MIRA INFORM REPORT

 

 

Report No. :

342511

Report Date :

01.10.2015

 

IDENTIFICATION DETAILS

 

Name :

GLADRON CHEMICALS SDN. BHD.

 

 

Registered Office :

C-3-23A (Room 2), 8 Avenue, Jalan Sungai Jernih 8/1, Seksyen 8, 46050 Petaling Jaya, Selangor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

20.11.1982

 

 

Com. Reg. No.:

93253-W

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

The Subject is engaged in trading of animal feed additives, supplement products, nutritional products.

 

 

No. of Employees :

50

 

 

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. 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 trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

93253-W

COMPANY NAME

:

GLADRON CHEMICALS SDN. BHD.

FORMER NAME

:

AGE D'OR CHEMICALS SDN BHD (08/02/2001)

INCORPORATION DATE

:

20/11/1982

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

C-3-23A (ROOM 2), 8 AVENUE, JALAN SUNGAI JERNIH 8/1, SEKSYEN 8, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

7, JALAN TP 7, UEP INDUSTRIAL PARK, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51918989

FAX.NO.

:

03-51928686

WEB SITE

:

WWW.GLADRON.COM

CONTACT PERSON

:

LEE SIEW SOON ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46902

PRINCIPAL ACTIVITY

:

TRADING OF ANIMAL FEED ADDITIVES, SUPPLEMENT PRODUCTS, NUTRITIONAL PRODUCTS

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 9,244,355.00 DIVIDED INTO 
ORDINARY SHARES 4,700,805 CASH AND 4,543,550 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

50 [2015]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

UNKNOWN

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 animal feed additives, supplement products, nutritional products.

 

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 9,244,355.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. LEE HAW YIH +

99, JALAN HUJONG, OVERSEAS UNION GARDEN, JALAN KLANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

691212-10-5943 A1447588

5,084,395.00

55.00

MR. LEE HAW HANN +

9, JALAN PUTERI 9/2A, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

731001-10-6325 A2529369

2,079,980.00

22.50

MR. LEE HAW SHYANG +

99, JALAN HUJONG, OVERSEAS UNION GARDEN, JALAN KLANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

760326-10-5817 A3351590

2,079,980.00

22.50

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

------

9,244,355.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LEE SIEW SOON

Address

:

99, JALAN HUJUNG BUBUK, BATU 5, JALAN KLANG LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

7964637

New IC No

:

421127-10-5041

Date of Birth

:

27/11/1942

Nationality

:

MALAYSIAN

Date of Appointment

:

20/11/1982

 

DIRECTOR 2

 

Name Of Subject

:

MR. LEE HAW HANN

Address

:

9, JALAN PUTERI 9/2A, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

A2529369

New IC No

:

731001-10-6325

Date of Birth

:

01/10/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

19/06/1996

 

DIRECTOR 3

 

Name Of Subject

:

MR. LEE HAW SHYANG

Address

:

99, JALAN HUJONG, OVERSEAS UNION GARDEN, JALAN KLANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A3351590

New IC No

:

760326-10-5817

Date of Birth

:

26/03/1976

Nationality

:

MALAYSIAN

Date of Appointment

:

19/06/1996

 

DIRECTOR 4

 

Name Of Subject

:

MR. LEE HAW YIH

Address

:

99, JALAN HUJONG, OVERSEAS UNION GARDEN, JALAN KLANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1447588

New IC No

:

691212-10-5943

Date of Birth

:

12/12/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

19/06/1996

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

LEE SIEW SOON

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

EMERLYN YAW

Position

:

ACCOUNT MANAGER

 

3)

Name of Subject

:

HELEN

Position

:

ADMIN MANAGER

 

 

 

AUDITOR

 

Auditor

:

S.F. YAP & CO.

Auditor' Address

:

17 & 19, JALAN BRUNEI BARAT, PUDU, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SIEW NGEI LAM

IC / PP No

:

A0954357

New IC No

:

680305-10-6554

Address

:

65, JALAN 25, KEPONG BARU, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

02/11/1983

N/A

AMBANK (M) BERHAD

MYR 1,155,000.00

Satisfied

2

11/07/1984

N/A

AMBANK (M) BERHAD

MYR 200,000.00

Satisfied

3

04/02/1986

N/A

THE BANK OF CANTON LTD

MYR 650,000.00

Satisfied

4

09/10/1987

N/A

THE BANK OF CANTON LIMITED

MYR 700,000.00

Satisfied

5

14/08/1989

N/A

ARABMALAYSIAN BANK BERAHD

MYR 500,000.00

Satisfied

6

04/12/1989

N/A

SECURITY PACIFIC ASIAN BANK LIMITED

MYR 3,000,000.00

Satisfied

7

26/11/1992

N/A

HONGKONG BANK MALAYSIA BHD

MYR 1,100,000.00

Satisfied

8

09/11/1998

N/A

HSBC BANK MALAYSIA BERHAD AS SECURITY AGENT FOR HSBC AMANAH MALAYSIA BERHAD AND ITSELF

MYR 1,500,000.00

Satisfied

9

09/11/1998

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 1.00

Satisfied

10

09/01/2001

N/A

HSBC BANK MALAYSIA BERHAD

MYR 1.00

Satisfied

11

23/11/2005

LOAN AGREEMENT & ASSIGNMENT

HSBC BANK MALAYSIA BERHAD

MYR 1,000,000.00

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

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

UNITED KINGDOM,GERMANY,ASIA

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

95%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

5%

Export Market

:

SINGAPORE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

WHOLESALERS,VETERINARY CLINIC,POULTRY FARMS

 

 

OPERATIONS

 

Goods Traded

:

ANIMAL FEED ADDITIVES, SUPPLEMENT PRODUCTS, NUTRITIONAL PRODUCTS

Competitor(s)

:

BERG & SCHMIDT (M) SDN BHD
CARGILL (MALAYSIA) SDN BHD
LINTRACHEM ENTERPRISE SDN BHD
NAM YONG HUAT LUEN SENG SDN BHD
SCC CORPORATION SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

50

50

40

40

40

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of animal feed additives, supplement products, nutritional products. 

The Subject's offers a wide range of products such as animal health and nutritional products, disinfectant, biologicals, small animal products, animal feeds additives and supplement products.

We were informed that the Subject's animal products are for chicken, swine, dogs, cats, ducks, cows, fishes, horses, rabbits and sheeps.

The Subject's products are stored in air-conditioned stores and cold rooms at 2 to 7 degrees celcius.

The Subject has veterinarians and pharmacists to provide service for their customers.

Besides that, the Subject also provides the transportation services to deliver its products to its customers and will charged accordingly.

The Subject has an extensive network of dealers and sub-distributors in East and Peninsular Malaysia. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0351918989

Current Telephone Number

:

03-51918989

Match

:

YES

Address Provided by Client

:

7, JALAN TP 7, UEP INDUSTRIAL PARK,40400,SHAH ALAM,SELANGOR.

Current Address

:

7, JALAN TP 7, UEP INDUSTRIAL PARK, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information on the Subject.


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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

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

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

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

1.4

-

Plastic Products

3.8

-

-

2.7

-

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

-

-

13.0

-

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

 

46902 : Wholesale of animal/pet food

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 1982, the Subject is an Exempt Private company, focusing on trading of animal feed additives, supplement products, nutritional products. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 9,244,355 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.

Apart from supplying its products to the local market, the Subject also exports to overseas countries. Its ability to penetrate into the global market has benefited the Subject in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. The Subject is operating on a medium scale and it has approximately 50 employees in its business operations. 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.

 
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

2006-12-31

2005-12-31

2004-12-31

2003-12-31

2002-12-31

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

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

52,810,338

49,374,493

55,340,599

51,979,658

55,848,227

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

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

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

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

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

Total Turnover

52,810,338

49,374,493

55,340,599

51,979,658

55,848,227

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

3,458,313

2,022,002

2,664,593

5,291,530

3,415,136

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,458,313

2,022,002

2,664,593

5,291,530

3,415,136

Taxation

(1,204,816)

(476,823)

(744,612)

(1,574,727)

(1,182,553)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,253,497

1,545,179

1,919,981

3,716,803

2,232,583

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

2,253,497

1,545,179

1,919,981

3,716,803

2,232,583

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

2,253,497

1,545,179

1,919,981

3,716,803

2,232,583

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

9,624,911

10,002,120

11,343,902

7,969,052

5,736,469

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

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

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

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

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

As restated

9,624,911

10,002,120

11,343,902

7,969,052

5,736,469

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

11,878,408

11,547,299

13,263,883

11,685,855

7,969,052

DIVIDENDS - Ordinary (paid & proposed)

(729,114)

(1,922,388)

(3,261,763)

(341,953)

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

11,149,294

9,624,911

10,002,120

11,343,902

7,969,052

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

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

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

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

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

 

 

BALANCE SHEET

 

 

ASSETS EMPLOYED:

FIXED ASSETS

874,845

992,425

253,553

472,760

546,225

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

16,950

16,950

16,950

10,950

10,950

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

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

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

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

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

TOTAL LONG TERM ASSETS

891,795

1,009,375

270,503

483,710

557,175

TOTAL CURRENT ASSETS

31,139,707

30,221,137

37,682,598

33,749,290

33,740,121

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

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

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

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

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

TOTAL ASSET

32,031,502

31,230,512

37,953,101

34,233,000

34,297,296

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

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

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

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

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

TOTAL CURRENT LIABILITIES

11,571,853

12,361,246

18,706,626

13,630,743

17,051,889

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

19,567,854

17,859,891

18,975,972

20,118,547

16,688,232

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

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

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

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

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

TOTAL NET ASSETS

20,459,649

18,869,266

19,246,475

20,602,257

17,245,407

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

9,244,355

9,244,355

9,244,355

9,244,355

9,244,355

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

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

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

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

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

TOTAL SHARE CAPITAL

9,244,355

9,244,355

9,244,355

9,244,355

9,244,355

Retained profit/(loss) carried forward

11,149,294

9,624,911

10,002,120

11,343,902

7,969,052

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

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

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

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

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

TOTAL RESERVES

11,149,294

9,624,911

10,002,120

11,343,902

7,969,052

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

20,393,649

18,869,266

19,246,475

20,588,257

17,213,407

TOTAL LONG TERM LIABILITIES

66,000

-

-

14,000

32,000

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

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

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

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

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

20,459,649

18,869,266

19,246,475

20,602,257

17,245,407

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

 

TYPES OF FUNDS

Net Liquid Assets

19,567,854

17,859,891

18,975,972

20,118,547

16,688,232

Net Current Assets/(Liabilities)

19,567,854

17,859,891

18,975,972

20,118,547

16,688,232

Net Tangible Assets

20,459,649

18,869,266

19,246,475

20,602,257

17,245,407

Net Monetary Assets

19,501,854

17,859,891

18,975,972

20,104,547

16,656,232

BALANCE SHEET ITEMS

Total Liabilities

11,637,853

12,361,246

18,706,626

13,644,743

17,083,889

Total Assets

32,031,502

31,230,512

37,953,101

34,233,000

34,297,296

Net Assets

20,459,649

18,869,266

19,246,475

20,602,257

17,245,407

Net Assets Backing

20,393,649

18,869,266

19,246,475

20,588,257

17,213,407

Shareholders' Funds

20,393,649

18,869,266

19,246,475

20,588,257

17,213,407

Total Share Capital

9,244,355

9,244,355

9,244,355

9,244,355

9,244,355

Total Reserves

11,149,294

9,624,911

10,002,120

11,343,902

7,969,052

LIQUIDITY (Times)

Current Ratio

2.69

2.44

2.01

2.48

1.98

SOLVENCY RATIOS (Times)

Liabilities Ratio

0.57

0.66

0.97

0.66

0.99

Assets Backing Ratio

2.21

2.04

2.08

2.23

1.87

PERFORMANCE RATIO (%)

Operating Profit Margin

6.55

4.10

4.81

10.18

6.12

Net Profit Margin

4.27

3.13

3.47

7.15

4.00

Return On Net Assets

16.90

10.72

13.84

25.68

19.80

Return On Capital Employed

16.90

10.72

13.84

25.68

19.80

Return On Shareholders' Funds/Equity

11.05

8.19

9.98

18.05

12.97

Dividend Pay Out Ratio (Times)

0.32

1.24

1.70

0.09

-



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.74

UK Pound

1

Rs.99.53

Euro

1

Rs.73.80

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

 

               

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.