MIRA INFORM REPORT

 

 

Report No. :

327098

Report Date :

18.06.2015

 

IDENTIFICATION DETAILS

 

Name :

EURO CHEMO-PHARMA SDN. BHD.

 

 

Registered Office :

182 A, Jalan Raja Uda, Pusat Perniagaan Raja Uda, 12300 Butterworth, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2008

 

 

Date of Incorporation :

18.06.1976

 

 

Com. Reg. No.:

27975-H

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

Trading of chemicals and pharmaceuticals.

 

 

No. of Employee :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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 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 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 supplies about 32% of government revenue in 2013. 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.

:

27975-H

COMPANY NAME

:

EURO CHEMO-PHARMA SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/06/1976

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

182 A, JALAN RAJA UDA, PUSAT PERNIAGAAN RAJA UDA, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

2408 & 2809, LORONG PERUSAHAAN SATU, PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-3901941

FAX.NO.

:

04-3997513

EMAIL

:

MARKETING@EUROCHEMO.COM

WEB SITE

:

WWW.EUROCHEMO.COM

CONTACT PERSON

:

TAN HOOI PHENG ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46691

PRINCIPAL ACTIVITY

:

TRADING OF CHEMICALS AND PHARMACEUTICALS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARES 125,000 CASH AND 4,875,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

N/A

BANKER (S)

:

CIMB BANK BHD
EON BANK BHD
HONG LEONG BANK BHD
MALAYAN BANKING BHD
PUBLIC BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

The Subject is principally engaged in the (as a / as an) trading of chemicals and pharmaceuticals.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 10,000,000.00

MYR 5,000,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. TAN HOOI PHENG +

6 PARK ROAD, PENANG, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

550210-07-5323 4738971

2,800,000.00

56.00

MS. VIVIEN TAN SILL MING +

6 PARK ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

751227-07-5558

600,000.00

12.00

MR. TAN WEE KANG +

6, PARK ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

790517-07-5697

600,000.00

12.00

MS. TEOH SEOK HAR

6 PARK ROAD, PENANG, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

550816-07-5280 4834354

500,000.00

10.00

MS. SYLVIA TAN SILL WAY

6 PARK ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

800821-07-5516

500,000.00

10.00

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

------

5,000,000.00

100.00

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

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

780777T

MALAYSIA

BIOFRESH GREEN SDN. BHD.

100.00

26/11/2014

386097X

MALAYSIA

EUROLUB (M) SDN. BHD.

51.00

26/11/2014



 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. VIVIEN TAN SILL MING

Address

:

6 PARK ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

New IC No

:

751227-07-5558

Date of Birth

:

27/12/1975

Nationality

:

MALAYSIAN

Date of Appointment

:

19/04/2004

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN WEE KANG

Address

:

6, PARK ROAD, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

New IC No

:

790517-07-5697

Date of Birth

:

17/05/1979

Nationality

:

MALAYSIAN

Date of Appointment

:

19/04/2004

 

DIRECTOR 3

 

Name Of Subject

:

MR. TAN HOOI PHENG

Address

:

6 PARK ROAD, PENANG, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

4738971

New IC No

:

550210-07-5323

Date of Birth

:

10/02/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

18/06/1976


MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN HOOI PHENG

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

WONG LIU & PARTNERS

Auditor' Address

:

60B, JALAN SRI BAHARI, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. GOH BOON KAN

IC / PP No

:

A2908403

New IC No

:

741218-02-5429

Address

:

83, SOLOK KIKIK 1, TAMAN INDERAWASIH, 13600 PRAI, PULAU PINANG, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

EON BANK BHD

 

3)

Name

:

HONG LEONG BANK BHD

 

4)

Name

:

MALAYAN BANKING BHD

 

5)

Name

:

PUBLIC BANK BHD

 

6)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

0

07/11/1979

N/A

UNITED ASIAN BANK BERHAD

MYR 280,000.00

Satisfied

1

07/11/1979

N/A

UNITED ASIAN BANK BERHAD

MYR 180,000.00

Satisfied

2

27/09/1980

N/A

UNITED ASIAN BANK BERHAD

MYR 180,000.00

Satisfied

4

12/07/1982

N/A

UNITED ASIAN BANK BERHAD

MYR 175,000.00

Satisfied

3

27/07/1982

N/A

UNITED ASIAN BANK BERHAD

MYR 75,000.00

Satisfied

5

26/08/1986

N/A

UNITED ASIAN BANK BHD

MYR 580,000.00

Satisfied

6

08/07/1987

N/A

OVERSEAS UNION BANK LIMITED

MYR 170,000.00

Satisfied

9

17/08/1988

N/A

ABN AMRO BANK BHD

MYR 930,000.00

Satisfied

7

19/08/1988

N/A

ABN AMRO BANK BHD

MYR 930,000.00

Satisfied

8

19/08/1988

N/A

ABN AMRO BANK BHD

MYR 930,000.00

Satisfied

10

09/01/1990

N/A

ABN AMRO BANK BHD

MYR 570,000.00

Satisfied

11

09/01/1990

N/A

ABN AMRO BANK BHD

MYR 570,000.00

Satisfied

12

29/10/1990

N/A

ABN AMRO BANK BHD

MYR 425,000.00

Satisfied

13

29/10/1990

N/A

ABN AMRO BANK BHD

MYR 425,000.00

Satisfied

14

29/10/1990

N/A

ABN AMRO BANK BHD

MYR 1,925,000.00

Satisfied

15

29/10/1990

N/A

ABN AMRO BANK BHD

MYR 1,925,000.00

Satisfied

16

05/02/1991

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 400,000.00

Satisfied

17

26/05/1992

N/A

ABN AMRO BANK BHD

MYR 1,340,000.00

Satisfied

18

23/06/1993

N/A

ABN AMRO BANK BHD

MYR 1,835,000.00

Satisfied

19

07/11/1994

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 100,000.00

Satisfied

20

07/11/1994

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 800,000.00

Satisfied

21

20/03/1995

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 500,000.00

Satisfied

22

20/03/1995

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 800,000.00

Satisfied

23

20/03/1995

N/A

UNITED OVERSEAS BANKMALAYSIA BHD

MYR 1,600,000.00

Satisfied

24

20/03/1995

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,600,000.00

Satisfied

25

02/11/1995

N/A

BSN COMMERCIAL BANK MALAYSIA BHD

MYR 3,400,000.00

Satisfied

26

02/11/1995

N/A

BSN COMMERCIAL BANK MALAYSIA BHD

MYR 3,400,000.00

Satisfied

27

02/11/1995

N/A

BSN COMMERCIAL BANK MALAYSIA BHD

MYR 350,000.00

Satisfied

28

02/11/1995

N/A

BSN COMMERCIAL BANK MALAYSIA BHD

MYR 350,000.00

Satisfied

29

25/03/1996

N/A

BSN COMMERCIAL BANK MALAYSIA BHD

MYR 3,400,000.00

Satisfied

30

25/03/1996

N/A

BSN COMMERCIAL BANK MALAYSIA BHD

MYR 350,000.00

Satisfied

31

13/08/1996

N/A

BSN COMMERCIAL BANK MALAYSIA BERHAD

MYR 750,000.00

Satisfied

32

13/08/1996

N/A

BSN COMMERCIAL BANK MALAYSIA BERHAD

MYR 1,500,000.00

Satisfied

33

05/03/1997

N/A

ABN AMRO BANK BHD

MYR 1.00

Satisfied

34

04/12/1997

N/A

MALAYAN BANKING BHD

MYR 10,000,000.00

Satisfied

35

04/12/1997

N/A

MALAYAN BANKING BHD

MYR 10,000,000.00

Unsatisfied

36

04/12/1997

N/A

MALAYAN BANKING BHD

MYR 4,920,000.00

Satisfied

37

04/12/1997

N/A

MALAYAN BANKING BHD

MYR 4,920,000.00

Unsatisfied

38

29/12/1997

N/A

MALAYAN BANKING BERHAD

MYR 14,920,000.00

Unsatisfied

39

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 4,920,000.00

Unsatisfied

40

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 4,920,000.00

Unsatisfied

41

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 4,920,000.00

Satisfied

42

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 4,920,000.00

Unsatisfied

43

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 10,000,000.00

Unsatisfied

44

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 10,000,000.00

Satisfied

45

20/05/1998

N/A

MALAYAN BANKING BERHAD

MYR 10,000,000.00

Unsatisfied

46

20/05/1998

OPEN CHARGE

MALAYAN BANKING BERHAD

MYR 10,000,000.00

Unsatisfied

47

26/02/2000

N/A

BAN HIN LEE BANK BERHAD

MYR 4,700,000.00

Satisfied

48

08/09/2000

N/A

MALAYAN BANKING BERHAD

MYR 4,920,000.00

Satisfied

49

08/09/2000

N/A

MALAYAN BANKING BERHAD

MYR 10,000,000.00

Satisfied

50

23/12/2002

N/A

EON BANK BERHAD

MYR 3,440,000.00

Satisfied

51

23/12/2002

N/A

EON BANK BERHAD

MYR 3,440,000.00

Satisfied

52

13/01/2003

N/A

EON BANK BERHAD

MYR 110,000.00

Satisfied

53

12/07/2004

OPEN CHARGE

EON BANK BERHAD

-

Unsatisfied

54

22/07/2004

N/A

EON BANK BERHAD

MYR 9,000,000.00

Unsatisfied

55

02/09/2004

OPEN CHARGE

EON BANK BERHAD

MYR 9,000,000.00

Unsatisfied

56

22/04/2005

N/A

EON BANK BERHAD

MYR 5,430,000.00

Satisfied

57

17/08/2007

N/A

HONG LEONG BANK BERHAD

-

Satisfied

58

21/07/2008

N/A

HONG LEONG BANK BERHAD

-

Satisfied

59

17/12/2008

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

60

17/12/2008

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

61

17/12/2008

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

62

15/03/2010

OPEN CHARGE

HONG LEONG BANK BERHAD

-

Unsatisfied

63

29/07/2010

OPEN CHARGE

HONG LEONG BANK BERHAD

-

Unsatisfied

64

10/05/2011

N/A

MALAYAN BANKING BHD

MYR 3,800,000.00

Unsatisfied

65

16/06/2011

N/A

EON BANK BHD

-

Satisfied

66

21/07/2011

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

67

10/02/2012

N/A

HONG LEONG BANK BERHAD

MYR 4,600,000.00

Unsatisfied

68

17/07/2012

N/A

CIMB BANK BERHAD

-

Unsatisfied

69

04/09/2012

N/A

HONG LEONG BANK BERHAD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

JAPAN,CHINA,EUROPE,INDIA

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

30 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

MANUFACTURING INDUSTRIES

CUSTOMER(S)

:

1) STERLING DRUG (MALAYA) SDN BHD

 

 

OPERATIONS

 

Goods Traded

:

CHEMICALS AND PHARMACEUTICALS

Competitor(s)

:

BRENNTAG SDN BHD

KZH RESOURCES SDN BHD

TAIKO MARKETING SDN BHD

TEXCHEM RESOURCES BHD.

TITAN TRADING CORP. SDN BHD

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

COMPANY

120

120

120

115

 

Branch

:

YES

No of Branches

:

1

Branch(es)

:

NO 5 JALAN ASTAKA U8/82, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Tel No: 03-78461188

Fax No: 03-78461663

Other Information:


The Subject is principally engaged in the (as a / as an) trading of chemicals and pharmaceuticals.

The Subject distributes chemicals and pharmaceutical raw materials to a wide range of industries.

The Subject's raw materials are mainly used for coating & printing, cosmetic & detergent, electronic & electroplating, fiberglass, food, paper, pharmaceutical, plastic, Polyurethane, rubber & latex, textile, water treatment and others.

Besides the Subject also has been appointed as the sole agent for some of the well known chemical products from overseas.

We were informed that the Subject provides the following services:

* Laboratory Test.
* Food Research and Development.
* Water Treatment R&D.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-3901941

Match

:

N/A

Address Provided by Client

:

2408 & 2809, LORONG PERUSAHAAN SATU, PRAI INDUSTRIAL ESTATE,13600,PRAI,PULAU PINANG.

Current Address

:

2408 & 2809, LORONG PERUSAHAAN SATU, PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations


On 12th June 2015 we contacted one of the staff from the Subject and she provided some information.

She refused to disclose the Subject's number of employees.

The address provided belongs to the Subject's registered office.


FINANCIAL ANALYSIS

 

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

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

46691 : Wholesale of industrial chemicals

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 1976, the Subject is an Exempt Private company, focusing on trading of chemicals and pharmaceuticals. 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. A paid up capital of MYR 5,000,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. 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.

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

The industry shows an upward trend and this trend is very likely to sustain in the near terms.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2008-06-30

2007-06-30

2006-06-30

2005-06-30

2004-06-30

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

122,747,864

109,226,940

106,592,569

104,572,427

89,934,350

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

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

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

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

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

Total Turnover

122,747,864

109,226,940

106,592,569

104,572,427

89,934,350

Costs of Goods Sold

(97,028,280)

(90,123,972)

-

-

-

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

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

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

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

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

Gross Profit

25,719,584

19,102,968

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

16,919,778

11,084,877

9,256,151

10,370,890

3,368,998

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

16,919,778

11,084,877

9,256,151

10,370,890

3,368,998

Taxation

(4,629,062)

(3,230,743)

(2,649,093)

(3,574,997)

(925,058)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

12,290,716

7,854,134

6,607,058

6,795,893

2,443,940

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

45,548,901

38,194,767

33,587,709

26,791,816

24,347,876

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

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

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

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

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

As restated

45,548,901

38,194,767

33,587,709

26,791,816

24,347,876

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

57,839,617

46,048,901

40,194,767

33,587,709

26,791,816

TRANSFER TO RESERVES - General

-

-

(2,000,000)

-

-

DIVIDENDS - Ordinary (paid & proposed)

(1,750,000)

(500,000)

-

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

56,089,617

45,548,901

38,194,767

33,587,709

26,791,816

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

78,355

80,804

-

-

-

Hire purchase

38,986

19,611

-

-

-

Term loan / Borrowing

652,304

564,693

-

-

-

Trust receipts

88,698

815

-

-

-

Others

375,964

388,958

-

-

-

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

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

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

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

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

1,234,307

1,054,881

-

-

-

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

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

-

-

-

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

60,356,523

43,557,269

39,079,250

39,597,840

27,796,085

Investments

595,641

1,005,848

-

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

595,641

1,005,848

843,640

565,165

573,324

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

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

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

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

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

TOTAL LONG TERM ASSETS

60,952,164

44,563,117

39,922,890

40,163,005

28,369,409

Stocks

10,206,129

15,079,302

-

-

-

Trade debtors

32,742,039

31,265,402

-

-

-

Other debtors, deposits & prepayments

866,303

2,006,265

-

-

-

Amount due from director

960,134

202,110

-

-

-

Cash & bank balances

10,277,084

6,019,904

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

55,051,689

54,572,983

44,702,658

38,366,841

34,665,105

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

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

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

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

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

TOTAL ASSET

116,003,853

99,136,100

84,625,548

78,529,846

63,034,514

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

12,465,872

17,559,811

-

-

-

Other creditors & accruals

3,972,009

2,632,019

-

-

-

Hire purchase & lease creditors

428,907

421,727

-

-

-

Bank overdraft

2,500,992

1,748,648

-

-

-

Short term borrowings/Term loans

2,926,499

1,495,145

-

-

-

Bill & acceptances payable

10,973,000

12,716,000

-

-

-

Amounts owing to director

1,061,063

836,037

-

-

-

Provision for taxation

8,165,682

4,140,844

-

-

-

Other liabilities

-

620,000

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

42,494,024

42,170,231

31,826,233

29,629,119

26,679,643

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

12,557,665

12,402,752

12,876,425

8,737,722

7,985,462

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

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

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

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

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

TOTAL NET ASSETS

73,509,829

56,965,869

52,799,315

48,900,727

36,354,871

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

5,000,000

5,000,000

5,000,000

3,000,000

3,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

5,000,000

5,000,000

5,000,000

3,000,000

3,000,000

Exchange equalisation/fluctuation reserve

10,767

-

-

-

-

Retained profit/(loss) carried forward

56,089,617

45,548,901

38,194,767

33,587,709

26,791,816

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

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

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

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

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

TOTAL RESERVES

56,100,384

45,548,901

38,194,767

33,587,709

26,791,816

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

61,100,384

50,548,901

43,194,767

36,587,709

29,791,816

Long term loans

12,052,935

5,837,299

-

-

-

Hire purchase creditors

294,881

476,275

-

-

-

Deferred taxation

61,629

103,394

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

12,409,445

6,416,968

9,604,548

12,313,018

6,563,055

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

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

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

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

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

73,509,829

56,965,869

52,799,315

48,900,727

36,354,871

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

10,277,084

6,019,904

-

-

-

Net Liquid Funds

(3,196,908)

(8,444,744)

-

-

-

Net Liquid Assets

2,351,536

(2,676,550)

12,876,425

8,737,722

7,985,462

Net Current Assets/(Liabilities)

12,557,665

12,402,752

12,876,425

8,737,722

7,985,462

Net Tangible Assets

73,509,829

56,965,869

52,799,315

48,900,727

36,354,871

Net Monetary Assets

(10,057,909)

(9,093,518)

3,271,877

(3,575,296)

1,422,407

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

0

0

-

-

-

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

0

0

-

-

-

BALANCE SHEET ITEMS

Total Borrowings

29,177,214

22,695,094

-

-

-

Total Liabilities

54,903,469

48,587,199

41,430,781

41,942,137

33,242,698

Total Assets

116,003,853

99,136,100

84,625,548

78,529,846

63,034,514

Net Assets

73,509,829

56,965,869

52,799,315

48,900,727

36,354,871

Net Assets Backing

61,100,384

50,548,901

43,194,767

36,587,709

29,791,816

Shareholders' Funds

61,100,384

50,548,901

43,194,767

36,587,709

29,791,816

Total Share Capital

5,000,000

5,000,000

5,000,000

3,000,000

3,000,000

Total Reserves

56,100,384

45,548,901

38,194,767

33,587,709

26,791,816

LIQUIDITY (Times)

Cash Ratio

0.24

0.14

-

-

-

Liquid Ratio

1.06

0.94

-

-

-

Current Ratio

1.30

1.29

1.40

1.29

1.30

WORKING CAPITAL CONTROL (Days)

Stock Ratio

30

50

-

-

-

Debtors Ratio

97

104

-

-

-

Creditors Ratio

47

71

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.48

0.45

-

-

-

Liabilities Ratio

0.90

0.96

0.96

1.15

1.12

Times Interest Earned Ratio

14.71

11.51

-

-

-

Assets Backing Ratio

14.70

11.39

10.56

16.30

12.12

PERFORMANCE RATIO (%)

Operating Profit Margin

13.78

10.15

8.68

9.92

3.75

Net Profit Margin

10.01

7.19

6.20

6.50

2.72

Return On Net Assets

24.70

21.31

17.53

21.21

9.27

Return On Capital Employed

23.75

20.53

17.53

21.21

9.27

Return On Shareholders' Funds/Equity

20.12

15.54

15.30

18.57

8.20

Dividend Pay Out Ratio (Times)

0.14

0.06

-

-

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.11

UK Pound

1

Rs.100.32

Euro

1

Rs.72.17

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.