MIRA INFORM REPORT

 

 

Report No. :

307369

Report Date :

11.02.2015

 

IDENTIFICATION DETAILS

 

Name :

ENG SHENG SDN. BHD.

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Date of Incorporation :

28.08.1982

 

 

Com. Reg. No.:

89290-D

 

 

Legal Form :

Exempt Private (Limited by Share)

 

 

Line of Business :

Trading in Sundry and Food Products.

 

 

No. of Employees :

120 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

89290-D

COMPANY NAME

:

ENG SHENG SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/08/1982

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 11, PERSIARAN SABAK BERNAM, SECTION 26 (HICOM), 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51926688

FAX.NO.

:

03-51922576

EMAIL

:

INQURIES@ENGSHENG.COM

WEB SITE

:

WWW.ENGSHENG.COM

CONTACT PERSON

:

KHOR KENG HUAT ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING IN SUNDRY AND FOOD PRODUCTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 6,000,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH AND 5,500,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

120 [2015]

BANKER (S)

:

MALAYAN BANKING BHD
OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 


HISTORY/ BACKGROUND

 

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The Subject is principally engaged in the (as a / as an) trading in sundry and food products.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 10,000,000.00

MYR 6,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. KHOR KEAN HOCK +

2A,JALAN PJU 3/17B, TROPICANA INDAH RESORT HOMES, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

700512-10-6309 A1508682

2,850,000.00

47.50

MR. KHOR KENG HUAT +

139A,JALAN ATINAHAPAN 2, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

620116-08-5325

1,350,000.00

22.50

MR. KHOR KIAN HIN

31, JALAN PJU 3/12C, TROPICANA INDAH RESORT HOMES, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

730628-14-5059 A2484475

1,350,000.00

22.50

MR. KHOR KIAN HOE

63,JALAN TR2/2, TROPICANA GOLF & RESORT HOMES, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

771011-14-5543 A3768939

225,000.00

3.75

MR. KHOR KEAN GUAN

69, JALAN TR 2/3, TROPICANA GOLF & RESORT HOMES, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

790503-14-5383

225,000.00

3.75

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

------

6,000,000.00

100.00

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

=====

+ Also Director




DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. KHOR KENG HUAT

Address

:

139A,JALAN ATINAHAPAN 2, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

620116-08-5325

Date of Birth

:

16/01/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

23/10/1989

 

DIRECTOR 2

 

Name Of Subject

:

MR. KHOR KEAN HOCK

Address

:

2A,JALAN PJU 3/17B, TROPICANA INDAH RESORT HOMES, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1508682

New IC No

:

700512-10-6309

Date of Birth

:

12/05/1970

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

15/07/1999


MANAGEMENT

 

 

 

1)

Name of Subject

:

KHOR KENG HUAT

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

L.H..LEE & CO.

Auditor' Address

:

RM 301, 368, JALAN PUDU, 3RD FLR, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG WAI FOONG

New IC No

:

660510-10-6838

Address

:

1164, JALAN 17/64, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. WONG PEIR CHYUN

IC / PP No

:

A1935519

New IC No

:

710824-10-5806

Address

:

15, SOLOK NONA, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

 

3)

Company Secretary

:

MR. HENG CHIANG POOH

IC / PP No

:

5704603

New IC No

:

590426-06-5083

Address

:

506, BLOCK D2, SECTION 2 WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with:

 

1)

Name

:

MALAYAN BANKING BHD

 

2)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

08/08/1984

N/A

KWONG YIK BANK BHD

MYR 1,000,000.00

Satisfied

2

07/02/1985

N/A

KWONG YIK BANK BHD

MYR 1,500,000.00

Satisfied

3

23/04/1985

N/A

UNITED MALAYAN BANKING CORPBHD

MYR 400,000.00

Satisfied

4

23/04/1985

N/A

UNITED MALAYAN BANKING CORPBHD

MYR 600,000.00

Satisfied

5

07/03/1986

N/A

PUBLIC BANK BHD

MYR 1,300,000.00

Satisfied

6

08/12/1986

N/A

KWONG YIK BANK BHD

-

Satisfied

7

09/03/1989

N/A

UNITED MALAYAN BANKING BERHAD

MYR 500,000.00

Satisfied

8

16/02/1990

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,100,000.00

Satisfied

9

16/02/1990

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 300,000.00

Satisfied

10

14/06/1991

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 3,250,000.00

Satisfied

11

14/06/1991

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 2,150,000.00

Satisfied

12

14/06/1991

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1.00

Satisfied

13

10/12/1991

N/A

PERWIRA HABIB BANK MALAYSIA BHD

MYR 1,400,000.00

Satisfied

14

10/12/1991

N/A

PERWIRA HABIB BANK MALAYSIA BHD

MYR 300,000.00

Satisfied

15

25/05/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 740,000.00

Satisfied

16

25/05/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 740,000.00

Satisfied

17

05/10/1994

N/A

PERWIRA AFFIN BANK BERHAD

MYR 8,800,000.00

Satisfied

18

06/11/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 4,900,000.00

Satisfied

19

06/11/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 4,900,000.00

Satisfied

20

22/01/1998

N/A

THE PACIFIC BANK BERHAD

MYR 10,000,000.00

Unsatisfied

21

12/01/1999

N/A

PERWIRA AFFIN BANK BERHAD

MYR 13,700,000.00

Satisfied

22

30/08/1999

N/A

PERWIRA AFFIN BANK BERHAD

MYR 13,970,000.00

Satisfied

23

30/08/1999

N/A

PERWIRA AFFIN BANK BERHAD

MYR 1,770,000.00

Satisfied

24

30/08/1999

N/A

PERWIRA AFFIN BANK BERHAD

MYR 1,770,000.00

Satisfied

25

07/03/2003

N/A

AFFIN BANK BERHAD

MYR 8,300,000.00

Satisfied

26

03/09/2003

N/A

MALAYAN BANKING BERHAD

MYR 15,020,000.00

Unsatisfied

27

17/09/2007

OPEN CHARGE

MALAYAN BANKING BHD

MYR 10,000,000.00

Unsatisfied

28

18/12/2007

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

29

25/02/2010

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

 

 

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

Import Countries

:

CHINA,INDIA

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

INDONESIA

THAILAND

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

RETAIL,SUPERMARKETS

 

 

OPERATIONS

 

Goods Traded

:

SUNDRY AND FOOD PRODUCTS

Competitor(s)

:

AURIC CHUN YIP SDN BHD
HARPERS TRADING (MALAYSIA) SDN BHD
PGEO GROUP SDN BHD

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Factory / Premises

:

GRANDMET INDUSTRIAL ESTATE, SUBLOT 15, LOT 7520, BLOCK 32, KEMENA LAND DISTRICT BATU 5,, 97000 BINTULU, SARAWAK, MALAYSIA.
Tel No: 086-339604
Fax No: 086-338606

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

2010


GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

120

100

100

100

120

120

 

Branch

:

YES

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading in sundry and food products.

The Subject sells a wide range of sundry goods including onions, garlics, potatoes, canned foods, dried chilies, beans and others.

The Subject also undertakes packing based on the quantity required by its customers.

Besides that the Subject has modern cold room facilities located at the both premises.

According to the Subject, it provides delivery services to the customers' door step.

The Subject also sells canned food such as Sardine, mix fruits, dry food and others.

The Subject sells its products both in loose and large quantities.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-51926688

Match

:

N/A

Address Provided by Client

:

LOT 11, PERSIARAN SABAK BERNAM, SECTION 26 (HICOM),40400,SHAH ALAM,SELANGOR.

Current Address

:

LOT 11, PERSIARAN SABAK BERNAM, SECTION 26 (HICOM), 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations


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



FINANCIAL ANALYSIS

 

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

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

46329 : Wholesale of other foodstuffs

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 1982, the Subject is an Exempt Private company, focusing on trading in sundry and food products. 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 6,000,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.


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. The Subject is a fairly large and rapidly growing company with over 120 staff in its 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.

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.


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


The industry shows an upward trend and this trend is very likely to sustain in the near terms.

 
In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

ENG SHENG SDN. BHD.

 

Financial Year End

1994-12-31

1993-12-31

1992-12-31

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

NO

YES

YES

Financial Type

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

TURNOVER

54,892,358

56,123,241

58,571,949

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

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

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

Total Turnover

54,892,358

56,123,241

58,571,949

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

275,008

(258,294)

34,632

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

275,008

(258,294)

34,632

Taxation

77,119

-

(29,000)

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

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

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

PROFIT/(LOSS) AFTER TAXATION

352,127

(258,294)

5,632

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

352,127

(258,294)

5,632

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

352,127

(258,294)

5,632

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

156,196

273,835

92,687

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

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

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

As restated

156,196

273,835

92,687

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

508,323

15,541

98,319

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

508,323

15,541

98,319

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

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

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

 

BALANCE SHEET

 

 

ENG SHENG SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

4,520,385

4,536,956

5,573,868

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

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

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

TOTAL LONG TERM ASSETS

4,520,385

4,536,956

5,573,868

TOTAL CURRENT ASSETS

13,568,613

13,537,555

9,995,161

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

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

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

TOTAL ASSET

18,088,998

18,074,511

15,569,029

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

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

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

TOTAL CURRENT LIABILITIES

13,157,837

14,594,386

11,979,110

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

410,776

(1,056,831)

(1,983,949)

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

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

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

TOTAL NET ASSETS

4,931,161

3,480,125

3,589,919

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

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

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

SHARE CAPITAL

Ordinary share capital

1,000,000

1,000,000

1,000,000

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

RESERVES

Share premium

2,660,435

1,030,008

1,014,467

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

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

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

TOTAL RESERVES

2,660,435

1,030,008

1,014,467

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,660,435

2,030,008

2,014,467

TOTAL LONG TERM LIABILITIES

1,270,726

1,450,117

1,575,452

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

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

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

4,931,161

3,480,125

3,589,919

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

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

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

 

 

 

FINANCIAL RATIO

 

 

ENG SHENG SDN. BHD.

 

TYPES OF FUNDS

Net Liquid Assets

410,776

(1,056,831)

(1,983,949)

Net Current Assets/(Liabilities)

410,776

(1,056,831)

(1,983,949)

Net Tangible Assets

4,931,161

3,480,125

3,589,919

Net Monetary Assets

(859,950)

(2,506,948)

(3,559,401)

BALANCE SHEET ITEMS

Total Liabilities

14,428,563

16,044,503

13,554,562

Total Assets

18,088,998

18,074,511

15,569,029

Net Assets

4,931,161

3,480,125

3,589,919

Net Assets Backing

3,660,435

2,030,008

2,014,467

Shareholders' Funds

3,660,435

2,030,008

2,014,467

Total Share Capital

1,000,000

1,000,000

1,000,000

Total Reserves

2,660,435

1,030,008

1,014,467

LIQUIDITY (Times)

Current Ratio

1.03

0.93

0.83

SOLVENCY RATIOS (Times)

Liabilities Ratio

3.94

7.90

6.73

Assets Backing Ratio

4.93

3.48

3.59

PERFORMANCE RATIO (%)

Operating Profit Margin

0.50

(0.46)

0.06

Net Profit Margin

0.64

(0.46)

0.01

Return On Net Assets

5.58

(7.42)

0.96

Return On Capital Employed

5.58

(7.42)

0.96

Return On Shareholders' Funds/Equity

9.62

(12.72)

0.28


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.96

UK Pound

1

Rs.94.41

Euro

1

Rs.70.20

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.