MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

TIOXIDE (MALAYSIA) SDN. BHD.

 

 

Formerly Known As :

TAPL (MALAYSIA) SDN BHD (18/07/1989)

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

04.08.1982

 

 

Com. Reg. No.:

88183-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture Chemical Petrochemical Products

 

 

No. of Employees :

300

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

No Complaints

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

88183-K

COMPANY NAME

:

TIOXIDE (MALAYSIA) SDN. BHD.

FORMER NAME

:

TAPL (MALAYSIA) SDN BHD (18/07/1989)

INCORPORATION DATE

:

04/08/1982

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

KAWASAN PERINDUSTRIAN TELUK KALUNG, P O BOX 29, 24007 KEMAMAN, TERENGGANU, MALAYSIA.

TEL.NO.

:

09-8628688

FAX.NO.

:

09-8631988

CONTACT PERSON

:

MIZANUR RAHMAN GHANI ( CHAIRMAN )

INDUSTRY CODE

:

20291

PRINCIPAL ACTIVITY

:

MANUFACTURE CHEMICAL PETROCHEMICAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 151,750,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 45,000,000.00 OF MYR 3.15 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 16,937,500.00 DIVIDED INTO
ORDINARY SHARES 5,125,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 3,750,000 CASH OF MYR 3.15 EACH.

SALES

:

MYR 1,009,837,000 [2011]

NET WORTH

:

MYR 458,874,000 [2011]

M1000 OVERALL RANKING

:

511[2011]

M1000 INDUSTRY RANKING

:

27[2011]

STAFF STRENGTH

:

300 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The SC is principally engaged in the (as a / as an) manufacture chemical petrochemical products.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

 

 

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

511

454

407

293

276

 

INDUSTRY RANKING

27

26

24

12

5

 

 

The immediate holding company of the SC is HUNTSMAN ICI INVESTMENT (NETHERLANDS) BV, a company incorporated in NETHERLANDS.

The ultimate holding company of the SC is HUNTSMAN INTERNATIONAL, LLC, a company incorporated in UNITED STATES.

 

The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

HUNTSMAN ICI INVESTMENT (NETHERLANDS) BV
[ORD 5,125,000 & PREF 3,750,000]

MERSEYWEG 10, 3179 KG, BOTLEK-ROTTERDAM, THE NETHERLANDS.

 

8,875,000.00

100.00

 

 

 

---------------

------

 

 

 

8,875,000.00

100.00

 

 

 

============

=====

 

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. MIZANUR RAHMAN BIN S M ABDUL GHANI

Address

:

8,JALAN BEKA, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

451201-10-5291

Date of Birth

:

01/12/1945

Nationality

:

MALAYSIAN

Date of Appointment

:

28/07/1989

 

DIRECTOR 2

 

Name Of Subject

:

MR. V.VISAGARAN A/L E.VISVALINGAM

Address

:

A-6250 LORONG TOK SIRA 46, 25050 KUANTAN, PAHANG, MALAYSIA.

New IC No

:

640718-04-5001

Date of Birth

:

18/07/1964

Nationality

:

MALAYSIAN

Date of Appointment

:

30/03/2010

 

DIRECTOR 3

 

Name Of Subject

:

PETER RILEY HUNTSMAN

Address

:

1399 DEVONSHIRE DR, SALT LAKE CITY, UTAH, 84108, UNITED STATES.

IC / PP No

:

701739401

Date of Birth

:

13/03/1963

Nationality

:

AMERICAN

Date of Appointment

:

28/06/1999

 

DIRECTOR 4

 

Name Of Subject

:

MR. DARYL KENNETH WOOD

Address

:

APT 43-3-2, VILLA MUTIARA, 43 JLN MEDANG TANDUK, BKT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

E3083083

Date of Birth

:

25/07/1960

Nationality

:

AUSTRALIAN

Date of Appointment

:

15/02/2006

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

MIZANUR RAHMAN GHANI

 

Position

:

CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

UBAIDILLAH HASSAN

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

3)

Name of Subject

:

ALEX LEE

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

ZUL AWANG

 

Position

:

EXECUTIVE

 

 

 

 

 

5)

Name of Subject

:

AZHAR AZIZ

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

6)

Name of Subject

:

ZAMANI AHMAD

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

7)

Name of Subject

:

VISAGARAN VISVALINGAM

 

Position

:

SITE DIRECTOR

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

UPTOWN 1, 1, JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KUMAR A/L RAMU

 

 

 

 

 

New IC No

:

660413-08-5289

 

Address

:

8 LRG BKT PELINDUNG 77, TMN BKT PELINDUNG AMAN, 25050 KUANTAN, PAHANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. THAM WAI YING

 

 

 

 

 

New IC No

:

680810-10-6360

 

Address

:

46,JALAN MIDAH 19-A, TAMAN MIDAH, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

3)

Company Secretary

:

MS. KUAN HUI FANG

 

 

 

 

 

New IC No

:

710224-10-5204

 

Address

:

23 JALAN BU 3/2, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

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

Import Countries

:

CHINA,UNITED STATES,TAIWAN,INDIA



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 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA PACIFIC

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)

 

OPERATIONS

 

Products manufactured

:

TITANIUM DIOXIDE PIGMENT

 

 

 

Award

:

1 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2003
2 ) MS ISO 14001 Year :2000

 

 

 

 

 

Competitor(s)

:

BP CHEMICALS (MALAYSIA) SDN. BHD.
CCM INNOVATIVE SOLUTIONS SDN BHD
KANEKA (MALAYSIA) SDN BHD
KL-KEPONG OLEOMAS SDN. BHD.
TOYOCHEM SPECIALTY CHEMICAL SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

300

300

330

325

265

253

 

 

 

 

Branch

:

YES

 

No of Branches

:

1

 

 

 

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture chemical petrochemical products.

The SC's product provides whiteness and opacity to a vast range of everyday products from coatings and plastics, to inks and even cosmetics and food.

To produce the pigment the SC processes a raw material rich in titanium from minerals found in beach sands and rock.

This feedstock is treated to extract the titanium and then reform it as titanium dioxide to a very closely defined particle size.

Finally the product is coated and milled to produce a range of versatile pigments for key end uses.


PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

09-8628688

Match

:

N/A

 

 

 

Address Provided by Client

:

5TH FLOOR, WISMA AVON, 13A JALAN 219, 46100, PETALING JAYA, SELANGOR

Current Address

:

KAWASAN PERINDUSTRIAN TELUK KALUNG, P O BOX 29, 24007 KEMAMAN, TERENGGANU, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 21st January 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The address provided belongs to the SC's Sales Office.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

23.61%

]

 

Return on Net Assets

:

Favourable

[

32.46%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

43 Days

]

 

Debtor Ratio

:

Acceptable

[

62 Days

]

 

Creditors Ratio

:

Favourable

[

14 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

[

1.75 Times

]

 

Current Ratio

:

Favourable

[

2.67 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

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no 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 :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher 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. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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 : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)



INDUSTRY ANALYSIS

 

MSIC CODE

20291 : Manufacture of photographic plates, films, sensitized paper and other sensitized unexposed materials

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1982, the SC is a Private Limited company, focusing on manufacture chemical petrochemical products. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. Presently, the issued and paid up capital of the SC stands at RM 8,875,000.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 300 staff in its operations The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, 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. Given a positive net worth standing at MYR 458,874,000, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.



PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

TIOXIDE (MALAYSIA) SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,009,837,000

877,334,000

683,126,000

664,607,000

657,957,000

 

----------------

----------------

----------------

----------------

----------------

Total Turnover

1,009,837,000

877,334,000

683,126,000

664,607,000

657,957,000

 

----------------

----------------

----------------

----------------

----------------

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

152,200,000

91,804,000

15,414,000

6,816,000

15,133,000

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

152,200,000

91,804,000

15,414,000

6,816,000

15,133,000

Taxation

<43,878,000>

<17,487,000>

<9,259,000>

<92,000>

<317,000>

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

108,322,000

74,317,000

6,155,000

6,724,000

14,816,000

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

314,865,000

246,910,000

243,008,000

237,610,000

229,422,000

 

----------------

----------------

----------------

----------------

----------------

As restated

314,865,000

246,910,000

243,008,000

237,610,000

229,422,000

 

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

423,187,000

321,227,000

249,163,000

244,334,000

244,238,000

TRANSFER TO RESERVES - Statutory

<5,301,000>

-

-

-

-

- General

<24,170,000>

<6,362,000>

<2,253,000>

<1,326,000>

<6,628,000>

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

393,716,000

314,865,000

246,910,000

243,008,000

237,610,000

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

-

-

74,000

346,000

-

 

 

----------------

----------------

----------------

 

 

 

-

74,000

346,000

 

 

 

 

BALANCE SHEET

 

 

TIOXIDE (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

252,258,000

273,306,000

295,899,000

333,158,000

373,198,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

253,508,000

274,556,000

297,149,000

334,408,000

374,448,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

117,921,000

64,992,000

71,400,000

146,499,000

67,130,000

Trade debtors

172,493,000

182,585,000

121,128,000

74,644,000

129,295,000

Other debtors, deposits & prepayments

1,967,000

1,775,000

1,554,000

663,000

846,000

Short term deposits

47,213,000

-

23,236,000

20,233,000

13,921,000

Deposits with financial institutions

-

30,625,000

-

-

-

Amount due from related companies

4,529,000

4,986,000

1,109,000

468,000

2,984,000

Amount due from associated companies

661,000

1,899,000

1,378,000

690,000

518,000

Cash & bank balances

-

153,000

19,117,000

20,683,000

22,611,000

Others

-

-

207,000

-

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

344,784,000

287,015,000

239,129,000

263,880,000

237,305,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

598,292,000

561,571,000

536,278,000

598,288,000

611,753,000

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

38,363,000

36,872,000

42,853,000

29,014,000

26,855,000

Other creditors & accruals

34,646,000

43,857,000

34,130,000

33,694,000

32,281,000

Short term borrowings/Term loans

-

-

-

-

1,175,000

Amounts owing to related companies

24,437,000

34,107,000

27,631,000

91,079,000

97,982,000

Provision for taxation

18,642,000

-

-

121,000

225,000

Other liabilities

13,256,000

6,720,000

-

-

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

129,344,000

121,556,000

104,614,000

153,908,000

158,518,000

 

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

215,440,000

165,459,000

134,515,000

109,972,000

78,787,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

468,948,000

440,015,000

431,664,000

444,380,000

453,235,000

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

5,125,000

5,125,000

5,125,000

5,125,000

5,125,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

5,125,000

5,125,000

5,125,000

5,125,000

5,125,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

30,236,000

45,900,000

45,900,000

45,900,000

Capital reserve

60,033,000

54,732,000

48,370,000

46,117,000

44,791,000

Retained profit/(loss) carried forward

393,716,000

314,865,000

246,910,000

243,008,000

237,610,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

453,749,000

399,833,000

341,180,000

335,025,000

328,301,000

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

458,874,000

404,958,000

346,305,000

340,150,000

333,426,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

10,074,000

16,500,000

9,500,000

-

-

Others

-

18,557,000

75,859,000

104,230,000

119,809,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

10,074,000

35,057,000

85,359,000

104,230,000

119,809,000

 

----------------

----------------

----------------

----------------

----------------

 

468,948,000

440,015,000

431,664,000

444,380,000

453,235,000

 

=============

=============

=============

=============

=============

 

 

FINANCIAL RATIO

 

 

TIOXIDE (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

47,213,000

153,000

42,353,000

40,916,000

36,532,000

Net Liquid Funds

47,213,000

153,000

42,353,000

40,916,000

36,532,000

Net Liquid Assets

97,519,000

100,467,000

63,115,000

<36,527,000>

11,657,000

Net Current Assets/(Liabilities)

215,440,000

165,459,000

134,515,000

109,972,000

78,787,000

Net Tangible Assets

468,948,000

440,015,000

431,664,000

444,380,000

453,235,000

Net Monetary Assets

87,445,000

65,410,000

<22,244,000>

<140,757,000>

<108,152,000>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

1,175,000

Total Liabilities

139,418,000

156,613,000

189,973,000

258,138,000

278,327,000

Total Assets

598,292,000

561,571,000

536,278,000

598,288,000

611,753,000

Net Assets

468,948,000

440,015,000

431,664,000

444,380,000

453,235,000

Net Assets Backing

458,874,000

404,958,000

346,305,000

340,150,000

333,426,000

Shareholders' Funds

458,874,000

404,958,000

346,305,000

340,150,000

333,426,000

Total Share Capital

5,125,000

5,125,000

5,125,000

5,125,000

5,125,000

Total Reserves

453,749,000

399,833,000

341,180,000

335,025,000

328,301,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.37

0.00

0.40

0.27

0.23

Liquid Ratio

1.75

1.83

1.60

0.76

1.07

Current Ratio

2.67

2.36

2.29

1.71

1.50

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

43

27

38

80

37

Debtors Ratio

62

76

65

41

72

Creditors Ratio

14

15

23

16

15

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.30

0.39

0.55

0.76

0.83

Times Interest Earned Ratio

0.00

0.00

209.30

20.70

0.00

Assets Backing Ratio

91.50

85.86

84.23

86.71

88.44

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

15.07

10.46

2.26

1.03

2.30

Net Profit Margin

10.73

8.47

0.90

1.01

2.25

Return On Net Assets

32.46

20.86

3.59

1.61

3.34

Return On Capital Employed

32.46

20.86

3.59

1.61

3.34

Return On Shareholders' Funds/Equity

23.61

18.35

1.78

1.98

4.44

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.50

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.