MIRA
INFORM REPORT
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Report Date : |
16.08.2007 |
IDENTIFICATION DETAILS
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Name : |
WANGSAGA INDUSTRIES SDN BHD |
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Registered Office : |
51-21-A, Menara Bhl Bank, Jalan Sultan Ahmad Shah, 10500 Pulau Pinang, Pulau Pinang, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
21/06/1995 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Pvc Product |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
COMPANY NAME :
WANGSAGA INDUSTRIES SDN BHD
FORMER NAME :
TEK SENG
INCORPORATION DATE :
21/06/1995
COMPANY STATUS :
EXIST
LEGAL STATUS :
PRIVATE LIMITED COMPANY
LISTED STATUS :
NO
REGISTERED ADDRESS :
51-21-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10500
PULAU PINANG, PULAU
BUSINESS ADDRESS :
PLOT 159, MK 13, JALAN PERINDUSTRIAN BAKIT MINYAK 7, BUKIT
TEL NO :
04 - 5075808
FAX NO :
04 - 5075804
CONTACT PERSON :
LOH KOK CHENG (DIRECTOR)
INDUSTRY CODE :
25209
PRINCIPAL ACTIVITY :
MANUFACTURING OF PVC PRODUCT
AUTHORISED CAPITAL :
MYR10,000,000.00 DIVIDED INTO ORDINARY SHARE 10,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL :
MYR10,000,000.00 DIVIDED INTO ORDINARY SHARE 9,600,000
CASH AND 400,000 OTHERWISE OF MYR1.00 EACH.
SALES :
MYR79,664,185 [2005]
NET WORTH :
MYR30,968,391 [2005]
STAFF STRENGTH :
330 [2007]
BANKER (S) :
UNITED OVERSEAS BANK (
LITIGATION :
CLEAR
FINANCIAL CONDITION :
LIMITED
PAYMENT :
N/A
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK :
MODERATE
CURRENCY EXPOSURE :
MODERATE
GENERAL REPUTATION :
SATISFACTORY
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 of pvc
product.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate Performers in the
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc No: Shareholding
TEK SENG HOLDINGS BHD 579572 10,000,000
--------------------
10,000,000
===========
DIRECTORS
DIRECTOR 1
Name of Subject : MR.
LOH KOK CHENG
Address :
38, LEBUH PRESGRAVE, 10300
IC / PP No. :
A0732805
New IC No :
670804-07-5087
Date of Birth :
04/08/1967
Nationality :
MALAYSIAN CHINESE
Date of Appointment :
21/06/1995
DIRECTOR 2
Name of Subject : MR.
LOH KOK BENG
Address :
38, LEBUH PRESGRAVE, 10300
IC / PP No. :
A0409412
New IC No :
660415-07-5199
Date of Birth :
15/04/1966
Nationality :
MALAYSIAN CHINESE
Date of Appointment :
21/06/1995
MANAGEMENT
1) Name of Subject : LOH KOK CHENG
Position : DIRECTOR
2) Name of Subject : HO HOCK CHYE
Position : SALES
MANAGER
AUDITOR
Auditor :
UHY DIONG
Auditors' Address :
COMPANY SECRETARY
Company Secretary : MR. LEE
PENG LOON
IC / PP No. :
4092111
New IC No. :
501110-07-5149
Address :
53, JALAN DEVA PADA, 10400 PULAU PINANG, PULAU
Date of Appointment :
26/05/2000
BANKING
Banking relations are maintained principally with :
Banker Name : UNITED
OVERSEAS BANK (
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 15
Jan 2001
Description of Charge :
OPEN CHARGE
Amount Secured :
O/D
Description of Property Affected :
N/A
Name & Address of Chargee :
UNITED OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 1 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 20
Aug 2003
Description of Charge :
OPEN CHARGE
Amount Secured :
O/D
Description of Property Affected :
N/A
Name & Address of Chargee :
UNITED OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 4 In The
Register of Charges
ENCUMBRANCE 3
Date of Creation : 20
Aug 2003
Description of Charge :
N/A
Amount Secured :
RM 1,800,000.00
Description of Property Affected :
N/A
Name & Address of Chargee :
UNITED OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 5 In The
Register of Charges
ENCUMBRANCE 4
Date of Creation : 20
Aug 2003
Description of Charge :
N/A
Amount Secured :
RM 1,800,000.00
Description of Property Affected :
N/A
Name & Address of Chargee :
UNITED OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 6 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
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
CLIENTELE
Local :
YES Percentage : 60%
Domestic Markets :
Overseas :
YES Percentage : 40%
Export Market :
MIDDLE EAST COUNTRIES , AFRICA ,
Credit Term : 30
- 60 DAYS.
Payment Mode : CHEQUES
, TELEGRAPHIC TRANSFER (TT) , LETTER OF CREDIT (LC).
Type of Customer :
DISTRIBUTORS , MANUFACTURING INDUSTRIES .
OPERATIONS
Products Manufactured :
PVC PRODUCTS
Competitor(s) :
NYLEX (
TITAN
PETCHEM (M) SDN BHD
LUSTER
INDUSTRIES BHD
GREEN POINT
PRECISION (M) SDN BHD
TORAY BASF
PBT RESIN SDN BHD
Shifts :
3 SHIFTS
Total Number of Employees :
YEAR 2007
GROUP N/A
COMPANY 330
Branch :
NO
Other Information :
The SC is principally engaged in the (as a / as an) manufacturing of pvc
product.
The PVC products are used mainly in the following industries:
1) Stationery products
2) Funitures and fittings
3) Floorings.
The SC has invested in state-of-the-art equipment including calendering
machines which enables all the plastic products to be protected; PVC film
production equipment lamintation machines, printing and flocking machines.
With high-tech production facilities, the SC produces a wide range of
PVC products which are practical, durable and economical.
The products range include packing films, pattern printed plastic
sheets, table cloths, shower curtains, raincoats, inflatable toys, advertising
banners and PVC leathers.
The SC's PVC leather products goes into fabrication of bags, diaries,
shoes, car seats and others.
Besides that the SC also produces floor covering in various designs,colours
and styles that range from classic, geomatric to floral tosuit varoius
environments.
The SC has a Sales Office in
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 :
04-5075808
Current Telephone Number :
04-5075808
Match :
YES
Address Provided By Client :
PLOT 159, MK13, JLN PERINDUSTRIAN BKT MINYAK 7, BKT
Current Address :
PLOT 159, MK 13, JALAN PERINDUSTRIAN BAKIT MINYAK 7, BUKIT
Match :
YES
Latest Financial Accounts :
YES
Other Investigations
On 15th August 2007, we conducted an interview with one of the staff
from the SC's Human Resource Department. She revealed some information pertaining
to the SC.
FINANCIAL COMMENTS
The financial summary of the SC in Year 2005 showed that it was
financially LIMITED. The SC generated an acceptable return on shareholder's
fund indicating that the SC was efficient in utilising its shareholders' funds
to generate favourable returns. However due to its weak liquidity position, the
SC will be faced with problems in meeting all its short term obligations if no
short term loan is obtained or additional capital injected into the SC. The SC
has high liabilities ratio and it may face financial difficulties if no
additional capital is injected.
Overall financial condition of the SC: LIMITED
COMMENTS
Established in 1995, the SC is principally engaged in the manufacturing
of pvc products. 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 client over times. With an adequate share capital of RM10 million, the
SC has the potential of expanding its business in future.
Our investigation revealed that the SC serves both local and overseas
clients. Penetrating into the overseas countries such as Middle East Countries,
Africa,
For the financial year ended 31 December 2005, the SC recorded pre-tax
profit of RM8.1 million on the back of RM79.66 million in turnover. The SC
generated an acceptable return on shareholder's fund indicating that the SC was
efficient in utilising its shareholders' funds to generate favourable returns.
However the SC posted a weak liquidity position, the SC will be faced with
problems in meeting all its short term obligations if no short term loan is
obtained or additional capital injected into the SC. The SC has high liabilities
ratio and it may face financial difficulties if no additional capital is
injected. Nevertheless the SC should be able to maintain its business in the
near term, given a positive net worth standing at RM30.96 million.
Investigation revealed that the SC's supplies are sourced from both
local and overseas suppliers. Hence,
the SC is subjected to currency fluctuation risk and high operating costs.
The SC is clear of litigation.
The industry remains robust with
continuing strong global demand for its products. With the promising outlook of
the industry performance, the SC's business potential should be favourable.
Nonetheless, the SC should adopt better competitive strategies in order to
sustain its business position and to compete with other well established
players in the same industry.
In view of the above we recommend credit be granted to the SC normally.
FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH
PROFIT AND LOSS ACCOUNT
WANGSAGA INDUSTRIES SDN BHD
31-December-2005
Consolidated Accounts : No
UnQualified Reports : Yes
RM
Turnover 79,664,185.00
Operating
Revenue 0.00
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Profit
/ (Loss) Before Tax 8,100,794.00
----------------------------
Profit
/ (Loss) After Tax 5,821,949.00
Extraordinary
Item 0.00
Minority
Interest 0.00
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Profit/(Loss)
Attributable to Shareholders 5,821,949.00
----------------------------
Prior
Period Adjustment 0.00
Net
Dividend 500,000.00
Transferred
To/From Reserved 0.00
Others 0.00
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Unappropriated
Profit/(Loss) Brought Forward 15,646,442.00
----------------------------
Unappropriated
Profit/(Loss) Carried Forward 20,968,391.00
================
BALANCE SHEET
WANGSAGA INDUSTRIES SDN BHD
31-December-2005
Consolidated Accounts : No
UnQualified Reports : Yes
RM
Fixed
Assets 78,335,437.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 26,194,041.00
Intangible
Assets 0.00
Other
Assets 0.00
----------------------------
Total
Assets 104,529,478.00
================
Working
Capital <
33,045,751.00 >
Issued
Capital 10,000,000.00
Paid
Up Capital 10,000,000.00
Share
Premium & Reserved 0.00
Unappropriated
Profit/(Loss) 20,968,391.00
----------------------------
Shareholder's
Fund/Equity 30,968,391.00
----------------------------
Current
Liabilities 59,239,792.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 14,321,295.00
Share
Application Account 0.00
Minority
Interest 0.00
----------------------------
Total
Equity Liability 104,529,478.00
================
Contingent
Liabilities 0.00
PROFIT AND LOSS
ACCOUNT
For The Year Ended 31-December-2004
WANGSAGA INDUSTRIES SDN BHD
2004 2003 2002
MYR MYR MYR
TURNOVER 53,627,703 37,035,534 27,568,229
=========== =========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 9,531,479 6,363,950 4,949,214
Taxation <2,649,789> <1,900,000> <1,368,000>
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 6,881,690 4,463,950 3,581,214
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously reported 8,764,752 4,300,802 719,588
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 15,646,442 8,764,752 4,300,802
------------------- ------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 15,646,442 8,764,752 4,300,802
=========== =========== ===========
RETAINED
BY: The Company 15,646,442 8,764,752 4,300,802
------------------- ------------------- -------------------
15,646,442 8,764,752 4,300,802
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term loan 732,423 879,622 804,699
Bank overdraft 7,088 23,569 9,447
Revolving loans 59,293 45,468 -
Hire purchase 38,512 182,890 341,782
Others (Please specify) - - 668,787
------------------- ------------------- -------------------
837,316 1,131,549 1,824,715
=========== =========== ===========
BALANCE SHEET
As At 31-December-2004
WANGSAGA INDUSTRIES SDN BHD
2004 2003 2002
MYR MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 60,169,220 49,545,085 40,873,377
CURRENT
ASSETS
Stocks 15,043,555 10,312,426 5,693,479
Trade debtors 6,410,200 2,560,210 2,235,598
Other debtors, deposits & prepayments 3,273,260 424,344 883,521
Amount due from related companies 65,327 - -
Cash & bank balances 24,879 374,325 94,490
Tax recoverable 75,020 77,809 46,000
------------------- ------------------- -------------------
TOTAL
CURRENT ASSETS 24,892,241 13,749,114 8,953,088
CURRENT
LIABILITIES
Trade creditors 4,888,782 2,439,235 2,167,209
Other creditors & accruals 1,511,951 1,549,451 1,147,059
Hire purchase & lease creditors 111,405 1,024,442 1,744,251
Bank overdraft 86,033 - 164,764
Short term borrowings/Term loans 5,723,400 4,114,075 3,022,588
Bill & acceptances payable 5,353,842 7,907,988 -
Deposits & balances of banks &
agents - - 5,598,000
Amounts owing to related companies 35,464,279 15,050,152 11,896,163
Amounts owing to director - - 91,759
Revolving credits 758,975 1,211,331 -
------------------- ------------------- -------------------
TOTAL
CURRENT LIABILITIES 53,898,667 33,296,674 25,831,793
------------------- ------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) <29,006,426> <19,547,560> <16,878,705>
------------------- ------------------- -------------------
TOTAL
NET ASSETS 31,162,794 29,997,525 23,994,672
=========== =========== ===========
FINANCED BY
SHARE
CAPITAL
Ordinary share capital 10,000,000 10,000,000 9,500,000
------------------- ------------------- -------------------
TOTAL
SHARE CAPITAL 10,000,000 10,000,000 9,500,000
RESERVES
Retained profit/(Accumulated loss) carried
forward 15,646,442 8,764,752 4,300,802
------------------- ------------------- -------------------
TOTAL
RESERVES 15,646,442 8,764,752 4,300,802
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 25,646,442 18,764,752 13,800,802
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Long term loans - 8,331,354 8,078,934
Hire purchase creditors 16,352 48,419 912,936
Deferred taxation 5,500,000 2,853,000 1,202,000
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 5,516,352 11,232,773 10,193,870
------------------- ------------------- -------------------
31,162,794 29,997,525 23,994,672
=========== =========== ===========
FINANCIAL RATIOS
As At 31-December-2004
WANGSAGA INDUSTRIES SDN BHD
2004 2003 2002
MYR MYR MYR
TYPES OF FUNDS
Cash 24,879 374,325 94,490
Net Liquid Funds <5,784,554> <3,739,750> <3,092,862>
Net Liquid Assets <44,049,981> <29,859,986> <22,572,184>
Net Current Assets/(Liabilities) <29,006,426> <19,547,560> <16,878,705>
Net Tangible Assets 31,162,794 29,997,525 23,994,672
Net Monetary Assets <49,566,333> <41,092,759> <32,766,054>
BALANCE
SHEET ITEMS
Total Borrowings 5,937,190 13,518,290 13,923,473
Total Liabilities 59,415,019 44,529,447 36,025,663
Total Assets 85,061,461 63,294,199 49,826,465
Net Assets 31,162,794 29,997,525 23,994,672
Net Assets Backing 25,646,442 18,764,752 13,800,802
Shareholders' Funds 25,646,442 18,764,752 13,800,802
Total Share Capital 10,000,000 10,000,000 9,500,000
Total Reserves 15,646,442 8,764,752 4,300,802
LIQUIDITY
(Times)
Cash Ratio 0.00 0.01 0.00
Liquid Ratio 0.18 0.10 0.13
Current Ratio 0.46 0.41 0.35
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 102 102 75
Debtors Ratio 44 25 30
Creditors Ratio 33 24 29
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.23 0.72 1.01
Liabilities Ratio 2.32 2.37 2.61
Times Interest Earned Ratio 12.38 6.62 3.71
PERFORMANCE
RATIO (%)
Operating Profit Margin 17.77 17.18 17.95
Net Profit Margin 12.83 12.05 12.99
Return On Net Assets 33.27 24.99 28.23
Return On Capital Employed 27.96 21.33 23.42
Return On Shareholders' Funds/Equity 26.83 23.79 25.95
Dividend Pay Out Ratio (Times) 0 0 0
NOTES
TO ACCOUNTS
Contingent Liabilities 0 0 0
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)