MIRA INFORM REPORT

 

 

Report No. :

345960

Report Date :

23.10.2015

 

IDENTIFICATION DETAILS

 

Name :            

PRIMA INTER-CHEM SDN. BHD.

 

 

Formerly Known As :

EURO INTER-CHEM SDN. BHD. (05/04/1989)

 

 

Registered Office :

13-A, Jalan Ss21/56b, Damansara Utama, 47400 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.04.2014

 

 

Date of Incorporation :

05.04.1984

 

 

Com. Reg. No.:

117521-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of pharmaceutical and chemicals products

 

 

No. of Employees :

64 [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 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. 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.

:

117521-W

COMPANY NAME

:

PRIMA INTER-CHEM SDN. BHD.

FORMER NAME

:

EURO INTER-CHEM SDN. BHD. (05/04/1989)

INCORPORATION DATE

:

05/04/1984

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

13-A, JALAN SS21/56B, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

4, JALAN SUNGAI KAYU ARA 32/38, SECTION 32, TAMAN BERJAYA INDUSTRIAL PARK, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-57406060

FAX.NO.

:

03-57406061

WEB SITE

:

WWW.PRIMAINTERCHEM.COM

CONTACT PERSON

:

KHOO KAH PHENG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46691 46421

PRINCIPAL ACTIVITY

:

TRADING OF PHARMACEUTICAL AND CHEMICALS PRODUCTS

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 2,000,000.00 DIVIDED INTO 
ORDINARY SHARES 520,000 CASH AND 1,480,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 127,520,410 [2014]

NET WORTH

:

MYR 38,464,759 [2014]

 

 

 

STAFF STRENGTH

:

64 [2015]

BANKER (S)

:

BANK MUAMALAT MALAYSIA BHD
CIMB BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

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 pharmaceutical and chemicals products.

 

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



Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

09/09/2014

MYR 5,000,000.00

MYR 2,000,000.00

29/04/1999

MYR 1,000,000.00

MYR 1,000,000.00

27/02/1995

MYR 1,000,000.00

MYR 600,000.00

21/09/1992

MYR 400,000.00

MYR 400,000.00

08/11/1991

MYR 250,000.00

MYR 250,000.00

27/12/1990

MYR 250,000.00

MYR 150,000.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. KHOO KAH PHENG +

604 SPRING VILLA, WANGSA BAIDURI, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

520817-07-5197 4288041

1,000,000.00

50.00

MR. LIM KOOI FUI +

33 JALAN BUKIT HIJAU EMPAT 26/24D, TAMAN BUKIT SAGA, SEKSYEN 26, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

491124-05-5345 2472780

1,000,000.00

50.00

 

 

 

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

------

 

 

 

2,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. TEH WOOI HOON

Address

:

604 SPRING VILLA, WANGSA BAIDURI, PETALING JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4712559

New IC No

:

541015-07-5374

Date of Birth

:

15/10/1954

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/07/2001

 

 

 

 

 

 

 

 

 

 

 

 



DIRECTOR 2

 

Name Of Subject

:

MS. TEH POH HONG

Address

:

33, LORONG HIJAU EMPAT 26/24D, TAMAN BUKIT SAGA, SECTION 26, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

3240003

New IC No

:

500130-07-5248

Date of Birth

:

30/01/1950

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/07/2001

 

 

 

 

 

 

 

 

 

 

 

 



DIRECTOR 3

 

Name Of Subject

:

MR. KHOO KAH PHENG

Address

:

604 SPRING VILLA, WANGSA BAIDURI, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4288041

New IC No

:

520817-07-5197

Date of Birth

:

17/08/1952

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

20/07/1985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LIM KOOI FUI

Address

:

33 JALAN BUKIT HIJAU EMPAT 26/24D, TAMAN BUKIT SAGA, SEKSYEN 26, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

2472780

New IC No

:

491124-05-5345

Date of Birth

:

24/11/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/08/1989

 

 

MANAGEMENT

 

1)

Name of Subject

:

KHOO KAH PHENG

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

JB LAU & KHOO

Auditor' Address

:

13-M, JALAN SS21/56B, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. FOO LI LING

 

 

 

 

 

New IC No

:

701111-07-5286

 

Address

:

40, JALAN BUNGA ANGGERIK 2, DATARAN UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

BANKING

 

Banking relations are maintained principally with :

1)

Name

:

BANK MUAMALAT MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

07/01/1991

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 900,000.00

Unsatisfied

2

20/11/1991

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 1,200,000.00

Unsatisfied

3

10/02/1992

N/A

BANK BUMIPUTRA MALASYIA BHD

MYR 600,000.00

Unsatisfied

4

09/12/1992

DEBENTURE

BANK BUMIPUTRA MALAYSIA BHD

MYR 2,500,000.00

Unsatisfied

5

09/12/1992

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 2,500,000.00

Unsatisfied

6

09/06/1994

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 2,880,000.00

Unsatisfied

7

09/06/1994

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 2,880,000.00

Unsatisfied

8

10/02/1995

LOAN AGREEMENT AND DEED OF ASSIGNMENT

BANK BUMIPUTRA MALAYSIA BHD

MYR 250,000.00

Unsatisfied

9

25/03/1995

FACILITY AGREEMENT AND SUPPLEMENTAL DEED

BANK BUMIPUTRAMALAYSIA BHD

MYR 5,120,000.00

Unsatisfied

10

25/03/1995

DEBENTURE

BANK BUMIPUTRA MALAYSIA BHD

MYR 5,120,000.00

Unsatisfied

11

17/05/1996

MEMORANDUM OF DEPOSIT AND LETTER OF SET OFF

MALAYAN BANKING BERHAD

MYR 530,000.00

Unsatisfied

12

12/05/1997

COMPOSITE LOAN AGREEMENT AND ASSIGNMENT

ARAB-MALAYSIAN BANK BERHAD

MYR 1,500,000.00

Satisfied

13

07/09/2000

FACILITIES AGREEMENT AND CHARGE

BUMIPUTRA-COMMERCE BANK BERHAD

MYR 5,900,000.00

Unsatisfied

14

02/06/2004

GENERAL FACILITY AGREEMENT AND DEBENTURE

BUMIPUTRA-COMMERCE BANK BERHAD

MYR 4,840,000.00

Unsatisfied

15

24/04/2007

FACILITY AGREEMENT CHARGE AND DEBENTURE

CIMB BANK BERHAD

MYR 4,000,000.00

Unsatisfied

16

02/12/2008

MEMORANDUM OF DEPOSIT AND NEGOTIABLE CERTIFICATE OF DEPOSIT

MALAYAN BANKING BERHAD

MYR 5,800,000.00

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

:

YES

 

Overseas

:

YES

 

Import Countries

:

INDIA,CHINA



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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)

 

 

OPERATIONS

 

Goods Traded

:

PHARMACEUTICAL AND CHEMICAL PRODUCTS

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

 

 

 

 


GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

64

55

50

50

55

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

3

 

 

 

 

Branch(es)

:

2-5-34, HARBOUR TRADE CENTRE, 2, GAT LEBUH MACCALUM, 10300 GEORGE TOWN, PULAU PINANG, MALAYSIA.

Tel No: 04-2633307

Fax No: 04-2634150

 

20-A, JALAN DEDAP 24, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

Tel No: 07-3541202

Fax No: 07-3541351

 

RUKAN CLUSTER MANYAR, JLMANYAR PERMAI 10, BLOCK 7, A/P, PIK, JAKARTA UTARA, 14460, INDONESIA.

Tel No: +62-56947686

Fax No: +62-56947386

 

 

 

 

 

Other Information:


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


The Subject's products range includes vitamins, antiseptics, antibiotics, veterinary drugs, food chemicals, industrial chemical, bulk drugs and others.


Besides that, the Subject's products comes in the form of powder, liquid and oilment/cream.


We were informed that the Subject sells its products in drums, bottles, bags and others.


The Subject is also able to source the required chemicals for its customers.


The Subject also providing transportation services and keep its products safely for timely delivery to its clients. 

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-57406060

Match

:

N/A

 

 

 

Address Provided by Client

:

4, JALAN SUNGAI KAYU ARA 32/38, SECTION 32, TAMAN BERJAYA INDUSTRIAL PARK,40460,SHAH ALAM,SELANGOR.

Current Address

:

4, JALAN SUNGAI KAYU ARA 32/38, SECTION 32, TAMAN BERJAYA INDUSTRIAL PARK, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 16th October 2015 we contacted one of the staff from the Subject and he provided some information.

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

7.45%

]

 

Profit/(Loss) Before Tax

:

Increased

[

6.74%

]

 

Return on Shareholder Funds

:

Acceptable

[

19.22%

]

 

Return on Net Assets

:

Acceptable

[

27.60%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition. The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

49 Days

]

 

Debtor Ratio

:

Unfavourable

[

86 Days

]

 

Creditors Ratio

:

Favourable

[

22 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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

:

Favourable

[

1.65 Times

]

 

Current Ratio

:

Favourable

[

2.37 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

:

Favourable

[

16.11 Times

]

 

Gearing Ratio

:

Favourable

[

0.42 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STRONG

 

 

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

46691 : Wholesale of industrial chemicals

46421 : Wholesale of pharmaceutical and medical goods

 

 

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 1984, the Subject is a Private Limited company, focusing on trading of pharmaceutical and chemicals 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 2,000,000 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 moderate size company, the Subject has a total workforce of 64 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. 


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 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. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 38,464,759, the Subject should be able to maintain its business in the near terms.


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. 


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 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 promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

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

PRIMA INTER-CHEM SDN. BHD.

 

Financial Year End

2014-04-30

2013-04-30

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

127,520,410

118,676,751

 

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

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

Total Turnover

127,520,410

118,676,751

Costs of Goods Sold

(106,549,932)

(98,878,771)

 

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

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

Gross Profit

20,970,478

19,797,980

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

10,007,133

9,375,378

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

10,007,133

9,375,378

Taxation

(2,614,320)

(2,361,890)

 

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

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

PROFIT/(LOSS) AFTER TAXATION

7,392,813

7,013,488

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

32,571,946

29,358,458

 

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

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

As restated

32,571,946

29,358,458

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

39,964,759

36,371,946

DIVIDENDS - Ordinary (paid & proposed)

(3,500,000)

(3,800,000)

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

36,464,759

32,571,946

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Hire purchase

6,545

-

Others

655,856

711,977

 

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

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

 

662,401

711,977

 

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

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

 

 

 

DEPRECIATION (as per notes to P&L)

376,001

312,508

 

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

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

 

376,001

312,508

 

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

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

 

 

BALANCE SHEET

 

PRIMA INTER-CHEM SDN. BHD.

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

6,306,200

6,052,149

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

6,306,200

6,052,149

 

 

 

Stocks

16,948,024

14,893,389

Trade debtors

29,917,377

25,738,379

Other debtors, deposits & prepayments

186,437

119,350

Short term deposits

5,287,371

6,200,000

Cash & bank balances

3,696,286

4,067,642

 

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

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

TOTAL CURRENT ASSETS

56,035,495

51,018,760

 

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

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

TOTAL ASSET

62,341,695

57,070,909

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

6,318,322

4,696,902

Other creditors & accruals

635,581

724,681

Hire purchase & lease creditors

101,174

-

Other borrowings

2,114,138

3,102,881

Bill & acceptances payable

14,091,040

13,646,773

Provision for taxation

421,674

259,526

 

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

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

TOTAL CURRENT LIABILITIES

23,681,929

22,430,763

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

32,353,566

28,587,997

 

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

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

TOTAL NET ASSETS

38,659,766

34,640,146

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

2,000,000

2,000,000

 

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

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

TOTAL SHARE CAPITAL

2,000,000

2,000,000

 

 

 

Retained profit/(loss) carried forward

36,464,759

32,571,946

 

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

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

TOTAL RESERVES

36,464,759

32,571,946

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

38,464,759

34,571,946

 

 

 

Hire purchase creditors

26,007

-

Deferred taxation

169,000

68,200

 

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

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

TOTAL LONG TERM LIABILITIES

195,007

68,200

 

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

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

 

38,659,766

34,640,146

 

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

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

 

 

FINANCIAL RATIO

 

PRIMA INTER-CHEM SDN. BHD.

 

TYPES OF FUNDS

 

 

Cash

8,983,657

10,267,642

Net Liquid Funds

(5,107,383)

(3,379,131)

Net Liquid Assets

15,405,542

13,694,608

Net Current Assets/(Liabilities)

32,353,566

28,587,997

Net Tangible Assets

38,659,766

34,640,146

Net Monetary Assets

15,210,535

13,626,408

 

 

 

PROFIT & LOSS ITEMS

 

 

Earnings Before Interest & Tax (EBIT)

10,669,534

10,087,355

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

11,045,535

10,399,863

 

 

 

BALANCE SHEET ITEMS

 

 

Total Borrowings

16,332,359

16,749,654

Total Liabilities

23,876,936

22,498,963

Total Assets

62,341,695

57,070,909

Net Assets

38,659,766

34,640,146

Net Assets Backing

38,464,759

34,571,946

Shareholders' Funds

38,464,759

34,571,946

Total Share Capital

2,000,000

2,000,000

Total Reserves

36,464,759

32,571,946

 

 

 

LIQUIDITY (Times)

 

 

Cash Ratio

0.38

0.46

Liquid Ratio

1.65

1.61

Current Ratio

2.37

2.27

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

49

46

Debtors Ratio

86

79

Creditors Ratio

22

17

 

 

 

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.42

0.48

Liabilities Ratio

0.62

0.65

Times Interest Earned Ratio

16.11

14.17

Assets Backing Ratio

19.33

17.32

 

 

 

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

7.85

7.90

Net Profit Margin

5.80

5.91

Return On Net Assets

27.60

29.12

Return On Capital Employed

27.53

29.12

Return On Shareholders' Funds/Equity

19.22

20.29

Dividend Pay Out Ratio (Times)

0.47

0.54


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 64.89

UK Pound

1

Rs. 100.39

Euro

1

Rs. 73.52

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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%)

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.