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MIRA INFORM REPORT
|
Report Date : |
10th May 2006 |
IDENTIFICATION DETAILS
|
Name : |
HUALON CORPORATION (M) SDN
BHD |
|
|
|
|
Registered Office : |
Setia
1, 15 Lrg Dungun, D''sara Heights, Level 7 50490, Kuala Lumpur, Malaysia |
|
|
|
|
Date of Incorporation : |
26/10/1989 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer
Of Textiles & Fibre Products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Exist |
* All figures quoted in this report are in local currency RM (Ringgit Malaysia) unless otherwise specified.
* Adopted abbreviations : SC - Subject Company ( the company enquired by you) N/A - Not Applicable
EXECUTIVE SUMMARY
|
LOCAL NO |
188578-A |
|
COMPANY NAME |
HUALON
CORPORATION (M) SDN BHD |
|
FORMER NAME |
HUALON CORPORATION (M) BHD (27-02-1999) |
|
INCORPORATION DATE |
26/10/1989 |
|
STATUS |
PRIVATE LIMITED COMPANY |
|
REGISTERED ADDRESS |
SETIA 1, 15 LRG DUNGUN, D''SARA HEIGHTS, LEVEL 7 50490, KUALA LUMPUR |
|
BUSINESS ADDRESS |
WISMA GOLDHILL, 67 JLN RAJA CHULAN, LEVEL 9 50200, KUALA LUMPUR. |
|
TEL NO |
20316000 |
|
FAX NO |
20315000 |
|
WEB SITE |
info@hualon.com |
|
CONTACT PERSON |
DATO OUNG YU MING (CHAIRMAN) |
|
INDUSTRY CODE |
32190 |
|
PRINCIPAL ACTIVITY |
MANUFACTURER OF TEXTILES & FIBRE PRODUCTS |
|
AUTHORISED CAPITAL |
RM 1,800,000,000.00 DIVIDED INTO 1,800,000,000.00 SHARES OF RM 1.00 EACH |
|
ISSUED AND PAID UP CAPITAL |
828,355,614 - CASH ) SHARES OF 29,779,709.00 - OTHERWISE ) RM 1.00 EACH |
|
SALES |
RM 2,921,664,000 [2004] |
|
NET WORTH |
RM 313,957,000 [2004] |
|
STAFF STRENGTH |
8,000 |
|
BANKER (S) |
MALAYAN BANKING BHD PUBLIC BANK BHD BUMIPUTRA-COMMERCE BANK BHD |
|
LITIGATION |
TRACED |
|
FINANCIAL CONDITION |
POOR |
|
PAYMENT |
AVERAGE |
|
MANAGEMENT
CAPABILITY |
AVERAGE |
|
COMMERCIAL RISK |
MODERATE |
|
CURRENCY EXPOSURE |
HIGH |
|
GENERAL REPUTATION |
GOOD |
|
BUSINESS TREND |
GROWING |
|
CREDIT RATING |
B (please refer to appendix) |
HISTORY / BACKGROUND
The SC was incorporated in Malaysia on 26 Oct, 1989 as a Private Limited Company in Malaysia. The SC 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 SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC 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 SC is insolvent. The SC 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 SC is principally engaged in the (as a / as an) manufacturer of textiles & fibre products.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
ANDREW OUNG
DA-MING + UNIT 8.01,
REGENCY TOWER, 8 JLN P132241417 278,893,981
OLD P/P :
M9696598 & M20166317 CEYLON, 8TH
FLR 50200, KUALA
LUMPUR.
LIU FU + 1
JLN SG RINCING 32/63B, BKT P134215545 28,790,520
OLD P/P:
M10849675 & P130245988 RIMAU, SEC
32 40460, SHAH ALAM, 581020-71-5299
SELANGOR.
HSIANG LIEN HENG
+ 20-27-3A
ANGKASA IMPIAN CONDO, P133426517 28,790,520
JLN
PERSIARAN RAJA CHULAN
50200,
KUALA LUMPUR.
CHEN CHING-SEN + 4311 JLN TS
2-16, TMN SEMARAK P131518073 42,906,766
71800,
NILAI, NEGERI SEMBILAN.
OUNG YU-MING + UNIT
8.02, REGENCY TOWER, 8 JLN M4849395 42,048,670
CEYLON,
8TH FLR 50200, KUALA 531211-71-5181
LUMPUR.
GOLDMINE CO INC C/O BVI
LTD, PO BOX 659, RD 24,302,740
TOWN,
TORTOLA, BR VIRGIN
ISLANDS.
HUALON
CORPORATION 69
CHUNG SHIAU, TOU FENG, MIAO 333,611,606
LI
COUNTRY, 1ST FLR, TAIWAN,
CHINA.
PB TRUSTEE
SERVICES BHD MENARA PUBLIC
BANK, 146 JLN 7968 50,000,000
AMPANG,
17TH FLR 50450, KUALA
LUMPUR.
LEE PEI NI D21-01
202 DESA CAHAYA, JLN P132045762 28,790,520
OLD P/P:
M14276069 AMPANG
50450, KUALA LUMPUR.
----------------------
858,135,323
=============
+ Also Director
The SC interest in other companies (Subsidiaries/Associates)
are shown as follows:
Local No Name Shareholding (%) As At
DOVLINE INVESTMENT PTE
LTD 0 24.90 31/12/97
HUALON
CORPORATION VIETNAM 0 67.81 31/12/02
MAHUALONG
(CHAO YANG) TEXTILE CO LTD 0 49.54 31/12/97
DIRECTORS
We have conducted the following 2 essential checks on all the directors of the
SC in our database:
* INTEREST
CHECK This refers to a check in
our databank whether the said person has any interest companies and businesses.
* CREDIT
HISTORY CHECK : This refers to a check in our databank whether the said person
has been involved in any legal suites, bankruptcy, liquidated/wound up
companies in Malaysia and as
well as any other default information
related to him/her which were
contributed by our valued subscribers.
Our information on bankruptcy
and wound up companies date back to 1900.
DIRECTOR 1
Name of Subject : ANDREW OUNG DA-MING
Address : UNIT 8.01, REGENCY TOWER, 8 JLN CEYLON,
8TH FLR 50200, KUALA LUMPUR.
IC / PP No : P132241417
Date of Birth : 06/12/1955
Nationality : TAIWANESE
Date of Appointment : 06/02/1990
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
Company. . . . . . . . . . .. . . . Designation Shareholding Court As At . . . .
HUALON CORPORATION (M) SDN BHD Director 278,893,981 28/03/2006
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none
in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 2
Name of Subject :
LIU FU
Address : 1 JLN SG RINCING 32/63B, BKT RIMAU, SEC 32
40460,
SHAH ALAM, SELANGOR.
IC / PP No : P134215545
New IC No : 581020-71-5299
Date of Birth : 20/10/1958
Nationality : TAIWANESE
Date of Appointment : 16/03/1990
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
Company. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . Designation Shareholding Court As At . .
HUALON CORPORATION (M) SDN BHD Director 28,790,520 28/03/2006
INTEGRATED
CIRCUIT DESIGN SERVICES SDN BHD Director 0 04/05/2005
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none
in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 3
Name of Subject :
HSIANG LIEN HENG
Address : 20-27-3A ANGKASA IMPIAN CONDO, JLN
PERSIARAN RAJA CHULAN 50200,
KUALA LUMPUR.
IC / PP No : P133426517
Date of Birth : 15/08/1943
Date of Appointment : 21/08/2000
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Designation Shareholding Court As At . . . . .
HUALON CORPORATION (M) SDN
BHD Director
28,790,52 28/03/2006
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none
in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 4
Name of Subject : CHEN CHING-SEN
Address : 4311 JLN TS 2-16, TMN SEMARAK 71800, NILAI,
NEGERI
SEMBILAN.
IC / PP No : P131518073
Date of Appointment : 16/01/2002
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Designation Shareholding Court As At . .
ACOUSTECH BHD Shareholder 1,060,748 09/04/2004
HUALON CORPORATION (M) SDN
BHD Director 42,906,766 28/03/2006
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none
in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 5
Name of Subject : DATO
OUNG YU-MING
Address : UNIT 8.02, REGENCY TOWER, 8 JLN CEYLON,
8TH
FLR 50200, KUALA LUMPUR.
IC / PP No : M4849395
New IC No : 531211-71-5181
Date of Appointment : 01/08/2003
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Designation Shareholding Court As At . . . . .
HUALON CORPORATION (M) SDN
BHD Director 42,048,670 28/03/2006
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none
in our databank
Contributing subscriber default information : none in our databank
MANAGEMENT
1) Name of Subject : WONG SIEW MEI
Position : MARKETING MANAGEER
2) Name of Subject : OUNG YU
MING
Position : CHAIRMAN
3) Name of Subject : HSIANG
LIEN HENG
Position : GENERAL MANAGER
4) Name of Subject : HENDRY
LIU
Position : DEPUTY GENERAL MANAGER
5) Name of Subject : LORELLE
CHOW
Position : SENIOR MANAGER - FINANCE
6) Name of Subject : LIM
CHENG MEI
Position : MANAGER - ACCOUNTS
7) Name of Subject : TAN TIAN
YEOW
Position : MANAGER - HUMAN RESOURCE
AUDITOR
Auditor : KPMG
Auditors' Address : WISMA KPMG, JLN DUNGUN, D''SARA HEIGHTS
50490, KUALA LUMPUR.
COMPANY SECRETARY
1) Company Secretary : SAW BEE LEAN
IC / PP No. : 5165841
New IC No. : 570711-07-5952
Address : 91 JLN SS 22/39, D''SARA JAYA 47400,
PETALING
JAYA, SELANGOR.
2) Company Secretary : LIEW
IRENE
IC / PP No. : A1475711
New IC No. : 700227-10-5112
Address : LOT 32, JLN KUARI, KG CHERAS BARU 56100,
KUALA
LUMPUR.
BANKING
Banking relations are
maintained principally with :
1) Name : MALAYAN BANKING BHD
Address : MENARA MAYBANK, 100 JLN TUN PERAK
50050,
KUALA LUMPUR.
Tel.No. : 20708833
Fax.No. : 20702611
2) Name : PUBLIC BANK BHD
Address : GRD FLR, WISMA LIM FOO YONG, 86 JLN
RAJA
CHULAN 50200, KUALA LUMPUR.
Tel.No. : 21418255
Fax.No. : 21487721
3) Name : BUMIPUTRA-COMMERCE BANK BHD
Address : MENARA BANK BUMIPUTRA, JLN MELAKA
51000,
KUALA LUMPUR.
Tel.No. : 26988011/1011
Fax.No. : 26902441
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 18 Mar 1992
Description of Charge : AGREEMENT, CHARGE & DEBENTURE
Amount Secured : RM 60,000,000.00
Description of Property Affected : PM 60-61, 63-64 & 66, LOT
2315-2316, 2321-2322 & 435, MK
SG UDANG
FIXED &
FLOATING CHARGE
Name & Address of Chargee : BUMIPUTRA MERCHANT BANKERS BHDüDEVELOPMENT
&
COMMERCIAL
BANK BHDüBANK OF COMMERCE (M) BHD
MENARA
AETNA, 84 JLN RAJA CHULAN, 15TH FLRüMENARA
TR, 161B JLN
AMPANG, 7TH FLRü6 JLN TUN PERAK
50200üü, KLüKLüKL,
üü, üü.
Form 40 Dated 20 Apr 1992
Registered
and Numbered 2 In The Register of
Charges
ENCUMBRANCE 2
Date of Creation : 08 Oct 1993
Description of Charge : CHARGE & DEBENTURE
Amount Secured : RM 50,000,000.00
Description of Property Affected : HS(D) 70863 LOT 1892, MK SETUL, DIST
SEREMBAN,
NEGERI
SEMBILAN
FIXED &
FLOATING CHARGE
Name & Address of Chargee : MALAYAN BANKING BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 14TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 23 Oct 1993
Registered
and Numbered 4 In The Register of
Charges
ENCUMBRANCE 3
Date of Creation : 08 Oct 1993
Description of Charge : CHARGE & DEBENTURE
Amount Secured : RM 30,000,000.00
Description of Property Affected : HS(D) 70863 LOT 1892, MK SETUL, DIST
SEREMBAN,
NEGERI
SEMBILAN
FIXED &
FLOATING CHARGE
Name & Address of Chargee : MALAYAN BANKING BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 14TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 23 Oct 1993
Registered
and Numbered 5 In The Register of
Charges
ENCUMBRANCE 4
Date of Creation : 18 Nov 1993
Description of Charge : CHARGE & DEBENTURE
Amount Secured : RM 50,000,000.00
Description of Property Affected : HS(D) 70862 PT 1891, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
FIXED &
FLOATING CHARGE
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA
BUMIPUTRA, JLN MELAKA 50100, KUALA LUMPUR.
Form 40 Dated 02 Dec 1993
Registered
and Numbered 6 In The Register of
Charges
ENCUMBRANCE 5
Date of Creation : 24 Mar 1994
Description of Charge : DEBENTURE & CHARGE
Amount Secured : RM 100,000,000.00
Description of Property Affected : HS(D) 70857 LOT 1886, MK SETUL, DIST
SEREMBAN,
NEGERI
SEMBILAN
FIXED &
FLOATING CHARGE
Name & Address of Chargee : BUMIPUTRA MERCHANT BANKERS BHD
MENARA AETNA
UNIVERSAL, 84 JLN RAJA CHULAN, 15TH
FLR 50200,
KUALA LUMPUR.
Form 40 Dated 06 Jun 1994
Registered
and Numbered 8 In The Register of
Charges
ENCUMBRANCE 6
Date of Creation : 01 Sep 1994
Description of Charge : CHARGE & DEBENTURE
Amount Secured : RM 50,000,000.00
Description of Property Affected : HS(M) 60 PT 538, MK SG UDANG, MELAKA
FIXED &
FLOATING CHARGE
Name & Address of Chargee : KWONG YIK BANK BHD
75 JLN TUN H
S LEE 50000, KUALA LUMPUR.
Form 40 Dated 08 Sep 1994
Registered
and Numbered 10 In The Register of
Charges
ENCUMBRANCE 7
Date of Creation : 24 Nov 1994
Description of Charge : DEBENTURE
Amount Secured : RM 91,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : HONG LEONG BANK BHD
WIMSA HONG
LEONG, 18 JLN PERAK, 3RD FLR 50450,
KUALA
LUMPUR.
Form 40 Dated 02 Dec 1994
Registered
and Numbered 11 In The Register of
Charges
ENCUMBRANCE 8
Date of Creation : 24 Nov 1994
Description of Charge : CHARGE
Amount Secured : RM 80,000,000.00
Description of Property Affected : HS(D) 88193 PT 7928, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : DEVELOPMENT & COMMERCIAL BANK BHD
MENARA TR,
161B JLN AMPANG, 18TH FLR 50450, KUALA
LUMPUR.
Form 40 Dated 02 Dec 1994
Registered
and Numbered 12 In The Register of
Charges
ENCUMBRANCE 9
Date of Creation : 13 Dec 1994
Description of Charge : N/A
Amount Secured : O/D
Description of Property Affected : N/A
Name & Address of Chargee : MARUBENI CORPORATION
Form 40 Dated
Registered
and Numbered 13 In The Register of
Charges
ENCUMBRANCE 10
Date of Creation : 10 Jul 1995
Description of Charge : DEBENTURE
Amount Secured : RM 100,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : MALAYAN BANKING BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 14TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 12 Jul 1995
Registered
and Numbered 14 In The Register of
Charges
ENCUMBRANCE 11
Date of Creation : 25 Sep 1995
Description of Charge : DEBENTURE
Amount Secured : RM 150,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : AMANAH MERCHANT BANK BHD
BGN KOMPLEK
KEWANGAN, 82 JLN RAJA CHULAN, 19TH
FLR 50200,
KUALA LUMPUR.
Form 40 Dated 09 Oct 1995
Registered
and Numbered 16 In The Register of
Charges
ENCUMBRANCE 12
Date of Creation : 25 Sep 1995
Description of Charge : DEBENTURE
Amount Secured : RM 140,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : AMANAH MERCHANT BANK BHD
BGN KOMPLEK
KEWANGAN, 82 JLN RAJA CHULAN, 19TH
FLR 50200,
KUALA LUMPUR.
Form 40 Dated 09 Oct 1995
Registered
and Numbered 17 In The Register of
Charges
ENCUMBRANCE 13
Date of Creation : 15 Nov 1995
Description of Charge : DEBENTURE
Amount Secured : RM 180,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
HS(D) 92100
PT 01, PEKAN NILAI, DIST SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA
BUMIPUTRA, JLN MELAKA, 23RD FLR 50100,
KUALA
LUMPUR.
Form 40 Dated 01 Dec 1995
Registered
and Numbered 18 In The Register of
Charges
ENCUMBRANCE 14
Date of Creation : 07 Dec 1995
Description of Charge : CHARGE
Amount Secured : RM 36,000,000.00
Description of Property Affected : LOT 39, SEC 12, INDUSTRIAL LAND, PHASE
1A, PULAU
INDAH
INDUSTRIAL
PARK, WEST
PORT
Name & Address of Chargee : BANK ISLAM MALAYSIA BHD
MENARA TUN
RAZAK, JLN RAJA LAUT, 9TH FLR 50734,
KUALA
LUMPUR.
Form 40 Dated 22 Dec 1995
Registered
and Numbered 19 In The Register of
Charges
ENCUMBRANCE 15
Date of Creation : 17 Jan 1996
Description of Charge : DEBENTURE
Amount Secured : RM 260,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
HS(D) 92104
PT 05, PEKAN NILAI, DIST SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : ASEAMBANKERS MALAYSIA BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 32ND FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 27 Jan 1996
Registered
and Numbered 20 In The Register of
Charges
ENCUMBRANCE 16
Date of Creation : 13 Sep 1996
Description of Charge : N/A
Amount Secured : RM 90,500,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DCB BANK BHD
Form 40 Dated
Registered
and Numbered 26 In The Register of
Charges
ENCUMBRANCE 17
Date of Creation : 13 Sep 1996
Description of Charge : N/A
Amount Secured : FOREIGN CURRENCY
Description of Property Affected : N/A
Name & Address of Chargee : UMBC INTERNATIONAL BANK (L) LTD
Form 40 Dated
Registered
and Numbered 27 In The Register of
Charges
ENCUMBRANCE 18
Date of Creation : 13 Sep 1996
Description of Charge : N/A
Amount Secured : RM 90,500,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BHL BANK BHDüBSN COMMERCIAL BANK (MALAYSIA)
BHD
Form 40 Dated
Registered
and Numbered 28 In The Register of
Charges
ENCUMBRANCE 19
Date of Creation : 13 Sep 1996
Description of Charge : N/A
Amount Secured : RM 90,500,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DCB BANK BHD
Form 40 Dated
Registered
and Numbered 29 In The Register of
Charges
ENCUMBRANCE 20
Date of Creation : 14 Oct 1996
Description of Charge : N/A
Amount Secured : RM 140,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : KWONG YIK BANK BHD
Form 40 Dated
Registered
and Numbered 30 In The Register of
Charges
ENCUMBRANCE 21
Date of Creation : 14 Oct 1996
Description of Charge : N/A
Amount Secured : RM 100,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : KWONG YIK BANK BHD
Form 40 Dated
Registered
and Numbered 31 In The Register of
Charges
ENCUMBRANCE 22
Date of Creation : 03 Dec 1996
Description of Charge : N/A
Amount Secured : RM 260,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DCB SAKURA MERCHANT BANKERS BHD
Form 40 Dated
Registered
and Numbered 33 In The Register of
Charges
ENCUMBRANCE 23
Date of Creation : 03 Dec 1996
Description of Charge : N/A
Amount Secured : RM 200,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DCB SAKURA MERCHANT BANKERS BHD
Form 40 Dated
Registered
and Numbered 34 In The Register of
Charges
ENCUMBRANCE 24
Date of Creation : 22 Aug 1997
Description of Charge : DEBENTURE & CHARGE
Amount Secured : RM 150,000,000.00
Description of Property Affected : PM 10, 1 & 2, LOT 1500, 1509 &
1510, MK TANGGA BT, DIST
MELAKA
TENGAH
PM 56, 1
& 2, LOT 2320, 2327 & 2328, MK SG UDANG, DIST
MELAKA
TENGAH
FIXED &
FLOATING CHARGE
Name & Address of Chargee : MAYBAN TRUSTEES BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 34TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 29 Aug 1997
Registered
and Numbered 35 In The Register of
Charges
ENCUMBRANCE 25
Date of Creation : 07 Oct 1997
Description of Charge : DEBENTURE
Amount Secured : RM 140,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : MAYBAN TRUSTEES BHD
MENARA MAYBANK, 100 JLN TUN PERAK, 34TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 15 Oct 1997
Registered
and Numbered 36 In The Register of
Charges
ENCUMBRANCE 26
Date of Creation : 24 Dec 1997
Description of Charge : DEBENTURE & CHARGE
Amount Secured : RM 150,000,000.00
Description of Property Affected : PM 10, 1 & 2, LOT 1500, 1509 &
1510, MK TANGGA BT,
DIST MELAKA
TENGAH, MELAKA &
PM 56, 1
& 2, LOT 2320, 2327 & 2328, MK SG UDANG, DIST
MELAKA
TENGAH,
MELAKA
FIXED &
FLOATING CHARGE
Name & Address of Chargee : MAYBAN TRUSTEES BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 34TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 23 Mar 1998
Registered
and Numbered 37 In The Register of
Charges
ENCUMBRANCE 27
Date of Creation : 24 Dec 1997
Description of Charge : DEBENTURE & CHARGE
Amount Secured : RM 140,000,000.00
Description of Property Affected : HS(D) 110855 PT 10, PEKAN NILAI, DIST
SEREMBAN,
NEGERI
SEMBILAN
FIXED &
FLOATING CHARGE
Name & Address of Chargee : MAYBAN TRUSTEES BHD
MENARA
MAYBANK, 100 JLN TUN PERAK, 34TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 23 Mar 1998
Registered
and Numbered 38 In The Register of
Charges
ENCUMBRANCE 28
Date of Creation : 23 Jan 1999
Description of Charge : DEBENTURE
Amount Secured : RM 15,000,000.00
Description of Property Affected : HS(D) 88192 PT 7929, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : HONG LEONG BANK BHD
WISMA HONG
LEONG, 18 JLN PERAK, LEVEL 1 50450,
KUALA
LUMPUR.
Form 40 Dated 29 Jan 1999
Registered
and Numbered 39 In The Register of
Charges
ENCUMBRANCE 29
Date of Creation : 12 Feb 1999
Description of Charge : CHARGE
Amount Secured : RM 56,000,000.00
Description of Property Affected : HS(D) 88193 PT 7928, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 41 In The Register of
Charges
ENCUMBRANCE 30
Date of Creation : 12 Feb 1999
Description of Charge : CHARGE
Amount Secured : RM 56,000,000.00
Description of Property Affected : HS(M) 60 PT 538, MK SG UDANG, MELAKA
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 42 In The Register of
Charges
ENCUMBRANCE 31
Date of Creation : 12 Feb 1999
Description of Charge : AGREEMENT
Amount Secured : RM 40,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 43 In The Register of
Charges
ENCUMBRANCE 32
Date of Creation : 12 Feb 1999
Description of Charge : CHARGE
Amount Secured : RM 40,000,000.00
Description of Property Affected : HS(D) 88193 PT 7928, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 44 In The Register of
Charges
ENCUMBRANCE 33
Date of Creation : 12 Feb 1999
Description of Charge : CHARGE
Amount Secured : RM 40,000,000.00
Description of Property Affected : HS(M) 60 PT 538, MK SG UDANG, MELAKA
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 45 In The Register of
Charges
ENCUMBRANCE 34
Date of Creation : 12 Feb 1999
Description of Charge : AGREEMENT
Amount Secured : RM 37,000,000.00
Description of Property Affected : FIXED & CHARGE
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 47 In The Register of
Charges
ENCUMBRANCE 35
Date of Creation : 12 Feb 1999
Description of Charge : CHARGE
Amount Secured : RM 37,000,000.00
Description of Property Affected : HS(D) 88193 PT 7928, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 48 In The Register of
Charges
ENCUMBRANCE 36
Date of Creation : 12 Feb 1999
Description of Charge : CHARGE
Amount Secured : RM 37,000,000.00
Description of Property Affected : HS(M) 60 PT 538, MK SG UDANG, MELAKA
Name & Address of Chargee : RHB BANK BHD
TOWER 3, RHB
CENTRE, 426 JLN TUN RAZAK, LEVEL 8
50400, KUALA
LUMPUR.
Form 40 Dated 25 Feb 1999
Registered
and Numbered 49 In The Register of
Charges
ENCUMBRANCE 37
Date of Creation : 30 Jun 1999
Description of Charge : DEBENTURE & CHARGE
Amount Secured : RM 83,000,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : MALAYAN BANKING BHD
MENARA MAYBANK,
100 JLN TUN PERAK, 14TH FLR 50050,
KUALA
LUMPUR.
Form 40 Dated 12 Jul 1999
Registered
and Numbered 51 In The Register of
Charges
ENCUMBRANCE 38
Date of Creation : 21 Jul 1999
Description of Charge : DEBENTURE
Amount Secured : RM 244,000,000.00
Description of Property Affected : HS(D) 92100 PT 1891, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA
BUMIPUTRA, JLN MELAKA 50100, KUALA LUMPUR.
Form 40 Dated 09 Aug 1999
Registered
and Numbered 52 In The Register of
Charges
ENCUMBRANCE 39
Date of Creation : 21 Jul 1999
Description of Charge : CHARGE
Amount Secured : RM 244,000,000.00
Description of Property Affected : HS(D) 92100 PT 02, PEKAN NILAI, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA
BUMIPUTRA, JLN MELAKA 50100, KUALA LUMPUR.
Form 40 Dated 09 Aug 1999
Registered
and Numbered 53 In The Register of
Charges
ENCUMBRANCE 40
Date of Creation : 21 Jul 1999
Description of Charge : DEBENTURE
Amount Secured : RM 84,600,000.00
Description of Property Affected : HS(D) 70862 PT 1891, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA
BUMIPUTRA, JLN MELAKA 50100, KUALA LUMPUR.
Form 40 Dated 20 Aug 1999
Registered
and Numbered 54 In The Register of
Charges
ENCUMBRANCE 41
Date of Creation : 21 Jul 1999
Description of Charge : CHARGE
Amount Secured : RM 84,600,000.00
Description of Property Affected : HS(D) 70862 PT 1891, MK SETUL, DIST
SEREMBAN, NEGERI
SEMBILAN
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA
BUMIPUTRA, JLN MELAKA 50100, KUALA LUMPUR.
Form 40 Dated 20 Aug 1999
Registered
and Numbered 55 In The Register of
Charges
ENCUMBRANCE 42
Date of Creation : 21 Jun 2000
Description of Charge : N/A
Amount Secured : RM 20,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DANAHARTA URUS SDN BHD
Form 40 Dated
Registered
and Numbered 56 In The Register of
Charges
ENCUMBRANCE 43
Date of Creation : 21 Jun 2000
Description of Charge : N/A
Amount Secured : RM 20,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DANAHARTA URUS SDN BHD
Form 40 Dated
Registered
and Numbered 57 In The Register of
Charges
ENCUMBRANCE 44
Date of Creation : 21 Jun 2000
Description of Charge : N/A
Amount Secured : RM 20,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : DANAHARTA URUS SDN BHD
Form 40 Dated
Registered
and Numbered 58 In The Register of Charges
ENCUMBRANCE 45
Date of Creation : 28 Jun 2000
Description of Charge : N/A
Amount Secured : FOREIGN CURRENCY
Description of Property Affected : N/A
Name & Address of Chargee : MARUBENI CORPORATION
Form 40 Dated
Registered
and Numbered 59 In The Register of
Charges
ENCUMBRANCE 46
Date of Creation : 13 Jul 2000
Description of Charge : N/A
Amount Secured : RM 21,604,045.00
Description of Property Affected : N/A
Name & Address of Chargee : BANK ISLAM MALAYSIA BHD
Form 40 Dated
Registered
and Numbered 60 In The Register of
Charges
ENCUMBRANCE 47
Date of Creation : 22 Aug 2001
Description of Charge : N/A
Amount Secured : RM 110,000.00
Description of Property Affected : N/A
Name & Address of Chargee : MALAYAN BANKING BHD
Form 40 Dated
Registered and
Numbered 61 In The Register of Charges
ENCUMBRANCE 48
Date of
Creation : 27 Aug 2004
Description of Charge : N/A
Amount Secured : RM 3,727,328,614.00
Description of Property Affected : N/A
Name & Address of Chargee : MALAYSIAN TRUSTEE BHD
Form 40 Dated
Registered
and Numbered 62 In The Register of
Charges
ENCUMBRANCE 49
Date of Creation : 27 Aug 2004
Description of Charge : N/A
Amount Secured : RM 3,310,550,744.00
Description of Property Affected : N/A
Name & Address of Chargee : MALAYSIAN TRUSTEE BHD
Form 40 Dated
Registered
and Numbered 63 In The Register of
Charges
ENCUMBRANCE 50
Date of Creation : 27 Aug 2004
Description of Charge : N/A
Amount Secured : RM 3,727,328,614.00
Description of Property Affected : N/A
Name & Address of Chargee : MALAYSIAN TRUSTEE BHD
Form 40 Dated
Registered
and Numbered 64 In The Register of
Charges
LEGAL CHECK AGAINST THE SC
* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia
LEGAL ACTION
Code No : 22 Case
No : 1651
Year : 2001 Place : KUALA
LUMPUR
Court No : HIGH COURT
Solicitor : TOMMY THOMAS
Plaintiff : BUMIPUTRA-COMMERCE BANK BHD
Defendants : HUALON CORPORATION (M) SDN BHD (188578)
WISMA
DAMANSARA, JLN SEMANTHAN, D''SARA HEIGHTS
50490, KUALA
LUMPUR.
Amount Claimed : 6,028,000.00
Nature of Claim : LOAN
Remarks : LIST
Code No : 22 Case
No : 852
Year : 2004 Place : KUALA
LUMPUR
Court No : HIGH COURT
Solicitor : SKRINE
Plaintiff : DANAHARTA URUS SDN BHD
Defendants : HUALON CORPORATION (M) SDN BHD (188578)
BGN SETIA 1,
15 LRG DUNGUN, D''SARA HEIGHTS, 7TH FLR
50490, KUALA
LUMPUR.
Amount Claimed : 1,600,000.00
Nature of Claim : LOAN
Remarks : LIST
Code No : 22 Case
No : 1539
Year : 2002 Place : KUALA
LUMPUR
Court No : HIGH COURT
Solicitor : RAJES HISHAM PILLAI & GOPAL
Plaintiff : SABIC ASIA PACIFIC PTE LTD
Defendants : HUALON CORPORATION (M) SDN BHD (188578)
WISMA
GOLDHILL, 67 JLN RAJA CHULAN, LEVEL 8 50200,
KUALA
LUMPUR.
Amount Claimed : 1,250,000.00
Nature of Claim : USD DOLLAR
Remarks : LIST
Code No : 22 Case
No : 1651
Year : 2001 Place : KUALA
LUMPUR
Court No : HIGH COURT
Solicitor : TOMMY THOMAS
Plaintiff : BUMIPUTRA-COMMERCE BANK BHD
Defendants : HUALON CORPORATION (M) SDN BHD (188578)
WISMA
DAMANSARA, JLN SEMANTHAN, D''SARA HEIGHTS
50490, KUALA
LUMPUR.
Amount Claimed : 6,028,000.00
Nature of Claim : LOAN
Remarks : LIST
Code No : 22 Case
No : 852
Year : 2004 Place : KUALA
LUMPUR
Court No : HIGH COURT
Solicitor : SKRINE
Plaintiff : DANAHARTA URUS SDN BHD
Defendants : HUALON CORPORATION (M) SDN BHD (188578)
BGN SETIA 1,
15 LRG DUNGUN, D''SARA HEIGHTS, 7TH FLR
50490, KUALA
LUMPUR.
Amount Claimed : 1,600,000.00
Nature of Claim : LOAN
Remarks : LIST
Code No : 22 Case
No : 1539
Year : 2002 Place : KUALA
LUMPUR
Court No : HIGH COURT
Solicitor : RAJES HISHAM PILLAI & GOPAL
Plaintiff : SABIC ASIA PACIFIC PTE LTD
Defendants : HUALON CORPORATION (M) SDN BHD (188578)
WISMA
GOLDHILL, 67 JLN RAJA CHULAN, LEVEL 8 50200,
KUALA
LUMPUR.
Amount Claimed : 1,250,000.00
Nature of Claim : USD DOLLAR
Remarks : LIST
NOTE: Please
check with creditiors for confirmation as alleged debts may have been paid
since recorded or are being disputed. The person who
has been sued has the same name as the subject. However, we are unable
to determine whether the person sued is the one and the same
person.
No winding up petition was found in our data bank
PAYMENT RECORD
A trade enquiry with SC's suppliers revealed the following:
Supplier 1
Type of Supplies : ACCOUNTS MANAGER
Time Known : ABOUT 7 YEARS
Credit Term : 60 DAYS
Mode of Payment : CHEQUES
Credit Limit : NO LIMITS
Mthly Avg Trx. : LESS THAN RM100,000
Outstanding amount : N/A
Payment Record : AVERAGE
The SC's supplies are sourced locally and also imported from overseas countries including from Taiwan, Africa and others.
Based on our trade survey and historical data, we concluded that the SC:-
OVERALL PAYMENT HABIT
Prompt [ ] Good [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : 30%
Domestic Markets : PENINSULAR & EAST MALAYSIA
Overseas : 70%
Export Market : HONG KONG, BANGLADESH, AUSTRALIA, CANADA,
VIETNAM, TAIWAN, USA AND EUROPEAN COUNTRIES
Credit Term : 30-60 DAYS
Payment Mode : LETTER OF CREDIT & CHEQUES
Clientele Base : MORE THAN
The SC concentrates more on the overseas market at this moment.
Some of major customers of the SC are as
follows :
1) Customer Name : MAYFORD
GARMENTS SDN BHD
Type of Purchase : YARN
Time Known : MORE THAN 5 YEARS
Payment Record : GOOD
2) Customer Name : KHONG
LEONG TEXTILE TRADING SDN BHD
Type of Purchase : FABRICS
Time Known : > 1 YEAR
Payment Record : GOOD
3) Customer Name : GENERAL
RESOURCES CORPORATION PTD LTD (USA)
Type of Purchase : THREAD YARN
OPERATIONS
Product/Service : YARN AND RELATED PRODUCTS
Brand Name : "HUALON"
Factory/Premises : KAW PERINDUSTRIAN TANGGA BATU 76400, MALACCA.
LOT 1886-1891 KAW PERINDUSTRIAN 71800, NILAI, NEGERI
SEMBILAN.
Total Number of Employees : 8,000
Other Information :
The SC is one of the world first class textile manufacturers.
The SC's primary products are chips, yarns, fabrics made out these materials.
We were informed that the SC acts as the head office and it has two manufacturing plant located in Nilai, Negeri Sembilan and Melaka.
The SC's products catogories include resins, synthetic yarns, knitted fabrics, woven fabrics, speciality yarns, staple fibers and others.
The SC has invested in highly automated plants, cutting edge technology and the most advanced machinery.
Besides that the SC also has a warehouse located at the same premises to keep stock and materials.
The SC's plant has various manufacturing facilities such as the followings:
1) Polyester pre-oriented yarn
2) Polyester fully drawn yarn
3) Polyester fibre plant
4) Polyester draw texture yarn
The products are used for making ready made garments, furnishings, textiles and others.
RECENT DEVELOPMENT
29 November 2005
The SC's corporate loan continues to appear on the banks' list of non-performing loans. The main lenders are RHB Bank, Maybank [Malayan Banking]and Danaharta. They have exposures of RM500 million each. But they have fully provided for these loans and are at comfortable levels now.
CURRENT INVESTIGATION
On 6th April 2006 we contacted one of the Senior staff from the Accounts Department. She provided some information on the SC.
Later we contacted the Senior Supervisor from the Production Division for more information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2002-2004 ]
Profit / ( Loss )
before tax : Decreased [ 2002-2004 ]
Return on
Shareholder Funds : Unfavourable [ < 49.01%
> ]
Return on Net
Assets : Unfavourable [ < 2.11%
> ]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control :
Stocks Ratio : Unfavourable [ 96 Days ]
Debtors Ratio : Favourable [ 33 Days ]
Creditors Ratio : Unfavourable [ 96 Days ]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems.The favourable debtors' days could be due to the good credit control measures implemented by the SC.The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity :
Liquid Ratio : Unfavourable [ 0.20 Times ]
Current Ratio : Unfavourable [ 0.79 Times ]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain meeting its short term obligations.
Solvency :
Interest Cover : Unfavourable [ < 1.05 Times > ]
Gearing Ratio : Favourable [ 0.06 Times ]
The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest.The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and
internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the SC's losses.The SC's
liquidity was at an acceptable range. If the SC is able to obtain further short
term financing, it should be able to meet all its short term obligations.The
SC's interest cover was negative, indicating that it did not generate
sufficient income to service its interest. If its result does not show
impressive improvements or succeed obtaining short term financing or capital
injection, it may not be able to service its interest and repay the loans.The
SC, 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 SC: POOR
IMPORTANT NOTES EXTRACTED FROM THE FINANCIAL STATEMENTS
BORROWINGS
The term
loans of the subsidiary amounting to RM16,788,000 (2003: RM13,776,000) bear interest
at rates ranging from 3.80% to 9.60% (2003: 3.08% to 10.20%) per annum and are
secured by certain plant and machinery of the subsidiary and two personal
guarantee from the holding company's
shareholders.
One of the
term loans is repayable in 9 equal semi-annual instalments commencing on 17
August 2000, while the other is repayable in 61 equal instalments commencing on
7 February 2004.
Company
The
company's borrowings are subjected to interest at rates ranging from 2.00% to
7.50% (2003-3.74% to 10.82%) per annum.
During the financial year ended 31 December 2001, the company defaulted
on certain of the above borrowings and negotiated with the lenders to
restructure the defaulted borrowings. On 8 July 2004 , an xplanatory Statement
(ES) was prepared for the Scheme of Arrangement under Section 176 of the
Companies Act, 1965 to restructure the defaulted borrowing (Scheme) and sent to
the Lenders and Creditors for thier approval. On 30 July 2004 the Company
obtained majority approval from the lender and Creditors on the Scheme. The
retructured borrowings are classified as Scheme Debts.
The main
features of the ES are as follows:-
i) Lenders
and Creditors are to be divided into 4 classes, A to D, depending on the security
coverage ratio of each lender and creditor.
ii) A
conditional waiver of 30% to50% by class C and D Lenders and Creditors
respectively.
The waiver
of such amounts shall be held in suspense pending the full performance and
observance by the company of its obligations to each class respectively under
the ES. There is no debt waiver for class A and B Lenders and Creditors.
iii) The
interest expense on each respective class of Lenders and Creditors will be
calculated based on the balance of Scheme Debts after the waivers.
iv) The
balance of Scheme Debts after the waivers shall be repaid by way of
installments in the ES.
v) A
personal guarantee by a Director, Dato' Oung Yu-Ming of up to RM900,000,000 to
guarantee the full performance and observance by the company.
vi) A
security trustee is appointed by the Company to act as trustee for the lenders
and creditors.
vii)Upon
occurence of an Event of Default, the Security Trustee may, and shall, if so
directed by a resolution passed either:
a) at a meeting
of any class of the Scheme Creditors and carried by a majority consisting of
more than 66% in value of the Scheme Debts owing to the said Scheme Creditors
in that class present and voting thereat; or
b) in
writing by any class of Scheme Creditors and carried by a majority consisting
of more than 66% in value of the Scheme Debts owing to the said Scheme
Creditors in that class present and voting thereat; or by giving notice in
writing to the company, declare this Scheme as defautled, whereupon:
a) this
Scheme shall terminate in entirely;
b)the Scheme
Debts shall be immediately due and payable by the company to all the Lenders
and Creditors except in the case where any class of the Lenders and Creditors
has been fully repaid under the Scheme, the Scheme Debts owing to such class
shall be deemed to have been fully settled;
c) any
waiver of any amount by the lenders and creditors and any agreement to be bound
by any reduced interest rates in any way whatsoever under this Scheme shall be
null and void.
As of the
date of this report, the company has failed to make payment due for the
interest and principal of Scheme Debts of RM15,268,000 and RM90,478,000
respectively. The company is negotiating with
the Scheme lenders
and creditors to defer the repayment of the amount due. Consequently, the
company may cross default the entire borrowings as shown above pursuant to the
Scheme. In the event of default, additional accruals of interest based on the
original borrowing rates need to be made and the
whole Scheme
Debts of RM3,340,336,000 become immediately payable and need to be classified
as current liabilities.
BASIS COMMENTS
Incorporated in 1989, the SC is leader in the integrated textile
industry both domestically and internationally. Its vast experience in the
business coupled with its good reputation add strength to the SC capabilities
when competing in the industry. The SC is principally involved in the
manufacturing of
textiles
primary upstream and downstream products. Its products include resins,
synthetic yarns, knitted fabrics, woven fabrics and etc. Our investigation
revealed that the SC is an export oriented company. Currently, its products are
highly demanded in Hong Kong, Australia, Canada, USA,
European
countries and etc. Its ability to penetrate into the international market has
well diversified its business risk and benefited the SC in terms of higher
profitability. Being a key player in the textile industry, the SC has now grown
with a manpower of 8,000 employees.
During the
financial year 2004, the Group's turnover has increased by 23.1% to
RM2,921,664,000 compared to RM2,373,501,000 previously. However, the Group
incurred smaller losses of RM153,885,000 compared to the losses of
RM621,780,000 in the previous year. The
Group has generated an unfavourable return based on its existing shareholders'
funds which indicated that the management was inefficient in utilising its
funds to generate income. We noted that the Group was in weak liquidity
position. Its may face working capital deficiency in meeting its short term
financial obligations if no fresh capital is injected. Poor cash flow and
liquidity will continued to plague its
business.
Fortunately, the Group has low financial risk as it has a low gearing ratio of
0.06 times. Overall, the Group's financial standing is poor.
In view of
the above, we recommend credit be granted to the SC with monitoring.
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
For
The Year Ended 31-December-2004
HUALON
CORPORATION (M) SDN BHD
2004 2003 2002
RM RM RM
TURNOVER 2,921,664,000 2,373,501,000 2,348,899,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS <153,885,000> <621,780,000> <889,495,000>
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
COMPANIES - - <22,355,000>
------------------- ------------------- -------------------
PROFIT/(LOSS) BEFORE
TAXATION <153,885,000> <621,780,000> <911,850,000>
Taxation - 133,794,000 299,322,000
------------------- ------------------- -------------------
PROFIT/(LOSS) AFTER
TAXATION <153,885,000> <487,986,000> <612,528,000>
Minority interests - 8,671,000 18,646,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS <153,885,000> <479,315,000> <593,882,000>
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously reported <474,226,000> 5,089,000 598,971,000
Prior year adjustment - - -
------------------- ------------------- -------------------
As restated <474,226,000> 5,089,000 598,971,000
------------------- ------------------- -------------------
PROFIT AVAILABLE FOR
APPROPRIATIONS <628,111,000> <474,226,000> 5,089,000
TRANSFER TO RESERVES -
Statutory - - -
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD <628,111,000> <474,226,000> 5,089,000
=========== =========== ===========
RETAINED BY: The Company <628,111,000> <474,226,000> 5,089,000
Subsidiary companies - - -
Associated companies - - -
------------------- ------------------- -------------------
<628,111,000> <474,226,000> 5,089,000
=========== =========== ===========
INTEREST EXPENSE
(as per notes to P&L)
Other interest expenses 75,086,000 204,043,000 -
------------------- ------------------- -------------------
75,086,000 204,043,000 -
=========== =========== ===========
CONSOLIDATED
BALANCE SHEET
As
At 31-December-2004
HUALON
CORPORATION (M) SDN BHD
2004 2003 2002
RM RM RM
ASSETS EMPLOYED:
FIXED ASSETS 2,838,870,000 3,076,174,000 3,324,150,000
LONG TERM
INVESTMENTS/OTHER ASSETS
Associated companies 12,120,000 12,120,000 12,120,000
Investments - - -
Deferred assets 832,342,000 832,342,000 698,548,000
PREPAYMENTS 682,000 1,816,000 3,449,000
LONG TERM RECEIVABLE 341,601,000 341,601,000 341,601,000
------------------- ------------------- -------------------
TOTAL LONG TERM
INVESTMENTS/OTHER ASSETS 1,186,745,000 1,187,879,000 1,055,718,000
INTANGIBLE
ASSETS
Deferred/Expenditure carried forward - - -
------------------- ------------------- -------------------
TOTAL INTANGIBLE
ASSETS - - -
------------------- ------------------- -------------------
TOTAL LONG TERM ASSETS 4,025,615,000 4,264,053,000 4,379,868,000
CURRENT ASSETS
Stocks 772,140,000 744,875,000 802,411,000
Trade debtors 263,062,000 254,407,000 356,392,000
Other debtors, deposits & prepayments - - -
Short term deposits - - -
Amount due from associated companies - - -
Cash & bank balances 8,081,000 30,342,000 7,082,000
------------------- ------------------- -------------------
TOTAL CURRENT ASSETS 1,043,283,000 1,029,624,000 1,165,885,000
CURRENT
LIABILITIES
Trade creditors 770,490,000 1,507,330,000 1,287,987,000
Other creditors & accruals - - -
Bank overdraft 2,647,000 3,897,000 5,521,000
Short term borrowings/Term loans 14,038,000 1,166,815,000 1,053,926,000
Other borrowings - 85,000,000 85,000,000
Bill & acceptances payable 225,158,000 545,910,000 632,078,000
Amounts owing to associated companies - - -
Provision for taxation - - -
REVOLVING UNDERWRITING FACILITIES - 822,000,000 822,000,000
EXPORT BILL PURCHASE 4,193,000 4,253,000 8,068,000
AL-BAI BITHAMAN AJIL ISLAMIC - 290,000,000 290,000,000
SCHEME DEBTS 309,846,000 - -
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 1,326,372,000 4,425,205,000 4,184,580,000
------------------- ------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) <283,089,000> <3,395,581,000> <3,018,695,000>
------------------- ------------------- -------------------
TOTAL NET ASSETS 3,742,526,000 868,472,000 1,361,173,000
=========== =========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary share capital 858,135,000 858,135,000 858,135,000
------------------- ------------------- -------------------
TOTAL SHARE CAPITAL 858,135,000 858,135,000 858,135,000
RESERVES
Capital reserve - - -
Revaluation reserve - - -
Exchange equalisation/fluctuation reserve 83,933,000 83,933,000 80,173,000
Statutory reserve - - -
Retained profit/(Accumulated loss) carried
forward <628,111,000> <474,226,000> 5,089,000
------------------- ------------------- -------------------
TOTAL RESERVES <544,178,000> <390,293,000> 85,262,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 313,957,000 467,842,000 943,397,000
MINORITY INTEREST - - 8,671,000
LONG TERM &
DEFERRED LIABILITIES & PROVISIONS
Long term loans 2,750,000 5,301,000 13,776,000
ADVANCE CAPITAL 9,880,000 9,880,000 9,880,000
LONG TERM PAYABLE 385,449,000 385,449,000 385,449,000
SCHEME DEBTS 3,030,490,000 - -
------------------- ------------------- -------------------
TOTAL LONG TERM &
DEFERRED LIABILITIES &
PROVISIONS 3,428,569,000 400,630,000 409,105,000
------------------- ------------------- -------------------
3,742,526,000 868,472,000 1,361,173,000
=========== =========== ===========
CONSOLIDATED FINANCIAL RATIOS
As
At 31-December-2004
HUALON
CORPORATION (M) SDN BHD
2004 2003 2002
RM RM RM
TYPES OF FUNDS
Cash 8,081,000 30,342,000 7,082,000
Net Liquid Funds <8,604,000> <1,140,370,000> <1,052,365,000>
Net Liquid Assets <1,055,229,000> <4,140,456,000> <3,821,106,000>
Net Current Assets/(Liabilities) <283,089,000> <3,395,581,000> <3,018,695,000>
Net Tangible Assets 3,742,526,000 868,472,000 1,361,173,000
Net Monetary Assets <4,483,798,000> <4,541,086,000> <4,230,211,000>
BALANCE SHEET
ITEMS
Total Borrowings 19,435,000 1,261,013,000 1,158,223,000
Total Liabilities 4,754,941,000 4,825,835,000 4,593,685,000
Total Assets 5,068,898,000 5,293,677,000 5,545,753,000
Net Assets 3,742,526,000 868,472,000 1,361,173,000
Net Assets Backing 313,957,000 467,842,000 952,068,000
Shareholders' Funds 313,957,000 467,842,000 943,397,000
Total Share Capital 858,135,000 858,135,000 858,135,000
Total Reserves <544,178,000> <390,293,000> 85,262,000
LIQUIDITY
(Times)
Cash Ratio 0.01 0.01 0.00
Liquid Ratio 0.20 0.06 0.09
Current Ratio 0.79 0.23 0.28
WORKING CAPITAL
CONTROL (Days)
Stock Ratio 96 115 125
Debtors Ratio 33 39 55
Creditors Ratio 96 232 200
SOLVENCY RATIOS
(Times)
Gearing Ratio 0.06 2.70 1.23
Liabilities Ratio 15.15 10.32 4.87
Times Interest Earned Ratio <1.05> <2.05> 0
PERFORMANCE
RATIO (%)
Operating Profit Margin <5.27> <26.20> <38.82>
Net Profit Margin <5.27> <20.19> <25.28>
Return On Net Assets <2.11> <48.10> <66.99>
Return On Capital Employed <2.10> <20.49> <37.67>
Return On Shareholders' Funds/Equity <49.01> <102.45> <62.95>
Dividend Pay Out Ratio (Times) 0 0 0
NOTES TO
ACCOUNTS
Contingent Liabilities 30,365,000 24,961,000 10,492,000
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2004
HUALON
CORPORATION (M) SDN BHD
2004 2003 2002
RM RM RM
TURNOVER 2,673,821,000 2,204,577,000 2,219,784,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS <202,986,000> <588,987,000> <853,679,000>
Taxation - 135,492,000 299,322,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS <202,986,000> <453,495,000> <554,357,000>
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously reported <316,512,000> 136,983,000 691,340,000
Prior year adjustment - - -
------------------- ------------------- -------------------
As restated <316,512,000> 136,983,000 691,340,000
------------------- ------------------- -------------------
PROFIT AVAILABLE FOR
APPROPRIATIONS <519,498,000> <316,512,000> 136,983,000
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD <519,498,000> <316,512,000> 136,983,000
=========== =========== ===========
RETAINED BY: The Company <519,498,000> <316,512,000> 136,983,000
------------------- ------------------- -------------------
<519,498,000> <316,512,000> 136,983,000
=========== =========== ===========
INTEREST EXPENSE
(as per notes to P&L)
Other interest expenses 73,164,000 201,298,000 -
------------------- ------------------- -------------------
73,164,000 201,298,000 -
=========== =========== ===========
BALANCE
SHEET
As
At 31-December-2004
HUALON
CORPORATION (M) SDN BHD
2004 2003 2002
RM RM RM
ASSETS EMPLOYED:
FIXED ASSETS 2,470,754,000 2,718,218,000 2,918,281,000
LONG TERM
INVESTMENTS/OTHER ASSETS
Subsidiary companies - 63,137,000 63,137,000
Associated companies 12,120,000 12,120,000 12,120,000
Investments - - -
Deferred assets 835,180,000 835,180,000 699,688,000
PREPAYMENTS 682,000 1,816,000 3,449,000
LONG TERM RECEIVABLE 341,601,000 341,601,000 341,601,000
------------------- ------------------- -------------------
TOTAL LONG TERM
INVESTMENTS/OTHER ASSETS 1,189,583,000 1,253,854,000 1,119,995,000
INTANGIBLE
ASSETS
Deferred/Expenditure carried forward - - -
------------------- ------------------- -------------------
TOTAL INTANGIBLE
ASSETS - - -
------------------- ------------------- -------------------
TOTAL LONG TERM ASSETS 3,660,337,000 3,972,072,000 4,038,276,000
CURRENT ASSETS
Stocks 609,949,000 579,649,000 632,260,000
Trade debtors 295,437,000 283,103,000 374,363,000
Other debtors, deposits & prepayments - - -
Short term deposits - - -
Amount due from subsidiary companies - - -
Amount due from associated companies - - -
Cash & bank balances 1,522,000 24,293,000 2,371,000
------------------- ------------------- -------------------
TOTAL CURRENT ASSETS 906,908,000 887,045,000 1,008,994,000
CURRENT
LIABILITIES
Trade creditors 656,274,000 1,423,008,000 1,182,933,000
Other creditors & accruals - - -
Bank overdraft 2,647,000 3,897,000 5,521,000
Short term borrowings/Term loans - 1,143,426,000 1,026,552,000
Other borrowings - 85,000,000 85,000,000
Bill & acceptances payable 225,158,000 545,910,000 632,078,000
Amounts owing to subsidiary companies - - -
Amounts owing to associated companies - - -
Provision for taxation - - -
REVOLVING UNDERWRITING FACILITIES - 822,000,000 822,000,000
AL-BAI BITHAMAN AJIL ISLAMIC - 290,000,000 290,000,000
EXPORT BILL PURCHASE 4,193,000 4,253,000 8,068,000
SCHEME DEBTS 309,846,000 - -
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 1,198,118,000 4,317,494,000 4,052,152,000
------------------- ------------------- -------------------
NET CURRENT ASSETS/(LIABILITIES) <291,210,000> <3,430,449,000> <3,043,158,000>
------------------- ------------------- -------------------
TOTAL NET ASSETS 3,369,127,000 541,623,000 995,118,000
=========== =========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary share capital 858,135,000 858,135,000 858,135,000
------------------- ------------------- -------------------
TOTAL SHARE CAPITAL 858,135,000 858,135,000 858,135,000
RESERVES
Capital reserve - - -
Revaluation reserve - - -
Exchange equalisation/fluctuation reserve - - -
Retained profit/(Accumulated loss) carried
forward <519,498,000> <316,512,000> 136,983,000
------------------- ------------------- -------------------
TOTAL RESERVES <519,498,000> <316,512,000> 136,983,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 338,637,000 541,623,000 995,118,000
LONG TERM &
DEFERRED LIABILITIES & PROVISIONS
Long term loans - - -
Other long term borrowings - - -
SCHEME DEBTS 3,030,490,000 - -
------------------- ------------------- -------------------
TOTAL LONG TERM &
DEFERRED LIABILITIES &
PROVISIONS 3,030,490,000 - -
------------------- ------------------- -------------------
3,369,127,000 541,623,000 995,118,000
=========== =========== ===========
FINANCIAL RATIOS
As
At 31-December-2004
HUALON
CORPORATION (M) SDN BHD
2004 2003 2002
RM RM RM
TYPES OF FUNDS
Cash 1,522,000 24,293,000 2,371,000
Net Liquid Funds <1,125,000> <1,123,030,000> <1,029,702,000>
Net Liquid Assets <901,159,000> <4,010,098,000> <3,675,418,000>
Net Current Assets/(Liabilities) <291,210,000> <3,430,449,000> <3,043,158,000>
Net Tangible Assets 3,369,127,000 541,623,000 995,118,000
Net Monetary Assets <3,931,649,000> <4,010,098,000> <3,675,418,000>
BALANCE SHEET
ITEMS
Total Borrowings 2,647,000 1,232,323,000 1,117,073,000
Total Liabilities 4,228,608,000 4,317,494,000 4,052,152,000
Total Assets 4,567,245,000 4,859,117,000 5,047,270,000
Net Assets 3,369,127,000 541,623,000 995,118,000
Net Assets Backing 338,637,000 541,623,000 995,118,000
Shareholders' Funds 338,637,000 541,623,000 995,118,000
Total Share Capital 858,135,000 858,135,000 858,135,000
Total Reserves <519,498,000> <316,512,000> 136,983,000
LIQUIDITY
(Times)
Cash Ratio 0.00 0.01 0.00
Liquid Ratio 0.25 0.07 0.09
Current Ratio 0.76 0.21 0.25
WORKING CAPITAL
CONTROL (Days)
Stock Ratio 83 96 104
Debtors Ratio 40 47 62
Creditors Ratio 90 236 195
SOLVENCY RATIOS
(Times)
Gearing Ratio 0.01 2.28 1.12
Liabilities Ratio 12.49 7.97 4.07
Times Interest Earned Ratio <1.77> <1.93> 0
PERFORMANCE
RATIO (%)
Operating Profit Margin <7.59> <26.72> <38.46>
Net Profit Margin <7.59> <20.57> <24.97>
Return On Net Assets <3.85> <71.58> <85.79>
Return On Capital Employed <3.85> <22.95> <42.11>
Return On Shareholders' Funds/Equity <59.94> <83.73> <55.71>
Dividend Pay Out Ratio (Times) 0 0 0
NOTES TO
ACCOUNTS
Contingent Liabilities 30,365,000 34,773,000 23,539,000
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |