MIRA INFORM REPORT

 

 

Report No. :

319152

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SEGI VALUE HOLDINGS SDN. BHD.

 

 

Registered Office :

Block 8-16-1, Jalan Jalil Perkasa 15, Arcade Esplanad, Taman Bukit Jalil, 57000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

11.01.2010

 

 

Com. Reg. No.:

885726-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in activities of investment holding

 

 

No. of Employee :

700 [2015]

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. 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. 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.

 

Source : CIA

 


 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

885726-W

COMPANY NAME

:

SEGI VALUE HOLDINGS SDN. BHD.

FORMER NAME

:

VALUE-BIZ HOLDINGS SDN. BHD. (30/03/2011)

INCORPORATION DATE

:

11/01/2010

COMPANY STATUS

:

CLEAR

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

BLOCK 8-16-1, JALAN JALIL PERKASA 15, ARCADE ESPLANAD, TAMAN BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

UNIT 711, 712 & 713, BLOCK A KELANA BUSINESS CENTRE, 97 JALAN SS7/2 KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78052699

FAX.NO.

:

03-78042699

CONTACT PERSON

:

CHUI AH HOCK ( DIRECTOR )

INDUSTRY CODE

:

64200

PRINCIPAL ACTIVITY

:

ACTIVITIES OF INVESTMENT HOLDING

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 15,104,454.00 DIVIDED INTO
ORDINARY SHARES 3 CASH AND 15,104,451 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 320,837,865 [2013]

NET WORTH

:

MYR 30,765,040 [2013]

STAFF STRENGTH

:

700 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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) activities of investment holding.

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 25,000,000.00

MYR 15,104,454.00

11/01/2010

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

(%)

MR. CHUI AH HOCK +

60, JALAN SJ4, TAMAN SELAYANG JAYA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

680609-10-6991

5,653,319.00

37.43

CHEN WEIHUA

60, JALAN SJ 4, TAMAN SELAYANG JAYA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

G14386600

4,176,209.00

27.65

MR. CHIA AH HOO +

133, JALAN JAMBU BERASA, JINJANG SELATAN, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

590102-10-7355 5680716

3,248,546.00

21.51

PROSPER TEAM SDN. BHD.

UNIT 711, 712 & 713, BLOCK A, KELANA BUSINESS CENTRE, 97, JALAN SS7/2, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

890932V

1,176,319.00

7.79

MR. CHIA AH KEONG +

178, JALAN DEDAP BATIK, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

721005-10-5179 A2320596

404,081.00

2.68

MS. CHIN LAN YIN

25, JALAN DAUN INAI 5, SUNWAY SPK DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690331-10-6194

445,980.00

2.95

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

------

15,104,454.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

317041W

MALAYSIA

SEGI CASH & CARRY SDN. BHD.

100.00

26/11/2014

422944D

MALAYSIA

FARM FRESH AGRICULTURE SDN. BHD.

100.00

24/12/2014

882598K

MALAYSIA

SEGI REALTY SDN. BHD.

100.00

26/11/2014

879672V

MALAYSIA

S-OCEAN SDN. BHD.

80.00

26/11/2014

960419H

MALAYSIA

SEGI LOGISTICS SDN. BHD.

80.00

26/11/2014



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. TAN HON YIK

Address

:

1, JALAN USJ 17/7A, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.

New IC No

:

811103-10-5913

Date of Birth

:

03/11/1981

Nationality

:

MALAYSIAN

Date of Appointment

:

02/09/2013

 

DIRECTOR 2

 

Name Of Subject

:

MR. SYED HAIZAM HISHAMUDDIN PUTRA JAMALULLAIL

Address

:

34, JALAN TENGKU AMPUAN, TAMAN DUTA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

830518-14-5363

Date of Birth

:

18/05/1983

Nationality

:

MALAYSIAN

Date of Appointment

:

19/12/2014

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHIA AH KEONG

Address

:

178, JALAN DEDAP BATIK, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

IC / PP No

:

A2320596

New IC No

:

721005-10-5179

Date of Birth

:

05/10/1972

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2010

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHIA AH HOO

Address

:

133, JALAN JAMBU BERASA, JINJANG SELATAN, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5680716

New IC No

:

590102-10-7355

Date of Birth

:

02/01/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2010

 

DIRECTOR 5

 

Name Of Subject

:

MR. CHUI AH HOCK

Address

:

60, JALAN SJ4, TAMAN SELAYANG JAYA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

New IC No

:

680609-10-6991

Date of Birth

:

09/06/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2010



MANAGEMENT

 

 

1)

Name of Subject

:

CHUI AH HOCK

Position

:

DIRECTOR

 


 

AUDITOR

 

Auditor

:

MICHAEL NG & ASSOCIATES.

Auditor' Address

:

BLOCK 8-16-G, JALAN JALIL PERKASA 15, ARCADE ESPLANAD TAMAN BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

DR NG CHEE LOONG

New IC No

:

690611-10-5823

Address

:

66, JALAN HUJAN EMAS 5, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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 is a service provider.

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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

N/A

 


 

OPERATIONS

 

Services

:

ACTIVITIES OF INVESTMENT HOLDING

 

Total Number of Employees:

YEAR

2015

GROUP

N/A

COMPANY

700

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) activities of investment holding.

The Subject is engaged in activities of investment holding.

The Subject refused to disclose further information on its business operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0378052699

Current Telephone Number

:

03-78052699

Match

:

N/A

Address Provided by Client

:

UNIT 710, BLOCK A, KELANA BUSINESS CENTRE, 97, JALAN SS7/2, KELANA JAYA

47301 PETALING JAYA SELANGOR MALAYSIA

Current Address

:

UNIT 711, 712 & 713, BLOCK A KELANA BUSINESS CENTRE, 97 JALAN SS7/2 KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 23rd April 2015, we contacted one of the staff from the Subject and she only provided limited information on the Subject.

The unit number provided is incorrect.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2010 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

7.83%

]

Return on Net Assets

:

Acceptable

[

14.46%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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

:

Favourable

[

26 Days

]

Debtor Ratio

:

Favourable

[

7 Days

]

Creditors Ratio

:

Favourable

[

19 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in 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

:

Unfavourable

[

0.39 Times

]

Current Ratio

:

Unfavourable

[

0.80 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

[

2.10 Times

]

Gearing Ratio

:

Acceptable

[

0.99 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.

Overall Assessment :

The higher turnover had helped to reduce the Subject's losses. 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.

Overall financial condition of the Subject : POOR

 

 

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

-

-

-

-

INDUSTRY ANALYSIS

 

MSIC CODE

64200 : Activities of investment holding companies

INDUSTRY :

ECONOMY

In 2014, the economy is projected to grow 5.5% - 6% (2013: 4.7%), which is higher than the initial forecast of 4.5% - 5.5% in early 2014. Growth was supported by resilient domestic demand and reinforced by higher exports. The faster pace of recovery, particularly in the US, UK and selected euro area economies as well as moderate growth in the emerging economies provided strong support to the Malaysian export oriented industries and trade-related services. Consequently, gross exports rebounded strongly by 10.7% during the first seven months of 2014 from a contraction of 2.8% in the corresponding period in 2013. Furthermore, the economy growth of Malaysia in 2015 is expected to be 5%-6% driven by improving external demand, resilient domestic economic activity, and government infra- structure projects. The spillover and multiplier effect from government spending is crucial for economic growth in the country. The government also aims to boost the economy by increasing job opportunities and drive supporting industries.

Meanwhile, the Malaysian economy has benefited from several initiatives and reforms taken over the years to enhance its resilience and competitiveness. The nation's strengths include: strong macroeconomic fundamentals such as a diversified economy, low unemployment, strong international reserves, growing role of the private sector, and a healthy financial system to support economic activity.

On the demand side, growth will be reinforced by resilient consumer spending, strong private investment activity and improving global demand. The domestic demand is expected to expand in 2015 at a moderate pace, underpinned by higher investment and sustained consumption spending. Private investment is expected to remain strong supported by increasing domestic activity, a favorable external sector, and ongoing projects under the Economic Transformation Programme (ETP). Private consumption is, however, expected to moderate below its long-term average, but will continue to support growth. Household spending is expected to moderate amid higher inflation following the implementation of GST. Nonetheless, the impact of higher inflation on consumption is expected to be temporary and will eventually taper off after a few months of the GST implementation.

On the supply side, all economic sectors are expected to record positive in 2015, with the services and manufacturing sectors remaining the major contribution to growth. The service sector is projected to grow by 5.6% with all subsectors recording expansion such as wholesale trade, transport and storage, retail trade as well as accommodation and restaurants. The manufacturing sector is expected to grow 5.5% boosted by strong domestic and export-oriented industries. Meanwhile, the export-oriented industries, particularly the E&E subsector will benefit from the improvement in external conditions in line with improving global growth. The agriculture sector is expected to grow 3.1% by recording higher commodity production and increase output of food commodities, while the construction sector is expected to grow 10.7% driven by robust activity in the civil engineering projects in the O&G sector, residential and non-residential buildings. The mining sector is expected to grow 2.8% backed by the increase in production of natural gas and crude oil following capacity enhancement and new production facilities.

Moreover, in 2014, boosted by strong external demand for manufactured products and stable commodity prices, exports are expected to grow 6%. Import growth will remain resilient at 4.3% supported by continued expansion in manufacturing, investment and consumption activities. Meanwhile, higher remittances by foreign workers in Malaysia will see a marginally higher deficit in the secondary income account due to the full implementation of the Minimum Wage Policy effective from January 2014. Furthermore, Malaysia's external position is expected to remain strong in 2015 with improve prospects for external environment, upturn in global semiconductor sales, as well as resilient domestic and regional demand. Gross exports are expected to increase 3.2% spurred by higher demand for manufactured products, in particular E&E, and steady demand for commodities. Gross import are, however, projected to grow at a faster pace of 5.3% boosted by higher demand for intermediate inputs and broad-based capital spending, particularly in the manufacturing and services sectors as well as ongoing implementation of infrastructure projects. Higher investment activity across major sectors by the Non-Financial Public Enterprises (NFPEs) is also expected to contribute to import growth.

In 2015, inflation is expected to increase 4-5%, largely due to the implementation of Goods and Services Tax (GST), spillover effect of fuel subsidy reduction, and electricity tariff hike in January 2014. This inflation expectation further heightens the possibility of more Overnight Policy Rate (OPR) hikes, following the 25 basis points hike in July 2014. Given the subdued external cost pressure, domestic cost remains the major factor that drives inflation in 2015. The implementation of the GST will have a transitory impact on the cost of goods and services. However, the strong capacity expansion over the past years will help to mitigate the cost pressures, while a more cautious stance of consumers would also contribute to moderating demand and hence prevent inflation from becoming more entrenched.

On the other hand, Gross National Income (GNI) in 2015 is expected to expand further by 9.4% (2014: 10.2%) following continued growth in the domestic economy. With total consumption spending in nominal terms expected to increase 9.2%, the Gross National Savings (GNS) is projected to expand 9.8% (2014: 14.5%). Consequently, the share of GNS and GNI is expected to increase to 32.5% (2014: 32.4%). However, in line with the better economic growth, national income as measured by the nominal GNI, is estimated to expand 10.2% to RM1,049.5 billion in 2014, surpassing for the first time, the RM1-trillion mark. Other than that, nominal GNI per capita is expected to increase 8.1% to RM37,486 in 2015 (2014: 8.9%, RM34,682). In terms of Purchasing Power Parity (PPP), per capital income is expected to increase 2.4% to USD 23,512 in 2015 (2014: 2.2%, USD 22,958).

Under budget 2015, the government targets to bring down the budget deficit to -3% of GDP by 2015. The initiations of subsidy rationalization and Goods and Services Tax (GST) in April 2015 are crucial steps towards fiscal consolidation.

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

PROFIT AND LOSS ACCOUNT

 

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

SEGI VALUE HOLDINGS SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

TURNOVER

320,837,865

290,766,740

283,139,342

268,754,858

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

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

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

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

Total Turnover

320,837,865

290,766,740

283,139,342

268,754,858

Costs of Goods Sold

(274,271,476)

(251,851,028)

-

-

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

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

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

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

Gross Profit

46,566,389

38,915,712

-

-

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

3,429,931

(2,962,828)

(146,209)

2,269,948

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,429,931

(2,962,828)

(146,209)

2,269,948

Taxation

(937,524)

(521,000)

(3,659,789)

(1,627,719)

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,492,407

(3,483,828)

(3,805,998)

642,229

Minority interests

(82,493)

(9,206)

(82,639)

-

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

2,409,914

(3,493,034)

(3,888,637)

642,229

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

2,409,914

(3,493,034)

(3,888,637)

642,229

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(11,804,106)

(8,311,072)

(4,422,435)

-

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

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

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

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

As restated

(11,804,106)

(8,311,072)

(4,422,435)

-

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(9,394,192)

(11,804,106)

(8,311,072)

642,229

TRANSFER TO RESERVES - General

-

-

-

(2,842,485)

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

(2,222,179)

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(9,394,192)

(11,804,106)

(8,311,072)

(4,422,435)

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

384,592

275,896

-

-

Hire purchase

181,213

54,378

-

-

Revolving loans

134,459

177,496

-

-

Term loan / Borrowing

503,012

495,399

-

-

Others

1,926,628

1,798,997

-

-

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

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

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

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

3,129,904

2,802,166

-

-

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

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

-

-

DEPRECIATION (as per notes to P&L)

3,122,197

2,085,871

-

-

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

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

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

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

3,122,197

2,085,871

-

-

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

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

 

 

BALANCE SHEET

 

SEGI VALUE HOLDINGS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

23,001,034

17,062,641

10,764,307

9,070,505

Investment properties

33,455,145

30,950,439

-

-

Others

-

758,530

-

-

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

33,455,145

31,708,969

8,384,618

7,334,618

INTANGIBLE ASSETS

Deferred/Expenditure carried forward

109,490

118,614

-

-

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

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

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

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

TOTAL INTANGIBLE ASSETS

109,490

118,614

-

-

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

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

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

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

TOTAL LONG TERM ASSETS

56,565,669

48,890,224

19,148,925

16,405,123

Stocks

22,925,163

21,371,897

-

-

Trade debtors

6,498,419

13,003,797

-

-

Other debtors, deposits & prepayments

2,916,182

3,728,315

-

-

Short term deposits

8,943,467

7,864,165

-

-

Cash & bank balances

3,248,594

5,842,733

-

-

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

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

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

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

TOTAL CURRENT ASSETS

44,531,825

51,810,907

55,734,187

50,809,362

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

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

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

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

TOTAL ASSET

101,097,494

100,701,131

74,883,112

67,214,485

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

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

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

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

CURRENT LIABILITIES

Trade creditors

13,918,120

25,068,492

-

-

Other creditors & accruals

9,869,403

8,880,803

-

-

Hire purchase & lease creditors

2,047,753

542,263

-

-

Bank overdraft

8,083,684

3,519,156

-

-

Short term borrowings/Term loans

648,600

4,457,015

-

-

Bill & acceptances payable

14,566,059

16,974,162

-

-

Provision for taxation

488,769

134,151

-

-

Other liabilities

6,110,600

7,952,876

-

-

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

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

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

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

TOTAL CURRENT LIABILITIES

55,732,988

67,528,918

56,861,642

46,881,614

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(11,201,163)

(15,718,011)

(1,127,455)

3,927,748

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

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

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

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

TOTAL NET ASSETS

45,364,506

33,172,213

18,021,470

20,332,871

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

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

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

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

SHARE CAPITAL

Ordinary share capital

15,104,454

15,104,454

15,104,454

15,104,454

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

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

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

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

TOTAL SHARE CAPITAL

15,104,454

15,104,454

15,104,454

15,104,454

Capital reserve

3,396,483

3,396,483

-

-

Revaluation reserve

5,042,164

5,042,164

-

-

Retained profit/(loss) carried forward

(9,394,192)

(11,804,106)

(8,311,072)

(4,422,435)

Others

16,508,645

15,758,645

6,558,947

4,058,947

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

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

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

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

TOTAL RESERVES

15,553,100

12,393,186

(1,752,125)

(363,488)

MINORITY INTEREST

107,486

24,993

15,785

-

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

30,765,040

27,522,633

13,368,114

14,740,966

Long term loans

3,854,901

4,418,470

-

-

Hire purchase creditors

1,098,208

880,110

-

-

Deferred taxation

284,800

351,000

-

-

Others

9,361,557

-

-

-

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

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

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

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

TOTAL LONG TERM LIABILITIES

14,599,466

5,649,580

4,653,356

5,591,905

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

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

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

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

45,364,506

33,172,213

18,021,470

20,332,871

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

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

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

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

 

 

FINANCIAL RATIO

 

SEGI VALUE HOLDINGS SDN. BHD.

 

TYPES OF FUNDS

Cash

12,192,061

13,706,898

-

-

Net Liquid Funds

(10,457,682)

(6,786,420)

-

-

Net Liquid Assets

(34,126,326)

(37,089,908)

(1,127,455)

3,927,748

Net Current Assets/(Liabilities)

(11,201,163)

(15,718,011)

(1,127,455)

3,927,748

Net Tangible Assets

45,255,016

33,053,599

18,021,470

20,332,871

Net Monetary Assets

(48,725,792)

(42,739,488)

(5,780,811)

(1,664,157)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

6,559,835

(160,662)

-

-

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

9,682,032

1,925,209

-

-

BALANCE SHEET ITEMS

Total Borrowings

30,433,664

30,968,672

-

-

Total Liabilities

70,332,454

73,178,498

61,514,998

52,473,519

Total Assets

101,097,494

100,701,131

74,883,112

67,214,485

Net Assets

45,364,506

33,172,213

18,021,470

20,332,871

Net Assets Backing

30,765,040

27,522,633

13,368,114

14,740,966

Shareholders' Funds

30,765,040

27,522,633

13,368,114

14,740,966

Total Share Capital

15,104,454

15,104,454

15,104,454

15,104,454

Total Reserves

15,553,100

12,393,186

(1,752,125)

(363,488)

LIQUIDITY (Times)

Cash Ratio

0.22

0.20

-

-

Liquid Ratio

0.39

0.45

-

-

Current Ratio

0.80

0.77

0.98

1.08

WORKING CAPITAL CONTROL (Days)

Stock Ratio

26

27

-

-

Debtors Ratio

7

16

-

-

Creditors Ratio

19

36

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.99

1.13

-

-

Liabilities Ratio

2.29

2.66

4.60

3.56

Times Interest Earned Ratio

2.10

(0.06)

-

-

Assets Backing Ratio

3.00

2.19

1.19

1.35

PERFORMANCE RATIO (%)

Operating Profit Margin

1.07

(1.02)

(0.05)

0.84

Net Profit Margin

0.75

(1.20)

(1.37)

0.24

Return On Net Assets

14.46

(0.48)

(0.81)

11.16

Return On Capital Employed

11.75

(0.43)

(0.81)

11.16

Return On Shareholders' Funds/Equity

7.83

(12.69)

(29.09)

4.36

Dividend Pay Out Ratio (Times)

0.00

0.00

-

3.46

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ASH

 

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%)

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