MIRA INFORM REPORT

 

 

Report No. :

355413

Report Date :

21.12.2015

           

IDENTIFICATION DETAILS

 

Name :

SYARIKAT THONG GUAN TRADING SDN. BHD.

 

 

Registered Office :

Suite 16-1 (Penthouse Upper), Menara Penang Garden, 42A, Jalan Sultan Ahmad Shah, 10050 Pulau Pinang, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

21.10.1976

 

 

Com. Reg. No.:

29442-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

The Subject engaged in manufacturing of coffee and tea.

 

 

No. of Employee :

80

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

No complaints

 

 

Litigation :

Clear

 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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 strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

29442-K

COMPANY NAME

:

SYARIKAT THONG GUAN TRADING SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/10/1976

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 16-1 (PENTHOUSE UPPER), MENARA PENANG GARDEN, 42A, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

57, MAIN ROAD, SUNGAI LALANG, 08100 BEDONG, KEDAH, MALAYSIA.

TEL.NO.

:

04-4422020

FAX.NO.

:

04-4429588

CONTACT PERSON

:

ANG POON CHUAN ( CHAIRMAN )

INDUSTRY CODE

:

10791

PRINCIPAL ACTIVITY

:

MANUFACTURING COFFEE AND TEA

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000.00 OF MYR 1,000.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 3,735,000.00 DIVIDED INTO 
ORDINARY SHARES 3,735 CASH OF MYR 1,000.00 EACH.

SALES

:

MYR 25,749,887 [2014]

NET WORTH

:

MYR 22,839,059 [2014]

STAFF STRENGTH

:

80 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

NO COMPLAINTS

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) manufacturing coffee and tea.

 

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

 

The immediate holding company of the Subject is THONG GUAN INDUSTRIES BERHAD, a company incorporated in MALAYSIA.

 

Former Address(es)

Address

As At Date

LOT 52,JLN PKNK 1/6, KAW.PERUSAHAAN SG PETANI, 8000, KEDAH, MALAYSIA

15/02/2013

SUITE 2-1, MENARA PENANG GARDEN, 42A, JALAN SULTAN AHMAD SHAH, 2RD FLOOR, 10050, PULAU PINANG, MALAYSIA

18/12/2015

ROOM 102, WISMA PENANGGARDEN, 42, JALAN SULTAN AHMAD SHAH, 1ST FLOOR, 10050, PULAU PINANG, MALAYSIA

18/12/2015

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

26/11/2014

MYR 5,000,000.00

MYR 3,735,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

THONG GUAN INDUSTRIES BERHAD

SUITE 16-1, (PENTHOUSE UPPER), MENARA PENANG GARDEN, 42A, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

324203K

3,735.00

100.00

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

------

3,735.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. TEH BOON YEN

Address

:

1, PERSIARAN BLM 5, BANDAR LAGUNA MERBOK, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

- 34-A, TAMAN MAKMUR, BAKAR ARANG 08000 SUNGAI PETANI;KEDAH, MALAYSIA.

- 55,SUNGAI LALANG BEDONG, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

4913624

New IC No

:

551205-02-5182

Date of Birth

:

05/12/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

01/06/2005

 

DIRECTOR 2

 

Name Of Subject

:

MR. ANG SEE MING

Address

:

LOT 223, JALAN PERSIARAN CINTA SAYANG, KELAB CINTA SAYANG, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

- NO.28,LORONG 9A, TAMAN MEWAH, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

- 08000 SG.PETANI,KEDAH., MALAYSIA.

IC / PP No

:

A1631889

New IC No

:

700515-07-5691

Date of Birth

:

15/05/1970

Nationality

:

MALAYSIAN

Date of Appointment

:

18/06/2003

 

DIRECTOR 3

 

Name Of Subject

:

DATUK ANG POON SEONG

Address

:

225B, MILE 3, TUARAN ROAD, LIKAS, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

- P.O BOX 13624, 88841 KOTA KINABALU, SABAH, MALAYSIA.

- JALAN API API, BANDAR SELATAN, LIKAS, 88000 KOTA KINABALU, SABAH, MALAYSIA.

- 55,PEKAN LAMA, SUNGAI LALANG, 08100 BEDONG,KEDAH, MALAYSIA.

- LOT 635, HOUSE 59, TAMAN BDC PHASE 1, MILE 5 1/2, JALAN TUARAN, LIKAS, 88880 KOTA KINABALU, SABAH, MALAYSIA.

IC / PP No

:

4970482

New IC No

:

560223-07-5583

Date of Birth

:

23/02/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

21/10/1976

 

DIRECTOR 4

 

Name Of Subject

:

MR. ANG POON SHEN

Address

:

48, JALAN LAGENDA 18, LAGENDA HEIGHTS, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

- 57,PEKAN LAMA, SUNGAI LALANG, 08100 BEDONG;KEDAH, MALAYSIA.

- 20, LORONG 22, TAMAN PATANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

- 57,, SUNGAI LALANG BEDONG,, SUNGAI LALANG,, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

7238656

New IC No

:

631117-02-5369

Date of Birth

:

17/11/1963

Nationality

:

MALAYSIAN

Date of Appointment

:

02/05/2014

 

DIRECTOR 5

 

Name Of Subject

:

DATO' ANG POON KHIM

Address

:

427, PERSIARAN CINTA SAYANG, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

- NO. 15, LORONG 15, TAMAN MEWAH, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

- 57 SUNGAI LELANG BEDONG,, SUNGAI PETANI,, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

- 55,PEKAN LAMA, SUNGAI LALANG, 08100 BEDONG;KEDAH, MALAYSIA.

IC / PP No

:

4653247

New IC No

:

540709-07-5075

Date of Birth

:

09/07/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

19/08/1998

 

DIRECTOR 6

 

Name Of Subject

:

DATO' ANG POON CHUAN

Address

:

223, JALAN PERSIARAN CINTA SAYANG, KELAB CINTA SAYANG, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

- 28,LORONG 9A, TAMAN MEWAH, 08000 SUNGAI PETANI;KEDAH, MALAYSIA.

- 55 PEKAN LAMA, SUNGAI LALLANG, 08100 BEDONG, KEDAH, MALAYSIA.

IC / PP No

:

1918181

New IC No

:

440728-02-5307

Date of Birth

:

28/07/1944

Nationality

:

MALAYSIAN

Date of Appointment

:

21/10/1976

 

DIRECTOR 7

 

Name Of Subject

:

MS. ANG ENG CHOO

Address

:

367, LORONG INTAN D/3, TAMAN INTAN, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Other Address(es)

:

PEKAN LAMA SG LALANG, SUNGAI LALANG, BUKIT SELAMBAU, 08400 MERBOK, KEDAH, MALAYSIA.

IC / PP No

:

3947965

New IC No

:

510816-02-5228

Date of Birth

:

06/08/1951

Nationality

:

MALAYSIAN

Date of Appointment

:

21/10/1976



MANAGEMENT

 

 

1)

Name of Subject

:

ANG POON CHUAN

Position

:

CHAIRMAN

 

 

 

 

 

 

AUDITOR

 

Auditor

:

MESSRS KPMG

Auditor' Address

:

HUNZA TOWER, 163E, JALAN KELAWEI, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ONG TZE-EN

IC / PP No

:

A2054637

New IC No

:

720313-07-5210

Address

:

VILLA BATU BUKIT, 7-2-1, JALAN BATU BUKIT, TANJUNG TOKONG, 10470 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

2)

Company Secretary

:

MS. LAU YOKE LENG

IC / PP No

:

A1253306

New IC No

:

690410-07-5082

Address

:

109-13A-05, GAMBIER HEIGHT APARTMENT, PERSIARAN BUKIT GAMBIR 1, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1 (BK 137/61)

02/08/1980

CHARGE

HONGKONG & SHANGHAI BANKING CORPN

MYR 360,000.00

Unsatisfied

1

02/09/1980

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 360,000.00

Satisfied

2

25/05/1982

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 50,000.00

Satisfied

2 (BK 137/61)

25/05/1982

CHARGE

HONGKONG & SHANGHAI BANKING CORPN

MYR 50,000.00

Unsatisfied

3

30/06/1983

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 600,000.00

Satisfied

4

26/02/1985

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 1,300,000.00

Satisfied

5

16/05/1988

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 300,000.00

Satisfied

6

22/05/1989

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 490,000.00

Satisfied

7

21/04/1990

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 950,000.00

Satisfied

8

21/04/1990

CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 950,000.00

Satisfied

9

21/04/1990

CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 950,000.00

Satisfied

10

21/04/1990

CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 950,000.00

Satisfied

11

21/04/1990

CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 950,000.00

Satisfied

12

20/08/1990

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 4,050,000.00

Satisfied

13

19/11/1990

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 674,000.00

Satisfied

14

19/11/1990

N/A

THE HONGKONG SHANGHAI BANKING CORPORATION LTD

MYR 674,000.00

Satisfied

15

19/11/1990

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 674,000.00

Satisfied

16

19/11/1990

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 674,000.00

Satisfied

17

19/11/1990

CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 674,000.00

Satisfied

18

19/11/1990

CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 674,000.00

Satisfied

19

31/12/2000

NEGATIVE PLEDGE

MALAYAN BANKING BERHAD

MYR 4,100,000.00

Satisfied

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES



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

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

COFFEE, TEA

Product Brand Name

:

888 & 666

Competitor(s)

:

BINTY TRADING SDN BHD
COCA-COLA BOTTLERS (MALAYSIA) SDN BHD
SABAH INTERNATIONAL DAIRIES SDN BHD
SV BEVERAGES (MALAYSIA) SDN BHD
YLF FOOD INDUSTRIES SDN BHD

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

Total Number of Employees:

 

YEAR

2015

2014

2012

GROUP

N/A

N/A

N/A

COMPANY

80

95

80

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing coffee and tea. 

The Subject is a manufacturer of black tea, coffee, Chinese tea, convenience products (Instant Products) and also organic products.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

044422020

Current Telephone Number

:

04-4422020

Match

:

YES

Address Provided by Client

:

57, MAIN ROAD, SUNGAI LALANG,08100,BEDONG,KEDAH.

Current Address

:

57, MAIN ROAD, SUNGAI LALANG, 08100 BEDONG, KEDAH, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

 

 

Other Investigations

 

We contacted one of the staff from the Subject and he provided some information.

 

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

7.07%

]

Return on Net Assets

:

Unfavourable

[

9.03%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.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

:

Favourable

[

28 Days

]

Debtor Ratio

:

Favourable

[

52 Days

]

Creditors Ratio

:

Favourable

[

4 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

:

Favourable

[

8.88 Times

]

Current Ratio

:

Favourable

[

9.93 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

:

Favourable

[

367.76 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject 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 :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.0

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

4.7

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

82,480

85,258

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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.2

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,203

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

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

44.0

44.2

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

27.4

29.4

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.6

58.8

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

1.0

0.7

0.7

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

5.3

Electrical & Electronics

(4.0)

12.7

6.9

13.3

7.9

Rubber Products

20.7

3.0

11.7

(0.3)

3.4

Wood Products

(5.1)

8.7

(2.7)

5.1

7.1

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

7.2

Domestic-oriented Industries

10.7

1.7

6.8

9.4

3.3

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

8.90

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

3.6

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

7.2

Transport Equipment

12.0

3.4

13.8

22.9

7.6

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

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

 

10791 : Manufacture of coffee

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1976, the Subject is a Private Limited company, focusing on manufacturing coffee and tea. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 3,735,000 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise.

 
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 moderate size company, the Subject has a total workforce of 80 employees in its business operations. 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. 


Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. 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 22,839,059, 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. 


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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

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

SYARIKAT THONG GUAN TRADING SDN. BHD.

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

25,749,887

31,263,870

21,869,844

20,748,899

19,544,607

Other Income

284,904

171,615

-

-

-

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

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

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

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

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

Total Turnover

26,034,791

31,435,485

21,869,844

20,748,899

19,544,607

Costs of Goods Sold

(15,096,556)

(21,726,898)

-

-

-

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

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

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

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

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

Gross Profit

10,938,235

9,708,587

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

2,060,814

1,986,687

2,395,761

2,056,265

1,161,354

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,060,814

1,986,687

2,395,761

2,056,265

1,161,354

Taxation

(447,109)

(479,251)

(647,094)

(653,856)

(385,888)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,613,705

1,507,436

1,748,667

1,402,409

775,466

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

14,350,174

12,842,738

11,094,071

9,691,662

10,416,196

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

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

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

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

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

As restated

14,350,174

12,842,738

11,094,071

9,691,662

10,416,196

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

15,963,879

14,350,174

12,842,738

11,094,071

11,191,662

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

-

(1,500,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

15,963,879

14,350,174

12,842,738

11,094,071

9,691,662

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

518

104

-

-

5

Lease interest

5,101

9,635

-

-

-

Others

-

-

-

-

4,400

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

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

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

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

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

5,619

9,739

-

-

4,405

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

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

-

-

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

DEPRECIATION (as per notes to P&L)

393,676

497,109

-

-

451,997

AMORTIZATION

1,100

1,100

-

-

1,100

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

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

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

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

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

394,776

498,209

-

-

453,097

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE  SHEET

 

SYARIKAT THONG GUAN TRADING SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

5,980,038

6,292,981

6,907,031

6,737,075

6,726,534

Others

35,567

36,667

-

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

35,567

36,667

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

6,015,605

6,329,648

6,907,031

6,737,075

6,726,534

Short term quoted/unquoted investments

3,123,884

3,000,000

-

-

-

Stocks

1,986,525

1,538,827

-

-

6,088,201

Trade debtors

3,670,870

3,639,418

-

-

4,122,436

Other debtors, deposits & prepayments

171,595

154,841

-

-

753,244

Short term deposits

2,550,000

3,250,000

-

-

-

Short term loan to financial institutions

1,520,000

-

-

-

-

Amount due from related companies

5,216,997

5,839,111

-

-

-

Cash & bank balances

515,528

315,900

-

-

1,422,614

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

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

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

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

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

TOTAL CURRENT ASSETS

18,755,399

17,738,097

16,464,826

14,824,014

12,386,495

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

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

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

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

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

TOTAL ASSET

24,771,004

24,067,745

23,371,857

21,561,089

19,113,029

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

180,608

609,539

-

-

762,744

Other creditors & accruals

851,326

902,230

-

-

1,506,672

Hire purchase & lease creditors

61,524

101,891

-

-

38,070

Bank overdraft

-

180,904

-

-

-

Amounts owing to related companies

780,487

615,630

-

-

-

Provision for taxation

14,000

144,000

-

-

47,458

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,887,945

2,554,194

3,240,850

3,327,165

2,354,944

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

16,867,454

15,183,903

13,223,976

11,496,849

10,031,551

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

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

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

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

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

TOTAL NET ASSETS

22,883,059

21,513,551

20,131,007

18,233,924

16,758,085

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

3,735,000

3,735,000

3,735,000

3,735,000

3,735,000

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

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

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

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

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

TOTAL SHARE CAPITAL

3,735,000

3,735,000

3,735,000

3,735,000

3,735,000

RESERVES

Share premium

-

-

15,981,591

3,138,853

-

Capital reserve

3,138,853

3,138,853

-

-

3,138,853

General reserve

1,327

-

-

-

-

Retained profit/(loss) carried forward

15,963,879

14,350,174

12,842,738

11,094,071

9,691,662

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

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

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

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

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

TOTAL RESERVES

19,104,059

17,489,027

15,981,591

14,232,924

12,830,515

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

22,839,059

21,224,027

19,716,591

17,967,924

16,565,515

Lease obligations

-

61,524

-

-

570

Deferred taxation

44,000

228,000

-

-

192,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

44,000

289,524

414,416

266,000

192,570

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

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

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

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

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

22,883,059

21,513,551

20,131,007

18,233,924

16,758,085

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

SYARIKAT THONG GUAN TRADING SDN. BHD.

 

TYPES OF FUNDS

Cash

3,065,528

3,565,900

-

-

1,422,614

Net Liquid Funds

3,065,528

3,384,996

-

-

1,422,614

Net Liquid Assets

14,880,929

13,645,076

13,223,976

11,496,849

3,943,350

Net Current Assets/(Liabilities)

16,867,454

15,183,903

13,223,976

11,496,849

10,031,551

Net Tangible Assets

22,883,059

21,513,551

20,131,007

18,233,924

16,758,085

Net Monetary Assets

14,836,929

13,355,552

12,809,560

11,230,849

3,750,780

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

2,066,433

1,996,426

-

-

1,165,759

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

2,461,209

2,494,635

-

-

1,618,856

BALANCE SHEET ITEMS

Total Borrowings

61,524

344,319

-

-

38,640

Total Liabilities

1,931,945

2,843,718

3,655,266

3,593,165

2,547,514

Total Assets

24,771,004

24,067,745

23,371,857

21,561,089

19,113,029

Net Assets

22,883,059

21,513,551

20,131,007

18,233,924

16,758,085

Net Assets Backing

22,839,059

21,224,027

19,716,591

17,967,924

16,565,515

Shareholders' Funds

22,839,059

21,224,027

19,716,591

17,967,924

16,565,515

Total Share Capital

3,735,000

3,735,000

3,735,000

3,735,000

3,735,000

Total Reserves

19,104,059

17,489,027

15,981,591

14,232,924

12,830,515

LIQUIDITY (Times)

Cash Ratio

1.62

1.40

-

-

0.60

Liquid Ratio

8.88

6.34

-

-

2.67

Current Ratio

9.93

6.94

5.08

4.46

5.26

WORKING CAPITAL CONTROL (Days)

Stock Ratio

28

18

-

-

114

Debtors Ratio

52

42

-

-

77

Creditors Ratio

4

10

-

-

14

SOLVENCY RATIOS (Times)

Gearing Ratio

0

0.02

-

-

0

Liabilities Ratio

0.08

0.13

0.19

0.20

0.15

Times Interest Earned Ratio

367.76

204.99

-

-

264.64

Assets Backing Ratio

6.13

5.76

5.39

4.88

4.49

PERFORMANCE RATIO (%)

Operating Profit Margin

8.00

6.35

10.95

9.91

5.94

Net Profit Margin

6.27

4.82

8.00

6.76

3.97

Return On Net Assets

9.03

9.28

11.90

11.28

6.96

Return On Capital Employed

9.01

9.16

11.90

11.28

6.94

Return On Shareholders' Funds/Equity

7.07

7.10

8.87

7.81

4.68

Dividend Pay Out Ratio (Times)

0

0

-

-

1.93

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

-

0



 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.42

UK Pound

1

Rs.99.17

Euro

1

Rs.72.14

MYR

1

Rs.15.44

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

AMT

 

 

Report Prepared by :

TRU

 

 

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.