|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
42683-P
|
|
COMPANY NAME
|
:
|
TG ORIENTAL STEEL SDN BHD
|
|
FORMER NAME
|
:
|
TG ENGINEERING
SDN BHD (21/02/2007)
TATT GIAP ENGINEERING SDN BHD (30/01/2002)
ULTIMATE ENTERPRISE
SDN BHD
|
|
INCORPORATION DATE
|
:
|
23/10/1978
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
45, JALAN PERAK, 10150 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 1617, LORONG PERUSAHAAN MAJU 6, PRAI INDUSTRIAL ESTATE IV, 13600
PRAI, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-5021155
|
|
FAX.NO.
|
:
|
04-5021100
|
|
EMAIL
|
:
|
oriental@tattgiap.com.my
|
|
WEB SITE
|
:
|
www.tgoriental.com
|
|
CONTACT PERSON
|
:
|
SIAH KOK POAY ( PRESIDENT )
|
|
INDUSTRY CODE
|
:
|
27100
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURER OF STEEL PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
MYR
5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
1,500,000.00 DIVIDED INTO
ORDINARY SHARES 1,500,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 10,856,613
[2009]
|
|
NET WORTH
|
:
|
MYR 990,401
[2009]
|
|
STAFF STRENGTH
|
:
|
200 [2011]
|
|
BANKER (S)
|
|
ALLIANCE BANK
MALAYSIA BHD
CIMB BANK BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD1,000.00
|
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) manufacturer of steel products.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MR. SIAH KOK POAY +
|
6, LORONG TAMBUN INDAH 5, TAMAN TAMBUN INDAH, 14100 SIMPANG AMPAT,
PULAU PINANG, MALAYSIA.
|
541010-07-5615
4671321
|
875,000.00
|
|
MS. TAN LU ENG +
|
22, LORONG CENGKEH 5, TAMAN CENGKEH, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
641004-07-5764
7439151
|
125,000.00
|
|
SIXIS RESOURCES SDN BHD
|
11-3-6, NEW BOB CENTRE, JALAN GOTTLIEB, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
789439
|
500,000.00
|
|
|
|
|
---------------
|
|
|
|
|
1,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. TAN CHENG MENG
|
|
Address
|
:
|
50, LEBUH BINJAI 2, TAMAN SRI RAMBAI, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
4357334
|
|
New IC No
|
:
|
521016-07-5167
|
|
Date of Birth
|
:
|
16/10/1952
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
29/05/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. SIAH CHIN JOO
|
|
Address
|
:
|
30, MEDAN PANTAI JERJAK 6, 11900
BAYAN LEPAS, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
A3199815
|
|
New IC No
|
:
|
760106-07-5521
|
|
Date of Birth
|
:
|
06/01/1976
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
06/06/2007
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. SIAH CHIN HOO
|
|
Address
|
:
|
6, LORONG TAMBUN INDAH 5, TAMAN TAMBUN INDAH, 14100 SIMPANG AMPAT,
PULAU PINANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
840614-07-5229
|
|
Date of Birth
|
:
|
14/06/1984
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
06/03/2008
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MS. TAN LU ENG
|
|
Address
|
:
|
22, LORONG CENGKEH 5, TAMAN CENGKEH, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
7439151
|
|
New IC No
|
:
|
641004-07-5764
|
|
Date of Birth
|
:
|
04/10/1964
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
12/05/1992
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. SIAH KOK POAY
|
|
Address
|
:
|
6, LORONG TAMBUN INDAH 5, TAMAN TAMBUN INDAH, 14100 SIMPANG AMPAT,
PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
4671321
|
|
New IC No
|
:
|
541010-07-5615
|
|
Date of Birth
|
:
|
10/10/1954
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
06/01/1999
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
SIAH KOK POAY
|
|
|
Position
|
:
|
PRESIDENT
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
YEOH KHYE HWA
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
AKHBAR BIN HASSAN
|
|
|
Position
|
:
|
PRODUCTION MANAGER
|
AUDITOR
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
KPMG TOWER, 8
FIRST AVENUE, BANDAR UTAMA, 47800 PETALING
JAYA, SELANGOR, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. YEOH WEE LEE
|
|
|
IC / PP No
|
:
|
A0732962
|
|
|
New IC No
|
:
|
670805-07-5097
|
|
|
Address
|
:
|
2B-16-7, BAYSWATER RESORT CONDOMINIUM, JALAN TENGKU KUDIN 2, 11700
GELUGOR, PULAU PINANG, MALAYSIA.
|
|
2)
|
Company Secretary
|
:
|
MR. KONG FAM KWAN @ KONG HWAN KWAN
|
|
|
IC / PP No
|
:
|
4487472
|
|
|
New IC No
|
:
|
530922-07-5577
|
|
|
Address
|
:
|
45, JALAN PERAK, 10150 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
ALLIANCE BANK MALAYSIA
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
|
:
|
12/04/2004
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM1,391,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ALLIANCE ISLAMIC
BANK BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
12/04/2004
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM1,391,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ALLIANCE ISLAMIC
BANK BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
15/05/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,800,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ALLIANCE BANK MALAYSIA
BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
15/05/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM2,400,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ALLIANCE ISLAMIC
BANK BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register of Charges
|
ENCUMBRANCE 5
|
Date of Creation
|
:
|
26/02/2008
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of the
wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
SOURCES OF RAW
MATERIALS:
Local : YES
Overseas : YES
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
KINSTEEL BHD
|
|
LION CORPORATION BHD
|
|
LION INDUSTRIES CORPORATION BHD
|
|
MEGASTEEL SDN BHD
|
|
PERWAJA STEEL SDN BHD
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
|
|
|
|
|
|
GROUP
|
200
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
37
|
200
|
200
|
220
|
218
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer of steel
products.
We were informed that the SC procudes cold drawn and polished stailess steel
rod bars and mild steel bars.
The SC utilizes advanced automated and semi-automated machineries to ensure
production of high quality products.
The SC's products are used in the machineries, automotives and others.
PROJECTS
No projects found in our databank
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
|
:
|
045021155
|
|
Current Telephone Number
|
:
|
04-5021155
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
1617 LORONG PARUSAHAAN MSIU 6, PRAT INDUSTRIAL ESTATE IV, 13600 PRAI
PENANG
|
|
Current Address
|
:
|
LOT 1617, LORONG PERUSAHAAN MAJU 6, PRAI INDUSTRIAL ESTATE IV, 13600
PRAI, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Ms Evelyn from the SC's Admin Department. She
revealed some information pertaining to the SC.
FINANCIAL COMMENTS
The financial
summary of the SC in Year 2009 showed that it was financially POOR. The SC
has generated an unfavourable return on its shareholders' funds, indicating
that the SC did not generate an acceptable amount of profits based on its
existing shareholders' funds. Due to its weak liquidity position, the SC will
be face 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 : POOR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
27100 : Manufacture of basic iron and steel products
|
|
|
|
|
INDUSTRY :
|
IRON & STEEL
|
|
Domestic steel usage is projected to grow at only 5 per cent to 7.5 million
tonnes in year 2010 which lower than an earlier forecast of 8-10 per cent
growth.
|
|
According to the Malaysian Iron and Steel Industry Federation (Misif), Malaysia is
estimated to consume 7.5 million tonnes of steel in 2010 compared with 7.1
million tonnes of the year 2009. There will be growth but the rate will be
subdued.
|
|
The 10th Malaysia Plan (2011 to 2015) should provide a strategic market for
local steel consumption as exports would be very competitive in the years
ahead. Malaysia's
steel industry has always imported more than it exported.
|
|
Malaysia's steel industry
has slackened in its growth in recent years and is now overtaken by Thailand and Vietnam. While there is no
necessity to play catch-up in quantitative terms, there are still
opportunities to improve the sector.
|
|
Misif also wants the government to conduct a mid-term review of the third Industrial
Master Plan (IMP) and review certain policies. The IMP should be
streamlined with steel policies so that the industry would not be driven by
more than one directive.
|
|
China
is the world biggest producer and consumer of steel. The Chinese government's
financial and environment policies have an influence on Malaysia's
steel output and imports. In June 2010, the Chinese government signalled a
more flexible yuan currency exchange and ditch a dollar peg.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1978 as a private limited company, the SC is
principally engaged as a manufacturer of steel products. With experiences for
about 33 years in the industry, the SC's operation has been running
relatively stable since it has built up a relatively sound and stable
clientele base which has contributed to its business growth. With RM1.5
million in issued and paid up capital, the SC has the potential of
capturing a higher market shares as it is competing aggressively in the
market.
|
|
At present, local market remains the SC's biggest market. It depends solely
on the sales in the domestic market to achieve profitability. Any adverse
developments in the economic environment and uncertainties in Malaysia
could materially and adversely affect the business prospects of the SC. As
such, its business risk is high compared to export oriented companies. The
SC is a large entity with a work force of 200 staff in its operations.
Overall, we regard that the SC's management capability is average.
|
|
For the year ended 2009, the SC recorded a total turnover of RM10.85
million and it has suffered pre-tax losses of RM201,721. Due to these
losses, the SC has generated an unfavourable return on shareholders' funds
indicating that the management was inefficient in utilising its funds to
generate return. Besides, the SC possesses a weak liquidity position and we
believe that the SC may face some difficulties in meeting its short term
financial obligations. Moreover, the SC has a high liability ratio which
has placed the SC at high financial risk. The SC had a poor financial
performance in year 2009.
|
|
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. As a result, the SC is exposed to foreign
currency fluctuation risk.
|
|
The industry expects to enjoy a marginal growth in the near term. As the market
competition is tight, the SC should adopt more marketing strategies in
order to retain its market position as well as compete with other well
established players in the same field.
|
|
In view of the above, we recommend that credit be proceeded to the SC with
guarantee.
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA
ACCOUNTING STANDARD.
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
|
TG ORIENTAL STEEL SDN BHD
|
|
31-December-2009
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Turnover
|
10,856,613.00
|
|
Operating Revenue
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Before Tax
|
<201,721.00>
|
|
|
---------------------
|
|
|
|
Profit/(Loss) After Tax
|
<270,344.00>
|
|
Extraordinary Item
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Attributable to Shareholders
|
<270,344.00>
|
|
|
---------------------
|
|
|
|
Prior Period Adjustment
|
0.00
|
|
Net Dividend
|
0.00
|
|
Transferred To/From Reserved
|
0.00
|
|
Others
|
0.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Brought Forward
|
<239,255.00>
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Carried Forward
|
<509,599.00>
|
|
|
================
|
|
|
|
BALANCE SHEET
|
|
TG ORIENTAL STEEL SDN BHD
|
|
31-December-2009
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Fixed Assets
|
6,914,119.00
|
|
Total Investment
|
0.00
|
|
Amount Owing By
|
0.00
|
|
Current Assets
|
10,260,114.00
|
|
Intangible Assets
|
0.00
|
|
Other Assets
|
0.00
|
|
|
---------------------
|
|
Total Assets
|
17,174,233.00
|
|
|
================
|
|
|
|
|
Working Capital
|
<4,777,000.00>
|
|
|
|
|
Issued Capital
|
1,500,000.00
|
|
Paid Up Capital
|
1,500,000.00
|
|
Share Premium & Reserved
|
0.00
|
|
Unappropriated Profit/(Loss)
|
<509,599.00>
|
|
|
---------------------
|
|
Shareholder's Fund/Equity
|
990,401.00
|
|
|
---------------------
|
|
|
|
Current Liabilities
|
15,037,114.00
|
|
Amount Owing To
|
0.00
|
|
Long-term and Deferred Liabilities
|
1,146,718.00
|
|
Share Application Account
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Total Equity Liability
|
17,174,233.00
|
|
|
================
|
|
|
|
|
Contingent Liabilities
|
0.00
|
|
|
|
