|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
882229-U
|
|
COMPANY NAME
|
:
|
HEVEALAND SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
10/12/2009
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
69-1A, OG BUSINESS PARK, TAMAN DATUK TAN YEW LAI, JALAN DATUN TAN
YEW LAI, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
A-12-2, TOWER A, MENARA UOA BANGSAR 5, JALAN BANGSAR UTAMA 1, LEVEL 12,
59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-22848815
|
|
FAX.NO.
|
:
|
03-22828817
|
|
CONTACT PERSON
|
:
|
SUBRAMANIAM A/L VELLAYUTHAM ( DIRECTOR )
|
|
|
|
|
INDUSTRY CODE
|
:
|
46201
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF NATURAL AND SYNTHETIC RUBBER
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 400,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
SALES
|
:
|
MYR 64,237,739 [2013]
|
|
NET WORTH
|
:
|
MYR 1,059,152 [2013]
|
|
|
|
|
STAFF STRENGTH
|
:
|
10 [2015]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
GOOD
|
|
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) trading of natural and synthetic
rubber.
The Subject is
not listed on Bursa Malaysia (Malaysia Stock Exchange).
Share Capital
History
|
Date
|
Authorised Shared Capital
|
Issue & Paid Up Capital
|
|
30/06/2014
|
MYR 500,000.00
|
MYR 500,000.00
|
|
10/02/2010
|
MYR 100,000.00
|
MYR 100,000.00
|
|
10/12/2009
|
MYR 100,000.00
|
MYR 1,000.00
|
The major shareholder(s)
of the Subject are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. SUBRAMANIAM A/L VELLAYUTHAM +
|
28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
470522-05-5065 4000160
|
225,000.00
|
45.00
|
|
MS. PATHMA DEVI A/P K. CUMARAVELU +
|
28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
470810-10-5338 0662119
|
225,000.00
|
45.00
|
|
MR. SIMON @ FLAM FERNANDEZ +
|
49-3-12, BANGSAR PUTRI, JALAN MEDANG SERAI, BUKIT BANDARAYA, 59100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
520524-10-5743
|
50,000.00
|
10.00
|
|
|
|
---------------
|
------
|
|
|
|
500,000.00
|
100.00
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. SIMON @ FLAM FERNANDEZ
|
|
Address
|
:
|
49-3-12, BANGSAR PUTRI, JALAN MEDANG SERAI, BUKIT BANDARAYA, 59100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
New IC No
|
:
|
520524-10-5743
|
|
Date of Birth
|
:
|
24/05/1952
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
10/02/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. PATHMA DEVI A/P K. CUMARAVELU
|
|
Address
|
:
|
28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
0662119
|
|
New IC No
|
:
|
470810-10-5338
|
|
Date of Birth
|
:
|
10/08/1947
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
10/12/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. SUBRAMANIAM A/L VELLAYUTHAM
|
|
Address
|
:
|
28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
4000160
|
|
New IC No
|
:
|
470522-05-5065
|
|
Date of Birth
|
:
|
22/05/1947
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
10/12/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
SUBRAMANIAM A/L VELLAYUTHAM
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
SELVA & ASSOCIATES
|
|
Auditor' Address
|
:
|
SUITE 301, BLOCK A4, LEISURE COMMERCIAL SQUARE, 9, JALAN PJS 8/9,
3RD FLOOR, 46150 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. KAMALA DEVI A/P RAJA GOPAL
|
|
IC / PP No
|
:
|
A2191293
|
|
New IC No
|
:
|
720614-05-5272
|
|
Address
|
:
|
39, JALAN SP 9/4, BANDAR SAUJANA PUCHONG, 43300 SERI KEMBANGAN,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
ENCUMBRANCE
(S)
No encumbrance was found in our databank at the time of investigation.
LITIGATION
CHECK AGAINST SUBJECT
* A check has been conducted in our databank againt the Subject whether the
Subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER
CHECK AGAINST SUBJECT
* We have checked through the Subject in our defaulters' database which
comprised of debtors that have been blacklisted by our customers and debtors
that have been placed or assigned to us for collection.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT
RECORD
|
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
N/A
|
|
Overseas
|
:
|
N/A
|
|
|
|
The Subject refused to disclose its suppliers.
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
EUROPE
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
NATURAL AND SYNTHETIC RUBBER
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2015
|
2012
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
10
|
5
|
|
|
|
|
|
|
|
Other Information:
The Subject is principally engaged in the (as a / as an) trading of natural
and synthetic rubber.
The Subject sells rubber.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-22848815
|
|
Match
|
:
|
N/A
|
|
|
|
|
Address Provided by Client
|
:
|
A-12-2, LEVEL 12, TOWER A, MENARA UOA, BANGSAR UTAMA 1 59000 KUALA
LAMPUR
|
|
Current Address
|
:
|
A-12-2, TOWER A, MENARA UOA BANGSAR 5, JALAN BANGSAR UTAMA 1, LEVEL
12, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other
Investigations
On 15th April 2015 we contacted one of the staff from the Subject and he
provided some information.
The address provided is incomplete.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Decreased
|
[
|
2010 - 2013
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2010 - 2013
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
4.00%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
18.95%
|
]
|
|
|
|
|
|
|
|
|
|
The continuous fall in turnover could be due to the lower demand for
the Subject's products / services.The Subject's profit fell sharply because
of the high operating costs incurred. 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
|
:
|
Nil
|
[
|
0 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
18 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
8 Days
|
]
|
|
|
|
|
|
|
|
|
|
As the Subject is a service oriented company, the Subject does not
need to keep stocks. The favourable debtors' days could be due to the good credit
control measures implemented by the Subject. The Subject had a favourable
creditors' ratio where the Subject could be taking advantage of the cash
discounts and also wanting to maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Favourable
|
[
|
1.32 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.32 Times
|
]
|
|
|
|
|
|
|
|
|
|
A minimum liquid ratio of 1 should be maintained by the Subject in order
to assure its creditors of its ability to meet short term obligations and
the Subject was in a good liquidity position. Thus, we believe the Subject
is able to meet all its short term obligations as and when they fall due.
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Unfavourable
|
[
|
1.41 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 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 had no gearing and hence it had virtually no financial
risk. The Subject was financed by its shareholders' funds and internally
generated fund. During the economic downturn, the Subject, having a zero
gearing, will be able to compete better than those which are highly geared
in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
The Subject's performance deteriorated over the years with lower turnover
and profit. The Subject was in good liquidity position with its total
current liabilities well covered by its total current assets. With its
current net assets, the Subject should be able to repay its short term
obligations. 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 was a zero gearing company, it was
solely dependant on its shareholders to provide funds to finance its
business. The Subject has good chance of getting loans, if the needs
arises.
|
|
|
|
|
|
|
|
|
Overall financial condition of the
Subject : LIMITED
|
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
|
|
46201 : Wholesale of rubber
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
The wholesale and retail trade is expected to increase 7.1% in 2015 (2014:
7.7%) driven by strong domestic consumption and higher tourist arrivals
following the Malaysia Year of Festivals 2015. Besides, in 2014, the
wholesale and retail trade subsector is expected to increase 7.7% (2013:
6.4%) supported by strong domestic consumption.
|
|
|
According to Retail Group Malaysia (RGM), the pharmacy and personal
care sub-sector had slow growth rate of 2.6% for the first quarter of 2014,
while "other specialty stores" grew at a rate of 3.5%. During the
first quarter of 2014, fashion and fashion accessories recorded a
sustainable growth of 6.3% as compared with the same period last year
(3.6%).
|
|
|
The retail segment increased 10.1% (January - June 2013: 7.1%)
attributed to brisk sales in retail outlets such as hypermarkets and
large-scale superstores. Since the launch of the Small Retailer
Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761
small retailer stores (end-July 2013: 1,381) have been modernized to
improve their competitiveness. In addition, the strong growth of the retail
segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to
1 September 2014 to attract foreign and local tourists to shop in Malaysia.
Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%)
due to higher sales of non-agricultural intermediate products, such as
petrol, diesel, lubricants and household goods. Furthermore, food and
beverage outlets, laundry outlets, car wash centres, abd health and beauty
outlets took a hit from the water rationing in the Klang Valley since
February this year.
|
|
|
On the other hand, in 2014, Malaysia's total trade is expected to
grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by
recovery in key advanced economies, resilient regional demand, and partly
due to the base effect arising from sluggish exports in the corresponding
period last year. Gross exports are anticipated to expand 6% to RM762.8
billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8
billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected
to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7
billion; 7.2%).
|
|
|
Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during
the first seven months of 2014 (January - July 2013: -2.8%; RM398.5
billion), with manufactured and mining exports rising at a double digit
pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower
pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%)
while export growth of other commodities remained steady. Consequently,
exports of manufactured and mining products are expected to grow 6.1% and
6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected
to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating
commodity prices. Malaysia's top 3 trading partners are China, Singapore,
and Japan.
|
|
|
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 2009, the Subject is a Private Limited company, focusing on
trading of natural and synthetic rubber. The Subject has been in business
for less than 5 years and it has slowly been building up contact with its
clients while competing in the industry. However, it has yet to enjoy a
stable market shares as it need to compete many well established players in
the same field. We noted that the issued and paid up capital of the Subject
stands at MYR 500,000. Under the control of its directors, we considered
that the Subject's business position in the market is much dependent on
their abilities.
From the investigation revealed, 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.
The Subject's business performance showed a reverse trend as both its
turnover and pre-tax profit have decreased compared to the previous year.
The Subject has generated an unfavourable return on shareholders' funds
indicating that the management was inefficient in utilising its funds to
generate return. The Subject is in good liquidity position with its current
liabilities well covered by it current assets. Hence, it has sufficient
working capital to meet its short term financial obligations. Being a zero
geared company, the Subject virtually has no financial risk as it is mainly
dependent on its internal funds to finance its business. Given a positive
net worth standing at MYR 1,059,152, the Subject should be able to maintain
its business in the near terms.
Overall, the Subject's payment habit is good as the Subject has a good
credit control and it could be taking advantage of the cash discounts while
maintaining a good reputation with its creditors.
The industry shows an upward trend and this trend is very likely to sustain
in the near terms. Hence, the Subject is expected to benefit from the
favourable outlook of the industry.
Based on the above condition, we recommend credit be granted to the Subject
normally.
|
|
|
PROFIT
AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS)
|
|
Financial Year End
|
2013-12-31
|
2012-12-31
|
2011-12-31
|
2010-12-31
|
|
Months
|
12
|
12
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
TURNOVER
|
64,237,739
|
71,438,146
|
80,220,950
|
44,438,747
|
|
Other Income
|
80,373
|
-
|
-
|
2,008
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
64,318,112
|
71,438,146
|
80,220,950
|
44,440,755
|
|
Costs of Goods Sold
|
(63,142,762)
|
(70,329,493)
|
(78,974,061)
|
(43,878,672)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
1,175,350
|
1,108,653
|
1,246,889
|
562,083
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
58,408
|
165,477
|
470,497
|
14,547
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
58,408
|
165,477
|
470,497
|
14,547
|
|
Taxation
|
(16,074)
|
(36,925)
|
(94,009)
|
(2,769)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
42,334
|
128,552
|
376,488
|
11,778
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
As previously reported
|
516,818
|
388,266
|
11,778
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
516,818
|
388,266
|
11,778
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
559,152
|
516,818
|
388,266
|
11,778
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
559,152
|
516,818
|
388,266
|
11,778
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
Others
|
142,249
|
128,660
|
51,002
|
46,297
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
142,249
|
128,660
|
51,002
|
46,297
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
DEPRECIATION (as per notes to P&L)
|
43,646
|
43,646
|
43,646
|
70,232
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
43,646
|
43,646
|
43,646
|
70,232
|
|
=============
|
=============
|
=============
|
=============
|
BALANCE
SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
FIXED ASSETS
|
74,163
|
117,809
|
161,455
|
52,482
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
74,163
|
117,809
|
161,455
|
52,482
|
|
|
|
|
|
|
Trade debtors
|
3,206,658
|
5,043,750
|
10,018,397
|
1,442,704
|
|
Other debtors, deposits & prepayments
|
101,035
|
99,756
|
20,831
|
20,831
|
|
Cash & bank balances
|
736,801
|
31,695
|
235,140
|
108,674
|
|
Others
|
37,001
|
5,075
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
4,081,495
|
5,180,276
|
10,274,368
|
1,572,209
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
4,155,658
|
5,298,085
|
10,435,823
|
1,624,691
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
1,450,491
|
3,056,687
|
8,349,555
|
258,698
|
|
Other creditors & accruals
|
182,416
|
90,981
|
285,526
|
91,023
|
|
Amounts owing to director
|
1,463,599
|
1,133,599
|
905,467
|
760,423
|
|
Provision for taxation
|
-
|
-
|
7,009
|
2,769
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
3,096,506
|
4,281,267
|
9,547,557
|
1,112,913
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
984,989
|
899,009
|
726,811
|
459,296
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
500,000
|
500,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
500,000
|
500,000
|
500,000
|
500,000
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
559,152
|
516,818
|
388,266
|
11,778
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
559,152
|
516,818
|
388,266
|
11,778
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
736,801
|
31,695
|
235,140
|
108,674
|
|
Net Liquid Funds
|
736,801
|
31,695
|
235,140
|
108,674
|
|
Net Liquid Assets
|
984,989
|
899,009
|
726,811
|
459,296
|
|
Net Current Assets/(Liabilities)
|
984,989
|
899,009
|
726,811
|
459,296
|
|
Net Tangible Assets
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
Net Monetary Assets
|
984,989
|
899,009
|
726,811
|
459,296
|
|
PROFIT & LOSS ITEMS
|
|
|
|
|
|
Earnings Before Interest & Tax (EBIT)
|
200,657
|
294,137
|
521,499
|
60,844
|
|
Earnings Before Interest, Taxes, Depreciation And Amortization
(EBITDA)
|
244,303
|
337,783
|
565,145
|
131,076
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
0
|
|
Total Liabilities
|
3,096,506
|
4,281,267
|
9,547,557
|
1,112,913
|
|
Total Assets
|
4,155,658
|
5,298,085
|
10,435,823
|
1,624,691
|
|
Net Assets
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
Net Assets Backing
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
Shareholders' Funds
|
1,059,152
|
1,016,818
|
888,266
|
511,778
|
|
Total Share Capital
|
500,000
|
500,000
|
500,000
|
500,000
|
|
Total Reserves
|
559,152
|
516,818
|
388,266
|
11,778
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
Cash Ratio
|
0.24
|
0.01
|
0.02
|
0.10
|
|
Liquid Ratio
|
1.32
|
1.21
|
1.08
|
1.41
|
|
Current Ratio
|
1.32
|
1.21
|
1.08
|
1.41
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
0
|
0
|
0
|
0
|
|
Debtors Ratio
|
18
|
26
|
46
|
12
|
|
Creditors Ratio
|
8
|
16
|
39
|
2
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Liabilities Ratio
|
2.92
|
4.21
|
10.75
|
2.17
|
|
Times Interest Earned Ratio
|
1.41
|
2.29
|
10.23
|
1.31
|
|
Assets Backing Ratio
|
2.12
|
2.03
|
1.78
|
1.02
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
0.09
|
0.23
|
0.59
|
0.03
|
|
Net Profit Margin
|
0.07
|
0.18
|
0.47
|
0.03
|
|
Return On Net Assets
|
18.95
|
28.93
|
58.71
|
11.89
|
|
Return On Capital Employed
|
18.95
|
28.93
|
58.71
|
11.89
|
|
Return On Shareholders' Funds/Equity
|
4.00
|
12.64
|
42.38
|
2.30
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
|
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. Malaysia is a member of the 12-nation Trans-Pacific
Partnership free trade agreement negotiations and, with the nine other ASEAN
members, will form the ASEAN Economic Community in 2015.