|
Report No. : |
312649 |
|
Report Date : |
18.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
HUA FOONG TRADING SDN. BHD. |
|
|
|
|
Registered Office : |
151-4-5A, Suite P1, Mutiara Puchong Busibess Center, Batu 6 1/2, Jalan Puchong, 58200 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
18.11.2003 |
|
|
|
|
Com. Reg. No.: |
634864-T |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Trading of food products |
|
|
|
|
No of Employees : |
10 [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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. 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.
|
Source
: CIA |
EXECUTIVE
SUMMARY
|
|
|
|
REGISTRATION NO. |
: |
634864-T |
||||
|
COMPANY NAME |
: |
HUA FOONG
TRADING SDN. BHD. |
||||
|
FORMER NAME |
: |
N/A |
||||
|
INCORPORATION DATE |
: |
18/11/2003 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
151-4-5A, SUITE P1, MUTIARA PUCHONG BUSIBESS
CENTER, BATU 6 1/2, JALAN PUCHONG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
27 & 28, JALAN PJS 3/1, TAMAN MEDANA,
46000 PETALING JAYA, SELANGOR, MALAYSIA. |
||||
|
TEL.NO. |
: |
03-77848178 |
||||
|
FAX.NO. |
: |
03-77859112 |
||||
|
CONTACT PERSON |
: |
TENG YEE KHOON ( EXECUTIVE DIRECTOR ) |
||||
|
INDUSTRY CODE |
: |
46329 |
||||
|
PRINCIPAL ACTIVITY |
: |
TRADING OF FOOD PRODUCTS |
||||
|
AUTHORISED CAPITAL |
: |
MYR 5,000,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 1,500,000.00 DIVIDED INTO |
||||
|
SALES |
: |
MYR 38,551,811 [2013] |
||||
|
NET WORTH |
: |
MYR 4,464,808 [2013] |
||||
|
STAFF STRENGTH |
: |
10 [2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
FAIR |
||||
|
PAYMENT |
: |
FAIR |
||||
|
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 food products.
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 1,500,000.00 |
|
31/07/2006 |
MYR 500,000.00 |
MYR 500,000.00 |
|
01/07/2005 |
MYR 100,000.00 |
MYR 100,000.00 |
The major shareholder(s) of the Subject are
shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
MS. LIM EYE NEE + |
17B-1, JALAN RAMAH, HAPPY GARDEN, 58200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
680708-10-6874 |
750,000.00 |
50.00 |
|
MR. TENG YEE KHOON + |
17B-1, JALAN RAMAH, HAPPY GARDEN, 58200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
670309-08-6053
A0635551 |
750,000.00 |
50.00 |
|
--------------- |
------ |
|||
|
1,500,000.00 |
100.00 |
|||
|
============ |
===== |
+ Also Director
DIRECTORS
|
DIRECTOR
1
|
Name Of Subject |
: |
MS. LIM EYE NEE |
|
Address |
: |
17B-1, JALAN RAMAH, HAPPY GARDEN, 58200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
New IC No |
: |
680708-10-6874 |
|
Date of Birth |
: |
08/07/1968 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
18/11/2003 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. TENG YEE KHOON |
|
Address |
: |
17B-1, JALAN RAMAH, HAPPY GARDEN, 58200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
A0635551 |
|
New IC No |
: |
670309-08-6053 |
|
Date of Birth |
: |
09/03/1967 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
18/11/2003 |
MANAGEMENT
|
|
1) |
Name of Subject |
: |
TENG YEE KHOON |
|
Position |
: |
EXECUTIVE DIRECTOR |
|
AUDITOR
|
|
Auditor |
: |
Y L CHEE & CO. |
|
Auditor' Address |
: |
12A-2, JALAN PJU 8/5C, PERDANA BUSINESS
CENTRE, BANDAR DAMANSARA PERDANA, 47820 PETALING JAYA, SELANGOR, MALAYSIA. |
COMPANY
SECRETARIES
|
|
1) |
Company Secretary |
: |
MR. LIM BOK SEE |
|
IC / PP No |
: |
6236462 |
|
|
New IC No |
: |
610515-10-6241 |
|
|
Address |
: |
58, JALAN BK 2/8, BANDAR KINRARA, 47180
PUCHONG, SELANGOR, MALAYSIA. |
|
BANKING
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
ALLIANCE BANK MALAYSIA BHD |
|
2) |
Name |
: |
HONG LEONG BANK BHD |
ENCUMBRANCE
(S)
|
|
Charge No |
Creation Date |
Charge
Description |
Chargee Name |
Total Charge |
Status |
|
1 |
27/12/2006 |
FACILITIES
AGREEMENT, PROPERTY PURCHASE AGREEMENT, PROPERTY SALE AGREEMENT, 1ST PARTY
1ST LEGAL CHARGE |
ALLIANCE ISLAMIC BANK BERHAD |
- |
Unsatisfied |
|
2 |
27/12/2006 |
FACILITIES AGREEMENT,
1ST PARTY 2ND LEGAL CHARGE |
ALLIANCE ISLAMIC BANK BERHAD |
- |
Unsatisfied |
|
3 |
02/11/2010 |
1ST PARTY 3RD
LEGAL CHARGE |
ALLIANCE BANK MALAYSIA BHD |
- |
Unsatisfied |
|
4 |
16/04/2013 |
1ST PARTY 1ST LEGAL
CHARGE, PROPERTY SALE AND PURCHASE AGREEMENTS |
ALLIANCE BANK MALAYSIA BHD |
- |
Unsatisfied |
|
5 |
16/04/2013 |
1ST PARTY 2ND
LEGAL CHARGE |
ALLIANCE BANK MALAYSIA BHD |
- |
Unsatisfied |
|
6 |
16/04/2013 |
1ST PARTY 1ST LEGAL
CHARGE, PROPERTY SALE AND PURCHASE AGREEMENTS |
ALLIANCE ISLAMIC BANK BERHAD |
- |
Unsatisfied |
|
7 |
16/04/2013 |
1ST PARTY 2ND
LEGAL CHARGE |
ALLIANCE BANK MALAYSIA BHD |
- |
Unsatisfied |
|
8 |
19/09/2013 |
1ST PARTY ALL
MONIES LEGAL CHARGE |
ALLIANCE ISLAMIC BANK BERHAD |
- |
Unsatisfied |
|
9 |
02/10/2013 |
1ST PARTY ALL
MONIES LEGAL CHARGE |
ALLIANCE BANK MALAYSIA BHD |
- |
Unsatisfied |
|
10 |
26/09/2014 |
1ST PARTY 1ST
LEGAL CHARGE |
HONG LEONG BANK BHD |
- |
Unsatisfied |
|
11 |
14/10/2014 |
LETTER OF
SET-OFF |
HONG LEONG BANK BHD |
- |
Unsatisfied |
LITIGATION
CHECK AGAINST SUBJECT
|
* A check has been conducted in our databank against the Subject whether the
Subject has been involved in any litigation. Our databank consists of 99% of the
wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER
CHECK AGAINST SUBJECT
|
* We have checked through the Subject in our defaulters' database which
comprised of debtors that have been blacklisted by our customers and debtors
that have been placed or assigned to us for collection.
No blacklisted record & debt collection
case was found in our defaulters' databank.
PAYMENT
RECORD
|
|
||
|
SOURCES OF RAW MATERIALS: |
||
|
Local |
: |
N/A |
|
Overseas |
: |
N/A |
The Subject refused to disclose its suppliers.
The Subject refused to provide any name of trade/service supplier and we
are unable to conduct any trade enquiry. However, from financial historical
data we conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
] |
Good 31-60 Days |
[ |
] |
Average 61-90 Days |
[ |
] |
||||||
|
Fair 91-120 Days |
[ |
X |
] |
Poor >120 Days |
[ |
] |
||||||||
CLIENTELE
|
|
Local |
: |
YES |
Percentage |
: |
100% |
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
NO |
|||
|
Credit Term |
: |
30 DAYS |
|||
|
Payment Mode |
: |
CASH |
|||
OPERATIONS
|
|
Goods Traded |
: |
ONION, DRY FOOD, GROCERY ITEMS |
|
|
Ownership of premises |
: |
LEASED/RENTED |
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2015 |
2013 |
2012 |
2011 |
2010 |
||||
|
|
|||||||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
||||
|
COMPANY |
10 |
10 |
10 |
10 |
10 |
||||
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) trading of food
products.
The Subject sells grocery products such as onions, garlic and other products.
The Subject normally sells its products in large quantities.
CURRENT
INVESTIGATION
|
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
00603 7785 0113 |
|
Current Telephone Number |
: |
03-77848178 |
|
Match |
: |
NO |
|
Address Provided by Client |
: |
27 & 28, JALAN PJS, JALAN MEDAN, 46000
PETALING JAYA, SELANGOR MALAYSIA |
|
Current Address |
: |
27 & 28, JALAN PJS 3/1, TAMAN MEDANA,
46000 PETALING JAYA, SELANGOR, MALAYSIA. |
|
Match |
: |
NO |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
We contacted one of the staff from the Subject and she provided some information.
The address provided is incomplete.
The Subject is not aware of the contact number provided.
FINANCIAL
ANALYSIS
|
|
|
|
Profitability |
||||||
|
Turnover |
: |
Increased |
[ |
1.84% |
] |
|
|
Profit/(Loss) Before Tax |
: |
Increased |
[ |
4.04% |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
9.38% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
16.45% |
] |
|
|
The higher turnover could be attributed to the favourable market
condition. The Subject's management have been efficient in controlling its
operating costs. The unfavourable return on shareholders' funds could
indicate that the Subject was inefficient in utilising its assets to generate
returns. |
||||||
|
Working Capital
Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
7 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
71 Days |
] |
|
|
Creditors Ratio |
: |
Unfavourable |
[ |
66 Days |
] |
|
|
The Subject's stocks were moving fast thus reducing its holding cost.
This had reduced funds being tied up in stocks. The high debtors' ratio could
indicate that the Subject was weak in its credit control. However, the Subject
could also giving longer credit periods to its customers in order to boost
its sales or to capture / retain its market share. The unfavourable
creditors' ratio could be due to the Subject taking advantage of the credit
granted by its suppliers. However this may affect the goodwill between the
Subject and its suppliers and the Subject may inadvertently have to pay more
for its future supplies. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Favourable |
[ |
1.05 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
1.12 Times |
] |
|
|
A minimum liquid ratio of 1 should be maintained by the Subject in
order to assure its creditors of its ability to meet short term obligations and
the Subject was in a good liquidity position. Thus, we believe the Subject is
able to meet all its short term obligations as and when they fall due. |
||||||
|
Solvency |
||||||
|
Interest Cover |
: |
Acceptable |
[ |
3.25 Times |
] |
|
|
Gearing Ratio |
: |
Unfavourable |
[ |
1.17 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 : |
||||||
|
Generally, the Subject's performance has improved with higher turnover
and profit. The Subject was in good liquidity position with its total current
liabilities well covered by its total current assets. With its current net
assets, the Subject should be able to repay its short term obligations. 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 |
|
|
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
|
|
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 10 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. The Subject is in good liquidity position with its current
liabilities well covered by it current assets. Hence, it has sufficient
working capital to meet its short term financial obligations. 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 4,464,808, the Subject should be able to
maintain its business in the near terms. Having a strong assets backing, the
Subject possesses latent assets as collateral for further financial
extension. Hence, it has good chance of getting loans if the needs arises. The Subject's overall payment habit is
fair and this clearly implied a weak credit control of the Subject. 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) |
|
HUA FOONG
TRADING SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
|
Months |
12 |
12 |
|
Consolidated Account |
Company |
Company |
|
Audited Account |
YES |
YES |
|
Unqualified Auditor's Report (Clean
Opinion) |
YES |
YES |
|
Financial Type |
FULL |
FULL |
|
Currency |
MYR |
MYR |
|
TURNOVER |
38,551,811 |
37,855,291 |
|
Other Income |
62,991 |
114,334,991 |
|
---------------- |
---------------- |
|
|
Total Turnover |
38,614,802 |
152,190,282 |
|
Costs of Goods Sold |
(34,731,712) |
(34,638,941) |
|
---------------- |
---------------- |
|
|
Gross Profit |
3,883,090 |
117,551,341 |
|
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
721,993 |
693,971 |
|
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
721,993 |
693,971 |
|
Taxation |
(302,990) |
(155,672) |
|
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
419,003 |
538,299 |
|
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD |
||
|
As previously reported |
2,545,805 |
1,094,853 |
|
Prior year adjustment |
- |
912,653 |
|
---------------- |
---------------- |
|
|
As restated |
2,545,805 |
2,007,506 |
|
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
2,964,808 |
2,545,805 |
|
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
2,964,808 |
2,545,805 |
|
============= |
============= |
|
|
INTEREST EXPENSE
(as per notes to P&L) |
||
|
Bank overdraft |
84,246 |
166,582 |
|
Bankers' acceptance |
181,267 |
253,180 |
|
Hire purchase |
7,356 |
12,164 |
|
Others |
48,701 |
12,347 |
|
---------------- |
---------------- |
|
|
321,570 |
444,273 |
|
|
============= |
============= |
BALANCE
SHEET
|
|
|
|
HUA FOONG
TRADING SDN. BHD. |
|
ASSETS EMPLOYED: |
||
|
FIXED ASSETS |
5,108,068 |
1,877,674 |
|
Deferred assets |
- |
15,225 |
|
---------------- |
---------------- |
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
- |
15,225 |
|
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
5,108,068 |
1,892,899 |
|
Stocks |
708,080 |
726,805 |
|
Trade debtors |
7,521,468 |
6,432,472 |
|
Other debtors, deposits & prepayments |
60,560 |
213,360 |
|
Short term deposits |
600,000 |
600,000 |
|
Amount due from director |
233,382 |
286,895 |
|
Cash & bank balances |
2,316,794 |
1,844,280 |
|
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
11,440,284 |
10,103,812 |
|
---------------- |
---------------- |
|
|
TOTAL ASSET |
16,548,352 |
11,996,711 |
|
============= |
============= |
|
|
CURRENT
LIABILITIES |
||
|
Trade creditors |
6,302,364 |
4,302,285 |
|
Other creditors & accruals |
361,243 |
212,537 |
|
Hire purchase & lease creditors |
78,559 |
83,545 |
|
Bank overdraft |
256,632 |
1,355,337 |
|
Short term borrowings/Term loans |
195,365 |
62,008 |
|
Bill & acceptances payable |
2,827,412 |
1,685,393 |
|
Provision for taxation |
184,721 |
82,142 |
|
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
10,206,296 |
7,783,247 |
|
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
1,233,988 |
2,320,565 |
|
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
6,342,056 |
4,213,464 |
|
============= |
============= |
|
|
SHARE CAPITAL |
||
|
Ordinary share capital |
1,500,000 |
1,500,000 |
|
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
1,500,000 |
1,500,000 |
|
Retained profit/(loss) carried forward |
2,964,808 |
2,545,805 |
|
---------------- |
---------------- |
|
|
TOTAL RESERVES |
2,964,808 |
2,545,805 |
|
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
4,464,808 |
4,045,805 |
|
Long term loans |
1,830,675 |
73,003 |
|
Hire purchase creditors |
16,098 |
94,656 |
|
Deferred taxation |
30,475 |
- |
|
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
1,877,248 |
167,659 |
|
---------------- |
---------------- |
|
|
6,342,056 |
4,213,464 |
|
|
============= |
============= |
|
FINANCIAL
RATIO
|
|
|
|
HUA FOONG
TRADING SDN. BHD. |
|
TYPES OF FUNDS |
||
|
Cash |
2,916,794 |
2,444,280 |
|
Net Liquid Funds |
(167,250) |
(596,450) |
|
Net Liquid Assets |
525,908 |
1,593,760 |
|
Net Current Assets/(Liabilities) |
1,233,988 |
2,320,565 |
|
Net Tangible Assets |
6,342,056 |
4,213,464 |
|
Net Monetary Assets |
(1,351,340) |
1,426,101 |
|
BALANCE SHEET
ITEMS |
||
|
Total Borrowings |
5,204,741 |
3,353,942 |
|
Total Liabilities |
12,083,544 |
7,950,906 |
|
Total Assets |
16,548,352 |
11,996,711 |
|
Net Assets |
6,342,056 |
4,213,464 |
|
Net Assets Backing |
4,464,808 |
4,045,805 |
|
Shareholders' Funds |
4,464,808 |
4,045,805 |
|
Total Share Capital |
1,500,000 |
1,500,000 |
|
Total Reserves |
2,964,808 |
2,545,805 |
|
LIQUIDITY
(Times) |
||
|
Cash Ratio |
0.29 |
0.31 |
|
Liquid Ratio |
1.05 |
1.20 |
|
Current Ratio |
1.12 |
1.30 |
|
WORKING CAPITAL
CONTROL (Days) |
||
|
Stock Ratio |
7 |
7 |
|
Debtors Ratio |
71 |
62 |
|
Creditors Ratio |
66 |
45 |
|
SOLVENCY RATIOS
(Times) |
||
|
Gearing Ratio |
1.17 |
0.83 |
|
Liabilities Ratio |
2.71 |
1.97 |
|
Times Interest Earned Ratio |
3.25 |
2.56 |
|
Assets Backing Ratio |
4.23 |
2.81 |
|
PERFORMANCE
RATIO (%) |
||
|
Operating Profit Margin |
1.87 |
1.83 |
|
Net Profit Margin |
1.09 |
1.42 |
|
Return On Net Assets |
16.45 |
27.01 |
|
Return On Capital Employed |
15.63 |
20.14 |
|
Return On Shareholders' Funds/Equity |
9.38 |
13.31 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.69 |
|
|
1 |
Rs. 92.99 |
|
Euro |
1 |
Rs. 66.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
DPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.