|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
276151-X
|
|
COMPANY NAME
|
:
|
CHIN HEONG
(PG.) SDN. BHD.
|
|
FORMER NAME
|
:
|
CHIN HEONG
(B.W.) SDN BHD (19/11/1993)
|
|
INCORPORATION DATE
|
:
|
13/09/1993
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE
LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
10-01, WISMA
SURIA, 7010, JALAN KAMPUNG GAJAH, 12200 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLOT 1, LORONG
INDUSTRI RINGAN 1, JURU ESTATE, SEBERANG PERAI SELATAN, 14100 SEBERANG PRAI
TENGAH, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-5082336
|
|
FAX.NO.
|
:
|
04-5081788
|
|
CONTACT PERSON
|
:
|
TEH ENG JOO (
MANAGING DIRECTOR )
|
|
|
|
|
INDUSTRY CODE
|
:
|
46329
|
|
PRINCIPAL ACTIVITY
|
:
|
WHOLESALE AND
RETAIL OF SPICES, FOODSTUFF, GROCERY ITEMS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 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 28,568,856
[2013]
|
|
NET WORTH
|
:
|
MYR 8,531,579
[2013]
|
|
|
|
|
STAFF STRENGTH
|
:
|
15 [2015]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
PROMPT
|
|
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) wholesale and retail of spices,
foodstuff, grocery items.
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 500,000.00
|
MYR 500,000.00
|
|
27/09/1993
|
MYR 500,000.00
|
MYR 2.00
|
The major
shareholder(s) of the Subject are shown as follows :
Current
Shareholder(s) :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. TEH ENG JOO +
|
7-09, PANTAI APARTMENT, JALAN WISMA PANTAI, 12200 BUTTERWORTH, PULAU
PINANG, MALAYSIA.
|
600601-07-5403 5909553
|
250,000.00
|
50.00
|
|
MS. LIM GEOK KHIM +
|
97, LORONG SERI CEMERLANG 1, VILLA PALMA, 10400 GEORGETOWN, PULAU
PINANG, MALAYSIA.
|
610717-07-5228 6194226
|
250,000.00
|
50.00
|
|
|
|
---------------
|
------
|
|
|
|
500,000.00
|
100.00
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. CHEAM HANG YEE
|
|
Address
|
:
|
7-09, JALAN WISMA PANTAI, PANTAI APARTMENT, KAMPUNG GAJAH, 12200
BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
7080080
|
|
New IC No
|
:
|
630712-07-5868
|
|
Date of Birth
|
:
|
12/07/1963
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
15/07/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. TEH ENG JOO
|
|
Address
|
:
|
7-09, PANTAI APARTMENT, JALAN WISMA PANTAI, 12200 BUTTERWORTH, PULAU
PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
5909553
|
|
New IC No
|
:
|
600601-07-5403
|
|
Date of Birth
|
:
|
01/06/1960
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
13/09/1993
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. LIM GEOK KHIM
|
|
Address
|
:
|
97, LORONG SERI CEMERLANG 1, VILLA PALMA, 10400 GEORGETOWN, PULAU
PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
6194226
|
|
New IC No
|
:
|
610717-07-5228
|
|
Date of Birth
|
:
|
17/07/1961
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
09/06/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
TEH ENG JOO
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
A.LIM & ASSOCIATES
|
|
Auditor' Address
|
:
|
16, JALAN KAMPUNG KASTAM, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LOH GAAK BOYE
|
|
IC / PP No
|
:
|
4603687
|
|
New IC No
|
:
|
540402-07-5230
|
|
Address
|
:
|
26, JALAN PANTAI JERJAK 5, TAMAN SAWKIT, 11900 BAYAN LEPAS, PULAU
PINANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MR. LIM SIN HIN
|
|
IC / PP No
|
:
|
4093292
|
|
New IC No
|
:
|
430725-07-5019
|
|
Address
|
:
|
10, LORONG LEMBAH PERMAI 3, 11200 TANJONG TOKONG, PULAU PINANG,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HSBC BANK MALAYSIA BHD
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge Description
|
Chargee Name
|
Total Charge
|
Status
|
|
1
|
24/10/1994
|
GENERAL LETTER OF PLEDGE
|
HONGKONG BANK MALAYSIA BHD
|
-
|
Unsatisfied
|
|
2
|
24/10/1994
|
A SECURITY OVER DEPOSIT IN RESPECT OF OBLIGATION OF THE DEPOSITOR
|
HONGKONG BANK MALAYSIA BHD
|
-
|
Unsatisfied
|
|
3
|
24/10/1994
|
A GENERAL SECURITY AGREEMENT RELATING TO GOODS
|
HONGKONG BANK MALAYSIA BHD
|
-
|
Unsatisfied
|
|
4
|
26/12/1996
|
N/A
|
BAN HIN LEE BANK BHD
|
MYR 400,000.00
|
Satisfied
|
|
5
|
15/10/2003
|
SECURITY OVER DEPOSIT IN RESPECT OF OBLIGATIONS OF THE DEPOSITOR
|
HSBC BANK MALAYSIA BERHAD
|
-
|
Unsatisfied
|
|
6
|
13/08/2013
|
SECURITY OVER DEPOSIT IN RESPECT OF OBLIGATIONS OF THE DEPOSITOR
|
HSBC BANK MALAYSIA 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,CANADA,UNITED KINGDOM
|
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
|
[
|
X
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
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
|
:
|
CHEQUES
CASH
|
|
Type of Customer
|
:
|
RETAIL,SUPERMARKETS,MINI-MARKETS,WALK IN CUSTOMERS
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
SPICES, FOODSTUFF,GROCERY ITEMS
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2015
|
2014
|
2013
|
2012
|
2011
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
15
|
15
|
15
|
15
|
15
|
|
|
|
|
Other Information:
The Subject is principally engaged in the (as a / as an) wholesale and retail
of spices, foodstuff, grocery items.
The Subject mainly focuses on two types of spices as follows:
* Whole Spice - Black pepper, cummin seed, nutmeg, cardamon, fennal seed, poppy
seed, chilly, garlic flakes, star ani seed, cinnamon bark, ginger, white
pepper, cloves, mace, tumeric and others.
* Ground Spice - Black pepper powder, fenugreek powder, garam masala, onion
powder, briyani masala, fish curry powder, kurma curry powder, star ani seed
powder, cardamon powder, fish head curry powder, keema masala, tumeric
powder, chilly powder, five spice powder, ginger powder and nutmeg powder
etc.
Besides that the Subject has warehouse located at the same premises to keep
stocks and materials.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
04-5082336
|
|
Match
|
:
|
N/A
|
|
|
|
|
Address Provided by Client
|
:
|
PLOT 1,LORONG INDUSTRI RINGAN 1, 14100, SIMPANG AMPAT, JURU
P.W.,MALAYSIA
|
|
Current Address
|
:
|
PLOT 1, LORONG INDUSTRI RINGAN 1, JURU ESTATE, SEBERANG PERAI
SELATAN, 14100 SEBERANG PRAI TENGAH, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other
Investigations
On 24th July 2015 we contacted one of the staff from the Subject and she
provided some information.
The address provided is incomplete.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2009 - 2013
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2009 - 2013
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
10.56%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
13.18%
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's turnover increased steadily as the demand for its
products / services increased due to the goodwill built up over the
years.The Subject's management have been efficient in controlling its operating
costs. The Subject's management had generated acceptable return for its
shareholders using its assets.
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
28 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
73 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
21 Days
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's stocks were moving fast thus reducing its holding
cost. This had reduced funds being tied up in 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
|
[
|
2.96 Times
|
]
|
|
|
Current Ratio
|
:
|
Favourable
|
[
|
3.74 Times
|
]
|
|
|
|
|
|
|
|
|
|
A minimum liquid ratio of 1 should be maintained by the Subject in
order to assure its creditors of its ability to meet short term obligations
and the Subject was in a good liquidity position. Thus, we believe the
Subject is able to meet all its short term obligations as and when they
fall due.
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Favourable
|
[
|
850.64 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.01 Times
|
]
|
|
|
|
|
|
|
|
|
|
The interest cover showed that the Subject was able to service the
interest. The favourable interest cover could indicate that the Subject was
making enough profit to pay for the interest accrued. The Subject had no
gearing and hence it had virtually no financial risk. The Subject was
financed by its shareholders' funds and internally generated fund. During
the economic downturn, the Subject, having a zero gearing, will be able to
compete better than those which are highly geared in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Generally, the Subject's performance has improved with higher turnover
and profit. The Subject was in good liquidity position with its total
current liabilities well covered by its total current assets. With its
current net assets, the Subject should be able to repay its short term
obligations. With the favourable interest cover, the Subject could be able
to service all the accrued interest without facing any difficulties. The
Subject 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 : STRONG
|
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 1993, the Subject is a Private Limited company, focusing on
wholesale and retail of spices, foodstuff, grocery items. The Subject has been
in business for over two decades. It has built up a strong clientele base
and satisfactory reputation will enable the Subject to further enhance its
business in the near term. The Subject is expected to enjoy a stable
market shares. We noted that the issued and paid up capital of the Subject
stands at MYR 500,000. Under the control of its directors, we considered
that the Subject's business position in the market is much dependent on
their abilities.
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 15 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.
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. 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 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 8,531,579, the Subject should be able to maintain its business in the
near terms.
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.
We regard that the Subject's overall payment habit is prompt. The Subject
had a favourable creditors' ratio as evidenced by its favourable collection
days.
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)
|
|
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
|
28,568,856
|
19,352,358
|
18,528,089
|
19,838,695
|
17,512,358
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
28,568,856
|
19,352,358
|
18,528,089
|
19,838,695
|
17,512,358
|
|
Costs of Goods Sold
|
(24,404,591)
|
(16,498,986)
|
(16,343,177)
|
(18,078,519)
|
(15,997,314)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
4,164,265
|
2,853,372
|
2,184,912
|
1,760,176
|
1,515,044
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,138,523
|
899,406
|
855,238
|
307,968
|
236,601
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,138,523
|
899,406
|
855,238
|
307,968
|
236,601
|
|
Taxation
|
(237,375)
|
(230,311)
|
(142,631)
|
(181,375)
|
(64,404)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
901,148
|
669,095
|
712,607
|
126,593
|
172,197
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
7,605,431
|
6,936,336
|
6,223,729
|
7,097,136
|
6,924,939
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
7,605,431
|
6,936,336
|
6,223,729
|
7,097,136
|
6,924,939
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
8,506,579
|
7,605,431
|
6,936,336
|
7,223,729
|
7,097,136
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
(475,000)
|
-
|
-
|
(1,000,000)
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
8,031,579
|
7,605,431
|
6,936,336
|
6,223,729
|
7,097,136
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
|
Hire purchase
|
-
|
1,603
|
2,233
|
-
|
-
|
|
Others
|
1,340
|
-
|
-
|
9,684
|
53
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
1,340
|
1,603
|
2,233
|
9,684
|
53
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
DEPRECIATION (as per notes to P&L)
|
209,322
|
130,143
|
104,971
|
208,286
|
125,488
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
209,322
|
130,143
|
104,971
|
208,286
|
125,488
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
BALANCE
SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
855,519
|
774,242
|
296,138
|
798,341
|
543,315
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
855,519
|
774,242
|
296,138
|
798,341
|
543,315
|
|
|
|
|
|
|
|
Stocks
|
2,225,003
|
1,794,244
|
1,984,898
|
2,332,722
|
2,708,601
|
|
Trade debtors
|
5,745,096
|
2,653,422
|
2,616,150
|
3,336,806
|
2,911,588
|
|
Other debtors, deposits & prepayments
|
147,466
|
60,973
|
61,983
|
93,487
|
218,763
|
|
Short term deposits
|
569,841
|
646,978
|
628,217
|
611,037
|
597,909
|
|
Amount due from director
|
-
|
49,077
|
-
|
-
|
-
|
|
Cash & bank balances
|
1,955,443
|
3,139,217
|
2,689,085
|
2,169,572
|
1,919,280
|
|
Others
|
-
|
455,205
|
453,576
|
541,427
|
608,478
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
10,642,849
|
8,799,116
|
8,433,909
|
9,085,051
|
8,964,619
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
11,498,368
|
9,573,358
|
8,730,047
|
9,883,392
|
9,507,934
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
1,383,172
|
803,739
|
948,869
|
751,030
|
696,645
|
|
Other creditors & accruals
|
1,127,517
|
564,748
|
107,624
|
1,739,485
|
1,188,151
|
|
Hire purchase & lease creditors
|
28,560
|
27,528
|
-
|
127,782
|
-
|
|
Amounts owing to director
|
155,805
|
-
|
217,871
|
516,434
|
11,339
|
|
Provision for taxation
|
152,429
|
-
|
-
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
2,847,483
|
1,396,015
|
1,274,364
|
3,134,731
|
1,896,135
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
7,795,366
|
7,403,101
|
7,159,545
|
5,950,320
|
7,068,484
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
8,650,885
|
8,177,343
|
7,455,683
|
6,748,661
|
7,611,799
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
500,000
|
500,000
|
500,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
500,000
|
500,000
|
500,000
|
500,000
|
500,000
|
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
8,031,579
|
7,605,431
|
6,936,336
|
6,223,729
|
7,097,136
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
8,031,579
|
7,605,431
|
6,936,336
|
6,223,729
|
7,097,136
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
8,531,579
|
8,105,431
|
7,436,336
|
6,723,729
|
7,597,136
|
|
|
|
|
|
|
|
Hire purchase creditors
|
22,580
|
-
|
-
|
10,945
|
-
|
|
Deferred taxation
|
96,726
|
71,912
|
19,347
|
13,987
|
14,663
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
119,306
|
71,912
|
19,347
|
24,932
|
14,663
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
8,650,885
|
8,177,343
|
7,455,683
|
6,748,661
|
7,611,799
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
2,525,284
|
3,786,195
|
3,317,302
|
2,780,609
|
2,517,189
|
|
Net Liquid Funds
|
2,525,284
|
3,786,195
|
3,317,302
|
2,780,609
|
2,517,189
|
|
Net Liquid Assets
|
5,570,363
|
5,608,857
|
5,174,647
|
3,617,598
|
4,359,883
|
|
Net Current Assets/(Liabilities)
|
7,795,366
|
7,403,101
|
7,159,545
|
5,950,320
|
7,068,484
|
|
Net Tangible Assets
|
8,650,885
|
8,177,343
|
7,455,683
|
6,748,661
|
7,611,799
|
|
Net Monetary Assets
|
5,451,057
|
5,536,945
|
5,155,300
|
3,592,666
|
4,345,220
|
|
PROFIT & LOSS ITEMS
|
|
|
|
|
|
|
Earnings Before Interest & Tax (EBIT)
|
1,139,863
|
901,009
|
857,471
|
317,652
|
236,654
|
|
Earnings Before Interest, Taxes, Depreciation And Amortization
(EBITDA)
|
1,349,185
|
1,031,152
|
962,442
|
525,938
|
362,142
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
51,140
|
27,528
|
0
|
138,727
|
0
|
|
Total Liabilities
|
2,966,789
|
1,467,927
|
1,293,711
|
3,159,663
|
1,910,798
|
|
Total Assets
|
11,498,368
|
9,573,358
|
8,730,047
|
9,883,392
|
9,507,934
|
|
Net Assets
|
8,650,885
|
8,177,343
|
7,455,683
|
6,748,661
|
7,611,799
|
|
Net Assets Backing
|
8,531,579
|
8,105,431
|
7,436,336
|
6,723,729
|
7,597,136
|
|
Shareholders' Funds
|
8,531,579
|
8,105,431
|
7,436,336
|
6,723,729
|
7,597,136
|
|
Total Share Capital
|
500,000
|
500,000
|
500,000
|
500,000
|
500,000
|
|
Total Reserves
|
8,031,579
|
7,605,431
|
6,936,336
|
6,223,729
|
7,097,136
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.89
|
2.71
|
2.60
|
0.89
|
1.33
|
|
Liquid Ratio
|
2.96
|
5.02
|
5.06
|
2.15
|
3.30
|
|
Current Ratio
|
3.74
|
6.30
|
6.62
|
2.90
|
4.73
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
28
|
34
|
39
|
43
|
56
|
|
Debtors Ratio
|
73
|
50
|
52
|
61
|
61
|
|
Creditors Ratio
|
21
|
18
|
21
|
15
|
16
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.01
|
0
|
0
|
0.02
|
0
|
|
Liabilities Ratio
|
0.35
|
0.18
|
0.17
|
0.47
|
0.25
|
|
Times Interest Earned Ratio
|
850.64
|
562.08
|
384.00
|
32.80
|
4,465.17
|
|
Assets Backing Ratio
|
17.30
|
16.35
|
14.91
|
13.50
|
15.22
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
3.99
|
4.65
|
4.62
|
1.55
|
1.35
|
|
Net Profit Margin
|
3.15
|
3.46
|
3.85
|
0.64
|
0.98
|
|
Return On Net Assets
|
13.18
|
11.02
|
11.50
|
4.71
|
3.11
|
|
Return On Capital Employed
|
13.13
|
10.98
|
11.50
|
4.62
|
3.11
|
|
Return On Shareholders' Funds/Equity
|
10.56
|
8.25
|
9.58
|
1.88
|
2.27
|
|
Dividend Pay Out Ratio (Times)
|
0.53
|
0
|
0
|
7.90
|
0
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
0
|
|