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MIRA
INFORM REPORT
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Report Date : |
14.08.2007 |
IDENTIFICATION DETAILS
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Name : |
TIOXIDE ( |
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Registered Office : |
Uptown 1, 1 Jalan Ss 21/58, Damansara Uptown, Level 14, 47400 Petaling
Jaya, Selangor, |
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Country : |
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Financials (as on) : |
2005 |
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Date of Incorporation : |
04/08/1982 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing and Trading of Titanium Dioxide |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO :
88183-K
COMPANY NAME :
TIOXIDE (
FORMER NAME : TAPL (
INCORPORATION DATE :
04/08/1982
COMPANY STATUS :
EXIST
LEGAL STATUS :
PRIVATE LIMITED COMPANY
LISTED STATUS :
NO
REGISTERED ADDRESS :
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL
14, 47400 PETALING JAYA,
BUSINESS ADDRESS :
WISMA
PETALING JAYA,
TEL NO :
03 - 79620888
FAX NO :
03 - 79581699/77
CONTACT PERSON :
MIZANUR RAHMAN GHANI (CHAIRMAN)
INDUSTRY CODE :
24290
PRINCIPAL ACTIVITY :
MANUFACTURING AND TRADING OF TITANIUM DIOXIDE
AUTHORISED CAPITAL :
MYR181,000,000.00 DIVIDED INTO ORDINARY SHARE 10,000,000
OF MYR1.00 EACH.
PREFERENCE SHARE 171,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL :
MYR23,875,000.00 DIVIDED INTO ORDINARY SHARE 5,125,000
CASH OF MYR1.00 EACH.
PREFERENCE
SHARE 18,750,000 CASH OF MYR1.00 EACH.
SALES :
MYR663,119,000 [2005]
NET WORTH :
MYR254,526,000 [2005]
M1000 OVERALL RANKING :
293 [2005]
M1000 INDUSTRY RANKING :
12 [2005]
STAFF STRENGTH :
410 [2007]
BANKER (S) :
MALAYAN BANKING BHD
: PUBLIC BANK BHD
LITIGATION :
CLEAR
FINANCIAL CONDITION :
STRONG
PAYMENT :
GOOD
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK :
LOW
CURRENCY EXPOSURE :
HIGH
GENERAL REPUTATION :
GOOD
INDUSTRY OUTLOOK :
AVERAGE GROWTH
HISTORY / BACKGROUND
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) manufacturing and
trading of titanium dioxide.
The SC is not listed on
The SC is one of the Top Corporate Performers in the
According to the
YEAR 2005 2004
OVERALL RANKING 293 276
INDUSTRY RANKING 12 5
The immediate holding company of the SC is HUNTSMAN INVESTMENTS (NETHERLANDS)
B.V, a company in incorporated in
The ultimate holding company of the SC is HUNTSMAN INTERNATIONAL,LLC, a
company in incorporated in UNITED STATES.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
HUNTSMAN INVESTMENT MERSEYWEG
10, 3179 KG, 23,875,000
(
[ORD 5,125,000 & PREF
18,750,000]
--------------------
23,875,000
===========
DIRECTORS
DIRECTOR 1
Name of Subject : MR.
ROZANO BIN SAAD
Address :
106 JALAN PENGKALAN SRI, 24000 KEMAMAN,
IC / PP No. :
5162160
New IC No :
570518-01-6563
Nationality :
MALAYSIAN MALAY
DIRECTOR 2
Name of Subject : DATO'
HJ MIZANUR RAHMAN BIN S M ABDUL GHANI
Address : 8,
JALAN BEKA, BUKIT DAMANSARA, 50490
IC / PP No. :
0663753
New IC No :
451201-10-5291
Nationality :
MALAYSIAN MALAY
DIRECTOR 3
Name of Subject :
Address :
167, WEST 1457,
IC / PP No. :
P055145582
Nationality :
AMERICAN
DIRECTOR 4
Name of Subject : PETER
RILEY HUNTSMAN
Address :
1399, DEVONSHEIRE DR SALT,
IC / PP No. :
P016266255
Nationality :
AMERICAN
DIRECTOR 5
Name of Subject : DARYL
KENNETH WOOD
Address :
THE ISTARA CONDOMINIUM, BLOCK A12-3, 1 LORONG UTARA B, OFF JALAN
UTARA, 46200 PETALING JAYA,
IC / PP No. :
E1027324
Nationality :
AUSTRALIAN
MANAGEMENT
1) Name of Subject : MIZANUR RAHMAN GHANI
Position : CHAIRMAN
2) Name of Subject : DARYL KENNETH WOOD
Position : DIRECTOR
3) Name of Subject : KUMAR RAMU
Position : ACCOUNTANT
4) Name of Subject : KAMARUL NGAH
Position : SENIOR
ACCOUNTANT
5) Name of Subject : WILLIAM WONG
Position : MARKETING
MANAGER
6) Name of Subject : ABDULLAH A. KARIM
Position : HUMAN
RESOURCE MANAGER
7) Name of Subject : ZAMAWI AHMAD
Position : PRODUCTION MANAGER
8) Name of Subject : ROZANO SAAD
Position : SITE
DIRECTOR
9) Name of Subject : LINDA FOO
Position : IT MANAGER
AUDITOR
Auditor :
DELOITTE & TOUCHE
Auditors' Address :
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400
PETALING JAYA,
COMPANY SECRETARY
1) Company Secretary : MR. KUMAR A/L RAMU
IC / PP No. : A0413045
New IC No. : 660413-08-5289
Address : 84 JALAN BK 3/3B,
BANDAR KINRARA, 58200
2) Company Secretary : MS. THAM WAI YING
IC / PP No. : A1008639
New IC No. : 680810-10-6360
Address : 46, JALAN MIDAH 19A, TAMAN MIDAH, 56000
Date of Appointment : 17/02/2004
3) Company Secretary : MS. KUAN HUI FANG
IC / PP No. : A1845678
New IC No. : 710224-10-5204
Address : 23, JALAN BU 3/2,
BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR,
Date of Appointment : 01/03/2007
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN
BANKING BHD
2) Banker Name : PUBLIC
BANK BHD
The SC enjoys normal banking routine with above mentioned banker(s). No
adverse record was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
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
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local :
YES
Overseas :
YES
Import Countries :
UNITED
The SC 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 [ ] Good [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local :
YES Percentage : 25%
Domestic Markets :
PENINSULAR
Overseas :
YES Percentage : 75%
Export Market :
Credit Term : 30
DAYS.
Payment Mode : CHEQUES
, TELEGRAPHIC TRANSFER (TT) , LETTER OF CREDIT (LC).
Type of Customer : END
USERS , CHEMICAL INDUSTRY .
CUSTOMER (S) : 1) LUXCHEM TRADING
SDN BHD
:
2) ICI PAINTS (
:
3) JOTUN (
:
4) NIPPON PAINT (
OPERATIONS
Products Manufactured : TITANIUM
DIOXIDE PIGMENT
Award :
MS ISO 14001 Year : 2000
QUALITY MANAGEMENT EXCELLENCE AWARD BY
MINISTRY OF
INTERNATIONAL TRADE AND INDUSTRY (MITI) Year
: 2003
Competitor(s) :
COGNIS OLEOCHEMICALS (M) SDN BHD TORAY PLASTICS (
NATURAL OLEOCHEMICALS SDN BHD COGNIS RIKA
(M) SDN BHD T.I.P.P. (
Factory/Premises : TELUK
KALUNG INDUSTRIAL ESTATE
KEMAMAN, TERENGGANU.
Tel No
: 09 - 8631688
Fax No
: 09 - 8631988
Ownership of premises : OWNED
Total Number of Employees
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 410 403 400
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)
database, but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client :
N/A
Current Telephone Number :
03-79620888
Match :
N/A
Address Provided By Client :
5TH FLOOR WISMA
SELANGOR
Current Address :
WISMA
JAYA,
Match :
YES
Latest Financial Accounts :
YES
Other Investigations
On 14th August 2007, we conducted an interview with one of the SC's
staff from Admin Department.
She revealed some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Erratic [ 2003-2005 ]
Profit / ( Loss ) before tax : Increased [ 2003-2005 ]
Return on Shareholder Funds : Acceptable [ 25.66% ]
Return on Net Assets : Acceptable [ 12.01% ]
The fluctuating turnover reflects the fierce competition among the
existing and new market players. The SC's management have been efficient in
controlling its operating costs. The SC's management had generated acceptable
return for its shareholders using its assets.
Working Capital Control :
Stocks Ratio : Favourable [ 39 Days ]
Debtors Ratio : Unfavourable [ 79 Days ]
Creditors Ratio : Favourable [ 17 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This
had reduced funds being tied up in stocks. The high debtors' ratio could
indicate that the SC was weak in its credit control. However, the SC could also
giving longer credit periods to its customers in order to boost its sales or to
capture / retain its market share. The SC had a favourable creditors' ratio as
evidenced by its favourable collection days. The SC could be taking advantage
of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity :
Liquid Ratio : Favourable [ 1.34 Times ]
Current Ratio : Unfavourable [ 1.88 Times ]
A minimum liquid ratio of 1 should be maintained by the SC in order to
assure its creditors of its ability to meet short term obligations and the SC
was in a good liquidity position. Thus, we believe the SC is able to meet all its
short term obligations as and when they fall due.
Solvency :
Interest Cover : Favourable [ 391.74
Times ]
Gearing Ratio : Favourable [ 0.01 Times ]
The interest cover showed that the SC was able to service the interest.
The favourable interest cover could indicate that the SC was making enough
profit to pay for the interest accrued. The SC had no gearing and hence it had
virtually no financial risk. The SC was financed by its shareholders' funds and
internally generated fund. During the economic downturn, the SC, having a zero
gearing, will be able to compete better than those which are highly geared in
the same industry.
Overall Assessment :
Although the turnover was erratic, the SC had maintained a steady growth
in its profit. This indicate the management's efficiency in controlling its
costs and profitability.The SC was in good liquidity position with its total
current liabilities well covered by its total current assets. With its current
net assets, the SC should be able to repay its short term obligations.With the
favourable interest cover, the SC could be able to service all the accrued
interest without facing any difficulties.The SC was a zero gearing company, it
was solely dependant on its shareholders to provide funds to finance its business.
The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC: STRONG
COMMENTS
The SC started the business operation in 1982, as a private limited company.
The SC is principally engaged in the manufacturing and trading of titanium
dioxide. With its long presence in the industry coupled with its vast
experiences in the business, the SC should have built up a certain goodwill
with its clients over times. Being backed by a strong established company,
allows the SC to enjoy the benefit of timely financial assistance if the needs
arise. With these favourable conditions, the SC has minimised its risk in the
industry compared to other players. Presently, the SC paid up capital stands at
RM23.87 million.
With its long operating history, the SC's operation has been running
relatively stable. Apart from the domestic market, the SC's customer base has
widened to cover
For the financial year under review, the SC posted a turnover of
RM663.11 million (2004 : RM744.31 million) representing a decreased of
RM81.19million over the previous financial year. However, its pre tax profit
has increased to RM65.64 million in the financial year under review (2004 :
RM61.06 million). The SC has generated an acceptable return on its
shareholders' funds. Besides this, it also has an adequate liquidity position
with its current liabilities well covered by its current assets. With its net
current assets, the SC should be able to repay its short term obligations. A
low gearing ratio has minimised the SC's financial risk. Overall financial
condition is strong.
Besides sourcing its raw materials from the local market, the SC also
imports its raw materials from the other countries such as
Based on our historical financial data, the SC's pattern of payment is
good. The SC is clear of litigation.
The chemical industry remain robust with continuing strong global demand
for its products. The steady growth in the country's economy will further
enhance the chemical industry activities and we believe there will be more
business opportunities available for the SC.
As a result, we recommend that credit be proceeded to the SC promptly.
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT AND LOSS ACCOUNT
For The Year Ended 31-December-2005
TIOXIDE (
2005 2004 2003
MYR MYR MYR
TURNOVER 663,119,000 744,318,000 704,101,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 65,645,000 61,069,000 46,726,000
SHARE
OF PROFITS/(LOSSES) OF ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 65,645,000 61,069,000 46,726,000
Taxation <342,000> <126,000> -
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 65,303,000 60,943,000 46,726,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 65,303,000 60,943,000 46,726,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 65,303,000 60,943,000 46,726,000
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously reported 117,263,000 62,150,000 15,424,000
------------------- ------------------- -------------------
As restated 117,263,000 62,150,000 15,424,000
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 182,566,000 123,093,000 62,150,000
-
General <10,600,000> <5,830,000> -
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 171,966,000 117,263,000 62,150,000
=========== =========== ===========
RETAINED BY:
The Company 171,966,000 117,263,000 62,150,000
------------------- ------------------- -------------------
171,966,000 117,263,000 62,150,000
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term loan 168,000 1,000 -
------------------- ------------------- -------------------
168,000 1,000 -
=========== =========== ===========
BALANCE SHEET
As At 31-December-2005
2005 2004 2003
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED
ASSETS 431,907,000 458,866,000 484,280,000
LONG
TERM INVESTMENTS/OTHER ASSETS
Associated companies 1,250,000 1,250,000 1,250,000
------------------- ------------------- -------------------
TOTAL
LONG TERM INVESTMENTS/OTHER ASSETS 1,250,000 1,250,000 1,250,000
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL
LONG TERM ASSETS 433,157,000 460,116,000 485,530,000
CURRENT
ASSETS
Stocks 71,228,000 60,814,000 60,432,000
Trade debtors 143,934,000 143,600,000 149,062,000
Other debtors, deposits & prepayments 3,272,000 1,067,000 1,863,000
Short term deposits 6,813,000 45,915,000 53,979,000
Items in transit between head office &
branches
Amount due from related companies 322,000 488,000 602,000
Amount due from associated companies 1,270,000 1,199,000 986,000
Cash & bank balances 18,121,000 17,511,000 12,714,000
------------------- ------------------- -------------------
TOTAL
CURRENT ASSETS 244,960,000 270,594,000 279,638,000
CURRENT
LIABILITIES
Trade creditors 30,510,000 25,156,000 29,967,000
Other creditors & accruals 32,012,000 41,314,000 36,291,000
Short term borrowings/Term loans 1,570,000 866,000 -
Amounts owing to related companies 65,587,000 32,854,000 44,041,000
Provision for taxation 303,000 288,000 288,000
Others (please specify) - - 4,222,000
------------------- ------------------- -------------------
TOTAL
CURRENT LIABILITIES 129,982,000 100,478,000 114,809,000
------------------- ------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) 114,978,000 170,116,000 164,829,000
------------------- ------------------- -------------------
TOTAL
NET ASSETS 548,135,000 630,232,000 650,359,000
=========== =========== ===========
FINANCED BY:
SHARE
CAPITAL
Ordinary share capital 5,125,000 5,125,000 5,125,000
------------------- ------------------- -------------------
TOTAL
SHARE CAPITAL 5,125,000 5,125,000 5,125,000
RESERVES
Share premium 45,900,000 45,900,000 45,900,000
Capital reserve 31,535,000 20,935,000 15,105,000
Retained profit/(Accumulated loss) carried
forward 171,966,000 117,263,000 62,150,000
------------------- ------------------- -------------------
TOTAL
RESERVES 249,401,000 184,098,000 123,155,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 254,526,000 189,223,000 128,280,000
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Cumulative redeemable preference shares 293,609,000 441,009,000 522,079,000
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 293,609,000 441,009,000 522,079,000
------------------- ------------------- -------------------
548,135,000 630,232,000 650,359,000
=========== =========== ===========
FINANCIAL RATIOS
As At 31-December-2005
2005 2004 2003
MYR MYR MYR
TYPES
OF FUNDS
Cash 24,934,000 63,426,000 66,693,000
Net Liquid Funds 23,364,000 62,560,000 66,693,000
Net Liquid Assets 43,750,000 109,302,000 104,397,000
Net Current Assets/(Liabilities) 114,978,000 170,116,000 164,829,000
Net Tangible Assets 548,135,000 630,232,000 650,359,000
Net Monetary Assets <249,859,000> <331,707,000> <417,682,000>
BALANCE
SHEET ITEMS
Total Borrowings 1,570,000 866,000 0
Total Liabilities 423,591,000 541,487,000 636,888,000
Total Assets 678,117,000 730,710,000 765,168,000
Net Assets 548,135,000 630,232,000 650,359,000
Net Assets Backing 254,526,000 189,223,000 128,280,000
Shareholders'' Funds 254,526,000 189,223,000 128,280,000
Total Share Capital 5,125,000 5,125,000 5,125,000
Total Reserves 249,401,000 184,098,000 123,155,000
LIQUIDITY
(Times)
Cash Ratio 0.19 0.63 0.58
Liquid Ratio 1.34 2.09 1.91
Current Ratio 1.88 2.69 2.44
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 39 30 31
Debtors Ratio 79 70 77
Creditors Ratio 17 12 16
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.01 0.00 0
Liabilities Ratio 1.66 2.86 4.96
Times Interest Earned Ratio 391.74 61,070.00 0
PERFORMANCE
RATIO (%)
Operating Profit Margin 9.90 8.20 6.64
Net Profit Margin 9.85 8.19 6.64
Return On Net Assets 12.01 9.69 7.18
Return On Capital Employed 11.97 9.68 7.18
Return On Shareholders'' Funds/Equity 25.66 32.21 36.43
Dividend Pay Out Ratio (Times) 0 0 0
NOTES TO ACCOUNTS
Contingent Liabilities 0 0 0
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)