MIRA INFORM REPORT

 

 

Report Date :

04.09.2014

 

IDENTIFICATION DETAILS

 

Name :

INDOSPICE SDN. BHD.

 

 

Registered Office :

322A, Jalan Slim, Off Jalan Perak, Jelutong, 11600 Pulau Pinang, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.07.2013

 

 

Date of Incorporation :

15.06.2005

 

 

Com. Reg. No.:

694376-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trader of Spices

 

 

No of Employees :

10

 

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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.

:

694376-D

COMPANY NAME

:

INDOSPICE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/06/2005

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

16, JALAN HAMILTON, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-2831053

FAX.NO.

:

04-2812053

CONTACT PERSON

:

TAN KIM SUAN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADER OF SPICES

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 30,949,611 [2013]

NET WORTH

:

MYR 5,585,962 [2013]

 

 

 

STAFF STRENGTH

:

10 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

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) trader of spices.

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

The immediate holding company of the Subject is YEOW BENG RESOURCES SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the Subject is TYB PROPERTY HOLDING SDN BHD, a company incorporated in MALAYSIA.


Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 100,000.00

MYR 100,000.00

15/06/2005

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

(%)

YEOW BENG RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 2ND FLOOR, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

914965W

20,000.00

20.00

KARENTAN AGENCY SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

913481V

10,000.00

10.00

THOR & TAN RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

913800T

10,000.00

10.00

KSYB RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

913804U

10,000.00

10.00

AC & YB RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

913807A

10,000.00

10.00

BEBE RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

913809M

10,000.00

10.00

KIM CHAN RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 2ND FLOOR, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

915367T

10,000.00

10.00

CHEE KEONG RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 2ND FLOOR, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

915372W

10,000.00

10.00

ELEEN TAN RESOURCES SDN. BHD.

322A, JALAN SLIM, OFF JALAN PERAK, JELUTONG, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

918221H

10,000.00

10.00

 

 

 

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

------

 

 

 

100,000.00

100.00

 

 

 

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

=====

+ Also Director





DIRECTORS

 



DIRECTOR 1

 

Name Of Subject

:

MS. TAN KIM SUAN

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

780627-07-5410

Date of Birth

:

27/06/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. TAN KIM LIAN

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

A3787225

New IC No

:

771104-07-6014

Date of Birth

:

04/11/1977

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. TAN KIM HONG

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

A3424899

New IC No

:

761003-07-5080

Date of Birth

:

03/10/1976

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. TAN KIM GAIK

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

A3195623

New IC No

:

751115-07-5780

Date of Birth

:

15/11/1975

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MS. THOR TEIK CHOO

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

5851660

New IC No

:

600216-07-5730

Date of Birth

:

16/02/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

MS. BOK AH CHOO

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

4962521

New IC No

:

560528-07-5058

Date of Birth

:

28/05/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

MR. TAN YEOW BENG

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

4409001

New IC No

:

530329-07-5293

Date of Birth

:

29/03/1953

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 8

 

Name Of Subject

:

MR. TAN KIM CHAN

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

790831-07-5185

Date of Birth

:

31/08/1979

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/01/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 9

 

Name Of Subject

:

MR. TAN CHEE KEONG

Address

:

16, HAMILTON ROAD, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

800506-07-5313

Date of Birth

:

06/05/1980

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/01/2008

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN KIM SUAN

 

Position

:

DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

YCS & CO.

Auditor' Address

:

163-C-3, WISMA SERI PERAK, JALAN PERAK, 10150 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

 

1)

Company Secretary

:

MR. LOH SEONG YEW

 

 

 

 

 

New IC No

:

781108-07-5325

 

Address

:

1-5-3A, CASA PINANG, GERBANG BATU LANCANG, 11600 PULAU PINANG, PULAU PINANG, 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.

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,VIETNAM,INDONESIA,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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

MIDDLE EAST

EUROPE

UNITED ARAB EMIRATES

HONG KONG

THAILAND

INDONESIA

CHINA

INDIA

BANGLADESH

VIETNAM

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

RETAIL,DISTRIBUTORS,AGENTS,WHOLESALERS,END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

 

Goods Traded

:

SPICES

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2009

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

10

10

10

9

 

 

 

 

 

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trader of spices.

The Subject sells a wide range of spices including coriander seeds, nutmegs, cinnamons, cloves and others.

The Subject also sells curry powders, tumeric powders and etc.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-2831053

Match

:

N/A

 

 

 

Address Provided by Client

:

16, JALAN HAMILTON,11600,PULAU PINANG.

Current Address

:

16, JALAN HAMILTON, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 27th August 2014 we contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

25.91%

]

 

Return on Net Assets

:

Favourable

[

34.35%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

79 Days

]

 

Debtor Ratio

:

Unfavourable

[

180 Days

]

 

Creditors Ratio

:

Favourable

[

15 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.93 Times

]

 

Current Ratio

:

Unfavourable

[

1.32 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

82.92 Times

]

 

Gearing Ratio

:

Favourable

[

0.08 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 :

 

 

 

 

 

 

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

 

 

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

28,876

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

21,984

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

12.3

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.1

2.4

5.8

1.3

2.1

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

(6.5)

(0.3)

(5.4)

1.0

0.7

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 #

(9.0)

11.9

4.7

4.8

3.5

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.0)

12.7

18.6

Rubber Products

(10.1)

25.3

20.7

3.0

8.2

Wood Products

(24.1)

20.1

(5.1)

8.7

(3.1)

Textiles & Apparel

(19.5)

(0.4)

13.2

(7.1)

(2.6)

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.8

2.7

3.6

Chemical & Chemical Products

(7.7)

16.2

10.0

10.8

(0.7)

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.2

(6.6)

3.4

Fabricated Metal Products

(2.5)

14.9

21.8

13.8

12.2

Non-metallic Mineral

(15.5)

20.2

12.1

2.9

(0.4)

Transport Equipment

(13.5)

36.5

12.0

3.4

13.8

Paper & Paper Products

(5.0)

18.7

9.5

3.1

2.3

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

6.2

11.4

4.7

18.6

10.9

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

2.9

7.4

7.1

6.4

5.9

Electric, Gas & Water

1.4

7.8

3.5

4.4

4.2

Transport, Storage & Communication

1.6

7.7

6.5

7.1

7.3

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

4.7

5.9

Finance, Insurance & Real Estate

3.8

6.1

6.9

9.7

3.7

Government Services

3.4

5.9

12.4

9.4

8.3

Other Services

3.8

4.4

5.1

3.9

5.1

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 2005, the Subject is a Private Limited company, focusing on trader of spices. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment.

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 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 5,585,962, the Subject should be able to maintain its business in the near terms.

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

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

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

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

INDOSPICE SDN. BHD.

 

Financial Year End

2013-07-31

2012-07-31

2011-07-31

2010-07-31

2009-07-31

Months

12

12

12

12

13

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

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

30,949,611

30,150,219

26,079,778

22,389,972

20,262,805

 

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

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

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

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

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

Total Turnover

30,949,611

30,150,219

26,079,778

22,389,972

20,262,805

Costs of Goods Sold

(27,273,972)

(27,029,086)

-

(20,558,571)

(18,633,745)

 

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

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

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

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

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

Gross Profit

3,675,639

3,121,133

-

1,831,401

1,629,060

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,898,118

1,365,630

1,138,671

1,028,101

613,001

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,898,118

1,365,630

1,138,671

1,028,101

613,001

Taxation

(450,926)

(321,299)

(272,056)

(230,202)

(127,804)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,447,192

1,044,331

866,615

797,899

485,197

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

4,038,770

2,994,439

2,127,824

1,329,925

844,728

 

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

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

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

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

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

As restated

4,038,770

2,994,439

2,127,824

1,329,925

844,728

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,485,962

4,038,770

2,994,439

2,127,824

1,329,925

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,485,962

4,038,770

2,994,439

2,127,824

1,329,925

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

533

-

-

11

-

Bankers' acceptance

22,636

20,227

-

32,547

40,108

 

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

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

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

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

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

 

23,169

20,227

-

32,558

40,108

 

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

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

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

 

INDOSPICE SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

64,577

91,019

109,392

34,641

47,342

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

64,577

91,019

109,392

34,641

47,342

 

 

 

 

 

 

Stocks

6,661,525

4,934,326

-

2,577,005

1,989,354

Trade debtors

15,279,141

14,564,456

-

7,146,514

5,178,045

Other debtors, deposits & prepayments

-

-

-

381,341

26,765

Amount due from holding company

-

-

-

8,987

23,505

Cash & bank balances

642,271

168,899

-

62,469

346,478

 

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

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

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

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

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

TOTAL CURRENT ASSETS

22,582,937

19,667,681

17,255,113

10,176,316

7,564,147

 

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

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

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

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

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

TOTAL ASSET

22,647,514

19,758,700

17,364,505

10,210,957

7,611,489

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,107,996

3,182,359

-

230,739

112,100

Other creditors & accruals

9,254,000

7,508,798

-

255,724

192,428

Bill & acceptances payable

438,053

-

-

658,744

1,144,254

Amounts owing to related companies

-

-

-

2,329,678

907,935

Amounts owing to director

6,158,426

4,872,527

-

4,444,303

3,787,443

Provision for taxation

95,359

48,934

-

60,452

32,404

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

17,053,834

15,612,618

14,264,595

7,979,640

6,176,564

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

5,529,103

4,055,063

2,990,518

2,196,676

1,387,583

 

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

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

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

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

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

TOTAL NET ASSETS

5,593,680

4,146,082

3,099,910

2,231,317

1,434,925

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

100,000

100,000

100,000

100,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

100,000

100,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

5,485,962

4,038,770

2,994,439

2,127,824

1,329,925

 

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

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

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

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

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

TOTAL RESERVES

5,485,962

4,038,770

2,994,439

2,127,824

1,329,925

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,585,962

4,138,770

3,094,439

2,227,824

1,429,925

 

 

 

 

 

 

Deferred taxation

7,718

7,312

-

3,493

5,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

7,718

7,312

5,471

3,493

5,000

 

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

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

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

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

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

 

5,593,680

4,146,082

3,099,910

2,231,317

1,434,925

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

INDOSPICE SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

642,271

168,899

-

62,469

346,478

Net Liquid Funds

204,218

168,899

-

(596,275)

(797,776)

Net Liquid Assets

(1,132,422)

(879,263)

2,990,518

(380,329)

(601,771)

Net Current Assets/(Liabilities)

5,529,103

4,055,063

2,990,518

2,196,676

1,387,583

Net Tangible Assets

5,593,680

4,146,082

3,099,910

2,231,317

1,434,925

Net Monetary Assets

(1,140,140)

(886,575)

2,985,047

(383,822)

(606,771)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

438,053

0

-

658,744

1,144,254

Total Liabilities

17,061,552

15,619,930

14,270,066

7,983,133

6,181,564

Total Assets

22,647,514

19,758,700

17,364,505

10,210,957

7,611,489

Net Assets

5,593,680

4,146,082

3,099,910

2,231,317

1,434,925

Net Assets Backing

5,585,962

4,138,770

3,094,439

2,227,824

1,429,925

Shareholders' Funds

5,585,962

4,138,770

3,094,439

2,227,824

1,429,925

Total Share Capital

100,000

100,000

100,000

100,000

100,000

Total Reserves

5,485,962

4,038,770

2,994,439

2,127,824

1,329,925

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.04

0.01

-

0.01

0.06

Liquid Ratio

0.93

0.94

-

0.95

0.90

Current Ratio

1.32

1.26

1.21

1.28

1.22

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

79

60

-

42

36

Debtors Ratio

180

176

-

117

93

Creditors Ratio

15

43

-

4

2

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.08

0.00

-

0.30

0.80

Liabilities Ratio

3.05

3.77

4.61

3.58

4.32

Times Interest Earned Ratio

82.92

68.52

-

32.58

16.28

Assets Backing Ratio

55.94

41.46

31.00

22.31

14.35

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.13

4.53

4.37

4.59

3.03

Net Profit Margin

4.68

3.46

3.32

3.56

2.39

Return On Net Assets

34.35

33.43

36.73

47.54

45.52

Return On Capital Employed

34.35

33.43

36.73

47.54

45.52

Return On Shareholders' Funds/Equity

25.91

25.23

28.01

35.82

33.93

Dividend Pay Out Ratio (Times)

0.00

0.00

-

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

-

0

0

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.54

UK Pound

1

Rs.99.73

Euro

1

Rs.79.54

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.