MIRA
INFORM REPORT
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Report Date : |
18.11.2011 |
IDENTIFICATION DETAILS
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Name : |
HOVID BERHAD |
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Registered Office : |
121 Jalan Tunku Abdul Rahman Ipoh Perak Darul Ridzuan 30010 |
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Country : |
Malaysia |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
20.05.1980 |
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Com. Reg. No.: |
58476-A |
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Legal Form : |
Public Company Limited By Shares |
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Line of Business : |
Manufacture of pharmaceutical and herbal products. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 220,000 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Malaysia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
IDENTIFICATION DETAILS
Verified Address
Subject name : HOVID BERHAD
Business address : 121
Jalan Tunku Abdul Rahman
Town : Ipoh
Province : Perak Darul Ridzuan
Zip/postal code : 30010
Country : Malaysia
Tel : +60 5 5060690
Fax : +60 5 5061215
Email : info@hovid.com
Website : www.hovid.com
Registered address : 121
Jalan Tunku Abdul Rahman
Town : Ipoh
Province : Perak Darul Ridzuan
Zip/postal code : 30010
Country : Malaysia
SUMMARY DETAILS
Executive Summary
Date founded or registered : 20/05/1980
Legal form : Public Company Limited By Shares
Chief executive : Ho Sue San @ David Ho Sue San
Issued & paid up capital : MYR 76,208,000
Sales turnover : MYR 153,456,000 (Consolidated 12 months, 30/06/2011)
Net income : MYR -6,117,000 (Consolidated 12 months, 30/06/2011)
Total fixed assets : MYR 200,998,000 (Consolidated 12 months, 30/06/2011)
Line of business : Manufacture of pharmaceutical and herbal products.
Staff employed : 1,100 employees
CREDIT RISK OPINION
Company Analysis
Country risk : Country risk is minimal
Operation trend : Operational trend is declining
Management experience : Management is reasonably experienced
Financial performance : Financial performance is deteriorating
Organization structure : Organizational structure is acceptable
Detrimental records : Some detrimental records found
Payment history : No payment delays noted
Credit amount suggestion : USD 220,000
Credit amount asked : Not described.
Comments : The Subject is classified as a PN17 company in Bursa Malaysia Stock exchange.
Criteria for a listed company to be classified as a PN17 company are as follows:-
1. Shareholders’ fund is equal or less than 25% of the total issued and paid up capital of the listed company; or
2. Receivers and/or managers have been appointed to take control of at least
50% of the total assets employed of the listed company on a consolidated basis;
or
3.Winding up of a subsidiary or associate company which makes up at least 50%
of the total assets employed of the listed company on a consolidated basis; or
4. The auditors have expressed adverse or disclaimer opinion on the listed company’s latest audited accounts; or
5. For any default in payment, the listed company must announce its inability to provide a solvency declaration through Practice Note 1/2001 or PN1; or
6. The listed company has suspended or ceased all or a major part of its operations.
PN17 stands for Practice Note 17/2005 and is issued by Bursa Malaysia; relating to companies that are in financial distress. Companies that fall within the definition of PN17 will need to submit their proposal to the Approving Authority to restructure and revive the company in order to maintain the listing status.
STATUTORY DETAILS
Registry Data
Registration date :
20/05/1980
Legal form : Public Company Limited By Shares
Registration no 58476-A
Registered authority : Companies
Commission of Malaysia
Registry status :
Live/Active
Previous name :
None reported.
Change of legal form : The Subject
was converted from a Private Company Limited By Shares to a Public Company
Limited By Shares on 05-12-2003.
MANAGEMENT / DIRECTORS
Key Management
Name : Ho Sue San @ David Ho Sue San
Designation : Managing Director Name : Liong Kam Hon Designation : Executive Director Name : Charles Lee Designation : Marketing Manager Name : Thomas Wong Designation : Marketing Manager
BOARD OF DIRECTORS/ OTHER APPOINTMENTS
Appointments
Name : Ho Sue San @ David Ho Sue San
Designation : Director
Identification no : 490920-08-5903
Appointment date : 20/05/80
Address : No.51, Jalan Chin Hwa
Chateau Garden
30250 Ipoh
Perak Darul Ridzuan
Malaysia
Biography : Mr. Ho (David) Sue San serves as Executive Chairman of the Board and Managing Director of Hovid Bhd on January 31, 2008. He was appointed to the Board, being the first Director since incorporation of the Company on May 20, 1980. He obtained a Bachelor of Pharmacy degree from the University of Otago in 1974. He later obtained a Master of Pharmacy degree from the University of Otago in 1976. He was registered as a pharmacist with the Pharmaceutical Society of New Zealand in 1974 and as a pharmaceutical chemist by the Pharmaceutical Society of Great Britain in 1977. He was registered
as a pharmacist with the Malaysian Pharmacist Board in 1980. He has also completed the Applied International Management Programme organized by the Swedish Institute of Management in
1990 and the International Top Management Seminar in the field of
Quality Leadership organized by ISO Swedish Management Group in
1996. From 1978 to 1979, he was a research pharmacist with Wyeth Laboratories Ltd. Thereafter, he formed and incorporated Hovid Berhad in 1980. He was on the Board of Malaysian Biotechnology Corporation Sdn. Bhd., a subsidiary of MOF Inc in Malaysia from
2006 to 2009. He also sits on the Board of Carotech Berhad as
Chairman & Managing Director.
Name : Liong Kam Hon
Designation : Director
Identification no : 460328-08-5165
Appointment date : 11/02/99
Address : No.32, Hala Perajurit 6
Taman Perak
31400 Ipoh
Perak Darul Ridzuan
Malaysia
Biography : Mr. Liong Kam Hon serves as Executive Director of Hovid Bhd on February 11, 1999. He joined Hovid Pharmacy Sdn. Bhd. as a Manager on June 16, 1981. Prior to that, he served as a manager with Public Medical Supplies from 1978 to 1980. Between 1967 and
1977, he was the chief dispenser with Georgetown Dispensary Ltd.
Name : Chuah Chaw Teo
Designation : Director
Identification no : 510828-08-5973
Appointment date : 22/12/04
Address : No.4, Persiaran 8
Arena Kepayang Putra
Fair Park
31400 Ipoh
Perak Darul Ridzuan
Malaysia
Biography : Dr. Chuah Chaw Teo serves as Independent Non-Executive Director of Hovid Bhd on December 22, 2004. He is a chemist by profession. He obtained a Bachelor of Science degree with Honours in 1975 from the University of Otago, where he was also given the University of Otago Science Award for ranking first in the class. Thereafter, he obtained a Doctorate degree in Applied Organic Chemistry in 1979, also from the University of Otago. He has a Diploma in Management from the Malaysian Institute of Management, which he obtained with Merit in 1987. After he obtained his Doctorate degree in 1979, Dr. Chuah worked as a post-doctoral research associate with the College of Environmental Science and Forestry of the State University of New York, a position which he held for the next two (2) years. From 1982
to 1983, he served as a lecturer in the University of Malaya, Malaysia. After he left the University of Malaya, he was attached to Yee Lee Edible Oils Sdn. Bhd. as General Manager for Research and Development. He held this position for ten (10) years, from 1983 to
1993. Presently, he is an Executive Director of Spritzer Berhad, a position that he has held since 1994. He is also an Independent Non-Executive Director of Carotech Berhad since 1991. He is a
member of the Nomination and Remuneration Committee as well as the Audit Committee of the Company.
Name : Raja Shamsul Kamal Bin R Shahruzzaman
Designation : Director
Identification no : 610313-10-6665
Appointment date : 22/12/04
Address : No.1, Jalan 4/6
40000 Shah Alam Selangor Darul Ehsan Malaysia
Biography : YM Raja Shamsul Kamal Bin Shahruzzaman serves as Independent Non-Executive Director of Hovid Bhd on August 13, 2007. He was appointed to the Board of the Company on December 22, 2004 as the Non-Executive Director. He obtained a Bachelor of Science degree with Honours in Civil Engineering from the University of Newcastle upon Tyne (now Newcastle University), England. He
joined Shah Alam Properties Sdn. Bhd. as a project engineer in 1984 to 1987. He left in 1987 to join Bank of Commerce Bhd. before leaving as Vice President & Group Head of Corporate Banking Department in 1991 to join Bumiputra-Commerce Holdings Berhad. Since joining Bumiputra-Commerce Holdings Berhad, he has been in
numerous positions including the General Manager & Chief Executive Officer of Commerce Asset Leasing Sdn. Bhd. (1991 to 1996), General Manager of Commerce Asset Fund Managers Sdn. Bhd. (1996 to 1997) and Executive Director and Chief Executive Officer of Commerce Asset Ventures Sdn. Bhd. before leaving in July 2007. He is currently the Senior Partner at the private equity management firm of Vida Partners Sdn. Bhd. based in Kuala Lumpur. He also sits on
the Board of Carotech Berhad as the Independent Non-Executive Director. He is the Chairman of the Nomination and Remuneration Committee and a member of the Audit Committee of the Company.
Name : Leong Kwok Yee
Designation : Director
Identification no : E3017986
Appointment date : 22/12/04
Address : AA-19-01 Block A
10 Mont Kiara, Jalan Kiara 1
Mont Kiara 50480
Kuala Lumpur Wilayah Persekutuan Malaysia
Biography : Mr. Leong Kwok Yee serves as Independent Non-Executive Director of Hovid Bhd on December 22, 2004. He is an accountant by profession. He obtained a Bachelor of Commerce degree in 1974 from the University of Otago and a Master in Business Administration from University of Macquarie (also Macquarie University) in 1989. He is a Fellow Member of both the New Zealand Institute of Chartered Accountants and Australian Institute of Chartered Accountants, having trained at Ernst & Young in Wellington, New Zealand and Sydney, Australia. He left Ernst & Young in 1981 to join Encyclopaedia Britannica (Sydney) as their Financial Controller before joining Hunter Douglas Ltd. (Sydney) in 1988 as their
Treasurer/Management Accountant. He subsequently joined Dodwell, Inchcape Buying Services (Hong Kong) as their Financial Controller in 1990 and became the Finance Director in 1993. He left in 1995 to be the Chief Financial Officer of Li & Fung, Ltd. (Hong Kong) and retired on September 1, 2004. From May 1, 2006 to August 31, 2007, he was appointed as Head of Middle Office of Li & Fung (Trading) Ltd., Hong Kong. He was the Chief Financial Officer and on the Board of LiFung Trinity Ltd. (Hong Kong) from September 1, 2007 to January 31, 2009 and to August 16, 2009 respectively. He was appointed as an advisor of Li & Fung (Trading) Ltd. from February 2009 to June 30, 2010. Since July 1, 2010, he is working as a Consultant of Li & Fung (1937) Ltd. He is also an Independent Non-Executive Director of Carotech Berhad. He is the Chairman of Audit Committee and a member of the Nomination and Remuneration Committee of the Company.
Name : Goh Tian Hock
Designation : Company Secretary
Identification no : 670428-10-6563
Appointment date : 22/02/03
Address : No.15, Dataran Perajurit 3
Taman Kemuncak
31400 Ipoh
Perak Darul Ridzuan
Malaysia
Name : Ng Yuet Seam
Designation : Company Secretary
Identification no : 671205-08-5392
Appointment date : 03/11/03
Address : 1,Lorong Evergreen
Taman Bunga Raya
31650 Ipoh
Perak Darul Ridzuan
Malaysia
Staff employed : 1,100 employees
Key Advisors
Auditors : KPMG
C-1-03, 1st Floor
No. 2, Persiaran Greentown 3
Greentown Business Centre
30450 Ipoh
Perak Darul Ridzuan
Malaysia
SHARE CAPITAL
Composition
Authorized Capital :
MYR 200,000,000
No of shares : 2,000,000,000 Ordinary Shares
Share par value :
MYR 0.1
Issued capital : MYR 76,208,000
Paid up capital : MYR 76,208,000
OWNERSHIP / SHAREHOLDERS
How listed : Major Shareholders Only
Composition
Shareholder name : Ho Sue San @ David Ho Sue San
Address : No.51, Jalan Chin Hwa
Chateau Garden
30250 Ipoh
Perak Darul Ridzuan
Malaysia
% of shares : 44.15%
Shareholder name : LEMBAGA TABUNG HAJI
Address : Lembaga Tabung Haji Negeri Selangor
Jalan SS6/1, Kelana Jaya
47301 Petaling Jaya Selangor Darul Ihsan Malaysia
% of shares : 4.65%
Shareholder name : Liong Kam Hon
Address : No.32, Hala Perajurit 6
Taman Perak
31400 Ipoh
Perak Darul Ridzuan
Malaysia
% of shares : 1.04%
Comments : The Subject is listed on the Kuala Lumpur Stock Exchange and is owned by approximately 6,791 shareholders.
RELATED COMPANIES &
CORPORATE AFFILIATIONS
Structure
Name : HOVID PHARMACY SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : Trading of medical supplies, pharmaceutical and consumer products.
Name : HOVID RESEARCH SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : Research and development of a wide range of pharmaceutical and healthcare products, analytical services and stability testing.
Name : HOVID INC.
Affiliation type : Wholly-owned Subsidiary
Address : Philippines
Comments : Trading of goods such as medical supplies, consumer goods, wholesale/importation and distribution of pharmaceutical products.
Name : HOVID MARKETING SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : Marketing of health and wellness products via the multi-level network marketing direct interest model.
Name : JAVID SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : Dealers in all kinds of pharmaceutical, medicated herbs and nutritional products.
Inactive.
Name : HO YAN HOR (S) PTE. LTD.
Affiliation type : Subsidiary
Address : Singapore
Comments : Wholesalers, distributors, agents of and dealers in all kinds of pharmaceutical products, embrocation oil, herbal tea and Chinese patented medicines. Inactive.
Name : HOVID NUTRIWORLD SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : To own and manage a chain of concept stores selling over-the-counter health food products, consumer products, supplements and herbal products. Inactive.
Name : HOVID LIMITED
Affiliation type : Subsidiary
Address : Hong Kong
Comments : Trading of pharmaceutical special products.
Name : BEST PRACTICE INTERNATIONAL SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : Inactive.
Name : AGROVID S.A.
Affiliation type : Wholly-owned Subsidiary
Address : Columbia
Comments : Engaged in agro-industrial Colombia exploitation of productive species and cultivation and commercialisation of agriculture crops and livestock. Currently inactive.
Related companies and corporate affiliations comments: Other companies of Hovid Group should be considered affiliates of the Subject.
BANK & MORTGAGES
Bank Details
Name of bank : Public Bank Berhad
Address : Malaysia
Account details :
Current Account
Name of bank : Malayan Banking Berhad
Address : Malaysia
Account details :
Current Account
Name of bank : OCBC Bank (Malaysia) Berhad
Address : Malaysia
Account details :
Current Account
Name of bank : United Overseas Bank (Malaysia) Bhd
Address : Malaysia
Account details :
Current Account
Name of bank : Hong Leong Bank Berhad
Address : Malaysia
Account details :
Current Account
Comments : It is generally not the policy of local
banks to provide credit status information to non related parties, however
interested parties would be advised to consult first with the Subject if banker's
references are required.
Mortgages : Total of Charge: 2,050,000.00
Date of Creation: 01-07-1987
Name of Chargee: OVERSEACHINESE BANKING COPRPORATION LIMITED Charge Status: FULLY SATISFIED
Total of Charge: 500,000.00
Date of Creation: 01-07-1987
Name of Chargee: OVERSEA CHINESE BANKING CORPORATION LTD Charge Status: FULLY SATISFIED
Total of Charge: 500,000.00
Date of Creation: 01-07-1987
Name of Chargee: OVERSEA CHINESE BANKING CORPORATION Charge Status: FULLY SATISFIED
Total of Charge: 500,000.00
Date of Creation: 14-07-1987
Name of Chargee: OVERSEA CHINESE FINANCE COMPANY BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 500,000.00
Date of Creation: 27-03-1989
Name of Chargee: KWONG YIK BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 4,500,000.00
Date of Creation: 27-03-1989
Name of Chargee: KWONG YIK BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,000,000.00
Date of Creation: 23-04-1990
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 540,000.00
Date of Creation: 23-04-1990
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 200,000.00
Date of Creation: 12-05-1990
Name of Chargee: SOUTHERN BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 500,000.00
Date of Creation: 06-11-1990
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 720,000.00
Date of Creation: 03-07-1991
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,400,000.00
Date of Creation: 07-03-1991
Name of Chargee: BANK PEMBANGUNAN MALAYSIA BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 8,315,000.00
Date of Creation: 12-09-1991
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 7,900,000.00
Date of Creation: 12-09-1991
Name of Charge: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 415,000.00
Date of Creation: 12-09-1991
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 7,900,000.00
Date of Creation: 12-09-1991
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 415,000.00
Date of Creation: 12-09-1991
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 200,000.00
Date of Creation: 16-11-1991
Name of Chargee: SOUTHERN BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 2,000,000.00
Date of Creation: 16-11-1992
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 2,000,000.00
Date of Creation: 16-11-1992
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 2,000,000.00
Date of Creation: 16-11-1992
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 2,000,000.00
Date of Creation: 16-11-1992
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 200,000.00
Date of Creation: 22-02-1993
Name of Chargee: SOUTHERN BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,900,000.00
Date of Creation: 15-09-1993
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 900,000.00
Date of Creation: 15-09-1993
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD
Charge Status: FULLY SATISFIED
Total of Charge: 1,000,000.00
Date of Creation: 15-09-1993
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 900,000.00
Date of Creation: 15-09-1993
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,000,000.00
Date of Creation: 15-09-1993
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,500,000.00
Date of Creation: 18-07-1995
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,500,000.00
Date of Creation: 18-07-1995
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,500,000.00
Date of Creation: 18-07-1995
Name of Chargee: UNITED MALAYAN BANKING CORPORATION BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 2,416,000.00
Date of Creation: 16-11-1996
Name of Chargee: SOUTHERN BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 15,000,000.00
Date of Creation: 15-01-2001
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Total of Charge: 3,000,000.00
Date of Creation: 15-01-2001
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Total of Charge: 3,000,000.00
Date of Creation: 10-01-2002
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 3,000,000.00
Date of Creation: 31-12-2001
Name of Chargee: BANK PEMBANGUAN DAN INFRASTRUKTUR MALAYSIA
BERHAD
Charge Status: FULLY SATISFIED
Total of Charge: 200,000.00
Date of Creation: 01-07-2002
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 1,000,000.00
Date of Creation: 21-01-2003
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 2,000,000.00
Date of Creation: 21-01-2003
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Total of Charge: 1,800,000.00
Date of Creation: 21-01-2003
Name of Chargee: OCBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Total of Charge: 4,800,000.00
Date of Creation: 08-10-2004
Name of Chargee: RHB BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 3,447,134.00
Date of Creation: 14-03-2005
Name of Chargee: RHB BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: 10,000,000.00
Date of Creation: 21-11-2007
Name of Chargee: HWANGDBS INVESTMENT BANK BERHAD Charge Status: FULLY SATISFIED
Total of Charge: OPEN CHARGE Date of Creation: 09-05-2008
Name of Chargee: UNITED OVERSEAS BANK (MALAYSIA) BHD. Charge Status: UNSATISFIED
Total of Charge: 13,360,000.00
Date of Creation: 16-09-2008
Name of Chargee: MALAYAN BANKING BERHAD Charge Status: UNSATISFIED
Total of Charge: 20,000,000.00
Date of Creation: 30-10-2009
Name of Chargee: AFFIN INVESTMENT BANK BERHAD Charge Status: UNSATISFIED
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : None reported.
FINANCIAL DATA
Description
Source of financial statement :
Public Record Sources
Financial statement date : 30/06/11
Type of accounts :
Full audited
Currency : Malaysia, Ringgit (MYR)
Exchange rate :
1 USD = MYR 3.16 as of 17-11-2011
Summarized Financial
Information
Consolidation type : Consolidated Consolidated
Currency : Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Denomination : (x1) One (x1) One
Date of financial year end : 30/06/11 30/06/10
Length of accounts : 12 months 12
months
Sale turnover / Income : 153,456,000 365,166,000
Operating profit : 6,936,000 -97,678,000
Profit before tax : -2,172,000 -97,678,000
Net income : -6,117,000 -90,795,000
Non current assets : 130,786,000 423,508,000
Current assets : 70,212,000 140,578,000
Inventories : 23,688,000 83,162,000
Total assets : 200,998,000 564,086,000
Current liabilities : 66,029,000 412,128,000
Non current liabilities : 29,469,000 18,110,000
Total liabilities : 95,498,000 430,238,000
Share equity : 105,500,000 133,848,000
Retained
earning : 12,350,000 6,313,000
Comments : The consolidated financial information
above relates to the Subject and all its subsidiaries.
OPERATION DETAILS
Main activities : The Subject is engaged in manufacturing of pharmaceutical and herbal products.
The Subject's pharmaceutical products include special drug delivery systems, such as modified release formulations and bio-availability enhanced formulations; ethical products comprising anti-biotics,
anti-diabetics, anti-hypertensives, anti-malarial, and anti-inflammatory analgesics; and dietary supplements.
The Subject is also engaged in the extraction and processing of nutrients from palm oil for the purpose of manufacturing and producing pharmaceutical, phytonutrient, and oleochemicals/biodiesel products.
Furthermore, the Subject is engaged in the trade of medical supplies, pharmaceuticals, and consumer products; marketing of health and wellness products via the multi-level network marketing direct interest model; marketing of pharmaceutical, phytonutrient, and oleochemical products; and provision of analytical and stability testing services for pharmaceutical and healthcare products.
Product & services : - Special drug delivery systems, such as modified release formulations and bio-availability enhanced formulations;
- Ethical products, including Anti-Biotics, Anti-Diabetics,
Anti-Hypertensives, Anti-Malarial and Anti-Inflammatory Analgesics;
- Dietary Supplements;
- Consumer Products; and
- The commercial extraction of Palm Tocotrienol Complex, Mixed
Carotenoid Complex and Phytosterols from palm fruits. Brand : Hovid
Purchases
International : Mainly from Asian countries
Sales
Local : Yes
International : Over 50 countries in Asia, Africa, North and South America, Europe, and
Pacific Island
Key events : 16 November 2011
Type : Announcement (Source: Bursa Malaysia Stock Exchange) Subject : PRACTICE NOTE 17 / GUIDANCE NOTE 3
REGULARISATION PLAN
Description : HOVID BERHAD ("HOVID" or "the Company") APPLICATION TO BURSA MALAYSIA SECURITIES BERHAD FOR THE EXTENSION OF TIME TO SUBMIT THE REGULARISATION PLAN
Announcement Details/Table Section :
We refer to the announcement pursuant to Practice Note 17 (“PN17”) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) made by Hovid on 29 October
2010, and subsequent announcement on 28 October 2011 that the Company had submitted an application for extension of time to undertake the Company’s regularisation plan to Bursa Securities, for a further four (4) months to 28 February 2012, as the Company has not yet completed the implementation of Proposed Dividend-In-Specie which is part of the regularisation plan of Hovid.
The Company wishes to inform that Bursa Securities had, via its letter dated 14 November 2011, granted an extension of time up to 28 February
2012.
The aforesaid extension of time is without prejudice to Bursa Securities’ right to proceed to suspend the trading of the securities of Hovid and to de-list the Company in the event:
(i) the Company fails to submit the regularisation plan to the regulatory authorities on or before 28 February 2012;
(ii) the Company fails to obtain the approval from any of the regulatory authorities necessary for the implementation of its regularisation plan; or (iii) the Company fails to implement its regularisation plan within the time frame or extended time frames stipulated by Bursa Securities.
Upon occurrence of any of the events set out in (i) to (iii) above, Bursa Securities shall suspend the trading of the listed securities of Hovid upon the expiry of five (5) market days from the date the Company is notified by Bursa Securities and de-list the Company, subject to the Company’s right to appeal against the delisting.
20 October 2011
Type : Announcement
Subject : OTHERS
Description : APPLICATION FOR STRIKE-OFF OF HO YAN HOR (S) PTE. LTD., A SUBSIDIARY OF HOVID BERHAD
Announcement Details/Table Section :
The Board of Directors of Hovid Berhad ("Hovid") wishes to announce that on 28 September 2011, an application was made to the Accounting and Corporate Regulatory Authority of Singapore to strike-off its 80%-owned subsidiary, Ho Yan Hor (S) Pte. Ltd. (“HYH”) pursuant to Section 344 of the Singapore Companies Act, Cap 50 (“the Striking-off”).
HYH was incorporated in Singapore on 10 April 1978 as a private limited
company under The Companies Act (Chapter 50), Singapore. The issued and paid-up share capital of HYH is SGD50,000. HYH is currently dormant and has no intention to commence any business activities in future. The striking-off will reduce the administrative resources and costs incurred for maintaining the company. The striking-off of HYH will have no financial effect on the earnings and net tangible assets of Hovid Group.
6 August 2011
Type : Announcement
Subject : OTHERS
Description : HOVID BERHAD (“HOVID” OR “COMPANY”) PROPOSED DIVIDEND-IN-SPECIE
Announcement Details/Table Section :
On behalf of the Board of Directors of Hovid, Hong Leong Investment Bank
Berhad wishes to announce that Hovid is proposing to distribute a portion of its shareholding interest in Carotech Berhad (“Carotech”) by way of dividend-in-specie to the shareholders of Hovid, on the basis of 25 ordinary shares of RM0.10 each in Carotech for every 100 ordinary shares of RM0.10 each held in Hovid.
12/01/2011
Hovid Berhad to Supply Winthrop with Pharmaceutical Products Worth
MYR 5 Million
Hovid Bhd has agreed to supply Winthrop Pharmaceutical (Malaysia) Sdn Bhd with pharmaceutical products, worth approximately MYR 5 million, for three years starting from Jan 1, 2011. The products include Tramadol Winthrop SR 100mg, Metformin Winthrop MR 850mg and any new additions from time to time. It added, under the agreement, the company will supply annually to Winthrop a minimum quantity of 3.9 million and
664,000 tablets of Metformin Winthrop MR 850mg and Tramadol Winthrop SR 100mg respectively. As for the rationale of the transaction it said the supply agreement is expected to contribute positively to the company's future earning.
Type : Announcement
Subject : HOVID BERHAD (“HOVID” OR “THE COMPANY”) PRACTICE NOTE 17 (“PN17”) OF BURSA MALAYSIA SECURITIES BERHAD MAIN MARKET LISTING REQUIREMENTS (“MAIN MARKET LR”)
(FIRST ANNOUNCEMENT)
Contents : Announcement pursuant to the PN17 of the Main Market LR of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Board of Directors of Hovid wishes to announce that Hovid has triggered Prescribed Criteria 2.1(d) of PN17 and as such, Hovid is now classified as a PN17
company. Announcement Details :
1. Introduction
Pursuant to Paragraph 8.04 and Paragraph 2.1(d) of PN17 of the Main Market LR, the Board of Directors (“Board”) of Hovid wishes to announce that as of the date hereof, Hovid is considered as a PN17 Company.
The Board wishes to elaborate that a subsidiary, Carotech Berhad
(“Carotech”), have defaulted on the repayment of certain borrowings
which were due for payment during the financial year ended 30 June 2010, which was announced on 1 July 2010, pursuant to the Guidance Note 5 ("GN5") of the Bursa Securities ACE Market Listing Requirements. Carotech has also sought the assistance of Corporate Debt Restructuring Committee ("CDRC") to mediate between Carotech and its lenders on its Proposed Debt Restructuring scheme (“the Proposed Scheme”). The
CDRC has agreed to mediate and allowed a period of 6 months from 1 July
2010 to complete the proposed scheme. The lenders of Carotech are currently reviewing and considering the proposed scheme but no decision has been made as at the date the financial statements for the financial year ended 30 June 2010 were approved by the Board.
Without having the approval of the lenders for the Proposed Scheme and various uncertainties at present, the auditors of Carotech has expressed a disclaimer opinion on the financial statements for the financial year ended
30 June 2010. Consequently, Carotech has triggered the Prescribed Criteria 2.1(b), (c) and (f) of Guidance Note No. 3 ("GN 3") of the Bursa Securities ACE Market Listing Requirements.
Considering Carotech is a significant subsidiary in the Hovid Group of companies as at 30 June 2010, the auditors of the Company has expressed a disclaimer opinion on the financial statements for the financial year ended 30 June 2010.
The Board wishes to highlight that, commencing in August 2010, Hovid had disposed a total of 180,000,000 ordinary shares of RM0.10 each of its shares in Carotech comprising 19.73% equity interest for a total net consideration of RM12.60 million. Consequently, the effective interest of Hovid in Carotech has been reduced to 38.45% as at the date the financial statements for the financial year ended 30 June 2010 were approved by
the Board.
Therefore, Carotech will no longer be a subsidiary of Hovid and the significance of Carotech in the Hovid Group would drastically be reduced in the financial year ending 30 June 2011.
2. Obligation under PN17
The Company is required to comply with Paragraph 3.1 and 4.1 of PN17 detailed as follows:-
a. To undertake a regularisation plan to regularise its financial position
(“Regularisation Plan”) and ensure that the Regularisation Plan is
sufficiently comprehensive and capable of resolving all issues in relation to the PN17 status; and
b. To submit the Regularisation Plan within 12 months (‘timeframe”) from the date of this announcement and to implement the same within the timeframe stipulated by the Approving Authorities.
c. To make the following announcements:-
i. Within 3 months from the date of this announcement, on whether the Regularisation Plan will result in a significant change in the business direction or policy of the PN17 Company;
ii. The status of the Regularisation Plan and the number of months to the end of the relevant timeframes referred to in Paragraph 5.1 or 5.2 of PN17, as may be applicable, on a monthly basis until further notice from Bursa Securities;
iii. The Company’s compliance or non-compliance with a particular obligation imposed pursuant to PN17, on an immediate basis;
iv. Details of the Regularisation Plan, which must fulfill the requirements set out in Paragraph 4.2 of PN17; and
v. Where the Company fails to regularise its condition, the dates of suspension and de-listing of its listed securities, immediately upon notification of suspension and de-listing by Bursa Securities.
3. Consequences of Non-compliance under PN17
In event the Company fails to comply with the obligation under PN17 to regularise, all its listed securities will be suspended from trading immediately upon notification by Bursa Securities and de-listing shall commence against the Company, subject to the Company’s right to appeal against the de-listing.
4. Status of Regularisation Plan of its Financial Condition
The Company does not have a formal regularisation plan at present to regularise its financial conditions, save for the debt restructuring exercise currently being mediated by the CDRC and reviewed and considered by the lenders of Carotech. Nevertheless, the Company will take the necessary action to formulate a regularisation plan. Appropriate announcements on the regularisation plan shall be announced by the Company in due course.
2 July 2010
Type : Announcement
Subject : Clarification to the Announcement made on 1 July 2010, pursuant to Practice Note 1 (“PN1”) of the Main Market Listing Requirements
(“Main LR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”)
Contents : Clarification to the Announcement made on 1 July 2010, pursuant to Practice Note 1 (“PN1”) of the Main Market Listing Requirements (“Main LR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”)
Announcement Details :
The Board of Directors of Hovid Bhd (“Hovid”) wishes to make the following clarification pursuant to the announcement made on 1st July
2010.
The default in loans by Carotech Berhad (“Carotech”) happened solely at Carotech and it has no legal implication on Hovid as Hovid has not provided any guarantee for the loans of Carotech. Additionally, Hovid does not have any financial obligation to Carotech.
Hovid and its other subsidiaries, excluding the Carotech Group, are not in default of any of their respective loan obligations.
Although, Carotech is considered as a Major Subsidiary in the Hovid Group of companies, considering the Total Assets of Carotech is more than 70%
of the Total Assets in the Hovid Group, the businesses of Hovid and
Carotech are mutually and exclusively different.
Hovid is a manufacturer of pharmaceutical and herbal products, and distributes it’s products to more than 50 countries globally to customers that are different from the customers of Carotech.
Carotech is in the business of extracting and processing nutrients from palm oil for the purpose of manufacturing and producing pharmaceutical, phytonutrients and oleochemical products. Additionally, the inter-company transactions between both Hovid and Carotech accounts for less than 1% of the respective companies’ annual revenue.
Carotech, being listed on the ACE Market of Bursa Securities, will continue to comply with Guidance Note 5 and all other requirements of the Bursa Malaysia Securities Berhad ACE Market listing rules.
As such the announcement made on 1st July 2010 pursuant to PN1 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad is not applicable.
1st July 2010:
Type : Announcement
Subject : HOVID BERHAD ("HOVID" or "the Company")
Announcement pursuant to Practice Note No. 1 of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad
Contents : HOVID BERHAD ("HOVID" or "the Company")
Announcement pursuant to Practice Note No. 1 of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad
Announcement Details : INTRODUCTION
Pursuant to Practice Note No. 1 (“PN1”) of the Main Market Listing Requirements (“Main LR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Company wishes to announce that Carotech Berhad (“Carotech”), a subsidiary of the Company, has defaulted on its principal and interest servicing in respect of certain banking facilities from financial institutions.
Hovid owns 58% equity interest in Carotech, which is listed on the ACE Market of Bursa Malaysia. Please refer to the announcement by Carotech for further details.
REASONS FOR DEFAULT
-The default arose mainly due to over expansion of capacity, significant rise in working capital and inability to clear stocks due to curtailed demand arising from poor economic conditions in Europe and United States of America. Nevertheless, Carotech’s underlying business model and
products remain sound and well received in the markets. MEASURES BY THE COMPANY TO ADDRESS THE DEFAULT
-Hovid does not have any obligation on the defaulted loans by Carotech. Carotech is currently working directly with the financial institutions with the assistance of the Corporate Debt Restructuring Committee (CDRC) to construct and implement a Debt Restructuring Plan.
LEGAL IMPLICATIONS
-Hovid does not have any legal implication on the defaulted loans as the loans are non-recourse.
THE BUSINESS, FINANCIAL AND OPERATION IMPACT OF THE COMPANY
-The Company will be able to continue with its existing business. Hovid is in the business of manufacturing and distribution of pharmaceutical products. The business is independent of Carotech.
IN THE EVENT THE DEFAULT IS IN RESPECT OF SECURED LOAN STOCKS OR BONDS, THE LINES OF ACTIONS AVAILABLE TO THE GUARANTORS OR SECURITY HOLDERS AGAINST THE COMPANY
-Not applicable.
IN THE EVENT THE DEFAULT IS IN RESPECT OF PAYMENTS UNDER A DEBENTURE, TO SPECIFY WHETHER THE DEFAULT WILL EMPOWER THE DEBENTURE HOLDER TO APPOINT A RECEIVER OR RECERIVER AND MANAGER
-Not applicable.
WHETHER THE DEFAULT CONSTITUTES AN EVENT OF DEFAULT UNDER A DIFFERENT AGREEMENT FOR INDEBTEDNESS (CROSS DEFAULT) AND THE DETAILS FOR SUCH OTHER DEFAULT, WHERE
APPLICABLE
-The Default may trigger a cross default with the Company’s other lenders. Nevertheless, the Company is taking proactive approaches to negotiate with the respective lenders to arrive an amicable arrangement to both parties.
WHERE THE DEFAULT IS IN RESPECT OF A SUBSIDIARY OR ASSOCIATED COMPANY, A CONFIRMATION AS TO WHETHER THE SUBSIDIARY OR ASSOCIATED COMPANY IS A MAJOR SUBSIDIARY OR MAJOR ASSOCIATED COMPANY, AS THE CASE MAY BE
-Carotech is not a major subsidiary of the Company.
WHERE THE DEFAULT IS IN RESPECT OF THE COMPANY, MAJOR SUBSIDIARY OR MAJOR ASSOCIATED COMPANY, AS THE CASE MAY BE, A STATEMENT AS TO WHETHER THE COMPANY IS SOLVENT ("SOLVENCY DECLARATION"). FOR THIS PURPOSE, THE COMPANY
IS REGARDED AS "SOLVENT" IF THE MAJORITY DIRECTORS HAVE FORMED THE OPINION THAT THE COMPANY WILL BE ABLE TO PAY ALL ITS DEBTS AS AND WHEN THEY FALL DUE WITHIN THE PERIOD OF 12 MONTHS FROM THE DATE OF THE ANNOUNCEMENT; AND IF THE COMPANY IS SOLVENT, A STATEMENT THAT THE COMPANY UNDERTAKES TO PROVIDE TO THE EXCHANGE, THE SOLVENCY DECLARATION DULY EXECUTED BY ITS BOARD OF DIRECTORS WITHIN 3 MARKET DAYS FROM THE ANNOUNCEMENT DATE
-Not applicable.
Property & Assets
Premises : The Subject operates from premises located at the verified heading address consisting of pharmaceutical factory complex together with administrative office and ancillary buildings.
Branches : None reported.
Other property : Total NBV of property, plant and equipment as of 30-06-2011 was MYR 91,618,000.
SUMMARIZED COUNTRY RISK
Gross Domestic Products (GDP) & Economic Overview
Central bank : Central Bank of Malaysia
Reserve of foreign exchange & gold : USD134.4 billion as of 14 October 2011
Gross domestic product - GDP : US$ 247.781 billion
GPP (Purchasing power parity) : 442.01 billion of International dollars
GDP per capita - current prices : US$ 8,624
GDP - composition by sector : agriculture: 9.4% industry: 40.9% services: 49.7%
Inflation : 2008: 5.4%
2009: 0.6%
2010: 1.7%
Unemployment rate : 2008: 3.3%
2009: 3.6%
2010: 3.3%
Public debt
(General Government gross
debt as a % GDP) : 2008: 42.8%
2009: 55.4%
2010: 54.2%
Government bond ratings : Standard & Poor's: A-/Stable/A-2
Moody's rating: A3
Moody's outlook: STA
Market value of publicly traded shares : US$420 billion
Largest companies in the country : CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank (Banking), Maybank (Banking), Tenaga Nasional(Utilities), Petronas Chemicals, Maxis Berhad
Trade & Competitiveness Overview
Total exports : US$210.3 billion
Exports commodities : electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals
Total imports : US$156.2 billion
Imports commodities : electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals
Export - major partners : US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong
Kong 4.6%
Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%
FDI Inflows : 2007: US$8,538 million
2008: US$7,318 million
2009: US$1,381 million
FDI Outflows : 2007: US$11,280 million
2008: US$14,988 million
2009: US$8,038 million
Best countries for doing business: 21 out of 183 countries
Global competitiveness ranking: 26 (ranking by country on a basis of 133, the first is the best)
Country and Population Overview
Total population : 28.23 million
Total area : 329,847 km2
Capital : Kuala Lumpur
Currency : Malaysia Ringgits (MYR)
Internet users as % of total population: 57.61%
PAYMENT HISTORY
Purchase Term
Local : Prepayment, Credit up to 90 days
International : L/C, Prepayment, Credit up to 90 days
Sales Term
Local : Prepayment, Credit up to 90 days
International : L/C, Prepayment, Credit up to 90 days
Trade Reference/ Payment
Behaviour
Comments : As local and international trade
references were not supplied, the Subject's payment track record history cannot
be appropriately determined but based on our research, payments are believed to
be met without delay.
Investigation Note
Sources : Interviews and material provided by the
Subject
: Other official and local
business sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.72 |
|
|
1 |
Rs.79.88 |
|
Euro |
1 |
Rs.68.46 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.