MIRA INFORM REPORT

Report No. :	505820
Report Date :	02.05.2018

IDENTIFICATION DETAILS

Name :	HEAP LEE CHAN TRADING COMPANY SDN. BHD.
Registered Office :	395, Mk 6, Simpang 4, 14000 Bukit Mertajam, Pulau Pinang
Country :	Malaysia
Financials (as on) :	31.03.2017
Date of Incorporation :	04.12.1989
Com. Reg. No.:	190345-D
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is engaged in the trading of food products and its related products.
No. of Employees :	40

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program 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. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister 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, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

190345-D

GST NO.

:

000993558528

COMPANY NAME

:

HEAP LEE CHAN TRADING COMPANY SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

04/12/1989

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

395, MK 6, SIMPANG 4, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

395, MUKIM 6, SIMPANG EMPAT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5392600/5375389

FAX.NO.

:

04-5392594

WEB SITE

:

WWW.HEAPLEECHAN.COM

CONTACT PERSON

:

NG CHENG HOCK @ YEAP CHENG HOCK ( DIRECTOR )

INDUSTRY CODE

:

47219

PRINCIPAL ACTIVITY

:

TRADING OF FOOD PRODUCTS AND ITS RELATED 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 1,900,000.00 DIVIDED INTO
ORDINARY SHARES 1,300,000 CASH AND 600,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 244,120,413 [2017]

NET WORTH

:

MYR 20,416,541 [2017]

STAFF STRENGTH

:

40 [2018]

BANKER (S)

:

RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject shall have a minimum one director. 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 and its related products.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
17/11/2004	MYR 5,000,000.00	MYR 1,900,000.00
31/10/1991	MYR 5,000,000.00	MYR 400,000.00
07/02/1990	MYR 5,000,000.00	MYR 6.00
19/12/1989	MYR 5,000,000.00	MYR 2.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. NG CHENG HOCK @ YEAP CHENG HOCK +	395, MK 6, SIMPANG EMPAT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	600501-07-5211 5907841	316,675.00	16.67
MR. NG SENG TIEN @ YEAP SENG TIEN +	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	700611-07-5253 A1590804	316,675.00	16.67
MS. NG CHIANG CHONG @ YEAP CHIANG CHONG +	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	620531-07-5498	316,675.00	16.67
MR. NG SENG LEONG @ YIAP SENG LEONG +	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	670819-07-5039 A0773783	316,675.00	16.67
MS. ONG SIEW HAR +	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	400506-71-5226 7946313	316,650.00	16.67
MR. NG CHENG GUAN @ YEAP CHENG GUAN +	395, MK 6, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	340506-71-5347 4090001	316,650.00	16.67
			---------------	------
			1,900,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
721964D	MALAYSIA	RENTAK SINAR SDN. BHD.	-	100.00	26/03/2018

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. ONG SIEW HAR
Address	:	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
IC / PP No	:	7946313
New IC No	:	400506-71-5226
Date of Birth	:	06/05/1940
Nationality	:	MALAYSIAN
Date of Appointment	:	04/12/1989

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	190345D	HEAP LEE CHAN TRADING COMPANY SDN. BHD.	Director	04/12/1989	316,650.00	16.67	MYR1,873,160.00	2017	-	26/03/2018
2	721964D	RENTAK SINAR SDN. BHD.	Director	06/04/2011	0.00	-	MYR(189,343.00)	2017	-	26/03/2018

DIRECTOR 2

Name Of Subject	:	MR. NG CHENG GUAN @ YEAP CHENG GUAN
Address	:	395, MK 6, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
Other Address(es)	:	17, LORONG MATAHARI, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.
IC / PP No	:	4090001
New IC No	:	340506-71-5347
Date of Birth	:	06/05/1934
Nationality	:	MALAYSIAN
Date of Appointment	:	04/12/1989

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	128169P	GOODWILL CARD (M) SDN BHD	Director	30/10/1984	125,002.00	50.00	MYR27,531.00	2017	-	26/03/2018
2	190345D	HEAP LEE CHAN TRADING COMPANY SDN. BHD.	Director	04/12/1989	316,650.00	16.67	MYR1,873,160.00	2017	-	26/03/2018
3	602026H	LIMAHSOON BERHAD	Shareholder	-	1,050,000.00	1.31	MYR(39,717,551.00)	2009	-	26/03/2018
4	358557X	MIAO SIM MARINE PRODUCTS SDN. BHD.	Director	08/09/1995	130,000.00	16.25	MYR(261,678.00)	2016	-	26/03/2018
5	721964D	RENTAK SINAR SDN. BHD.	Director	16/06/2011	0.00	-	MYR(189,343.00)	2017	-	26/03/2018
6	649013W	YGL CONVERGENCE BERHAD	Shareholder	-	1,604,100.00	0.83	MYR(311,837.00)	2016	-	26/03/2018

DIRECTOR 3

Name Of Subject	:	MR. NG SENG TIEN @ YEAP SENG TIEN
Address	:	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
IC / PP No	:	A1590804
New IC No	:	700611-07-5253
Date of Birth	:	11/06/1970
Nationality	:	MALAYSIAN
Date of Appointment	:	05/01/1990

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	190345D	HEAP LEE CHAN TRADING COMPANY SDN. BHD.	Director	05/01/1990	316,675.00	16.67	MYR1,873,160.00	2017	-	26/03/2018
2	358557X	MIAO SIM MARINE PRODUCTS SDN. BHD.	Shareholder	-	60,000.00	7.50	MYR(261,678.00)	2016	-	26/03/2018
3	721964D	RENTAK SINAR SDN. BHD.	Director	16/06/2011	0.00	-	MYR(189,343.00)	2017	-	26/03/2018

DIRECTOR 4

Name Of Subject	:	MR. NG SENG LEONG @ YIAP SENG LEONG
Address	:	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
Other Address(es)	:	PULAU PINANG
IC / PP No	:	A0773783
New IC No	:	670819-07-5039
Date of Birth	:	19/08/1967
Nationality	:	MALAYSIAN
Date of Appointment	:	05/01/1990

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	1219033P	3 ONIONS FOOD (M) SDN. BHD.	Director	20/02/2017	660,000.00	66.00	-	-	-	26/03/2018
2	1243731K	EVERGREEN SPEED SDN. BHD.	Director	28/09/2017	0.00	-	-	-	-	26/03/2018
3	190345D	HEAP LEE CHAN TRADING COMPANY SDN. BHD.	Director	05/01/1990	316,675.00	16.67	MYR1,873,160.00	2017	-	26/03/2018
4	602026H	LIMAHSOON BERHAD	Shareholder	-	2,500,000.00	3.11	MYR(39,717,551.00)	2009	-	26/03/2018
5	358557X	MIAO SIM MARINE PRODUCTS SDN. BHD.	Shareholder	-	60,000.00	7.50	MYR(261,678.00)	2016	-	26/03/2018
6	721964D	RENTAK SINAR SDN. BHD.	Director	16/06/2011	0.00	-	MYR(189,343.00)	2017	-	26/03/2018
7	1260769K	WANG PALACE RESTAURANT SDN. BHD.	Director	20/12/2017	0.00	-	-	-	-	26/03/2018

DIRECTOR 5

Name Of Subject	:	MS. NG CHIANG CHONG @ YEAP CHIANG CHONG
Address	:	395, PERMATANG BATU, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
New IC No	:	620531-07-5498
Date of Birth	:	31/05/1962
Nationality	:	MALAYSIAN
Date of Appointment	:	05/01/1990

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	190345D	HEAP LEE CHAN TRADING COMPANY SDN. BHD.	Director	05/01/1990	316,675.00	16.67	MYR1,873,160.00	2017	-	26/03/2018

DIRECTOR 6

Name Of Subject	:	MR. NG CHENG HOCK @ YEAP CHENG HOCK
Address	:	395, MK 6, SIMPANG EMPAT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
Other Address(es)	:	17, LRG.MATAHARI, BAGAN JERMAL, 12100 BUTTERWORTH, PULAU PINANG, MALAYSIA.
IC / PP No	:	5907841
New IC No	:	600501-07-5211
Nationality	:	MALAYSIAN
Date of Appointment	:	05/01/1990

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	190345D	HEAP LEE CHAN TRADING COMPANY SDN. BHD.	Director	05/01/1990	316,675.00	16.67	MYR1,873,160.00	2017	-	26/03/2018
2	128851A	HURRY CREDIT SDN BHD.	Director	10/02/1985	0.00	-	-	-	Disolved by Registrar	26/03/2018
3	358557X	MIAO SIM MARINE PRODUCTS SDN. BHD.	Director	04/10/1995	60,000.00	7.50	MYR(261,678.00)	2016	-	26/03/2018
4	721964D	RENTAK SINAR SDN. BHD.	Director	06/04/2011	0.00	-	MYR(189,343.00)	2017	-	26/03/2018

MANAGEMENT

1)	Name of Subject	:	NG CHENG HOCK @ YEAP CHENG HOCK
	Position	:	DIRECTOR

AUDITOR

Auditor	:	MCMILLAN WOODS YGL
Auditor' Address	:	SUITE 1, 35 (1ST FLOOR), SCOTLAND ROAD, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. OOI ENG CHOO
	IC / PP No	:	A0531319
	New IC No	:	660911-07-5710
	Address	:	17, JALAN PINHORN, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

2)	Company Secretary	:	MS. HO SIEW BEE
	New IC No	:	301231-04-6962
	Address	:	17, JALAN PINHORN, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	22/07/1993	NEGATIVE PLEDGE	DEVELOPMENT COMMERCIAL BANK BERHAD	MYR 2,522,500.00	Unsatisfied
2	22/09/1997	1ST LEGAL CHARGE	RHB BANK BERHAD	MYR 622,000.00	Unsatisfied
3	29/09/1998	MEMORANDUM OF CHARGE	RHB BANK BERHAD	MYR 500,000.00	Unsatisfied
4	28/02/2000	LEGAL CHARGE	RHB BANK BERHAD	MYR 500,000.00	Unsatisfied
5	01/12/2003	LETTER OF SET-OFF	EON BANK BERHAD	MYR 48,869.00	Unsatisfied

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

* 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.

CRIMINAL CHECK - SUBJECT COMPANY AS A DEFENDANT

* 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 criminal record was found in our databank.

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A PLAINTIFF

* 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 plaintiff record was found in our databank.

CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A PLAINTIFF

* 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 plaintiff record 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 listed by our customers and debtors that have been placed or assigned to us for collection.

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

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES
Import Countries	:	THAILAND,INDIA

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	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO
Credit Term	:	N/A
Payment Mode	:	CASH CHEQUES
Type of Customer	:	SUPERMARKETS,WHOLESALERS

OPERATIONS

Goods Traded

:

FOOD PRODUCTS AND ITS RELATED PRODUCTS

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2018	2016	2015	2014
GROUP	N/A	N/A	N/A	N/A
COMPANY	40	30	30	30

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of food products and its related products.

The Subject sells of following products:

-Onions
-Gingers
-Dry chilli
-Potatoes
-Yellow Dhall
-Raw Peas
-Jiggery Power
-Yellow corn
-Others

Besides that the Subject has warehouse located at the same premises to keep stock and materials.

The Subject sells the products based on customer's demands and requirement.

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA) database, but no recent development was noted during the time of inspection.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	04-5392600/5375389
Match	:	N/A
Address Provided by Client	:	395, MK SIMPANG EMPAT, 14000 BUKIT MERTAJAM PW MALAYSIA
Current Address	:	395, MUKIM 6, SIMPANG EMPAT, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

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

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2013 - 2017	]
Profit/(Loss) Before Tax	:	Increased	[	2013 - 2017	]
Return on Shareholder Funds	:	Unfavourable	[	9.17%	]
Return on Net Assets	:	Acceptable	[	18.13%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.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.
Liquidity
Current Ratio	:	Acceptable	[	1.29 Times	]
The Subject has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.
Solvency
Liability Ratio	:	Unfavourable	[	1.78 Times	]
The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.
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's liabilities 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:	2014	2015	2016	2017*	2018**
Population ( Million)	30.0	31.0	31.6	32.1	32.9
Gross Domestic Products ( % )	6.0	4.6	4.2	5.3	5.4
Domestic Demand ( % )	6.4	6.2	4.3	6.3	6.4
Private Expenditure ( % )	7.9	6.9	7.8	7.4	7.3
Consumption ( % )	6.5	6.1	5.1	6.9	6.8
Investment ( % )	12.0	8.1	10.0	9.3	8.9
Public Expenditure ( % )	2.3	4.2	3.3	5.3	5.5
Consumption ( % )	2.1	4.3	2.0	2.7	1.3
Investment ( % )	2.6	(1.0)	1.1	3.4	3.8
Balance of Trade ( MYR Million )	82,480	91,577	88,145	94,593	96,993
Government Finance ( MYR Million )	(37,414)	(37,194)	(38,401)	(39,887)	(39,790)
Government Finance to GDP / Fiscal Deficit ( % )	(3.4)	(3.2)	(3.1)	(3.0)	(2.8)
Inflation ( % Change in Composite CPI)	3.2	4.0	2.1	3.5	3.0
Unemployment Rate	2.9	3.1	3.4	3.4	3.3
Net International Reserves ( MYR Billion )	417	390	391	-	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	4.00	3.50	-	-	-
Average 3 Months of Non-performing Loans ( % )	2.10	2.00	1.90	-	-
Average Base Lending Rate ( % )	6.85	6.79	6.81	6.73	-
Business Loans Disbursed( % )	18.6	2.2	-	-	-
Foreign Investment ( MYR Million )	43,486.6	43,435.0	-	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	49,203	45,658	43,255	-	-
Registration of New Companies ( % )	6.1	(7.2)	(5.3)	-	-
Liquidation of Companies ( No. )	11,099	7,066	-	-	-
Liquidation of Companies ( % )	(19.5)	(36.3)	-	-	-
Registration of New Business ( No. )	332,723	364,230	376,720	-	-
Registration of New Business ( % )	1.0	9.0	3.0	-	-
Business Dissolved ( No. )	21,436	-	-	-	-
Business Dissolved ( % )	18.0	-	-	-	-
Sales of New Passenger Cars (' 000 Unit )	588.3	591.3	514.6	527.8	-
Cellular Phone Subscribers ( Million )	44.0	44.2	44.0	-	-
Tourist Arrival ( Million Persons )	27.4	25.7	30.2	30.1	-
Hotel Occupancy Rate ( % )	63.6	58.8	61.2	-	-
Credit Cards Spending ( % )	5.8	6.8	6.3	-	-
Bad Cheque Offenders (No.)	-	-	-	-	-
Individual Bankruptcy ( No.)	22,351	18,457	-	-	-
Individual Bankruptcy ( % )	1.7	(17.4)	-	-	-

INDUSTRIES ( % of Growth ):	2014	2015	2016	2017*	2018**
Agriculture	2.0	1.3	(5.1)	5.6	2.4
Palm Oil	6.7	7.0	(12.7)	11.8	-
Rubber	(10.4)	(11.0)	(6.3)	10.8	-
Forestry & Logging	(4.2)	(7.2)	(3.0)	(15.0)	-
Fishing	2.7	2.1	2.2	0.2	-
Other Agriculture	6.2	6.0	5.1	2.4	-
Industry Non-Performing Loans ( MYR Million )	303.8	343.7	420.3	-	-
% of Industry Non-Performing Loans	1.4	1.5	1.8	-	-
Mining	3.3	5.3	2.2	0.5	0.9
Oil & Gas	3.0	3.5	4.5	-	-
Other Mining	46.6	47.1	42.6	-	-
Industry Non-performing Loans ( MYR Million )	63.5	180.1	190.0	-	-
% of Industry Non-performing Loans	0.3	0.8	0.8	-	-
Manufacturing #	6.1	4.9	4.4	5.5	5.3
Exported-oriented Industries	7.1	6.5	4.3	6.5	-
Electrical & Electronics	11.8	9.2	6.8	9.3	-
Rubber Products	(1.3)	5.1	5.0	6.9	-
Wood Products	7.8	7.0	7.8	7.3	-
Textiles & Apparel	10.8	7.5	7.5	7.4	-
Domestic-oriented Industries	7.7	4.7	3.4	6.2	-
Food, Beverages & Tobacco	6.1	8.9	7.5	11.0	-
Chemical & Chemical Products	1.4	3.5	4.5	3.5	-
Plastic Products	2.7	3.9	5.1	-	-
Iron & Steel	2.8	1.6	2.2	-	-
Fabricated Metal Products	2.8	4.6	5.6	4.6	-
Non-metallic Mineral	6.9	6.8	6.3	5.4	-
Transport Equipment	14.4	5.2	(3.1)	4.7	-
Paper & Paper Products	4.7	3.2	5.4	5.8	-
Crude Oil Refineries	13.0	14.3	13.7	-	-
Industry Non-Performing Loans ( MYR Million )	5,730.8	4,243.7	4,214.1	-	-
% of Industry Non-Performing Loans	25.6	19.0	18.5	-	-
Construction	11.7	8.2	7.4	7.6	7.5
Industry Non-Performing Loans ( MYR Million )	1,666.4	1,638.0	1,793.9	-	-
% of Industry Non-Performing Loans	7.5	7.3	7.9	-	-
Services	6.6	5.1	5.6	5.9	5.8
Electric, Gas & Water	3.8	3.6	5.4	2.5	2.6
Transport, Storage & Communication	7.70	7.55	6.85	7.35	7.30
Wholesale, Retail, Hotel & Restaurant	7.70	6.65	6.65	7.05	6.65
Finance, Insurance & Real Estate	5.15	2.90	4.70	5.70	5.90
Government Services	6.3	4.0	4.9	4.4	4.5
Other Services	4.8	4.7	4.8	5.3	5.3
Industry Non-Performing Loans ( MYR Million )	5,373.5	6,806.6	7,190.6	-	-
% of Industry Non-Performing Loans	24.1	30.5	31.5	-	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
47219 : Retail sale of other food products n.e.c.
INDUSTRY :	TRADING
Malaysia's retail sales will likely grow 3.7% in 2017, slower than previously estimated 3.9%, as consumer sentiment remains weak amid rising cost of living in Southeast Asia's third largest economy.
The cut in forecast was the second of such revision by Retail Group Malaysia, a retail consulting firm, from an initial target of 5% retail sales expansion pace in 2017. The estimate follows a survey of members of Malaysia Retailers Association on their second quarter performance and outlook for the year. Retail sales grew 1.7% in 2016.
According to Retail Group Malaysia (RGM), Malaysian retailers have seen the sales expanded 4.9 % from April to June 2017, reversing a dismal performance in first three months 2017. For the first six months 2016, the retail sale growth rate was 2.5 %. However, the businesses in the next three months are not optimistic, estimating an average growth rate of 2.9 %. The department stores cum supermarket operators are expecting to return to red with a contraction of 2.5 %. Similarly, the department store operators expect their businesses to dip with a negative 1.5 %.
The rise of purchasing power will continue to fall behind the increase in prices of retail goods. More retail goods are expected to raise prices because of higher fuel prices in recent months.
The wholesale trade sub-sector index increased 5.9 % to 165.9 points year-on-year (y-o-y) driven mainly by other specialised wholesale (7.5 %), wholesale of agricultural raw materials and livestock (7.3 %) and wholesale of machinery, equipment and supplies (6.2 %).
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 : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1989, the Subject is a Private Limited company, focusing on trading of food products and its related 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 1,900,000 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. The Subject is operating on a medium scale and it has approximately 40 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. 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 20,416,541, 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.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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

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

PROFIT AND LOSS ACCOUNT

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

HEAP LEE CHAN TRADING COMPANY SDN. BHD.

Financial Year End	2017-03-31	2016-03-31	2015-03-31	2014-03-31	2013-03-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	244,120,413	237,548,291	104,531,309	108,780,073	115,939,622
Other Income	-	-	422,888	516,328	217,428
	----------------	----------------	----------------	----------------	----------------
Total Turnover	244,120,413	237,548,291	104,954,197	109,296,401	116,157,050
Costs of Goods Sold	(237,010,156)	(232,287,370)	(99,225,463)	(103,081,740)	(110,862,991)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	7,110,257	5,260,921	5,728,734	6,214,661	5,294,059
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	2,641,631	2,552,100	(128,432)	2,702,935	1,471,210
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	2,641,631	2,552,100	(128,432)	2,702,935	1,471,210
Taxation	(768,471)	(363,523)	(444,397)	(730,032)	(534,610)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,873,160	2,188,577	(572,829)	1,972,903	936,600
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	16,643,381	14,454,804	15,027,633	13,054,730	12,118,130
	----------------	----------------	----------------	----------------	----------------
As restated	16,643,381	14,454,804	15,027,633	13,054,730	12,118,130
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	18,516,541	16,643,381	14,454,804	15,027,633	13,054,730
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	18,516,541	16,643,381	14,454,804	15,027,633	13,054,730
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bankers' acceptance	1,057,541	1,215,628	662,309	779,404	758,259
Hire purchase	1,668	4,915	2,750	4,757	18,339
Term loan / Borrowing	-	12,071	9,550	-	-
Others	-	-	24,586	22,742	16,090
	----------------	----------------	----------------	----------------	----------------
	1,059,209	1,232,614	699,195	806,903	792,688
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	101,943	212,150	308,959	311,332	388,166
AMORTIZATION	1,277	1,277	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	103,220	213,427	308,959	311,332	388,166
	=============	=============	=============	=============	=============

BALANCE SHEET

HEAP LEE CHAN TRADING COMPANY SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	9,286,270	9,273,902	10,186,506	7,773,004	7,668,486
LONG TERM INVESTMENTS/OTHER ASSETS
Investments	472,779	352,494	500,000	830,000	830,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	472,779	352,494	500,000	830,000	830,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	9,759,049	9,626,396	10,686,506	8,603,004	8,498,486
CURRENT ASSETS
Stocks	2,313,622	4,714,503	2,370,887	3,423,687	4,602,324
Trade debtors	27,135,627	27,952,418	22,492,738	24,884,102	21,776,155
Other debtors, deposits & prepayments	676,112	1,504,403	107,508	106,076	155,900
Short term deposits	-	-	290,941	282,056	-
Cash & bank balances	16,765,143	13,551,843	11,453,489	12,332,421	12,078,386
Others	125,149	296,106	2,266	-	11,781
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	47,015,653	48,019,273	36,717,829	41,028,342	38,624,546
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	56,774,702	57,645,669	47,404,335	49,631,346	47,123,032
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	6,091,746	6,340,974	5,922,078	6,340,207	6,442,644
Other creditors & accruals	1,595,992	46,478	38,495	48,141	40,535
Hire purchase & lease creditors	19,992	30,004	80,004	-	154,575
Bank overdraft	152,454	-	-	-	-
Short term borrowings/Term loans	-	-	63,058	-	-
Bill & acceptances payable	25,108,000	28,013,676	18,748,094	20,262,000	21,435,000
Amounts owing to director	3,216,372	4,648,343	5,683,460	5,722,814	4,067,207
Provision for taxation	162,276	-	-	271,657	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	36,346,832	39,079,475	30,535,189	32,644,819	32,139,961
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	10,668,821	8,939,798	6,182,640	8,383,523	6,484,585
	----------------	----------------	----------------	----------------	----------------
LONG TERM LIABILITIES
Long term loans	-	-	411,043	-	-
Hire purchase creditors	-	19,992	89,996	40,001	-
Deferred taxation	11,329	2,821	13,303	18,893	28,341
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	11,329	22,813	514,342	58,894	28,341
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	20,416,541	18,543,381	16,354,804	16,927,633	14,954,730
	=============	=============	=============	=============	=============
FINANCED BY:
SHARE CAPITAL
Ordinary share capital	1,900,000	1,900,000	1,900,000	1,900,000	1,900,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	1,900,000	1,900,000	1,900,000	1,900,000	1,900,000
RESERVES
Retained profit/(loss) carried forward	18,516,541	16,643,381	14,454,804	15,027,633	13,054,730
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	18,516,541	16,643,381	14,454,804	15,027,633	13,054,730
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	20,416,541	18,543,381	16,354,804	16,927,633	14,954,730
	=============	=============	=============	=============	=============

FINANCIAL RATIO

HEAP LEE CHAN TRADING COMPANY SDN. BHD.

TYPES OF FUNDS
Cash	16,765,143	13,551,843	11,744,430	12,614,477	12,078,386
Net Liquid Funds	(8,495,311)	(14,461,833)	(7,003,664)	(7,647,523)	(9,356,614)
Net Liquid Assets	8,355,199	4,225,295	3,811,753	4,959,836	1,882,261
Net Current Assets/(Liabilities)	10,668,821	8,939,798	6,182,640	8,383,523	6,484,585
Net Tangible Assets	20,416,541	18,543,381	16,354,804	16,927,633	14,954,730
Net Monetary Assets	8,343,870	4,202,482	3,297,411	4,900,942	1,853,920
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	3,700,840	3,784,714	570,763	3,509,838	2,263,898
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	3,804,060	3,998,141	879,722	3,821,170	2,652,064
BALANCE SHEET ITEMS
Total Borrowings	25,280,446	28,063,672	19,392,195	20,302,001	21,589,575
Total Liabilities	36,358,161	39,102,288	31,049,531	32,703,713	32,168,302
Total Assets	56,774,702	57,645,669	47,404,335	49,631,346	47,123,032
Net Assets	20,416,541	18,543,381	16,354,804	16,927,633	14,954,730
Net Assets Backing	20,416,541	18,543,381	16,354,804	16,927,633	14,954,730
Shareholders' Funds	20,416,541	18,543,381	16,354,804	16,927,633	14,954,730
Total Share Capital	1,900,000	1,900,000	1,900,000	1,900,000	1,900,000
Total Reserves	18,516,541	16,643,381	14,454,804	15,027,633	13,054,730
GROWTH RATIOS (Year on Year) (%)
Revenue	2.77	127.25	(3.91)	(6.18)	(14.92)
Proft/(Loss) Before Tax	3.51	2,087.12	(104.75)	83.72	(15.70)
Proft/(Loss) After Tax	(14.41)	482.06	(129.03)	110.65	(25.42)
Total Assets	(1.51)	21.60	(4.49)	5.32	0.30
Total Liabilities	(7.02)	25.94	(5.06)	1.66	(2.42)
LIQUIDITY (Times)
Cash Ratio	0.46	0.35	0.38	0.39	0.38
Liquid Ratio	1.23	1.11	1.12	1.15	1.06
Current Ratio	1.29	1.23	1.20	1.26	1.20
WORKING CAPITAL CONTROL (Days)
Stock Ratio	3	7	8	11	14
Debtors Ratio	41	43	79	83	69
Creditors Ratio	9	10	22	22	21
SOLVENCY RATIOS (Times)
Gearing Ratio	1.24	1.51	1.19	1.20	1.44
Liabilities Ratio	1.78	2.11	1.90	1.93	2.15
Times Interest Earned Ratio	3.49	3.07	0.82	4.35	2.86
Assets Backing Ratio	10.75	9.76	8.61	8.91	7.87
PERFORMANCE RATIO (%)
Operating Profit Margin	1.08	1.07	(0.12)	2.48	1.27
Net Profit Margin	0.77	0.92	(0.55)	1.81	0.81
Return On Net Assets	18.13	20.41	3.49	20.73	15.14
Return On Capital Employed	17.96	20.35	3.37	20.66	14.96
Return On Shareholders' Funds/Equity	9.17	11.80	(3.50)	11.65	6.26
Dividend Pay Out Ratio (Times)	0	0	0	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
MYR	1	INR 16.97

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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