MIRA
INFORM REPORT
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Report Date : |
10.07.2007 |
IDENTIFICATION DETAILS
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Name : |
TITAN TRADING CORP. SDN BHD |
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Registered Office : |
Bangunan |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
27/04/1988 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Sales of Chemical Products |
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 : |
Usually correct |
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Litigation : |
Clear |
* Adopted
abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 170232-H
COMPANY NAME : TITAN TRADING CORP. SDN BHD
FORMER NAME : TITAN POLYETHYLENE (
: ASIA PACIFIC POLYETHYLENE (
(21-03-1989)
: POLIETILENA ASIA PASIFIK (
1988)
INCORPORATION DATE : 27/04/1988
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : BANGUNAN
LUMPUR,
WILAYAH
BUSINESS ADDRESS : PLO 312, JALAN TEMBAGA 4, PASIR
GUDANG INDUSTRIAL
ESTATE,
81700 PASIR GUDANG,
TEL NO : 07 - 2538888
FAX NO : 07 - 2510784/7880
CONTACT PERSON : FAUZI GHANI (FINANCIAL CONTROLLER)
INDUSTRY CODE : 51499
PRINCIPAL ACTIVITY : SALES
OF CHEMICAL PRODUCTS
AUTHORISED CAPITAL : MYR310,000,000.00 DIVIDED INTO
ORDINARY SHARE
310,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR292,500,000.00 DIVIDED INTO
ORDINARY SHARE
292,500,000
CASH OF MYR1.00 EACH.
SALES : MYR16,786,000 [2005]
NET WORTH : MYR140,217,000 [2005]
M1000 OVERALL RANKING : 174 [2004]
M1000 INDUSTRY RANKING : 3 [2004]
STAFF STRENGTH : 20
[2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : AVERAGE GROWTH
PROPOSED CREDIT LIMIT : USD257,727.00
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) sales of chemical products.
The SC is not listed on
The SC is one of the Top Corporate Performers in the
According to the
YEAR 2004
OVERALL RANKING 174
INDUSTRY RANKING 3
The immediate and ultimate holding company of the SC is TITAN CHEMICALS
CORP. BHD, a company in incorporated in
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
TITAN CHEMICALS CORP BHD PLO 312, JALAN TEMBAGA 4, PASIR GUDANG 222357 292,500,000
INDUSTRIAL
ESTATE, 81700 PASIR GUDANG,
--------------------
292,500,000
===========
+ Also
Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. MUHAMMAD FAUZI BIN ABD GHANI
Address : 79, JALAN SELASEH 16,
CAVES,
IC / PP No. : 6385629
New IC No : 620203-02-5329
Date of Birth : 03/02/1962
Nationality : MALAYSIAN MALAY
Date of Appointment : 08/09/2004
DIRECTOR 2
Name of Subject : DATIN ANIM BTE HJ HASSAN
Address : 39, JALAN TEMPINIS 1, BANGSAR, 59100
WILAYAH
IC / PP No. : 4809144
New IC No : 550513-01-5352
Date of Birth : 13/05/1955
Nationality : MALAYSIAN MALAY
Date of Appointment : 05/11/1999
DIRECTOR 3
Name of Subject : DIAU JIA-YIH
Address : 2, MARINE VISTA, #06-73,
IC / PP No. : P131830147
Date of Birth : 24/12/1952
Nationality : CHINESE
Date of Appointment : 01/07/2003
DIRECTOR 4
Name of Subject : THOMAS PATRICK GREHL
Address : 16, JALAN LANGGAK DUTA,
LUMPUR,
WILAYAH
IC / PP No. : P713183672
Nationality : AMERICAN
DIRECTOR 5
Name of Subject : WESLEY RAY VAUGHAN
Address : STRAITS VIEW CONDOMINIUM, BLOCK
D13-E1, 8 JALAN
PERMAS
SELATAN, 81750 MASAI,
IC / PP No. : P710867008
Nationality : AMERICAN
MANAGEMENT
1) Name of Subject : FAUZI
GHANI
Position : FINANCIAL CONTROLLER
2) Name of Subject : ZAKARIA
ABDUL RAHMAN
Position : HUMAN RESOURCE MANAGER
3) Name of Subject : THOMAS
PARTRICK GHREHL
Position : MANAGING DIRECTOR
4) Name of Subject : CHEONG
TENG KHUAN
Position : SALES MANAGER
AUDITOR
Auditor : ERNST & YOUNG
Auditors' Address : MENARA MILENIUM, JALAN DAMANLELA,
PUSAT BANDAR
DAMANSARA,
LEVEL 23A, 50490
COMPANY SECRETARY
1) Company Secretary : MR.
KONG CHOOCK HOON
New IC No. : 600101-01-6001
Address : 92, JALAN DATUK SULAIMAN 6,
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN
BANKING BHD
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 : 17 Dec 2004
Description of Charge : N/A
Amount Secured : N/A
Description of Property Affected : N/A
Name & Address of Chargee : MAYBANK INTERNATIONAL (L) LTD
Form 40 Dated
Registered and Numbered 4 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 17 Dec 2004
Description of Charge : N/A
Amount Secured : o/d
Description of Property Affected : N/A
Name & Address of Chargee : MALAYAN BANKING BHD
Form 40 Dated
Registered and Numbered 5 In The
Register of Charges
ENCUMBRANCE 3
Date of Creation : 17 Dec 2004
Description of Charge : N/A
Amount Secured : N/A
Description of Property Affected : N/A
Name & Address of Chargee : MAYBANK INTERNATIONAL (L) LTD
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
back dated since 1900.
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 :
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 [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES
Domestic Markets :
Overseas : YES
Export Market :
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES , LETTER OF CREDIT (LC).
Type of Customer : PLASTIC MANUFACTURER .
CUSTOMER (S) : 1) GN PACKAGING INDUSTRIES (M) SDN
BHD
: 2) GUOLENE WOVEN PRODUCTS (MELAKA)
SDN BHD
: 3) JP PACKAGING (M) SDN BHD
OPERATIONS
Products Manufactured :
Goods Traded : CHEMICAL PRODUCTS
Competitor(s) : TEXCHEM MATERIALS SDN BHD
TAIKO
MARKETING SDN BHD
MALAYSIAN
INTERNATIONAL TRADING CORPORATION SDN BHD
SAMCHEM
SDN BHD
CHUNG
CHEMICALS SDN BHD
Ownership of premises : OWNED
Production lines : 3
LINES
Shifts : 2 SHIFTS
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 20 20 20 20
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 : 07-2538888
Match : N/A
Address Provided By Client : PLO. 312, JALAN TEMBAGA 4, PASIR
GUDANG
INDUSTRIAL
ESTATE, 81700 PASIR GUDANG,
JOHOR
Current Address : PLO 312, JALAN TEMBAGA 4, PASIR
GUDANG
INDUSTRIAL
ESTATE, 81700 PASIR GUDANG,
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 6th Jul 2007, we conducted an interview with Ms Koo from the SC's
Human Resource Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Decreased [ 2003-2005 ]
Profit / ( Loss ) before tax : Decreased [ 2003-2005 ]
Return on Shareholder Funds : Unfavourable [ 4.14% ]
Return on Net Assets : Unfavourable [ 5.96% ]
The continuous fall in turnover could be due to the lower demand for the
SC's products / services. The SC's profit fell sharply because of the high
operating costs incurred. The unfavourable return on shareholders' funds and
net assets could indicate that the SC's management was inefficient in utilizing
its assets to generate returns.
Working Capital Control :
Stocks Ratio : Nil [ 0 Days ]
Debtors Ratio : Favourable [ 0 Days ]
Creditors Ratio : Favourable [ 1 Days ]
As the SC is a service oriented company, the SC does not need to keep
stocks. The favourable debtors' days could be due to the good credit control
measures implemented by the SC. 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 [ 1.91 Times ]
Current Ratio : Unfavourable [ 1.91 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 [ 363.39
Times ]
Gearing Ratio : Favourable [ 0.00 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 8 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 :
The SC's performance deteriorated over the years with lower turnover and
profit.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: FAIR
COMMENTS
Incorporated in 1988 as a private limited company, the SC is principally
engaged in the sales and marketing of chemical products. Backed by TITAN
CHEMICALS CORP. BHD with huge issued and paid up capital of RM292,500,000, the
SC is expected to enjoy timely financial assistance should the needs arise.
Over the years, the SC's operation has been running relatively stable
since it has a wide marketing network and some potential customers. In order to
reduce its reliance on local market, its started to expand its market to
overseas countries such as
During the financial year 2005, the SC's turnover dropped significantly
by 97.07% from RM572,413,000 to RM16,786,000 whilst its pre-tax profit slipped
from RM194,869,000 to RM8,335,000. Due to its low profitability, the SC has
generated an unfavourable return on shareholders' funds indicating that the
management was inefficient in utilising its funds to generate income. However,
the SC is in good liquidity position as it has sufficient working capital to
meet its short term financial obligations. Being a zero geared company, the SC
virtually has no financial risk as it is mainly dependent on its internal funds
to finance its business needs. Overall, the SC's financial standing is fair.
Besides obtaining its resources locally, the SC also imports from
overseas market. Hence, it is subjected to the
currency fluctuation risk and high operating costs which in turn may
squeeze its profit margin.
However, its long presence in the market enables the SC to build up an
extensive supplier base. As such, it may
not have problems in getting its raw materials.
Based on the historical financial data, we concluded that the SC's
payment habit is average.
The chemical products industry is essentially a supporting industry,
supplying intermediates and inputs to the end-user industries. As the SC's
products are widely applicable in many industries, the SC's future prospect
remains bright.
In view of the above, we recommend credit be granted to the SC normally.
THE
FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
2005 2004 2003
MYR MYR MYR
TURNOVER 16,786,000 572,413,000 1,303,645,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 8,335,000 194,869,000 <30,559,000>
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 8,335,000 194,869,000 <30,559,000>
Taxation <2,533,000> 5,465,000 113,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 5,802,000 200,334,000 <30,446,000>
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 5,802,000 200,334,000 <30,446,000>
Extraordinary
items - 16,076,000 -
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 5,802,000 216,410,000 <30,446,000>
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported <158,085,000> <374,495,000> <344,049,000>
------------------- ------------------- -------------------
As restated <158,085,000> <374,495,000> <344,049,000>
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS <152,283,000> <158,085,000> <374,495,000>
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD <152,283,000> <158,085,000> <374,495,000>
=========== =========== ===========
RETAINED BY:
The Company <152,283,000> <158,085,000> <374,495,000>
------------------- ------------------- -------------------
<152,283,000> <158,085,000> <374,495,000>
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term loan - 25,565,000 35,568,000
Bank
overdraft 23,000 105,000 202,000
Revolving
loans - 4,059,000 5,114,000
Other
interest expenses - - 3,254,000
banker's
acceptances - 2,363,000 -
bills payable - 214,000 -
------------------- ------------------- -------------------
23,000 32,306,000 44,138,000
=========== =========== ===========
BALANCE SHEET
As
At 31-December-2005
2005 2004 2003
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED
ASSETS 524,000 802,000 1,308,403,000
LONG
TERM INVESTMENTS/OTHER ASSETS
------------------- ------------------- -------------------
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL
LONG TERM ASSETS 524,000 802,000 1,308,403,000
CURRENT
ASSETS
Stocks - - 120,804,000
Trade
debtors - 98,000 229,717,000
Other
debtors, deposits & prepayments 510,000 1,199,000 8,099,000
Short
term deposits 1,235,000 8,891,000 -
Items
in transit between head office & branches
Deposits
with financial institutions - - 3,949,000
Amount
due from holding company 1,308,000 1,308,000 334,000
Amount
due from related companies 290,058,000 388,975,000 1,594,000
Cash
& bank balances 731,000 959,000 676,000
------------------- ------------------- -------------------
TOTAL
CURRENT ASSETS 293,842,000 401,430,000 365,173,000
CURRENT
LIABILITIES
Trade
creditors 66,000 66,000 3,558,000
Other
creditors & accruals 3,463,000 8,458,000 43,068,000
Bank
overdraft 588,000 - 8,689,000
Short
term borrowings/Term loans - - 134,436,000
Other
borrowings - 16,000,000 116,000,000
Bill
& acceptances payable - 32,391,000 102,600,000
Amounts
owing to related companies 149,887,000 210,902,000 429,698,000
Provision
for taxation 145,000 - -
------------------- ------------------- -------------------
TOTAL
CURRENT LIABILITIES 154,149,000 267,817,000 838,049,000
------------------- ------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) 139,693,000 133,613,000 <472,876,000>
------------------- ------------------- -------------------
TOTAL
NET ASSETS 140,217,000 134,415,000 835,527,000
=========== =========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary share capital 292,500,000 292,500,000 292,500,000
------------------- ------------------- -------------------
TOTAL
SHARE CAPITAL 292,500,000 292,500,000 292,500,000
RESERVES
Revaluation
reserve - - 16,076,000
Retained profit/(Accumulated loss)
carried
forward <152,283,000> <158,085,000> <374,495,000>
------------------- ------------------- -------------------
TOTAL
RESERVES <152,283,000> <158,085,000> <358,419,000>
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 140,217,000 134,415,000 <65,919,000>
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Long
term loans - - 895,964,000
Deferred
taxation - - 5,482,000
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS - - 901,446,000
------------------- ------------------- -------------------
140,217,000 134,415,000 835,527,000
=========== =========== ===========
FINANCIAL RATIOS
As At 31-December-2005
2005 2004 2003
MYR MYR MYR
TYPES
OF FUNDS
Cash 1,966,000 9,850,000 676,000
Net
Liquid Funds 1,378,000 9,850,000 <142,449,000>
Net
Liquid Assets 139,693,000 133,613,000 <593,680,000>
Net
Current Assets/(Liabilities) 139,693,000 133,613,000 <472,876,000>
Net
Tangible Assets 140,217,000 134,415,000 835,527,000
Net
Monetary Assets 139,693,000 133,613,000 <1,495,126,000>
BALANCE
SHEET ITEMS
Total
Borrowings 588,000 16,000,000 1,155,089,000
Total
Liabilities 154,149,000 267,817,000 1,739,495,000
Total
Assets 294,366,000 402,232,000 1,673,576,000
Net
Assets 140,217,000 134,415,000 835,527,000
Net
Assets Backing 140,217,000 134,415,000 <65,919,000>
Shareholders''
Funds 140,217,000 134,415,000 <65,919,000>
Total
Share Capital 292,500,000 292,500,000 292,500,000
Total
Reserves <152,283,000> <158,085,000> <358,419,000>
LIQUIDITY
(Times)
Cash
Ratio 0.01 0.04 0.00
Liquid
Ratio 1.91 1.50 0.29
Current
Ratio 1.91 1.50 0.44
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 0 0 34
Debtors
Ratio 0 0 64
Creditors
Ratio 1 0 1
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0.00 0.12 <17.52>
Liabilities
Ratio 1.10 1.99 <26.39>
Times
Interest Earned Ratio 363.39 7.03 0.31
PERFORMANCE
RATIO (%)
Operating
Profit Margin 49.65 34.04 <2.34>
Net
Profit Margin 34.56 35.00 <2.34>
Return
On Net Assets 5.96 169.01 1.63
Return
On Capital Employed 5.94 169.01 1.39
Return
On Shareholders'' Funds/Equity 4.14 149.04 46.19
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/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 |
|
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%)