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MIRA
INFORM REPORT
|
Report Date : |
6th
February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
HUALON CORPORATION (M) SDN BHD |
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|
|
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Formerly
Known As : |
HUALON CORPORATION (M) BHD (27-02-1999) |
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|
|
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Registered Office : |
Setia 1, 15 Lrg Dungun, D''sara Heights, Level 7 50490, Kuala Lumpur, Malaysia |
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Country : |
Malaysia |
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|
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Date of Incorporation : |
26/10/1989 |
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Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Manufacturers 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 |
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|
|
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Payment Behaviour : |
Unknown |
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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 |
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FAX NO |
20315000 |
|
WEB SITE |
info@hualon.com |
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CONTACT PERSON |
DATO OUNG YU MING (CHAIRMAN) |
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INDUSTRY CODE |
32190 |
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PRINCIPAL ACTIVITY |
MANUFACTURER OF TEXTILES & FIBRE PRODUCTS |
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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
50200
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,
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
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|