|
Report No. : |
329598 |
|
Report Date : |
01.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
THREE & THREE HARDWARE SDN. BHD. |
|
|
|
|
Formerly Known As : |
THREE & THREE FOOD MANUFACTURING SDN BHD (24/06/1997) |
|
|
|
|
Registered Office : |
Faber Imperial Court, Jalan Sultan Ismail, Level 15-2, 50250 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
22.07.1995 |
|
|
|
|
Com. Reg. No.: |
352333-P |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Trading of hardwares, building materials & industrial equipment |
|
|
|
|
No. of Employees : |
10[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 : |
Satisfactory |
|
|
|
|
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 Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 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 also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.
|
Source
: CIA |
EXECUTIVE
SUMMARY
|
|
|
|
REGISTRATION NO. |
: |
352333-P |
||||
|
COMPANY NAME |
: |
THREE &
THREE HARDWARE SDN. BHD. |
||||
|
FORMER NAME |
: |
THREE & THREE FOOD MANUFACTURING SDN
BHD (24/06/1997) |
||||
|
INCORPORATION DATE |
: |
22/07/1995 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
FABER IMPERIAL COURT, JALAN SULTAN ISMAIL,
LEVEL 15-2, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
LOT 3707, JALAN 7/5, TAMAN INDUSTRI SELESA
JAYA, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA. |
||||
|
TEL.NO. |
: |
03-89615555 |
||||
|
FAX.NO. |
: |
03-89621111 |
||||
|
CONTACT PERSON |
: |
KOH SENG KAR @ KOH HAI SEW ( DIRECTOR ) |
||||
|
INDUSTRY CODE |
: |
46639 |
||||
|
PRINCIPAL ACTIVITY |
: |
TRADING OF HARDWARES, BUILDING MATERIALS
& INDUSTRIAL EQUIPMENT |
||||
|
AUTHORISED CAPITAL |
: |
MYR 5,000,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 1,500,002.00 DIVIDED INTO |
||||
|
SALES |
: |
MYR 7,206,974 [2013] |
||||
|
NET WORTH |
: |
MYR 3,786,028 [2013] |
||||
|
STAFF STRENGTH |
: |
10 [2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
FAIR |
||||
|
PAYMENT |
: |
GOOD |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL RISK |
: |
MODERATE |
||||
|
CURRENCY EXPOSURE |
: |
N/A |
||||
|
GENERAL REPUTATION |
: |
SATISFACTORY |
||||
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
||||
HISTORY
/ BACKGROUND
|
The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.
The Subject is principally engaged in the (as a / as an) trading of hardwares, building materials & industrial equipment.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
Share Capital History
|
Date |
Authorised
Shared Capital |
Issue & Paid
Up Capital |
|
19/05/2014 |
MYR 5,000,000.00 |
MYR 1,500,002.00 |
|
09/07/2001 |
MYR 5,000,000.00 |
MYR 1,000,002.00 |
|
25/05/1998 |
MYR 5,000,000.00 |
MYR 200,002.00 |
|
03/08/1995 |
MYR 100,000.00 |
MYR 2.00 |
The major shareholder(s) of the Subject are
shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
K. SENG SENG CORPORATION BERHAD |
BANGUNAN FABER IMPERIAL COURT, JALAN
SULTAN ISMAIL, LEVEL 15-2, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
133427W |
1,500,002.00 |
100.00 |
|
--------------- |
------ |
|||
|
1,500,002.00 |
100.00 |
|||
|
============ |
===== |
+ Also Director
DIRECTORS
|
DIRECTOR 1
|
Name Of Subject |
: |
MR. KOH SENG KAR @ KOH HAI SEW |
|
Address |
: |
53, JALAN AWAN CINA, TAMAN YARL, 58200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
New IC No |
: |
430719-10-5509 |
|
Date of Birth |
: |
19/07/1943 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
22/07/1995 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. KOH SENG LEE |
|
Address |
: |
6, JALAN DHANAPAKIA DEVI 2, TAMAN TAYNTON
VIEW, CHERAS, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
6404489 |
|
New IC No |
: |
620105-10-6643 |
|
Date of Birth |
: |
05/01/1962 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
22/07/1995 |
MANAGEMENT
|
|
1) |
Name of Subject |
: |
KOH SENG KAR @ KOH HAI SEW |
|
Position |
: |
DIRECTOR |
|
AUDITOR
|
|
Auditor |
: |
MESSRS BAKER TILLY AC |
|
Auditor' Address |
: |
BAKER TILLY MH TOWER, TOWER 1, AVENUE 5, BANGSAR SOUTH CITY, LEVEL 10, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
COMPANY
SECRETARIES
|
|
1) |
Company Secretary |
: |
MR. M. CHANDRASEGARAN A/L S. MURUGASU |
|
IC / PP No |
: |
5573205 |
|
|
New IC No |
: |
581020-06-5169 |
|
|
Address |
: |
1, JALAN SS 18/1, 47500 SUBANG JAYA, SELANGOR, MALAYSIA. |
|
|
2) |
Company Secretary |
: |
MS. LIM SECK WAH |
|
IC / PP No |
: |
5878183 |
|
|
New IC No |
: |
591223-02-5430 |
|
|
Address |
: |
41, JALAN TAMING INDAH 2, TAMAN TAMING INDAH,, BANDAR SG. LONG., 43000 KAJANG, SELANGOR, MALAYSIA. |
|
BANKING
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
MALAYAN BANKING BHD |
ENCUMBRANCE
(S)
|
No encumbrance was found in our databank at the time of investigation.
LITIGATION
CHECK AGAINST SUBJECT
|
* A check has been conducted in our databank 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 |
: |
N/A |
|
Overseas |
: |
N/A |
The Subject refused to disclose its suppliers.
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
] |
Good 31-60 Days |
[ |
X |
] |
Average 61-90 Days |
[ |
] |
|||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
] |
|||||||||
CLIENTELE
|
|
Local |
: |
YES |
Percentage |
: |
100% |
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
NO |
|||
|
Credit Term |
: |
30 - 60 DAYS |
|||
OPERATIONS
|
|
Goods Traded |
: |
HARDWARES, BUILDING MATERIALS &
INDUSTRIAL EQUIPMENT |
|
|
Total Number of Employees: |
|||||||||
|
YEAR |
2015 |
||||||||
|
|
|||||||||
|
GROUP |
N/A |
||||||||
|
COMPANY |
10 |
||||||||
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) trading of hardwares,
building materials & industrial equipment.
The Subject is engaged in the trading of hardwares, cables and industrial
equipment.
The Subject sells a wide range of products for industrial usage.
The Subject sells pumps, motors, steel, aluminium pipes and accessories.
RECENT
DEVELOPMENT
|
We have checked with the Malaysian National News Agency's (BERNAMA)
CURRENT
INVESTIGATION
|
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
03-89615555 |
|
Match |
: |
N/A |
|
Address Provided by Client |
: |
LOT 3707, JALAN 7/5, TAMAN INDUSTRI SELESA
JAYA, 43300 BALAKONG |
|
Current Address |
: |
LOT 3707, JALAN 7/5, TAMAN INDUSTRI SELESA
JAYA, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA. |
|
Match |
: |
NO |
|
Latest Financial Accounts |
: |
YES |
Other
Investigations
We contacted one of the staff from the Subject and he provided some
information.
The address is as per stated in the report.
FINANCIAL
ANALYSIS
|
|
|
|
Profitability |
||||||
|
Turnover |
: |
Erratic |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
5.07% |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
9.21% |
] |
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players. The dip in profit could be due to the stiff market
competition which reduced the Subject's profit margin. The unfavourable
return on shareholders' funds could indicate that the Subject was inefficient
in utilising its assets to generate returns. |
||||||
|
Working Capital
Control |
||||||
|
Stock Ratio |
: |
Nil |
[ |
0 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
80 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
0 Days |
] |
|
|
As the Subject is a service oriented company, the Subject does not need
to keep stocks. The high debtors' ratio could indicate that the Subject was
weak in its credit control. However, the Subject could also giving longer
credit periods to its customers in order to boost its sales or to capture /
retain its market share. 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 |
[ |
3.73 Times |
] |
|
|
Current Ratio |
: |
Favourable |
[ |
3.73 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 |
: |
Acceptable |
[ |
4.02 Times |
] |
|
|
Gearing Ratio |
: |
Favourable |
[ |
0.38 Times |
] |
|
|
The Subject's interest cover was slightly low. If there is no sharp
fall in its profit or sudden increase in the interest rates, we believe the Subject
is able to generate sufficient income to service its interest and repay the
loans. The Subject was lowly geared thus it had a low financial risk. The
Subject was mainly financed by its shareholders' funds and internally
generated funds. In times of economic slowdown / downturn, the Subject being
a lowly geared company, will be able to compete better than those companies
which are highly geared in the same industry. |
||||||
|
Overall
Assessment : |
||||||
|
The Subject recorded lower profits as its turnover showed a erratic
trend. The Subject's management was unable to control its costs efficiently
as its profit showed a downward trend. 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. The Subject had an acceptable interest cover. If
there is no sudden sharp increase in interest rate or fall in the Subject's
profit, we do believe the Subject is able to generate sufficient cash flow to
service its interest payment. The Subject as a lowly geared company, will be
more secured compared to those highly geared companies. It has the ability to
meet all its long term obligations. |
||||||
|
Overall
financial condition of the Subject : FAIR |
||||||
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 |
|
|
46639 : Wholesale of other construction
materials, hardware, plumbing and heating equipment and supplies n.e.c. |
|
|
INDUSTRY : |
CONSTRUCTION |
|
The construction sector consists of four subsectors: residential, non-residential,
civil engineering and special trade works. During a period of rapid economic
expansion, the sector generally outperforms Gross Domestic Product (GDP)
growth. |
|
|
In 2014, the construction sector is expected to further expand by
12.7% and contribute 4% to GDP, supported by the civil engineering and
residential subsectors. The civil engineering subsector will be driven by oil
and gas (O&G) as well as transportation projects. Meanwhile, growth in
the residential subsector is mainly due to the construction of private
residential projects ranging from medium to high-end properties. The sector
is expected to benefit from the acceleration of ongoing construction
activities, particularly from the Economic Transformation Programme (ETP)
construction-related projects. In 2015, the construction sector is expected
to grow by 10.7% supported by commencement of O&G related projects such
as RAPID as well as ongoing transportation related infrastructure projects. |
|
|
On the other hand, civil engineering subsector expanded 6.3% during
the first half of 2014, but growth has moderated following the completion of
some major projects, including KLIA2, Second Penang Bridge and Manjung
coal-power plant. However, ongoing civil engineering projects, particularly
O&G related activities and expansion of electricity power stations and
transmission lines, will still contribute significantly to the subsector.
These include the development of Floating Liquefied Natural Gas 1 Project
(FLNG 1) and Sabah Ammonia Urea Plant (SAMUR) projects, and electricity power
plants in Manjung and Seberang Prai. Other key projects which will boost
growth in the subsector include the ongoing MRT Line 1 project and LRT
extension, clean water supply and electrification expansion projects to rural
areas especially of Kuantan Port, extension of DUKE and construction of West
Coast Expressway the Central Spine Road from Bentong to Kuala Krai. |
|
|
Besides, growth in the non-residential subsector turned around sharply
by 14% in line with healthy business activity during the first half of 2014.
This was reflected by increased construction activities especially for
commercial buildings with the incoming supply of shops. The subsector is
expected to remain stable in 2015 supported by encouraging demand for
industrial and commercial buildings. Major commercial building projects such
as the 118-storey Menara Warisan and Bukit Bintang City Centre are expected
to contribute to the growth of the sector. |
|
|
Moreover, the residential subsector expanded strongly by 22.1% during
the first half of 2014 supported by higher growth in incoming supply.
Meanwhile, new housing approvals increased significantly by 32.6%. Despite
the decline in housing starts at 5.3%, residential activity is expected to
remain stable. The subsector is expected to remain strong in view of the
increased demand for housing in 2015, particularly from the middle-income
group. Demand for affordable housing will remain favorable amid several
Government initiatives such as PR1MA. |
|
|
Under budget 2015, Government will allocate the total of RM48.25
billion for the construction cost of Sungai Besi - Ulu Klang Expressway
(SUKE), West Coast Expressway from Taiping to Banting, Damansara - Shah Alam Highway
(DASH), Eastern Klang Valley Expressway (EKVE), upgrading the East Coast
railway line, Second MRT Line from Selayang to Putrajaya, and LRT 3 Project.
Besides, the Government intends to start construction of the 1,663-km
Pan-Borneo Highway comprising 936 km in Sarawak and 727 km in Sabah at a
total construction cost of RM27 billion. Other than that, Government will
also allocate RM3 billion for the construction of Air Langat 2 Water
Treatment Plant to resolve the problem of water supply shortage in the Klang
Valley. |
|
|
Starting from 1st April, 2015, all types of construction services
including construction of residential houses or agricultural buildings and
building materials are subject to 6% of Goods and Services Tax. According to
Real Estate and Housing Developers' Association Malaysia (Rehda), home prices
will raise once the goods and services tax (GST) comes into play and it will
have an impact on construction industry. |
|
|
OVERALL INDUSTRY
OUTLOOK : Average Growth |
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
|
Over the years, the Subject should have
build up its clientele base and received supports from its regular customers.
Investigation revealed that the Subject's interest lies mostly in the local
market. Thus, any adverse changes to the local economy might have a negative
impact on the Subject's business performance. Being a small company, the
Subject's business operation is supported by 10 employees. Overall, we regard
that the Subject's management capability is average. This indicates that the
Subject has greater potential to improve its business performance and raising
income for the Subject. Financially, the Subject registered a
higher turnover compared to previous year. However, its profits showed a
reverse trend. The lower profit achieved was a result of higher operating
cost and increased competition. 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 lowly geared company, the Subject is exposed to low
financial risk as it is mainly dependent on its internal funds to finance its
business needs. Given a positive net worth standing at MYR 3,786,028, the
Subject should be able to maintain its business in the near terms. Overall, the Subject's payment habit is
good as the Subject has a good credit control and it could be taking
advantage of the cash discounts while maintaining a good reputation with its
creditors. The industry shows an upward trend and
this trend is very likely to sustain in the near terms. Hence, the Subject is
expected to benefit from the favourable outlook of the industry. Based on the above condition, we recommend
credit be granted to the Subject promptly. |
|
|
PROFIT
AND LOSS ACCOUNT
|
|
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS) |
|
THREE &
THREE HARDWARE SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
2011-12-31 |
2010-12-31 |
2009-12-31 |
|
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 |
SUMMARY |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
7,206,974 |
6,818,490 |
7,497,833 |
17,032,473 |
21,716,246 |
|
Other Income |
319,263 |
281,793 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
7,526,237 |
7,100,283 |
7,497,833 |
17,032,473 |
21,716,246 |
|
Costs of Goods Sold |
(6,995,065) |
(6,583,720) |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
531,172 |
516,563 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
266,019 |
341,324 |
415 |
780,529 |
1,957,363 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
266,019 |
341,324 |
415 |
780,529 |
1,957,363 |
|
Taxation |
(74,082) |
(86,817) |
6,309 |
(205,360) |
(486,432) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
191,937 |
254,507 |
6,724 |
575,169 |
1,470,931 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
2,494,089 |
2,639,582 |
2,632,858 |
6,057,689 |
4,586,758 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
2,494,089 |
2,639,582 |
2,632,858 |
6,057,689 |
4,586,758 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
2,686,026 |
2,894,089 |
2,639,582 |
6,632,858 |
6,057,689 |
|
DIVIDENDS - Ordinary (paid & proposed) |
(400,000) |
(400,000) |
- |
(4,000,000) |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
2,286,026 |
2,494,089 |
2,639,582 |
2,632,858 |
6,057,689 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE
(as per notes to P&L) |
|||||
|
Others |
88,128 |
108,446 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
88,128 |
108,446 |
- |
- |
- |
|
|
============= |
============= |
- |
- |
- |
|
|
DEPRECIATION (as per notes to P&L) |
28,615 |
28,902 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
28,615 |
28,902 |
- |
- |
- |
|
|
============= |
============= |
|
BALANCE SHEET |
|
THREE &
THREE HARDWARE SDN. BHD. |
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
28,632 |
57,247 |
86,149 |
116,127 |
3,187 |
|
Deferred assets |
13,760 |
14,307 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
13,760 |
14,307 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
42,392 |
71,554 |
86,149 |
116,127 |
3,187 |
|
Trade debtors |
1,577,603 |
2,578,618 |
- |
- |
- |
|
Other debtors, deposits & prepayments |
516,450 |
32,185 |
- |
- |
- |
|
Amount due from holding company |
1,921,567 |
1,756,671 |
- |
- |
- |
|
Amount due from related companies |
814,859 |
2,957,929 |
- |
- |
- |
|
Cash & bank balances |
340,560 |
299,674 |
- |
- |
- |
|
Others |
26,374 |
262,828 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
5,197,413 |
7,887,905 |
9,058,183 |
8,996,404 |
11,719,909 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
5,239,805 |
7,959,459 |
9,144,332 |
9,112,531 |
11,723,096 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT
LIABILITIES |
|||||
|
Trade creditors |
3,217 |
29,358 |
- |
- |
- |
|
Other creditors & accruals |
20,334 |
21,631 |
- |
- |
- |
|
Hire purchase & lease creditors |
18,345 |
17,450 |
- |
- |
- |
|
Other borrowings |
- |
134,831 |
- |
- |
- |
|
Bill & acceptances payable |
1,344,000 |
3,001,000 |
- |
- |
- |
|
Amounts owing to related companies |
8,851 |
683,718 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
1,394,747 |
3,887,988 |
4,908,503 |
4,866,333 |
4,165,124 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
3,802,666 |
3,999,917 |
4,149,680 |
4,130,071 |
7,554,785 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
3,845,058 |
4,071,471 |
4,235,829 |
4,246,198 |
7,557,972 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
1,500,002 |
1,500,002 |
1,500,002 |
1,500,002 |
1,500,002 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
1,500,002 |
1,500,002 |
1,500,002 |
1,500,002 |
1,500,002 |
|
Retained profit/(loss) carried forward |
2,286,026 |
2,494,089 |
2,639,582 |
2,632,858 |
6,057,689 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
2,286,026 |
2,494,089 |
2,639,582 |
2,632,858 |
6,057,689 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
3,786,028 |
3,994,091 |
4,139,584 |
4,132,860 |
7,557,691 |
|
Lease obligations |
59,030 |
77,380 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
59,030 |
77,380 |
96,245 |
113,338 |
281 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
3,845,058 |
4,071,471 |
4,235,829 |
4,246,198 |
7,557,972 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL
RATIO
|
|
|
|
THREE &
THREE HARDWARE SDN. BHD. |
|
TYPES OF FUNDS |
|||||
|
Cash |
340,560 |
299,674 |
- |
- |
- |
|
Net Liquid Funds |
(1,003,440) |
(2,701,326) |
- |
- |
- |
|
Net Liquid Assets |
3,802,666 |
3,999,917 |
4,149,680 |
4,130,071 |
7,554,785 |
|
Net Current Assets/(Liabilities) |
3,802,666 |
3,999,917 |
4,149,680 |
4,130,071 |
7,554,785 |
|
Net Tangible Assets |
3,845,058 |
4,071,471 |
4,235,829 |
4,246,198 |
7,557,972 |
|
Net Monetary Assets |
3,743,636 |
3,922,537 |
4,053,435 |
4,016,733 |
7,554,504 |
|
PROFIT &
LOSS ITEMS |
|||||
|
Earnings Before Interest & Tax (EBIT) |
354,147 |
449,770 |
- |
- |
- |
|
Earnings Before Interest, Taxes,
Depreciation And Amortization (EBITDA) |
382,762 |
478,672 |
- |
- |
- |
|
BALANCE SHEET
ITEMS |
|||||
|
Total Borrowings |
1,421,375 |
3,230,661 |
- |
- |
- |
|
Total Liabilities |
1,453,777 |
3,965,368 |
5,004,748 |
4,979,671 |
4,165,405 |
|
Total Assets |
5,239,805 |
7,959,459 |
9,144,332 |
9,112,531 |
11,723,096 |
|
Net Assets |
3,845,058 |
4,071,471 |
4,235,829 |
4,246,198 |
7,557,972 |
|
Net Assets Backing |
3,786,028 |
3,994,091 |
4,139,584 |
4,132,860 |
7,557,691 |
|
Shareholders' Funds |
3,786,028 |
3,994,091 |
4,139,584 |
4,132,860 |
7,557,691 |
|
Total Share Capital |
1,500,002 |
1,500,002 |
1,500,002 |
1,500,002 |
1,500,002 |
|
Total Reserves |
2,286,026 |
2,494,089 |
2,639,582 |
2,632,858 |
6,057,689 |
|
LIQUIDITY
(Times) |
|||||
|
Cash Ratio |
0.24 |
0.08 |
- |
- |
- |
|
Liquid Ratio |
3.73 |
2.03 |
- |
- |
- |
|
Current Ratio |
3.73 |
2.03 |
1.85 |
1.85 |
2.81 |
|
WORKING CAPITAL
CONTROL (Days) |
|||||
|
Stock Ratio |
0 |
0 |
- |
- |
- |
|
Debtors Ratio |
80 |
138 |
- |
- |
- |
|
Creditors Ratio |
0 |
2 |
- |
- |
- |
|
SOLVENCY RATIOS
(Times) |
|||||
|
Gearing Ratio |
0.38 |
0.81 |
- |
- |
- |
|
Liabilities Ratio |
0.38 |
0.99 |
1.21 |
1.20 |
0.55 |
|
Times Interest Earned Ratio |
4.02 |
4.15 |
- |
- |
- |
|
Assets Backing Ratio |
2.56 |
2.71 |
2.82 |
2.83 |
5.04 |
|
PERFORMANCE
RATIO (%) |
|||||
|
Operating Profit Margin |
3.69 |
5.01 |
0.01 |
4.58 |
9.01 |
|
Net Profit Margin |
2.66 |
3.73 |
0.09 |
3.38 |
6.77 |
|
Return On Net Assets |
9.21 |
11.05 |
0.01 |
18.38 |
25.90 |
|
Return On Capital Employed |
9.17 |
11.00 |
0.01 |
18.38 |
25.90 |
|
Return On Shareholders' Funds/Equity |
5.07 |
6.37 |
0.16 |
13.92 |
19.46 |
|
Dividend Pay Out Ratio (Times) |
2.08 |
1.57 |
- |
6.95 |
- |
|
NOTES TO
ACCOUNTS |
|||||
|
Contingent Liabilities |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.75 |
|
|
1 |
Rs. 100.12 |
|
Euro |
1 |
Rs. 71.20 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.