297,887

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

7,678,474

8,200,242

6,215,830

8,118,734

8,953,434

Total Liabilities

18,176,306

19,552,112

13,283,041

14,461,090

15,352,172

Total Assets

48,269,393

45,487,354

34,985,380

33,589,246

29,646,762

Net Assets

32,273,209

29,184,393

25,590,208

19,410,168

14,418,414

Net Assets Backing

30,093,087

25,935,242

21,702,339

19,128,156

14,294,590

Shareholders' Funds

30,093,087

25,935,242

21,702,339

19,128,156

14,294,590

Total Share Capital

2,500,000

2,500,000

2,500,000

2,100,000

2,100,000

Total Reserves

27,593,087

23,435,242

19,202,339

17,028,156

12,194,590

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.58

0.38

1.00

0.27

0.19

Liquid Ratio

2.00

1.75

2.57

1.38

1.29

Current Ratio

2.77

2.54

3.38

2.15

1.84

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

48

58

42

51

56

Debtors Ratio

82

93

81

73

105

Creditors Ratio

40

51

41

20

40

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.26

0.32

0.29

0.42

0.63

Liabilities Ratio

0.60

0.75

0.61

0.76

1.07

Times Interest Earned Ratio

14.55

18.25

15.72

11.61

9.81

Assets Backing Ratio

12.91

11.67

10.24

9.24

6.87

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

8.79

10.26

9.39

8.34

7.28

Net Profit Margin

6.51

7.66

7.01

6.14

5.27

Return On Net Assets

27.69

30.27

25.62

37.02

30.65

Return On Capital Employed

27.56

30.12

25.46

36.18

28.75

Return On Shareholders' Funds/Equity

20.46

24.03

21.12

25.27

20.10

Dividend Pay Out Ratio (Times)

0.32

0.32

0.53

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.61.87

UK Pound

1

Rs.97.23

Euro

1

Rs.77.21

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.