MIRA INFORM REPORT

 

 

Report No. :

330521

Report Date :

09.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SEGI AGRICULTURE ENTERPRISE SDN. BHD.

 

 

Formerly Known As :

FARM FRESH AGRICULTURE SDN BHD


ENG HUP HANG TRADING SDN BHD

 

 

Registered Office :

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

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

13.03.1997

 

 

Com. Reg. No.:

422944-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading in groceries and other foodstuffs.

 

 

No. of Employee :

100 [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

 

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 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.

:

422944-D

COMPANY NAME

:

SEGI AGRICULTURE ENTERPRISE SDN. BHD.

FORMER NAME

:

FARM FRESH AGRICULTURE SDN BHD (27/11/2014)
ENG HUP HANG TRADING SDN BHD (20/08/2008)

INCORPORATION DATE

:

13/03/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

UNIT 711, 712 & 713, BLOCK A, KELANA BUSINESS CENTRE, 97, JALAN SS 7/2, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78055266

FAX.NO.

:

03-78062257

CONTACT PERSON

:

CHUI AH HOCK ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING IN GROCERIES AND OTHER FOODSTUFFS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 6,500,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 3,500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 3,500,000.00 DIVIDED INTO
ORDINARY SHARES 2,000,000 CASH AND 1,500,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 91,948,633 [2013]

NET WORTH

:

MYR 13,965,219 [2013]

STAFF STRENGTH

:

100 [2015]

BANKER (S)

:

CIMB BANK BHD
EON BANK BHD
HONG LEONG BANK BHD
RHB BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 


The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) trading in groceries and other foodstuffs.

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


 

The immediate holding company of the Subject is SEGI VALUE HOLDINGS SDN. BHD., a company incorporated in MALAYSIA.

 


Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 10,000,000.00

MYR 3,500,000.00

27/12/2005

MYR 5,000,000.00

MYR 2,500,000.00

15/08/2005

MYR 5,000,000.00

MYR 2,000,000.00

18/05/2004

MYR 5,000,000.00

MYR 1,500,000.00

19/05/2003

MYR 1,000,000.00

MYR 1,000,000.00

14/04/1999

MYR 500,000.00

MYR 200,000.00

15/03/1997

MYR 500,000.00

MYR 100,000.00

 


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

SEGI VALUE HOLDINGS SDN. BHD.

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

885726W

3,500,000.00

100.00

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

------

3,500,000.00

100.00

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

=====

+ Also Director

 


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



Local No

Country

Company

(%)

As At

216685A

MALAYSIA

NILAI GENERASI (M) SDN. BHD.

100.00

26/11/2014

223702D

MALAYSIA

PROFIL JUTA (M) SDN. BHD.

100.00

26/11/2014

230433X

MALAYSIA

ERA SAUJANA SDN. BHD.

100.00

26/11/2014

80795U

MALAYSIA

POSITIVO CREATIVE SDN. BHD.

100.00

26/11/2014




 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. OOI CHENG HOCK

Address

:

30, JALAN 2/11, BUKIT RAWANG JAYA, 48000 RAWANG, SELANGOR, MALAYSIA.

IC / PP No

:

7018012

New IC No

:

630319-07-5087

Date of Birth

:

19/03/1963

Nationality

:

MALAYSIAN

Date of Appointment

:

18/07/2008

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHUI AH HOCK

Address

:

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

New IC No

:

680609-10-6991

Date of Birth

:

09/06/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

13/03/1997

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHIA AH KEONG

Address

:

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

IC / PP No

:

A2320596

New IC No

:

721005-10-5179

Date of Birth

:

05/10/1972

Nationality

:

MALAYSIAN

Date of Appointment

:

09/03/2011



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHUI AH HOCK

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

MICHAEL NG & ASSOCIATES

Auditor' Address

:

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

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

DR NG CHEE LOONG

New IC No

:

690611-10-5823

Address

:

66, JALAN HUJAN EMAS 5, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

EON BANK BHD

 

3)

Name

:

HONG LEONG BANK BHD

 

4)

Name

:

RHB BANK BHD

 

5)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

22/09/1997

N/A

PUBLIC BANK BERHAD

MYR 1,500,000.00

Satisfied

2

22/09/1997

N/A

PUBLIC BANK BERHAD

-

Satisfied

3

18/03/1998

N/A

PUBLIC BANK BERHAD

-

Satisfied

4

22/03/2002

N/A

PUBLIC BANK BERHAD

MYR 1,400,000.00

Satisfied

5

06/08/2002

N/A

PUBLIC BANK BERHAD

MYR 1,000,000.00

Satisfied

10

29/11/2002

N/A

HONG LEONG BANK BERHAD

MYR 450,000.00

Satisfied

6

19/06/2003

MEMORANDUM OF DEPOSIT AND LETTER OF SET OFF

EON BANK BERHAD

MYR 4,200,000.00

Unsatisfied

7

19/06/2003

N/A

EON BANK BERHAD

MYR 1,000,000.00

Satisfied

8

19/06/2003

N/A

EON BANK BERHAD

MYR 3,200,000.00

Satisfied

9

03/07/2003

MEMORANDUM OF DEPOSIT AND LETTER OF SET OFF

EON BANK BERHAD

MYR 4,200,000.00

Unsatisfied

11

18/12/2003

LETTER OF SET OFF

HONG LEONG BANK BERHAD

-

Unsatisfied

12

24/05/2004

N/A

EON BANK BERHAD

MYR 3,800,000.00

Satisfied

13

24/05/2004

OPEN CHARGE

EON BANK BERHAD

MYR 3,800,000.00

Unsatisfied

15

21/06/2004

OPEN CHARGE

HONG LEONG BANK BERHAD

-

Unsatisfied

14

05/07/2004

N/A

RHB BANK BERHAD

-

Satisfied

16

05/10/2004

N/A

HONG LEONG BANK BERHAD

-

Satisfied

17

05/10/2004

N/A

HONG LEONG BANK BERHAD

-

Satisfied

18

09/12/2005

N/A

BUMIPUTRA-COMMERCE BANK BHD

-

Satisfied

19

03/07/2008

FIRST PARTY SECOND LEGAL CHARGE

EON BANK BHD

MYR 6,700,000.00

Unsatisfied

20

03/07/2008

FIRST PARTY FIRST LEGAL CHARGE

EON BANK BHD

MYR 6,925,000.00

Unsatisfied

21

23/03/2010

LETTER OF SET-OFF

EON BANK BHD

MYR 6,700,000.00

Unsatisfied

22

05/03/2011

MEMORANDUM OF LEGAL CHARGE OVER DEPOSITS

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

23

30/09/2013

MEMORANDUM OF DEPOSIT AND LETTER OF AUTHORIZATION

CIMB BANK BERHAD

7,200,000.00

Unsatisfied

25

13/10/2014

LETTER OF SET OFF

RHB BANK BERHAD

-

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,VIETNAM,EUROPE



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

Payment Mode

:

CASH
CHEQUES

Type of Customer

:

RETAIL,WALK IN CUSTOMERS

 

 

OPERATIONS

 

Goods Traded

:

DRIED SHRIMPS, DRIED CHILLIES, ONIONS, GARLIC

Competitor(s)

:

7-ELEVEN MALAYSIA SDN BHD

IREKA SDN BHD

LUN HENG SDN BHD

PACIFIC DEPARTMENT STORE SDN BHD

TAN CHOON ENG. & SONS SDN BHD

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

100

80

80

80

80

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading in groceries and other foodstuffs.

The Subject sells a wide range of grocery goods such as dried and other foodstuffs including red onions, yellow onions, potatoes, garlics, chillies, mushrooms, beans, cooking oil, flour, rice, pepper, spices, grains and others.

Besides that the Subject also provides delivery services to the customers' doorstep.

The Subject imports its products based on the customers' requirements and orders.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78055266

Match

:

N/A

Address Provided by Client

:

UNIT 714 BLOCK A KELANA BUSINESSCENTRE 97 JALAN 557/2 KELANA JAYA 47301 PETALING JAYA SELANGOR DAUIL EHSAN

Current Address

:

UNIT 711, 712 & 713, BLOCK A, KELANA BUSINESS CENTRE, 97, JALAN SS 7/2, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 3rd July 2015 we contacted one of the staff from the Subject and she provided some information.

The address as per stated in the report.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

10.77%

]

Return on Net Assets

:

Acceptable

[

27.23%

]

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 Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

19 Days

]

Debtor Ratio

:

Acceptable

[

62 Days

]

Creditors Ratio

:

Favourable

[

7 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

:

Acceptable

[

0.89 Times

]

Current Ratio

:

Unfavourable

[

1.06 Times

]

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Unfavourable

[

2.05 Times

]

Gearing Ratio

:

Unfavourable

[

1.44 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

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's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : LIMITED

 

 

 

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 1997, the Subject is a Private Limited company, focusing on trading in groceries and other foodstuffs. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. A paid up capital of MYR 3,500,000 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise.

Over the years, the Subject 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 moderate size company, the Subject has a total workforce of 100 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.

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. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 13,965,219, the Subject should be able to maintain its business in the near terms.

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.

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 normally.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

 

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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

91,948,633

88,618,424

94,705,124

123,639,937

105,649,995

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

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

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

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

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

Total Turnover

91,948,633

88,618,424

94,705,124

123,639,937

105,649,995

Costs of Goods Sold

(75,985,814)

(72,537,203)

(79,909,761)

(108,153,454)

(93,878,153)

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

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

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

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

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

Gross Profit

15,962,819

16,081,221

14,795,363

15,486,483

11,771,842

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

2,033,110

2,613,471

2,517,860

2,633,965

3,276,599

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,033,110

2,613,471

2,517,860

2,633,965

3,276,599

Taxation

(529,141)

(314,000)

(709,282)

(823,788)

(467,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,503,969

2,299,471

1,808,578

1,810,177

2,809,599

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

3,564,767

2,265,296

1,456,718

5,243,024

2,433,425

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

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

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

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

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

As restated

3,564,767

2,265,296

1,456,718

5,243,024

2,433,425

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,068,736

4,564,767

3,265,296

7,053,201

5,243,024

TRANSFER TO RESERVES - General

-

-

-

(3,396,483)

-

DIVIDENDS - Ordinary (paid & proposed)

(1,000,000)

(1,000,000)

(1,000,000)

(2,200,000)

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,068,736

3,564,767

2,265,296

1,456,718

5,243,024

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

167,268

82,739

57,508

40,056

43,102

Hire purchase

45,567

5,701

-

-

-

Revolving loans

134,459

177,496

853

-

-

Term loan / Borrowing

581,110

595,264

-

114,940

207,144

Others

1,014,378

829,452

863,870

841,696

782,811

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

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

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

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

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

1,942,782

1,690,652

922,231

996,692

1,033,057

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

2,947,127

3,275,170

1,722,846

1,896,919

3,062,626

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies

-

-

-

65,000

1,224,006

Associated companies

-

-

-

758,530

758,530

Others

9,976,954

10,584,720

503,624

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

9,976,954

10,584,720

503,624

823,530

1,982,536

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

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

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

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

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

TOTAL LONG TERM ASSETS

12,924,081

13,859,890

2,226,470

2,720,449

5,045,162

Stocks

4,782,472

2,710,406

6,061,130

5,561,704

5,877,156

Trade debtors

15,533,778

10,827,218

12,892,221

18,795,786

24,974,041

Other debtors, deposits & prepayments

735,936

1,550,106

536,439

4,487,317

6,426,076

Short term deposits

7,341,031

6,596,572

6,383,140

-

4,533,709

Deposits with financial institutions

-

-

-

6,161,171

-

Cash & bank balances

828,491

4,229,053

8,023,037

1,694,885

3,211,139

Others

40,335

75,982

142,330

247,157

60,437

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

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

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

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

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

TOTAL CURRENT ASSETS

29,262,043

25,989,337

34,038,297

36,948,020

45,082,558

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

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

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

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

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

TOTAL ASSET

42,186,124

39,849,227

36,264,767

39,668,469

50,127,720

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,544,720

1,652,210

2,114,235

3,034,881

10,897,733

Other creditors & accruals

1,799,424

438,128

4,038,540

14,460,476

2,129,588

Hire purchase & lease creditors

427,770

411,770

-

-

-

Bank overdraft

4,515,347

817,355

783,570

723,633

706,219

Short term borrowings/Term loans

-

-

-

-

345,200

Bill & acceptances payable

14,566,059

16,974,162

17,007,643

12,750,368

19,320,385

Provision for taxation

133,546

-

-

224,910

264,242

Other liabilities

4,600,000

5,020,876

3,000,000

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

27,586,866

25,314,501

26,943,988

31,194,268

33,663,367

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,675,177

674,836

7,094,309

5,753,752

11,419,191

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

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

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

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

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

TOTAL NET ASSETS

14,599,258

14,534,726

9,320,779

8,474,201

16,464,353

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

3,500,000

3,500,000

3,500,000

3,500,000

3,500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

3,500,000

3,500,000

3,500,000

3,500,000

3,500,000

Retained profit/(loss) carried forward

4,068,736

3,564,767

2,265,296

1,456,718

5,243,024

Capital redemption reserve

3,396,483

3,396,483

3,396,483

3,396,483

-

Others

3,000,000

3,000,000

-

-

3,396,483

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

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

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

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

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

TOTAL RESERVES

10,465,219

9,961,250

5,661,779

4,853,201

8,639,507

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

13,965,219

13,461,250

9,161,779

8,353,201

12,139,507

Long term loans

-

-

-

-

4,220,846

Hire purchase creditors

410,039

768,476

-

-

-

Deferred taxation

224,000

305,000

159,000

121,000

104,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

634,039

1,073,476

159,000

121,000

4,324,846

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

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

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

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

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

14,599,258

14,534,726

9,320,779

8,474,201

16,464,353

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

8,169,522

10,825,625

14,406,177

1,694,885

7,744,848

Net Liquid Funds

(10,911,884)

(6,965,892)

(3,385,036)

(11,779,116)

(12,281,756)

Net Liquid Assets

(3,107,295)

(2,035,570)

1,033,179

192,048

5,542,035

Net Current Assets/(Liabilities)

1,675,177

674,836

7,094,309

5,753,752

11,419,191

Net Tangible Assets

14,599,258

14,534,726

9,320,779

8,474,201

16,464,353

Net Monetary Assets

(3,741,334)

(3,109,046)

874,179

71,048

1,217,189

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

3,975,892

4,304,123

3,440,091

3,630,657

4,309,656

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

3,975,892

4,304,123

3,440,091

3,630,657

4,309,656

BALANCE SHEET ITEMS

Total Borrowings

20,053,674

19,149,259

17,792,066

13,474,001

24,592,650

Total Liabilities

28,220,905

26,387,977

27,102,988

31,315,268

37,988,213

Total Assets

42,186,124

39,849,227

36,264,767

39,668,469

50,127,720

Net Assets

14,599,258

14,534,726

9,320,779

8,474,201

16,464,353

Net Assets Backing

13,965,219

13,461,250

9,161,779

8,353,201

12,139,507

Shareholders' Funds

13,965,219

13,461,250

9,161,779

8,353,201

12,139,507

Total Share Capital

3,500,000

3,500,000

3,500,000

3,500,000

3,500,000

Total Reserves

10,465,219

9,961,250

5,661,779

4,853,201

8,639,507

LIQUIDITY (Times)

Cash Ratio

0.30

0.43

0.53

0.05

0.23

Liquid Ratio

0.89

0.92

1.04

1.01

1.16

Current Ratio

1.06

1.03

1.26

1.18

1.34

WORKING CAPITAL CONTROL (Days)

Stock Ratio

19

11

23

16

20

Debtors Ratio

62

45

50

55

86

Creditors Ratio

7

8

10

10

42

SOLVENCY RATIOS (Times)

Gearing Ratio

1.44

1.42

1.94

1.61

2.03

Liabilities Ratio

2.02

1.96

2.96

3.75

3.13

Times Interest Earned Ratio

2.05

2.55

3.73

3.64

4.17

Assets Backing Ratio

4.17

4.15

2.66

2.42

4.70

PERFORMANCE RATIO (%)

Operating Profit Margin

2.21

2.95

2.66

2.13

3.10

Net Profit Margin

1.64

2.59

1.91

1.46

2.66

Return On Net Assets

27.23

29.61

36.91

42.84

26.18

Return On Capital Employed

20.21

27.00

34.04

39.47

25.10

Return On Shareholders' Funds/Equity

10.77

17.08

19.74

21.67

23.14

Dividend Pay Out Ratio (Times)

0.66

0.43

0.55

1.22

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.98.22

Euro

1

Rs.69.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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.