MIRA INFORM REPORT

 

 

Report Date :

11.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

CEMERLANG RAYA (M) SDN. BHD.

 

 

Registered Office :

1-2, Jalan 1/64a, Off Jalan Ipoh, (2nd Floor), 50350 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

15.04.1986

 

 

Com. Reg. No.:

152556-T

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of Household Cleaning Products

 

 

No. of Employees :

13

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – 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.

:

152556-T

COMPANY NAME

:

CEMERLANG RAYA (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/04/1986

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

1-2, JALAN 1/64A, OFF JALAN IPOH, (2ND FLOOR), 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2, RAWANG INTERGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-60919588

FAX.NO.

:

03-60919619

EMAIL

:

RAYACO@RAYACO.COM.MY

WEB SITE

:

WWW.RAYACO.COM.MY

CONTACT PERSON

:

TAN KIM CHUAN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46492

PRINCIPAL ACTIVITY

:

TRADING OF HOUSEHOLD CLEANING PRODUCTS

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 4,800,000.00 DIVIDED INTO
ORDINARY SHARES 4,585,715 CASH AND 214,285 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 11,796,710 [2012]

NET WORTH

:

MYR 9,441,497 [2012]

 

 

 

STAFF STRENGTH

:

13 [2014]

BANKER (S)

:

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 household cleaning products.

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 4,800,000.00

18/11/1999

MYR 5,000,000.00

MYR 4,800,000.00

15/12/1998

MYR 5,000,000.00

MYR 3,800,000.00

15/12/1998

MYR 5,000,000.00

MYR 3,800,000.00

07/04/1998

MYR 5,000,000.00

MYR 3,300,000.00

19/09/1997

MYR 5,000,000.00

MYR 2,000,000.00

16/09/1997

MYR 5,000,000.00

MYR 1,714,285.00

20/09/1996

MYR 5,000,000.00

MYR 1,500,000.00

05/12/1994

MYR 5,000,000.00

MYR 1,200,000.00

20/03/1993

MYR 1,000,000.00

MYR 900,000.00

16/08/1991

MYR 1,000,000.00

MYR 700,000.00

19/06/1990

MYR 1,000,000.00

MYR 600,000.00

15/07/1989

MYR 1,000,000.00

MYR 500,000.00

03/08/1987

MYR 1,000,000.00

MYR 400,000.00

26/06/1987

MYR 100,000.00

MYR 100,000.00

07/05/1986

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. TAN KIM CHUAN +

LOT 3, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

501216-10-5385

3,588,572.00

74.76

MS. YAP YU LIAN +

LOT 3, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

490820-10-5858 3416733

311,428.00

6.49

MR. TAN JENN UEI

LOT 2, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

830203-14-5975

300,000.00

6.25

MR. TAN JENN DONG

LOT 2, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

841120-14-6431

300,000.00

6.25

MR. TAN JENN SHYONG

LOT 2, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

810924-14-5977

300,000.00

6.25

 

 

 

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

------

 

 

 

4,800,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. YAP YU LIAN

Address

:

LOT 3, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

IC / PP No

:

3416733

New IC No

:

490820-10-5858

Date of Birth

:

20/08/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/02/2000

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN KIM CHUAN

Address

:

LOT 3, JALAN R2/3, RAWANG INTEGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

501216-10-5385

Date of Birth

:

16/12/1950

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/04/1986

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN KIM CHUAN

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

OOI, PARTHIBAN & CO.

Auditor' Address

:

73, JALAN BULAN U5/9, SUBANG 2, SEKSYEN U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LIEW PENG PENG

 

IC / PP No

:

5847444

 

New IC No

:

600131-08-5323

 

Address

:

25, JALAN INDAH 1/27, TAMAN UNIVERSITI INDAH, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

01/12/1987

N/A

PUBLIC BANK BHD

MYR 500,000.00

Satisfied

2

22/09/1988

N/A

STANDARD CHARTERED BANKMALAYSIA BERHAD

-

Satisfied

4

20/12/1990

N/A

MUI BANK BERHAD

MYR 70,000.00

Satisfied

5

20/12/1990

N/A

MUI BANK BERHAD

MYR 70,000.00

Satisfied

3

31/12/1991

N/A

STANDARD CHARTERED BANKMALAYSIA BERHAD

MYR 600,000.00

Satisfied

6

03/10/1992

N/A

PERWIRA HABIB BANK MALAYSIA BERHAD

MYR 70,000.00

Satisfied

7

17/02/1993

N/A

MUI BANK BERHAD

MYR 100,000.00

Satisfied

8

20/09/1994

N/A

PUBLIC BANK BERHAD

MYR 155,000.00

Satisfied

9

01/12/1994

N/A

HONG LEONG BANK BERHAD

-

Satisfied

10

18/08/1995

N/A

HONG LEONG BANK BERHAD

-

Satisfied

11

18/08/1995

OPEN CHARGE

HONG LEONG BANK BERHAD

MYR 1.00

Satisfied

12

21/11/1996

OPEN CHARGE

HONG LEONG BANK BERHAD

MYR 2,250,000.00

Unsatisfied

13

16/01/1998

N/A

PUBLIC BANK BERHAD

MYR 7,000,000.00

Satisfied

14

18/07/2002

OPEN CHARGE

PUBLIC BANK BERHAD

-

Unsatisfied

15

14/04/2010

OPEN CHARGE

HONG LEONG BANK BERHAD

-

Satisfied

16

20/09/2012

FACILITIES AGREEMENT

PUBLIC BANK BHD

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

ASIA


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

X

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

DEPARTMENTAL STORES,SUPERMARKETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

CLEANING PRODUCTS, HARDWARE PRODUCTS AND OTHERS

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2010

2009

 

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

13

10

10

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC is a trading company of household products.

The SC sells a wide range of products such as cleaning products such as mops, toiletries products and hardware products such as hand tools, cutting tools and others.

The SC's related company is Perusahaan Cemerlang Raya Sdn Bhd which undertakes manufacturing of household products ushc as broom, brush, mop, scouring pad with sponge, household sponge, household plastic product etc.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0360919588/03 609 18630

Current Telephone Number

:

03-60919588

Match

:

YES

 

 

 

Address Provided by Client

:

LOT2JLN R2/3 RAWANG INTEGRATED, INDUSTRIAL PARK, OFF JLN, BATU ARANG

48000, RAWANG, SELANGOR, MALAYSIA.

Current Address

:

LOT 2, RAWANG INTERGRATED INDUSTRIAL PARK, OFF JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 8th September 2014, we contacted one of the staff from the Subject and she provided some information on the Subject.

The address provided belongs to the Subject also.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

20.58%

]

 

Profit/(Loss) Before Tax

:

Increased

[

6.70%

]

 

Return on Shareholder Funds

:

Unfavourable

[

3.81%

]

 

Return on Net Assets

:

Unfavourable

[

5.96%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition and the Subject could be gaining the market share progressively.The Subject's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

156 Days

]

 

Debtor Ratio

:

Unfavourable

[

160 Days

]

 

Creditors Ratio

:

Unfavourable

[

135 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 unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.75 Times

]

 

Current Ratio

:

Unfavourable

[

1.09 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.35 Times

]

 

Gearing Ratio

:

Favourable

[

0.73 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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 : LIMITED

 

 

 

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

46492 : Wholesale of household appliances

 

 

INDUSTRY :

FURNITURE & FIXTURES

 

 

 

Malaysia is a leading furniture exporter and was ranked as the 8th world furniture exporter in 2011. Exports account for 67% of domestic production. Exports are mainly destined for the United States, Japan, Singapore, Australia and the United Kingdom, which together absorbed almost 60% of the total.Government target growth of 6.5% where it estimated to reach RM53 billion by 2020.

 

In April 2012, rubber-wood prices per tonne hovers between RM1,800 to RM2,000, compared to RM1,500 to RM1,800 per tonne in November 2011. At January 2012, US purchase Malaysian made furniture products at the value of RM163million compared with RM158.8million in January 2011, an increase of about 3%. Eventhough, Malaysia External Trade Corporation (MATRADE) reported In January 2012, where Malaysia's furniture export total sales came down by 14.7% to RM571million in January 2012 from RM670.6million in January 2011 due to the shorter working days in January 2012 and also less orders from key customers such as Japan and Singapore. Japan imported about RM64.2million worth of furniture products from Malaysia in January 2012, compared to RM80.8million in January 2011, down by 20.6%.

 

In 2012, Malaysian furniture was exported to 199 countries worldwide and was valued at RM8billion, increasing 4.3% from the year before with a 10.9% increase in furniture exports to the United States. The Ministry of Plantation Industries and Commodities aims to surpass in year 2013, the RM8 billion mark for total Malaysian furniture exported in 2012.

 

Under the the National Timber Industry Policy (MTIP), the government has targeted RM16 billion furniture exports by 2020. The value of Malaysian furniture exports represented 3% of total world exports. Demand for Malaysian furniture increasing due to rising afflunce and sophistication in customer expectation. Malaysia furniture stand with its original design as well its good work ethics in world furniture market.

 

The furniture industry is highly export oriented with over 90% of its production are destined for overseas market which accounted 3% value of global exports.The furniture industry’s adoption of high technology production manufacturing capabilities coupled with greater emphasis on design, market expansion and aggressive promotional efforts, the Malaysian furniture industry has the potential to increase exports for a bigger global market share.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1986, the Subject is a Private Limited company, focusing on trading of household cleaning products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

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 13 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. However, the Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 9,441,497, the Subject should be able to maintain its business in the near terms.

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

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

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

CEMERLANG RAYA (M) SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

11,796,710

9,783,681

 

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

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

Total Turnover

11,796,710

9,783,681

Costs of Goods Sold

(8,559,135)

(6,787,894)

 

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

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

Gross Profit

3,237,575

2,995,787

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

422,787

396,254

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

422,787

396,254

Taxation

(63,098)

(67,787)

 

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

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

PROFIT/(LOSS) AFTER TAXATION

359,689

328,467

 

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

359,689

328,467

Extraordinary items

-

471,019

 

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

359,689

799,486

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

4,281,808

3,482,322

Prior year adjustment

-

(471,019)

 

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

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

As restated

4,281,808

3,011,303

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,641,497

3,810,789

TRANSFER TO RESERVES - General

-

471,019

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,641,497

4,281,808

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Bank overdraft

183,227

194,300

Bankers' acceptance

83,460

45,381

Hire purchase

10,475

4,480

Term loan / Borrowing

35,274

-

 

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

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

 

312,436

244,161

 

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

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

 

 

 

BALANCE SHEET

 

 

CEMERLANG RAYA (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

11,040,735

9,621,847

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

11,040,735

9,621,847

 

 

 

Stocks

5,050,044

3,327,288

Trade debtors

5,184,586

4,346,932

Other debtors, deposits & prepayments

5,895,923

5,069,930

Cash & bank balances

4,896

30,526

 

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

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

TOTAL CURRENT ASSETS

16,135,449

12,774,676

 

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

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

TOTAL ASSET

27,176,184

22,396,523

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

3,165,725

3,054,892

Other creditors & accruals

416,288

28,312

Hire purchase & lease creditors

155,549

62,217

Bank overdraft

3,723,267

2,567,451

Short term borrowings/Term loans

89,196

-

Amounts owing to director

7,295,524

7,601,843

 

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

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

TOTAL CURRENT LIABILITIES

14,845,549

13,314,715

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,289,900

(540,039)

 

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

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

TOTAL NET ASSETS

12,330,635

9,081,808

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

4,800,000

4,800,000

 

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

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

TOTAL SHARE CAPITAL

4,800,000

4,800,000

 

 

 

Retained profit/(loss) carried forward

4,641,497

4,281,808

 

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

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

TOTAL RESERVES

4,641,497

4,281,808

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

9,441,497

9,081,808

 

 

 

Long term loans

2,889,138

-

 

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

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

TOTAL LONG TERM LIABILITIES

2,889,138

-

 

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

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

 

12,330,635

9,081,808

 

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

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

 

 

 

 


 

FINANCIAL RATIO

 

 

CEMERLANG RAYA (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

Cash

4,896

30,526

Net Liquid Funds

(3,718,371)

(2,536,925)

Net Liquid Assets

(3,760,144)

(3,867,327)

Net Current Assets/(Liabilities)

1,289,900

(540,039)

Net Tangible Assets

12,330,635

9,081,808

Net Monetary Assets

(6,649,282)

(3,867,327)

 

 

 

BALANCE SHEET ITEMS

 

 

Total Borrowings

6,857,150

2,629,668

Total Liabilities

17,734,687

13,314,715

Total Assets

27,176,184

22,396,523

Net Assets

12,330,635

9,081,808

Net Assets Backing

9,441,497

9,081,808

Shareholders' Funds

9,441,497

9,081,808

Total Share Capital

4,800,000

4,800,000

Total Reserves

4,641,497

4,281,808

 

 

 

LIQUIDITY (Times)

 

 

Cash Ratio

0.00

0.00

Liquid Ratio

0.75

0.71

Current Ratio

1.09

0.96

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

156

124

Debtors Ratio

160

162

Creditors Ratio

135

164

 

 

 

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.73

0.29

Liabilities Ratio

1.88

1.47

Times Interest Earned Ratio

2.35

2.62

Assets Backing Ratio

2.57

1.89

 

 

 

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

3.58

4.05

Net Profit Margin

3.05

3.36

Return On Net Assets

5.96

7.05

Return On Capital Employed

4.54

5.47

Return On Shareholders' Funds/Equity

3.81

3.62

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.82

UK Pound

1

Rs.98.14

Euro

1

Rs.78.65

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.