MIRA INFORM REPORT

 

 

Report No. :

328939

Report Date :

27.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ASIA MARINE PRODUCTS SDN. BHD.

 

 

Registered Office :

Lot 824, Komplek Sun, Jalan Bukit Bintang, 8th Floor, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

31.03.1975

 

 

Com. Reg. No.:

22393-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of marine and seafood.

 

 

No. of Employee :

20 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

22393-K

COMPANY NAME

:

ASIA MARINE PRODUCTS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

31/03/1975

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 824, KOMPLEK SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

15, LEBOH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31689806

FAX.NO.

:

03-31683557

CONTACT PERSON

:

TAN SUAN CHEW ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46312

PRINCIPAL ACTIVITY

:

TRADING OF MARINE AND SEAFOOD

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,045,975.00 DIVIDED INTO
ORDINARY SHARES 1,062,359 CASH AND 983,616 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 65,945,873 [2013]

NET WORTH

:

MYR 6,810,832 [2013]

STAFF STRENGTH

:

20 [2015]

BANKER (S)

:

MALAYAN BANKING BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 marine and seafood.

 

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 5,000,000.00

MYR 2,045,975.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. TAN SUAN CHEW +

8, LORONG HUJAN DUA, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

460611-10-5467 1195235

1,216,854.00

59.48

MS. QUAK NEE HOONG @ QUAH NEE HOONG +

8, LORONG HUJAN DUA, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

471130-10-5160 3677432

317,626.00

15.52

MR. TAN YEE SAN +

8, LORONG HUJAN DUA, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

740430-14-5677 A2676999

237,963.00

11.63

MS. TAN SEE SEE

8, LORONG HUJAN DUA, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690811-10-5588

68,383.00

3.34

MS. TAN LE CHENG

8, LORONG HUJAN DUA, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

700705-10-6292

68,383.00

3.34

MS. TAN KIM SIEW

8, LORONG HUJAN DUA, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

730119-14-5050 A2481136

68,383.00

3.34

MS. TAN KIM CHOOI

8, LORONG HUJAN DUA, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

780126-14-5740

68,383.00

3.34

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

------

2,045,975.00

100.00

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

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

35578K

MALAYSIA

ATLANTIC MARINE TRADING SDN. BHD.

100.00

26/11/2014



 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TAN CHOON HAI

Address

:

35-H, JALAN BERINGIN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

4876146

New IC No

:

550905-10-6229

Date of Birth

:

05/09/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

13/08/1977

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN YEE SAN

Address

:

8, LORONG HUJAN DUA, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2676999

New IC No

:

740430-14-5677

Date of Birth

:

30/04/1974

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2001

 

DIRECTOR 3

 

Name Of Subject

:

MS. QUAK NEE HOONG @ QUAH NEE HOONG

Address

:

8, LORONG HUJAN DUA, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

3677432

New IC No

:

471130-10-5160

Date of Birth

:

30/11/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

13/09/1996

 

DIRECTOR 4

 

Name Of Subject

:

MR. TAN SUAN CHEW

Address

:

8, LORONG HUJAN DUA, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

1195235

New IC No

:

460611-10-5467

Date of Birth

:

11/06/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

31/03/1975



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN SUAN CHEW

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

CHEW & ASSOCIATES

Auditor' Address

:

LOT 828, KOMPLEK SUN, JAL N BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LAI SOOK HEAN

IC / PP No

:

A1854741

New IC No

:

710503-08-6122

Address

:

206, BLOCK A10, WANGSA MAJU, SECTION 2, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 5,600,000.00

Satisfied

2

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 165,000.00

Satisfied

3

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 485,000.00

Satisfied

4

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 685,000.00

Satisfied

5

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 897,330.00

Satisfied

6

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 705,000.00

Satisfied

7

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 1,074,000.00

Satisfied

8

10/09/1975

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

MYR 1,423,000.00

Satisfied

9

30/11/1990

N/A

STANDARD CHARTERED BANKMALAYSIA BERHAD

-

Satisfied

10

15/05/2002

LOAN AGREEMENT, LETTER OF GUARANTEE, LETTER OF SET-OFF & MEMO OFNDEPOSIT

ARAB-MALAYSIAN FINANCE BERHAD

MYR 500,000.00

Unsatisfied

11

08/01/2004

N/A

MAYBANK ISLAMIC BERHAD

-

Satisfied

12

10/06/2004

N/A

MALAYAN BANKING BERHAD

MYR 1,000,000.00

Satisfied

13

10/09/2007

LOAN AGREEMENT, LETTER OF GUARANTEE, LETTER OF SET-OFF & MEMO OFNDEPOSIT

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

14

24/09/2008

LOAN AGREEMENT, LETTER OF GUARANTEE, LETTER OF SET-OFF & MEMO OFNDEPOSIT

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

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

:

FROZEN SEAFOOD

Competitor(s)

:

HAI KEE HUNG SDN BHD

KMC COLDSTORAGE & WAREHOUSING SDN BHD

PIAU KEE HOLDINGS SDN BHD

THAI CHIA MARKETING SDN BHD

TROPICAL CONSOLIDATED CORPORATION SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

COMPANY

20

25

21

21

 

Branch

:

NO

Other Information:


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

The Subject is mainly involved in trading of seafood.

The Subject offers various types of local and overseas fishes such as "Tenggiri" and "Salmon". It also trades other seafood including squids and crabs.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31689806

Match

:

N/A

Address Provided by Client

:

15, LEBOH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

15, LEBOH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 25th June 2015 we contacted one of the staff from the Subject and he provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

18.40%

]

Return on Net Assets

:

Favourable

[

31.16%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

43 Days

]

Debtor Ratio

:

Favourable

[

28 Days

]

Creditors Ratio

:

Favourable

[

1 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

:

Acceptable

[

0.82 Times

]

Current Ratio

:

Unfavourable

[

1.59 Times

]

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

Solvency

Interest Cover

:

Acceptable

[

4.75 Times

]

Gearing Ratio

:

Unfavourable

[

1.38 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

Overall Assessment :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : 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

46312 : Wholesale of fish and other seafood

INDUSTRY :

AGRICULTURE

The agricultural sector has contributed to the growth and be a major contributor to national income and export earnings. It initially derived from the increase in the production of livestock, fisheries, and other miscellaneous crops.

The agriculture sector is expected to record a growth of 3.1% in 2015. However, the agriculture sector in 2014 is likely to remain more favourable and is expected to expand 3.8% (2013: 2.1%), supported by higher production of crude palm oil (CPO) and food, especially poultry, fruits and vegetables. The agriculture sector expanded 4.6% in the first half of 2014 (January – June 2013: 3.2%), driven by higher CPO production despite lower rubber output. Livestock, fruit and vegetables also recorded positive growth following the Government’s measures to increase food production to enhance food security and reduce the food import bill. In addition, the implementations of fishermen’s market and Kedai Rakyat Agrobazaar have contributed to higher production of food.

The oil palm subsector rose 8.1% in the first half of 2014 following higher CPO production. Production of CPO increased 6.6% during the first seven months of 2014. On the other hand, the rubber subsector declined 13.3% in the first half of 2014 due to lower output and prices. Production of natural rubber dropped 13.2% to 0.3 million tonnes mainly due to the hot weather conditions and prolonged wintering season during the first quarter of the year. Taking into account the stable process and improved weather conditions during the second half of 2014, the production of rubber is expected to record a smaller contraction of 3.9% to 792,286 tonnes in 2014.

Furthermore, livestock subsector grew 7% over the first half of 2014 on account of higher output of poultry (10.2%) and eggs (3.1%) to meet higher external and domestic demand. The fishing subsector moderated to 1.3% over the first half of 2014 due to lower aquaculture production and marine fish landings. Meanwhile, other agriculture subsector expanded 7.4% over the first half of 2014 on account of higher output of vegetables (7.2%), fruits (7.3%), and paddy (5.5%).

Other than that, the agriculture exports are expected to rebound by 4.5% in 2014 (2013: -14.4%). The export earning increased 3.7% to Rm40 billion over the first seven months of 2014 on account of higher shipments of palm oil and other agriculture goods.

According to budget 2015, from 2015 to 2017, the Government will allocate RM6 billion to Ministry of Agriculture and Agro-Based Industry to implement 4 initiatives in order to strengthen food supply chain, such as establishing 65 permanent farmers’ markets and 50 fish markets that will operate daily in selected locations, introduce a weekly auction programme for quality vegetables at reasonable prices, accelerating planting and replanting of fruit trees, and providing RM100 million matching grant to Farmers’ Organisation Authority to enable the members to obtain loans to improve farm productivity and marketing channels.

Conclusively, the agriculture sector is a strong contributor to Malaysia's GDP and total employment due to the share of agriculture sector to GDP is estimated to remain at 7% in 2014, and it contributed 12.4% to total employment in Malaysia.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1975, the Subject is a Private Limited company, focusing on trading of marine and seafood. 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 2,045,975 allows the Subject to expand its business more comfortably. 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 20 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 6,810,832, the Subject should be able to maintain its business in the near terms.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

Based on the above condition, we recommend credit be granted to the Subject normally.

 



 

PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

65,945,873

44,209,683

48,818,120

28,295,019

27,573,706

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

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

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

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

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

Total Turnover

65,945,873

44,209,683

48,818,120

28,295,019

27,573,706

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,675,225

991,355

489,073

177,621

218,910

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,675,225

991,355

489,073

177,621

218,910

Taxation

(422,008)

(259,346)

(98,123)

(50,331)

(183,826)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,253,217

732,009

390,950

127,290

35,084

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

3,511,640

2,779,631

2,388,681

2,261,391

2,226,307

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

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

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

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

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

As restated

3,511,640

2,779,631

2,388,681

2,261,391

2,226,307

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,764,857

3,511,640

2,779,631

2,388,681

2,261,391

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,764,857

3,511,640

2,779,631

2,388,681

2,261,391

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

446,823

499,606

447,172

395,111

381,721

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

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

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

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

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

446,823

499,606

447,172

395,111

381,721

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

120,293

143,864

143,669

103,054

105,984

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

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

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

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

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

120,293

143,864

143,669

103,054

105,984

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

707,282

806,265

926,275

1,007,607

1,098,105

Investments

110,000

110,000

110,000

882,947

882,947

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

110,000

110,000

110,000

882,947

882,947

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

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

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

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

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

TOTAL LONG TERM ASSETS

817,282

916,265

1,036,275

1,890,554

1,981,052

Stocks

7,845,100

6,408,771

5,313,698

6,370,037

4,290,704

Trade debtors

4,995,198

8,019,737

8,661,178

5,050,235

5,170,966

Other debtors, deposits & prepayments

22,520

160,453

156,734

146,623

149,175

Short term deposits

2,541,419

2,348,510

1,124,682

1,092,237

1,065,306

Cash & bank balances

752,936

1,332,669

304,047

274,991

814,064

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

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

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

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

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

TOTAL CURRENT ASSETS

16,157,173

18,270,140

15,560,339

12,934,123

11,490,215

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

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

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

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

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

TOTAL ASSET

16,974,455

19,186,405

16,596,614

14,824,677

13,471,267

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

172,164

543,088

190,831

-

274,733

Other creditors & accruals

76,716

56,973

54,600

29,950

32,016

Hire purchase & lease creditors

28,318

28,008

29,835

61,074

66,844

Bank overdraft

299,822

709,154

205,738

628,968

654,884

Short term borrowings/Term loans

519,707

-

1,243,741

726,145

897,471

Bill & acceptances payable

8,576,000

11,750,000

9,560,000

8,398,000

6,658,000

Amounts owing to subsidiary companies

412,978

419,185

-

-

-

Amounts owing to associated companies

-

-

423,024

424,750

424,750

Provision for taxation

77,918

94,064

6,913

34,973

7,968

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

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

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

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

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

TOTAL CURRENT LIABILITIES

10,163,623

13,600,472

11,714,682

10,303,860

9,016,666

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

5,993,550

4,669,668

3,845,657

2,630,263

2,473,549

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

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

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

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

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

TOTAL NET ASSETS

6,810,832

5,585,933

4,881,932

4,520,817

4,454,601

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

2,045,975

2,045,975

2,045,975

2,045,975

2,045,975

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

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

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

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

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

TOTAL SHARE CAPITAL

2,045,975

2,045,975

2,045,975

2,045,975

2,045,975

Retained profit/(loss) carried forward

4,764,857

3,511,640

2,779,631

2,388,681

2,261,391

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

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

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

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

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

TOTAL RESERVES

4,764,857

3,511,640

2,779,631

2,388,681

2,261,391

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

6,810,832

5,557,615

4,825,606

4,434,656

4,307,366

Hire purchase creditors

-

28,318

56,326

86,161

147,235

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

28,318

56,326

86,161

147,235

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

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

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

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

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

6,810,832

5,585,933

4,881,932

4,520,817

4,454,601

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

3,294,355

3,681,179

1,428,729

1,367,228

1,879,370

Net Liquid Funds

(5,581,467)

(8,777,975)

(8,337,009)

(7,659,740)

(5,433,514)

Net Liquid Assets

(1,851,550)

(1,739,103)

(1,468,041)

(3,739,774)

(1,817,155)

Net Current Assets/(Liabilities)

5,993,550

4,669,668

3,845,657

2,630,263

2,473,549

Net Tangible Assets

6,810,832

5,585,933

4,881,932

4,520,817

4,454,601

Net Monetary Assets

(1,851,550)

(1,767,421)

(1,524,367)

(3,825,935)

(1,964,390)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

2,122,048

1,490,961

936,245

572,732

600,631

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

2,242,341

1,634,825

1,079,914

675,786

706,615

BALANCE SHEET ITEMS

Total Borrowings

9,423,847

12,515,480

11,095,640

9,900,348

8,424,434

Total Liabilities

10,163,623

13,628,790

11,771,008

10,390,021

9,163,901

Total Assets

16,974,455

19,186,405

16,596,614

14,824,677

13,471,267

Net Assets

6,810,832

5,585,933

4,881,932

4,520,817

4,454,601

Net Assets Backing

6,810,832

5,557,615

4,825,606

4,434,656

4,307,366

Shareholders' Funds

6,810,832

5,557,615

4,825,606

4,434,656

4,307,366

Total Share Capital

2,045,975

2,045,975

2,045,975

2,045,975

2,045,975

Total Reserves

4,764,857

3,511,640

2,779,631

2,388,681

2,261,391

LIQUIDITY (Times)

Cash Ratio

0.32

0.27

0.12

0.13

0.21

Liquid Ratio

0.82

0.87

0.87

0.64

0.80

Current Ratio

1.59

1.34

1.33

1.26

1.27

WORKING CAPITAL CONTROL (Days)

Stock Ratio

43

53

40

82

57

Debtors Ratio

28

66

65

65

68

Creditors Ratio

1

4

1

0

4

SOLVENCY RATIOS (Times)

Gearing Ratio

1.38

2.25

2.30

2.23

1.96

Liabilities Ratio

1.49

2.45

2.44

2.34

2.13

Times Interest Earned Ratio

4.75

2.98

2.09

1.45

1.57

Assets Backing Ratio

3.33

2.73

2.39

2.21

2.18

PERFORMANCE RATIO (%)

Operating Profit Margin

2.54

2.24

1.00

0.63

0.79

Net Profit Margin

1.90

1.66

0.80

0.45

0.13

Return On Net Assets

31.16

26.69

19.18

12.67

13.48

Return On Capital Employed

29.72

23.58

18.29

10.99

11.60

Return On Shareholders' Funds/Equity

18.40

13.17

8.10

2.87

0.81

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.60

UK Pound

1

Rs.100.09

Euro

1

Rs.71.23

 

 

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.