MIRA INFORM REPORT

 

 

Report No. :

301391

Report Date :

05.01.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

 

Registered Office :

Millennium Office Block, 160 Jalan Bukit Bintang, 5th Floor, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

17.03.2008

 

 

Com. Reg. No.:

995131-U

 

 

Legal Form :

Foreign (Limited By Share)

 

 

Line of Business :

Engaged in trading of Chemicals, Steel, Iron, Parts for Cars and other related products. 

 

 

No of Employees :

70 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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.

:

995131-U

COMPANY NAME

:

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/03/2008

COMPANY STATUS

:

EXIST

LEGAL FORM

:

FOREIGN (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MILLENNIUM OFFICE BLOCK, 160 JALAN BUKIT BINTANG, 5TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

MILLENNIUM OFFICE BLOCK, 160, JALAN BUKIT BINTANG, 5TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21418099/21168000

FAX.NO.

:

03-21481606

CONTACT PERSON

:

TAKASHI YAMAUCHI ( DIRECTOR )

INDUSTRY CODE

:

45300 46691 46622

PRINCIPAL ACTIVITY

:

TRADING OF CHEMICALS, STEEL, IRON, PARTS FOR CARS AND OTHER RELATED PRODUCTS

AUTHORISED CAPITAL

:

30,000,000.00 ORDINARY SHARE, OF A VALUE OF MYR 30,000,000.00 

SALES

:

MYR 1,795,150,240 [2012]

NET WORTH

:

MYR 72,114,138 [2012]

STAFF STRENGTH

:

70 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

Regular

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH



HISTORY / BACKGROUND

 

The Subject is principally engaged in the (as a / as an) trading of chemicals, steel, iron, parts for cars and other related products.

 

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


 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

26/11/2014

MYR 30,000,000.00

MYR 0.00

26/09/2012

USD 225,101,415.00

 

No shareholders was found in our databank at the time of investigation

 

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



Local No

Country

Company

(%)

As At

731407U

MALAYSIA

TEJANA TRADING & MANAGEMENT SERVICES SDN. BHD.

70.00

31/03/2011

 

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. TAKASHI YAMAUCHI

Address

:

238, ORCHARD BOULEVARD, 10-07, THE ORCHARD RESIDENCES, 237973, SINGAPORE.

IC / PP No

:

TH3172938

Nationality

:

JAPANESE

Date of Appointment

:

28/04/2011

 

DIRECTOR 2

 

Name Of Subject

:

SHINJI TSUCHIYA

Address

:

57 B, DEVONSHIRE ROAD, 06-04, THE SUITES AT CENTRAL, 239899, SINGAPORE.

IC / PP No

:

MS6662372

Nationality

:

JAPANESE

Date of Appointment

:

01/04/2012

 

DIRECTOR 3

 

Name Of Subject

:

SHINJI SATO

Address

:

1, ANDERSON ROAD, 08-03, SHANGRI-LA APARTMENTS, 259983, SINGAPORE.

IC / PP No

:

TH1625935

Nationality

:

JAPANESE

Date of Appointment

:

02/04/2012

 

DIRECTOR 4

 

Name Of Subject

:

TOMOAKI WATANABE

Address

:

18, MARINA BOULEVARD, 42-09, MARINA BAY RESIDENCES, 018980, SINGAPORE.

IC / PP No

:

TG7775975

Nationality

:

JAPANESE

Date of Appointment

:

01/04/2013

 

DIRECTOR 5

 

Name Of Subject

:

YUJI MURAKAMI

Address

:

7, ORANGE GROVE ROAD, 03-155, TREETOPS EXECUTIVE RESIDENCES, 258355, SINGAPORE.

IC / PP No

:

TH4989004

Nationality

:

JAPANESE

Date of Appointment

:

04/04/2013

 

DIRECTOR 6

 

Name Of Subject

:

KOHEI TAKATA

Address

:

7, ORANGE GROVE ROAD, 03-169, TREETOPS EXECUTIVE RESIDENCES, 258355, SINGAPORE.

IC / PP No

:

TK2490769

Nationality

:

JAPANESE

Date of Appointment

:

08/04/2013



MANAGEMENT

 

 

1)

Name of Subject

:

TAKASHI YAMAUCHI

Position

:

DIRECTOR

 

2)

Name of Subject

:

ANDREW CHEN

Position

:

CREDIT CONTROLLER

 

3)

Name of Subject

:

ADNAN MD SAAD

Position

:

DEPUTY MANAGER

 

AUDITOR

 

Auditor

:

DELOITTE KASSIMCHAN

Auditor' Address

:

UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

SHUICHI YOSHIDA

IC / PP No

:

TH8110230

Address

:

30, JALAN LANGGAK GOLF, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Remarks

:

AGENT

 

 

 

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 against 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

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

JAPAN



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

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

ASIA

EUROPE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)




OPERATIONS

 

Goods Traded

:

CHEMICALS, STEEL, IRON, PARTS FOR CARS AND OTHER RELATED PRODUCTS

Competitor(s)

:

AUTO BAVARIA SDN BHD
EON TRADING SDN BHD
PROTON EDAR SDN BHD
WEARNE BROTHERS (1983) SDN BHD
YHI (MALAYSIA) SDN BHD

Ownership of premises

:

OWNED

 

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

70

60

60

60

60

78

 

Branch

:

NO

 

Other Information:

The Subject is principally engaged in the (as a / as an) trading of chemicals, steel, iron, parts for cars and other related products. 

The Subject supplies its products to its related companies as well as to other companies.

According to the Subject, it does not keep stocks as it delivers the products directly to customers upon orders.

The Subject serves a wide range of customers ranging from trading, manufacturing, construction, engineering, service providers and others. 


CURRENT INVESTIGATION


Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-21418099/21168000

Match

:

N/A

Address Provided by Client

:

MILLENNIUM OFFICE BLOCK, 160, JALAN BUKIT BINTANG, 5TH FLOOR,55100,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

MILLENNIUM OFFICE BLOCK, 160, JALAN BUKIT BINTANG, 5TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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

 

 

Profitability

Turnover

:

Increased

[

2009 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2012

]

Return on Shareholder Funds

:

Favourable

[

45.28%

]

Return on Net Assets

:

Favourable

[

45.90%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

19 Days

]

Creditors Ratio

:

Favourable

[

29 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.29 Times

]

Current Ratio

:

Unfavourable

[

1.29 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

[

410.25 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 :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. 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 : STABLE

 

 

 

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 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

45300 : Wholesale and retail sale of all kinds of parts, components, supplies, tools and accessories for motor vehicles 

46691 : Wholesale of industrial chemicals

46622 : Wholesale of ferrous and non-ferrous semi-finished metal ores and products n.e.c.

INDUSTRY :

MOTOR VECHICLE

The forecasted annual Total Industry Volume (TIV) in the year 2015 is 693,500 units, which is the forecasted increase of 2.0% compared to the forecasted annual TIV of 680,000 units for year 2014. The forecasted TIV for year 2014 is an estimated increase of 3.7% compared to the actual TIV of year 2013 (655,793 units). The factors that affected the forecasted TIV for year 2014 are the improving global economic conditions, investments in mega projects related to Economic Transformation Projects (ETP), positive consumer's sentiments, introduction of new models especially Energy Efficient Vehicles (EEV), and aggressive promotional campaigns by car companies. However, moderation in consumer's spending due to higher cost of living, and more stringent lending practices including hire purchase loan also have an effect in the forecasted TIV for year 2014.

Besides that, the annual sales of passenger vehicles in the year 2015 are forecasted to be 610,300 units and it's an estimated increase of 2.0% compared to the forecasted sales of passenger cars for year 2014. The forecasted annual sales of passenger cars for year 2014 have an estimated increase by 3.8% to 598,400 units compared to 576,657 units at the year 2013. While annual sales of commercial vehicles in year 2015 is forecasted to be 83,200 units, which is a forecasted increase 2.0% compared to the forecasted annual sales of commercial car in year 2014. The forecasted annual sales of commercial car in year 2014 were estimated to increase by 3.1% to 81,600 units compared to 79,136 units at the year 2013.

Other than that, for the total registration of new passenger vehicles in the first six months of year 2014, it reached 296,779 units compare with 275,991 units over the same period in year 2013. This had brought an increase of 7.5% (20,788 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles in the first six months of year 2014 were 36,363 units, which was a decrease of 3.0%. Besides, the production of new vehicles also recorded an increase of 8.3% (24,381 units) over the first six months of year 2014. 

The National Automotive Policy 2014 envisions for Malaysia to be an Energy Efficient Vehicles (EEV) hub in ASEAN including the production of hybrids and electric vehicles (EV). This encompasses strategies and measures to strengthen the entire value chain of the automotive industry. Thus, the national car manufacturers, Proton and Perodua, lead in the industry's response. Proton launched "Iriz" and believes the global standard car will help to capture a larger share of the automotive market. Besides, Perodua came up with the Axia model, which is Malaysia's first EEV and it received similarly good response from consumers.

Moreover, Auto industry players believe that the 2015 Budget will spur manufacturing automation in their industry, due to the automation capital allowance of up to 200 per cent on the expenditure incurred within a specific period is a specialised incentive package, and will benefit manufacturers of energy-efficient vehicles (EEVs), said by the CEO of Malaysian Automotive Institute (MAI).

The Goods and Services Tax (GST) that set at 6% will be implemented on April 1, 2015, and the Sales and Services Tax (SST) of 10% will be abolished on that same day. According to Malaysian Automotive Institute (MAI), the implementation of the GST in 2015 should stimulate demand for vehicles with the reduction of prices due to the abolishment of the SST. However, according to Bernama, the gains could be offset by higher prices of imported auto parts due to foreign exchange factors, even though prices for new cars are generally expected to come down by between 1-3% after the implementation of the Goods and Services Tax (GST). As auto components are mainly imported from Japan, if the yen appreciates against the ringgit, the savings of 1-3% could be much less because the components would now cost more and that would affect retail car prices.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2008, the Subject is a Foreign company, focusing on trading of chemicals, steel, iron, parts for cars and other related products. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. 
Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a moderate size company, the Subject has a total workforce of 70 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. 

No latest financial accounts were filed with the Registry office during our inspection. Therefore, our comment on the Subject's overall financial performance are restricted thereto. 

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . 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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

Based on the above unfavourable condition, we regard granting credit to the Subject to be quite risky. Hence, credit is not recommended.

 



PROFIT AND LOSS ACCOUNT

 

 

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

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

Financial Year End

2012-03-31

2011-03-31

2010-03-31

2009-03-31

Months

12

12

12

13

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

TURNOVER

1,795,150,240

1,343,625,195

1,148,428,944

1,343,122,722

Other Income

29,719,500

19,042,431

23,551,773

22,073,666

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

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

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

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

Total Turnover

1,824,869,740

1,362,667,626

1,171,980,717

1,365,196,388

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

34,544,043

16,515,907

18,997,909

19,324,524

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

34,544,043

16,515,907

18,997,909

19,324,524

Taxation

(1,887,533)

(1,953,582)

(1,231,214)

(3,955,018)

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

32,656,510

14,562,325

17,766,695

15,369,506

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

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

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

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

TRANSFER FROM RESERVES

(45,178,637)

-

-

-

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

47,698,526

33,136,201

15,369,506

-

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

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

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

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

As restated

47,698,526

33,136,201

15,369,506

-

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

35,176,399

47,698,526

33,136,201

15,369,506

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

35,176,399

47,698,526

33,136,201

15,369,506

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Term loan / Borrowing

75,147

78,135

-

-

Others

9,262

12,436

66,684

2,685,853

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

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

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

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

84,409

90,571

66,684

2,685,853

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

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

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

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

 

 

 

BALANCE SHEET

 

 

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

4,949,074

5,892,801

6,724,345

7,925,211

Investments

26,090,569

25,918,179

27,682,145

30,088,819

Loans & advances - non-current

188,851

264,120

314,795

255,337

Deferred assets

1,504,333

1,484,758

1,606,617

1,442,766

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

27,783,753

27,667,057

29,603,557

31,786,922

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

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

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

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

TOTAL LONG TERM ASSETS

32,732,827

33,559,858

36,327,902

39,712,133

Trade debtors

91,612,130

103,322,337

63,732,187

126,182,174

Other debtors, deposits & prepayments

935,435

941,924

1,043,195

1,370,805

Amount due from holding company

46,773,576

45,374,431

33,448,524

-

Amount due from related companies

13,369,048

22,805,011

25,992,986

4,909,911

Cash & bank balances

37,972,798

15,846,613

8,495,983

23,166,933

Others

24,980

817,283

1,096,370

-

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

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

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

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

TOTAL CURRENT ASSETS

190,687,967

189,107,599

133,809,245

155,629,823

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

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

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

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

TOTAL ASSET

223,420,794

222,667,457

170,137,147

195,341,956

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

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

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

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

CURRENT LIABILITIES

Trade creditors

140,444,607

135,485,724

80,615,338

45,845,768

Other creditors & accruals

4,274,726

3,881,857

4,259,583

5,546,100

Short term borrowings/Term loans

-

-

-

530,583

Other borrowings

-

-

11,200,000

-

Amounts owing to holding company

-

-

-

75,810,045

Amounts owing to related companies

3,088,714

3,419,737

1,521,171

768,153

Provision for taxation

174,121

-

-

654,802

Other liabilities

1,596

12,881

-

4,584,083

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

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

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

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

TOTAL CURRENT LIABILITIES

147,983,764

142,800,199

97,596,092

133,739,534

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

42,704,203

46,307,400

36,213,153

21,890,289

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

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

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

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

TOTAL NET ASSETS

75,437,030

79,867,258

72,541,055

61,602,422

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

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

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

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

Exchange equalisation/fluctuation reserve

(849,652)

(3,158,105)

(149,971)

2,623,886

Retained profit/(loss) carried forward

35,176,399

47,698,526

33,136,201

15,369,506

Others

37,787,391

30,967,829

35,221,629

39,287,641

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

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

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

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

TOTAL RESERVES

72,114,138

75,508,250

68,207,859

57,281,033

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

72,114,138

75,508,250

68,207,859

57,281,033

Retirement benefits provision

3,322,892

4,359,008

4,333,196

4,321,389

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,322,892

4,359,008

4,333,196

4,321,389

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

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

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

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

75,437,030

79,867,258

72,541,055

61,602,422

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

MITSUI & CO. (ASIA PACIFIC) PTE. LTD.

 

TYPES OF FUNDS

Cash

37,972,798

15,846,613

8,495,983

23,166,933

Net Liquid Funds

37,972,798

15,846,613

8,495,983

23,166,933

Net Liquid Assets

42,704,203

46,307,400

36,213,153

21,890,289

Net Current Assets/(Liabilities)

42,704,203

46,307,400

36,213,153

21,890,289

Net Tangible Assets

75,437,030

79,867,258

72,541,055

61,602,422

Net Monetary Assets

39,381,311

41,948,392

31,879,957

17,568,900

BALANCE SHEET ITEMS

Total Borrowings

0

0

11,200,000

530,583

Total Liabilities

151,306,656

147,159,207

101,929,288

138,060,923

Total Assets

223,420,794

222,667,457

170,137,147

195,341,956

Net Assets

75,437,030

79,867,258

72,541,055

61,602,422

Net Assets Backing

72,114,138

75,508,250

68,207,859

57,281,033

Shareholders' Funds

72,114,138

75,508,250

68,207,859

57,281,033

Total Share Capital

0

0

0

0

Total Reserves

72,114,138

75,508,250

68,207,859

57,281,033

LIQUIDITY (Times)

Cash Ratio

0.26

0.11

0.09

0.17

Liquid Ratio

1.29

1.32

1.37

1.16

Current Ratio

1.29

1.32

1.37

1.16

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

0

0

Debtors Ratio

19

28

20

34

Creditors Ratio

29

37

26

12

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

0.16

0.01

Liabilities Ratio

2.10

1.95

1.49

2.41

Times Interest Earned Ratio

410.25

183.35

285.89

8.19

Assets Backing Ratio

-

-

-

-

PERFORMANCE RATIO (%)

Operating Profit Margin

1.92

1.23

1.65

1.44

Net Profit Margin

1.82

1.08

1.55

1.14

Return On Net Assets

45.90

20.79

26.28

35.73

Return On Capital Employed

45.90

20.79

26.28

35.73

Return On Shareholders' Funds/Equity

45.28

19.29

26.05

26.83

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.29

UK Pound

1

Rs.98.39

Euro

1

Rs.76.31

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.