|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
232416-D
|
|
COMPANY NAME
|
:
|
QIN LONG (M)
SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
14/01/1992
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE
LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
19-2A, JALAN
MOLEK 1/9, TAMAN MOLEK, SECOND FLOOR, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
2 JALAN
PERSIARAN DATO' CHELLAM, TAMAN DATO' CHELLAM, 81800 ULU TIRAM, JOHOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
N/A
|
|
FAX.NO.
|
:
|
N/A
|
|
HP.NO.
|
:
|
0127310896
|
|
CONTACT PERSON
|
:
|
HOW HWEI LING
( DIRECTOR )
|
|
|
|
|
INDUSTRY CODE
|
:
|
46329
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF
PROVISION GOODS, FOOD PRODUCTS
|
|
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 41,657,496
[2013]
|
|
NET WORTH
|
:
|
MYR 11,004,682
[2013]
|
|
|
|
|
STAFF STRENGTH
|
:
|
5 [2015]
|
|
BANKER (S)
|
:
|
|
PUBLIC
BANK BHD
ALLIANCE BANK MALAYSIA BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
N/A
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY / BACKGROUND
The Subject is a
private limited company and is allowed to have a minimum of one and a maximum
of forty-nine shareholders. As a private limited company, the Subject must
have at least two directors. A private limited company is a separate legal
entity from its shareholders. As a separate legal entity, the Subject is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the Subject is insolvent. The Subject is governed by
the Companies Act, 1965 and the company must file its annual returns,
together with its financial statements with the Registrar of Companies.
The Subject is
principally engaged in the (as a / as an) trading of provision goods, food
products.
The Subject is
not listed on Bursa Malaysia (Malaysia Stock Exchange).
Share Capital
History
|
Date
|
Authorised Shared Capital
|
Issue & Paid Up Capital
|
|
29/06/2013
|
MYR 500,000.00
|
MYR 500,000.00
|
|
20/08/1993
|
MYR 100,000.00
|
MYR 100,000.00
|
|
30/01/1992
|
MYR 100,000.00
|
MYR 2.00
|
The major
shareholder(s) of the Subject are shown as follows :
Current
Shareholder(s) :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
HOW CHE KIM +
|
14, JALAN ROS MERAH 4/10, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
5224228
|
499,999.00
|
100.00
|
|
MR. TAI SIN MOI +
|
14, JALAN ROS MERAH 4/10, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
611006-04-5078
|
1.00
|
0.00
|
|
|
|
---------------
|
------
|
|
|
|
500,000.00
|
100.00
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. HOW KUOK LEONG
|
|
Address
|
:
|
14, JALAN ROS MERAH 4/10, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
|
|
|
New IC No
|
:
|
840825-01-5453
|
|
Date of Birth
|
:
|
25/08/1984
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
10/12/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. HOW HWEI LING
|
|
Address
|
:
|
12, JALAN EJ 6/6, TAMAN EHSAN JAYA, 81100 JOHOR BAHRU, JOHOR,
MALAYSIA.
|
|
|
|
|
New IC No
|
:
|
821111-01-5474
|
|
Date of Birth
|
:
|
11/11/1982
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
25/07/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. HOW KUOK CHEAN
|
|
Address
|
:
|
14, JALAN ROS MERAH 4/10, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
|
|
|
New IC No
|
:
|
900729-01-5199
|
|
Date of Birth
|
:
|
29/07/1990
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
15/07/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. TAI SIN MOI
|
|
Address
|
:
|
14, JALAN ROS MERAH 4/10, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
|
|
|
New IC No
|
:
|
611006-04-5078
|
|
Date of Birth
|
:
|
06/10/1961
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
14/01/1992
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
HOW CHE KIM
|
|
Address
|
:
|
14, JALAN ROS MERAH 4/10, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5224228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
14/01/1992
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
HOW HWEI LING
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
J C HIN ASSOCIATES
|
|
Auditor' Address
|
:
|
19-02, JALAN MOLEK 1/0, TAMAN MOLEK, SECOND FLOOR, 81100 JOHOR
BAHRU, JOHOR, MALAYSIA.
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. TAN SONG HWA
|
|
IC / PP No
|
:
|
A2381623
|
|
New IC No
|
:
|
730123-01-6008
|
|
Address
|
:
|
115, JALAN SETIA 10/6, TAMAN SETIA INDAH, 81100 JOHOR BAHRU, JOHOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
2)
|
Name
|
:
|
ALLIANCE BANK MALAYSIA BHD
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge Description
|
Chargee Name
|
Total Charge
|
Status
|
|
1
|
20/04/1994
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 600,000.00
|
Satisfied
|
|
2
|
04/09/1995
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 400,000.00
|
Satisfied
|
|
3
|
09/03/1996
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 150,000.00
|
Satisfied
|
|
4
|
09/03/1996
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 250,000.00
|
Satisfied
|
|
5
|
26/12/1996
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 200,000.00
|
Satisfied
|
|
6
|
26/12/1996
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 100,000.00
|
Satisfied
|
|
7
|
29/11/1997
|
N/A
|
ALLIANCE BANK MALAYSIA BERHAD
|
MYR 830,000.00
|
Satisfied
|
|
8
|
19/08/2005
|
N/A
|
ALLIANCE BANK MALAYSIA BHD
|
-
|
Satisfied
|
|
9
|
19/08/2005
|
N/A
|
ALLIANCE BANK MALAYSIA BHD
|
-
|
Satisfied
|
|
10
|
19/08/2005
|
N/A
|
ALLIANCE BANK MALAYSIA BHD
|
-
|
Satisfied
|
|
11
|
13/04/2007
|
N/A
|
ALLIANCE BANK MALAYSIA BHD
|
-
|
Satisfied
|
|
12
|
12/07/2007
|
ALL MONIES LEGAL CHARGE
|
PUBLIC BANK BHD
|
-
|
Unsatisfied
|
|
13
|
04/09/2008
|
ALL MONIES 1ST LEGAL CHARGE
|
PUBLIC BANK BHD
|
-
|
Unsatisfied
|
|
14
|
02/02/2010
|
ALL MONIES FIRST LEGAL CHARGE
|
PUBLIC BANK 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
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
N/A
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CASH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
PROVISION GOODS, FOOD PRODUCTS
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2015
|
2014
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
5
|
5
|
|
|
|
|
|
|
|
Other Information:
The Subject is principally engaged in the (as a / as an) trading of provision
goods, food products.
The Subject sells onions, garlic and other provision products.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
0127310896
|
|
Match
|
:
|
N/A
|
|
|
|
|
Address Provided by Client
|
:
|
2 JALAN PERSIARAN DATO CHELLAM TAMAN DATO CHELLAM 81800 ULU TIRAM
JOHOR
|
|
Current Address
|
:
|
2 JALAN PERSIARAN DATO' CHELLAM, TAMAN DATO' CHELLAM, 81800 ULU
TIRAM, JOHOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other
Investigations
On 24th July 2015 we contacted one of the Subject's Director Ms HOW HWEI LING
and she provided some information.
She refused to disclose the fax number.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2011 - 2013
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2011 - 2013
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
9.60%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
13.01%
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's turnover increased steadily as the demand for its
products / services increased due to the goodwill built up over the
years.The higher profit could be attributed to the increase in turnover.
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
|
[
|
49 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
43 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
44 Days
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's stocks were moving fast thus reducing its holding
cost. This had reduced funds being tied up in stocks. The favourable
debtors' days could be due to the good credit control measures implemented
by the Subject. The Subject had a favourable creditors' ratio where the
Subject could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.72 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.51 Times
|
]
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the Subject may be facing working
capital deficiency. If the Subject cannot obtain additional financing or
injection of fresh capital, it may face difficulties in meeting its short
term obligations.
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Favourable
|
[
|
10.64 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.17 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 was lowly
geared thus it had a low financial risk. The Subject was mainly financed by
its shareholders' funds and internally generated funds. In times of economic
slowdown / downturn, the Subject being a lowly geared company, will be able
to compete better than those companies which are highly geared in the same
industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Generally, the Subject's performance has improved with higher
turnover and profit. Due to its weak liquidity position, the Subject will
be faced with problems in meeting all its short term obligations if no
short term loan is obtained or additional capital injected into the
Subject. 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 : FAIR
|
MALAYSIA ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2011
|
2012
|
2013
|
2014*
|
2015**
|
|
|
|
|
|
|
|
Population ( Million)
|
28.7
|
29.3
|
29.8
|
30.3
|
30.5
|
|
Gross Domestic Products ( % )
|
5.1
|
5.6
|
5.3
|
6.0
|
6.0
|
|
Domestic Demand ( % )
|
8.2
|
9.4
|
5.6
|
6.4
|
6.2
|
|
Private Expenditure ( % )
|
8.2
|
8.0
|
8.6
|
7.9
|
6.9
|
|
Consumption ( % )
|
7.1
|
1.0
|
5.7
|
6.5
|
5.6
|
|
Investment ( % )
|
12.2
|
11.7
|
13.3
|
12.0
|
10.7
|
|
Public Expenditure ( % )
|
8.4
|
13.3
|
4.4
|
2.3
|
4.2
|
|
Consumption ( % )
|
16.1
|
11.3
|
(1.2)
|
2.1
|
3.8
|
|
Investment ( % )
|
(0.3)
|
15.9
|
4.2
|
2.6
|
4.7
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
116,058
|
106,300
|
71,298
|
52,314
|
-
|
|
Government Finance ( MYR Million )
|
(45,511)
|
(42,297)
|
(39,993)
|
(37,291)
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
(5.4)
|
(4.5)
|
(4.0)
|
(3.5)
|
(3.0)
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
1.6
|
2.5
|
3.3
|
4.0
|
|
Unemployment Rate
|
3.3
|
3.2
|
3.0
|
3.0
|
3.0
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
415
|
427
|
-
|
417
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.50
|
2.20
|
-
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
14.80
|
14.70
|
-
|
-
|
-
|
|
Average Base Lending Rate ( % )
|
6.60
|
6.53
|
6.53
|
-
|
-
|
|
Business Loans Disbursed( % )
|
15.3
|
32.2
|
-
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
23,546.1
|
26,230.4
|
38,238.0
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
45,455
|
45,441
|
46,321
|
-
|
-
|
|
Registration of New Companies ( % )
|
3.0
|
(0.0)
|
1.9
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
132,485
|
17,092
|
26,430
|
-
|
-
|
|
Liquidation of Companies ( % )
|
417.8
|
(87.1)
|
54.6
|
-
|
-
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
284,598
|
324,761
|
329,895
|
-
|
-
|
|
Registration of New Business ( % )
|
5.0
|
14.0
|
2.0
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,121
|
20,380
|
18,161
|
-
|
-
|
|
Business Dissolved ( % )
|
1.9
|
1.3
|
(10.9)
|
-
|
-
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
535.1
|
552.2
|
576.7
|
598.4
|
610.3
|
|
Cellular Phone Subscribers ( Million )
|
35.3
|
38.5
|
43.0
|
43.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
24.7
|
25.0
|
25.7
|
28.0
|
-
|
|
Hotel Occupancy Rate ( % )
|
60.6
|
62.4
|
62.6
|
-
|
-
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
15.6
|
12.6
|
-
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
32,627
|
26,982
|
28,876
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
19,167
|
19,575
|
21,984
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
5.8
|
2.1
|
12.3
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2011
|
2012
|
2013
|
2014*
|
2015**
|
|
|
|
|
|
|
|
Agriculture
|
5.8
|
1.0
|
2.1
|
3.8
|
3.1
|
|
Palm Oil
|
10.8
|
(0.3)
|
2.6
|
6.7
|
-
|
|
Rubber
|
6.1
|
(7.9)
|
(10.1)
|
(10.4)
|
-
|
|
Forestry & Logging
|
(7.6)
|
(4.5)
|
(7.8)
|
(4.2)
|
-
|
|
Fishing
|
2.1
|
4.3
|
1.6
|
2.7
|
-
|
|
Other Agriculture
|
7.1
|
6.4
|
8.2
|
6.2
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
634.1
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
3.2
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Mining
|
(5.4)
|
1.4
|
0.9
|
(0.8)
|
2.8
|
|
Oil & Gas
|
(1.7)
|
-
|
-
|
-
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
46.5
|
-
|
-
|
-
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Manufacturing #
|
4.7
|
4.8
|
3.4
|
6.6
|
5.5
|
|
Exported-oriented Industries
|
4.1
|
6.5
|
3.3
|
5.6
|
-
|
|
Electrical & Electronics
|
(4.0)
|
12.7
|
6.9
|
13.3
|
-
|
|
Rubber Products
|
20.7
|
3.0
|
11.7
|
(0.3)
|
-
|
|
Wood Products
|
(5.1)
|
8.7
|
(2.7)
|
5.1
|
-
|
|
Textiles & Apparel
|
13.2
|
(7.1)
|
(2.6)
|
11.5
|
-
|
|
Domestic-oriented Industries
|
10.7
|
1.7
|
6.8
|
9.4
|
-
|
|
Food, Beverages & Tobacco
|
4.80
|
2.70
|
3.60
|
6.13
|
6.13
|
|
Chemical & Chemical Products
|
10.0
|
10.8
|
5.6
|
-
|
-
|
|
Plastic Products
|
3.8
|
-
|
-
|
-
|
-
|
|
Iron & Steel
|
2.2
|
(6.6)
|
5.0
|
0.1
|
-
|
|
Fabricated Metal Products
|
21.8
|
13.8
|
9.9
|
2.9
|
-
|
|
Non-metallic Mineral
|
12.1
|
2.9
|
(2.0)
|
5.4
|
-
|
|
Transport Equipment
|
12.0
|
3.4
|
13.8
|
22.9
|
-
|
|
Paper & Paper Products
|
9.5
|
3.1
|
1.8
|
4.7
|
-
|
|
Crude Oil Refineries
|
9.3
|
-
|
-
|
-
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,537.2
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
25.7
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Construction
|
4.7
|
18.6
|
10.9
|
12.7
|
10.7
|
|
Industry Non-Performing Loans ( MYR Million )
|
3,856.9
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
10.2
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Services
|
7.1
|
6.4
|
5.9
|
5.9
|
5.6
|
|
Electric, Gas & Water
|
3.5
|
4.4
|
4.2
|
3.6
|
3.9
|
|
Transport, Storage & Communication
|
6.50
|
7.10
|
7.30
|
7.50
|
7.15
|
|
Wholesale, Retail, Hotel & Restaurant
|
5.2
|
4.7
|
5.9
|
6.9
|
6.5
|
|
Finance, Insurance & Real Estate
|
6.90
|
9.70
|
3.70
|
4.65
|
4.25
|
|
Government Services
|
12.4
|
9.4
|
8.3
|
6.1
|
5.6
|
|
Other Services
|
5.1
|
3.9
|
5.1
|
4.8
|
4.5
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,825.2
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
23.4
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On Manufacturing Production Index
|
|
|
|
|
|
|
INDUSTRY ANALYSIS
|
MSIC CODE
|
|
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 1992, the Subject is a Private Limited company, focusing on
trading of provision goods, food products. 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. Presently, the issued and paid up capital of the Subject stands at
MYR 500,000. We considered that the Subject's business position in the
market is much dependent on the efforts of its directors.
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 5 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. The Subject has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. Due to its weak
liquidity position, the Subject may face working capital deficiency in
meeting its short term financial obligations if no fresh capital are
injected into the Subject. 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 11,004,682, the Subject should be able to maintain its business in the
near terms.
The Subject's payment habit is average. With its adequate working capital,
the Subject should be able to pay its short term debts.
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
|
|
Months
|
12
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
SUMMARY
|
|
Currency
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
TURNOVER
|
41,657,496
|
38,010,460
|
37,847,195
|
|
Other Income
|
196,650
|
116,992
|
-
|
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
41,854,146
|
38,127,452
|
37,847,195
|
|
Costs of Goods Sold
|
(36,675,326)
|
(33,645,505)
|
-
|
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
5,178,820
|
4,481,947
|
-
|
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,458,643
|
800,795
|
1,472,564
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,458,643
|
800,795
|
1,472,564
|
|
Taxation
|
(402,464)
|
(245,120)
|
(404,721)
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
1,056,179
|
555,675
|
1,067,843
|
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
As previously reported
|
9,448,503
|
7,523,052
|
6,455,209
|
|
Prior year adjustment
|
-
|
1,369,776
|
-
|
|
----------------
|
----------------
|
----------------
|
|
As restated
|
9,448,503
|
8,892,828
|
6,455,209
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
10,504,682
|
9,448,503
|
7,523,052
|
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
10,504,682
|
9,448,503
|
7,523,052
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
Bank overdraft
|
4,956
|
17,134
|
-
|
|
Bankers' acceptance
|
21,171
|
28,650
|
-
|
|
Hire purchase
|
3,142
|
8,217
|
-
|
|
Term loan / Borrowing
|
84,597
|
99,802
|
-
|
|
Others
|
37,478
|
29,050
|
-
|
|
----------------
|
----------------
|
----------------
|
|
151,344
|
182,853
|
-
|
|
=============
|
=============
|
-
|
|
|
|
|
|
DEPRECIATION (as per notes to P&L)
|
561,974
|
577,453
|
-
|
|
----------------
|
----------------
|
----------------
|
|
561,974
|
577,453
|
-
|
|
=============
|
=============
|
|
BALANCE SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
8,743,795
|
9,298,612
|
8,971,901
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
8,743,795
|
9,298,612
|
8,971,901
|
|
|
|
|
|
Stocks
|
5,621,118
|
4,602,408
|
-
|
|
Trade debtors
|
4,940,868
|
4,315,713
|
-
|
|
Other debtors, deposits & prepayments
|
84,945
|
60,345
|
-
|
|
Cash & bank balances
|
126,448
|
14,135
|
-
|
|
Others
|
-
|
162,052
|
-
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
10,773,379
|
9,154,653
|
10,147,009
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
19,517,174
|
18,453,265
|
19,118,910
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
4,444,912
|
3,618,563
|
-
|
|
Other creditors & accruals
|
513,155
|
457,808
|
-
|
|
Hire purchase & lease creditors
|
16,180
|
35,068
|
-
|
|
Bank overdraft
|
-
|
235,622
|
-
|
|
Short term borrowings/Term loans
|
152,284
|
120,241
|
-
|
|
Bill & acceptances payable
|
600,000
|
597,000
|
-
|
|
Amounts owing to director
|
1,277,905
|
1,390,213
|
-
|
|
Provision for taxation
|
135,760
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
7,140,196
|
6,454,515
|
8,639,266
|
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
3,633,183
|
2,700,138
|
1,507,743
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
12,376,978
|
11,998,750
|
10,479,644
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
500,000
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
500,000
|
500,000
|
500,000
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
10,504,682
|
9,448,503
|
7,523,052
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
10,504,682
|
9,448,503
|
7,523,052
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
11,004,682
|
9,948,503
|
8,023,052
|
|
|
|
|
|
Long term loans
|
1,076,590
|
1,685,065
|
-
|
|
Hire purchase creditors
|
15,295
|
31,475
|
-
|
|
Deferred taxation
|
280,411
|
333,707
|
-
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
1,372,296
|
2,050,247
|
2,456,592
|
|
----------------
|
----------------
|
----------------
|
|
12,376,978
|
11,998,750
|
10,479,644
|
|
=============
|
=============
|
=============
|
|
|
|
|
FINANCIAL RATIO
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
126,448
|
14,135
|
-
|
|
Net Liquid Funds
|
(473,552)
|
(818,487)
|
-
|
|
Net Liquid Assets
|
(1,987,935)
|
(1,902,270)
|
1,507,743
|
|
Net Current Assets/(Liabilities)
|
3,633,183
|
2,700,138
|
1,507,743
|
|
Net Tangible Assets
|
12,376,978
|
11,998,750
|
10,479,644
|
|
Net Monetary Assets
|
(3,360,231)
|
(3,952,517)
|
(948,849)
|
|
|
|
|
|
PROFIT & LOSS ITEMS
|
|
|
|
|
Earnings Before Interest & Tax (EBIT)
|
1,609,987
|
983,648
|
-
|
|
Earnings Before Interest, Taxes, Depreciation And Amortization
(EBITDA)
|
2,171,961
|
1,561,101
|
-
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
1,860,349
|
2,704,471
|
-
|
|
Total Liabilities
|
8,512,492
|
8,504,762
|
11,095,858
|
|
Total Assets
|
19,517,174
|
18,453,265
|
19,118,910
|
|
Net Assets
|
12,376,978
|
11,998,750
|
10,479,644
|
|
Net Assets Backing
|
11,004,682
|
9,948,503
|
8,023,052
|
|
Shareholders' Funds
|
11,004,682
|
9,948,503
|
8,023,052
|
|
Total Share Capital
|
500,000
|
500,000
|
500,000
|
|
Total Reserves
|
10,504,682
|
9,448,503
|
7,523,052
|
|
|
|
|
|
LIQUIDITY (Times)
|
|
|
|
|
Cash Ratio
|
0.02
|
0
|
-
|
|
Liquid Ratio
|
0.72
|
0.71
|
-
|
|
Current Ratio
|
1.51
|
1.42
|
1.17
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
49
|
44
|
-
|
|
Debtors Ratio
|
43
|
41
|
-
|
|
Creditors Ratio
|
44
|
39
|
-
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.17
|
0.27
|
-
|
|
Liabilities Ratio
|
0.77
|
0.85
|
1.38
|
|
Times Interest Earned Ratio
|
10.64
|
5.38
|
-
|
|
Assets Backing Ratio
|
24.75
|
24.00
|
20.96
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
3.50
|
2.11
|
3.89
|
|
Net Profit Margin
|
2.54
|
1.46
|
2.82
|
|
Return On Net Assets
|
13.01
|
8.20
|
14.05
|
|
Return On Capital Employed
|
12.99
|
8.02
|
14.05
|
|
Return On Shareholders' Funds/Equity
|
9.60
|
5.59
|
13.31
|
|
|
|
|
|