MIRA INFORM REPORT

 

 

Report No. :

331311

Report Date :

11.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SUPER ART TRADING SDN. BHD.

 

 

Registered Office :

67, Jalan Ali, 3rd Floor, 84000 Muar, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

15.09.1997

 

 

Com. Reg. No.:

446838-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in trading of readymade garments & textiles

 

 

No. of Employee :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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.

:

446838-D

COMPANY NAME

:

SUPER ART TRADING SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/09/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

67, JALAN ALI, 3RD FLOOR, 84000 MUAR, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 6042, JALAN SUNGAI MATI, BATU 10, BUKIT KANGKAR, 84400 SUNGAI MATI, JOHOR, MALAYSIA.

TEL.NO.

:

06-9751555

FAX.NO.

:

N/A

HP.NO.

:

0163215333

CONTACT PERSON

:

TAN AI LEE ( DIRECTOR )

INDUSTRY CODE

:

46419

PRINCIPAL ACTIVITY

:

TRADING OF READY MADE GARMENTS & TEXTILES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 17,513,230 [2013]

NET WORTH

:

MYR 2,433,520 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

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 ready made garments & textiles.

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

 

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 1,000,000.00

MYR 500,000.00

31/10/2006

MYR 1,000,000.00

MYR 390,000.00

14/07/1999

MYR 1,000,000.00

MYR 90,000.00

15/09/1997

MYR 1,000,000.00

MYR 10.00

 

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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

SUPER ART INDUSTRIES SDN. BHD.

LOT 6042, JALAN SUNGAI MATI, BATU 10, BUKIT KANGKAR, 84400 SUNGAI MATI, JOHOR, MALAYSIA.

191206A

500,000.00

100.00

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

------

500,000.00

100.00

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

=====

+ Also Director

 

 





DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. TAN CHUN MING

Address

:

LOT 5924, TAMAN BUKIT KANGKAR, SUNGAI MATI, 84400 SUNGAI MATI, JOHOR, MALAYSIA.

IC / PP No

:

7250305

New IC No

:

640114-01-6023

Date of Birth

:

14/01/1964

Nationality

:

MALAYSIAN

Date of Appointment

:

15/09/1997

 

DIRECTOR 2

 

Name Of Subject

:

MS. TAN AI LEE

Address

:

284, BUKIT KANGKAR, 84400 SUNGAI MATI, JOHOR, MALAYSIA.

IC / PP No

:

6380798

New IC No

:

620109-01-5714

Date of Birth

:

09/01/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

15/09/1997

 

DIRECTOR 3

 

Name Of Subject

:

MS. NG AH CHENG

Address

:

284, BUKIT KANGKAR, 84400 SUNGAI MATI, JOHOR, MALAYSIA.

IC / PP No

:

A0013378

New IC No

:

650107-01-6032

Date of Birth

:

07/01/1965

Nationality

:

MALAYSIAN

Date of Appointment

:

15/09/1997




MANAGEMENT

 

 

1)

Name of Subject

:

TAN AI LEE

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

JOHN LIM & ASSOCIATES

Auditor' Address

:

67, ROOM A, JALAN ALI, 2ND FLOOR, 84000 MUAR, JOHOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN WANG GIAP

IC / PP No

:

A0067697

New IC No

:

650503-01-5883

Address

:

27, LORONG ARA 1, TAMAN BAKARIAH, 84000 MUAR, JOHOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

05/08/2009

N/A

OCBC BANK (MALAYSIA) BHD

-

Satisfied

2

04/08/2014

CHARGE OVER CASH

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

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

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

X

]

 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its clientele. 

 

 

OPERATIONS

 

Goods Traded

:

READY MADE GARMENTS & TEXTILES

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of ready made garments & textiles. 

The Subject is engaged in the trading of ready made garments and textiles for children and adults. 


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

:

06-9751555

Match

:

N/A

Address Provided by Client

:

LOT 6042 EMR 6690 BUKIT KANGKAR 84400 LEDANG JOHOR

Current Address

:

LOT 6042, JALAN SUNGAI MATI, BATU 10, BUKIT KANGKAR, 84400 SUNGAI MATI, JOHOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the Subject's Director Ms Tan and she provided limited information.

She refused to disclose the fax number and number of employees.

The address as per stated in the report.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

0.78%

]

Return on Net Assets

:

Unfavourable

[

2.31%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

28 Days

]

Debtor Ratio

:

Unfavourable

[

88 Days

]

Creditors Ratio

:

Unfavourable

[

124 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 debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Acceptable

[

0.96 Times

]

Current Ratio

:

Unfavourable

[

1.19 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

:

Favourable

[

1,196.53 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject'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. 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 : 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

46419 : Wholesale of textiles, clothing n.e.c.

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 of ready made garments & textiles. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Presently, the issued and paid up capital of the Subject stands at MYR 500,000. However, with a strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise.

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. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 2,433,520, 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 poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies. 

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)

SUPER ART TRADING SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

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

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

TURNOVER

17,513,230

15,514,386

18,844,974

17,321,056

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

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

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

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

Total Turnover

17,513,230

15,514,386

18,844,974

17,321,056

Costs of Goods Sold

(16,487,365)

(14,524,691)

-

-

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

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

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

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

Gross Profit

1,025,865

989,695

-

-

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

56,190

48,825

78,489

156,700

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

56,190

48,825

78,489

156,700

Taxation

(37,206)

(30,703)

(66,905)

(66,000)

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

18,984

18,122

11,584

90,700

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,914,536

1,896,414

6,884,830

6,794,130

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

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

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

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

As restated

1,914,536

1,896,414

6,884,830

6,794,130

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,933,520

1,914,536

6,896,414

6,884,830

DIVIDENDS - Ordinary (paid & proposed)

-

-

(5,000,000)

-

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,933,520

1,914,536

1,896,414

6,884,830

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

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

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

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

Hire purchase

47

2,859

-

-

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

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

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

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

47

2,859

-

-

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

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

-

-

DEPRECIATION (as per notes to P&L)

124,509

142,561

-

-

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

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

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

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

124,509

142,561

-

-

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

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

 

 

 

BALANCE SHEET

 

SUPER ART TRADING SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

1,310,399

1,397,842

1,206,997

1,055,602

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

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

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

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

TOTAL LONG TERM ASSETS

1,310,399

1,397,842

1,206,997

1,055,602

Stocks

1,365,400

1,410,651

-

-

Trade debtors

4,218,988

4,094,737

-

-

Other debtors, deposits & prepayments

33,291

52,455

-

-

Amount due from holding company

11,020

5,820

-

-

Amount due from related companies

1,016,506

1,648,074

-

-

Cash & bank balances

338,273

289,511

-

-

Others

-

108,950

-

-

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

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

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

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

TOTAL CURRENT ASSETS

6,983,478

7,610,198

8,113,071

10,873,064

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

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

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

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

TOTAL ASSET

8,293,877

9,008,040

9,320,068

11,928,666

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

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

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

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

CURRENT LIABILITIES

Trade creditors

5,580,638

6,283,896

-

-

Other creditors & accruals

252,032

294,737

-

-

Hire purchase & lease creditors

-

7,754

-

-

Amounts owing to director

13,972

-

-

-

Provision for taxation

11,511

-

-

-

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

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

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

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

TOTAL CURRENT LIABILITIES

5,858,153

6,586,387

6,901,099

4,537,929

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,125,325

1,023,811

1,211,972

6,335,135

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

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

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

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

TOTAL NET ASSETS

2,435,724

2,421,653

2,418,969

7,390,737

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

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

500,000

390,000

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

390,000

Retained profit/(loss) carried forward

1,933,520

1,914,536

1,896,414

6,884,830

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

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

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

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

TOTAL RESERVES

1,933,520

1,914,536

1,896,414

6,884,830

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,433,520

2,414,536

2,396,414

7,274,830

Deferred taxation

2,204

7,117

-

-

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,204

7,117

22,555

115,907

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

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

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

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

2,435,724

2,421,653

2,418,969

7,390,737

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

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

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

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

 

 

 

FINANCIAL RATIO

 

SUPER ART TRADING SDN. BHD.

 

TYPES OF FUNDS

Cash

338,273

289,511

-

-

Net Liquid Funds

338,273

289,511

-

-

Net Liquid Assets

(240,075)

(386,840)

1,211,972

6,335,135

Net Current Assets/(Liabilities)

1,125,325

1,023,811

1,211,972

6,335,135

Net Tangible Assets

2,435,724

2,421,653

2,418,969

7,390,737

Net Monetary Assets

(242,279)

(393,957)

1,189,417

6,219,228

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

56,237

51,684

-

-

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

180,746

194,245

-

-

BALANCE SHEET ITEMS

Total Borrowings

0

7,754

-

-

Total Liabilities

5,860,357

6,593,504

6,923,654

4,653,836

Total Assets

8,293,877

9,008,040

9,320,068

11,928,666

Net Assets

2,435,724

2,421,653

2,418,969

7,390,737

Net Assets Backing

2,433,520

2,414,536

2,396,414

7,274,830

Shareholders' Funds

2,433,520

2,414,536

2,396,414

7,274,830

Total Share Capital

500,000

500,000

500,000

390,000

Total Reserves

1,933,520

1,914,536

1,896,414

6,884,830

LIQUIDITY (Times)

Cash Ratio

0.06

0.04

-

-

Liquid Ratio

0.96

0.94

-

-

Current Ratio

1.19

1.16

1.18

2.40

WORKING CAPITAL CONTROL (Days)

Stock Ratio

28

33

-

-

Debtors Ratio

88

96

-

-

Creditors Ratio

124

158

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

-

-

Liabilities Ratio

2.41

2.73

2.89

0.64

Times Interest Earned Ratio

1,196.53

18.08

-

-

Assets Backing Ratio

4.87

4.84

4.84

18.95

PERFORMANCE RATIO (%)

Operating Profit Margin

0.32

0.31

0.42

0.90

Net Profit Margin

0.11

0.12

0.06

0.52

Return On Net Assets

2.31

2.13

3.24

2.12

Return On Capital Employed

2.31

2.13

3.24

2.12

Return On Shareholders' Funds/Equity

0.78

0.75

0.48

1.25

Dividend Pay Out Ratio (Times)

0.00

0.00

431.63

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.97.65

Euro

1

Rs.70.43

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.