|
|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
299980-X
|
|
COMPANY NAME
|
:
|
THE 'W' CLAY INDUSTRIES SDN. BHD.
|
|
FORMER NAME
|
:
|
THE 'W' CLAY
PRODUCTS SDN BHD (24/01/2008)
WANTOTIK CLAY PRODUCTS SDN BHD (13/12/2007)
TITISAN IMPIAN SDN BHD (13/08/1996)
|
|
INCORPORATION DATE
|
:
|
13/05/1994
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
LOT 77, WISMA NEW FAR EAST, OFF JALAN KOLAM LUYANG, 1ST FLOOR, 88100
KOTA KINABALU, SABAH, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
12KM, MILES 8, JALAN KAMPUNG MELAYU, 90000 SANDAKAN, SABAH,
MALAYSIA.
|
|
TEL.NO.
|
:
|
089-674885
|
|
FAX.NO.
|
:
|
089-674879
|
|
CONTACT PERSON
|
:
|
WONG CHEN YEE ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
23921
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURE AND SALE OF CHEMICALS
|
|
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
2,000,000.00 DIVIDED INTO
ORDINARY SHARES 200,000 CASH AND 1,800,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 31,854,423 [2011]
|
|
NET WORTH
|
:
|
MYR <7,036,030> [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
N/A
|
|
BANKER (S)
|
:
|
|
HSBC BANK
MALAYSIA BHD
MALAYAN BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
POOR
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
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 and sale of chemicals.
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. WONG CHEN YEE @ HARITH WONG +
|
LOT 38,GOLF GARDEN, JALAN BUNDUSAN, 88300 KOTA KINABALU, SABAH, MALAYSIA.
|
630129-71-5063
|
999,999.00
|
50.00
|
|
MR. WONG CHEN NAM @ MOHSIN WONG +
|
HSE 32,TMN GREEN VIEW, 88300 LUYANG, P.O.BOX 11863 88820 K.K,
MALAYSIA.
|
550318-12-5273
|
999,999.00
|
50.00
|
|
MR. SEAN BRANDON WONG HON LOONG
|
LOT 38,GOLF GARDEN,, JALAN BUNDUSAN, PENAMPANG,, P.O.BOX 10585,
88806 KOTA KINABALU, SABAH, MALAYSIA.
|
890906-12-5887
|
1.00
|
0.00
|
|
MS. WONG OI VUI
|
HOUSE NO. 32,, TAMAN GREEN VIEW,, LORONG HIJAU, LUYANG,, 88300 KOTA
KINABALU, SABAH, MALAYSIA.
|
840505-12-5522
|
1.00
|
0.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
2,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. WONG CHEN YEE @ HARITH WONG
|
|
Address
|
:
|
LOT 38,GOLF GARDEN, JALAN BUNDUSAN, 88300 KOTA KINABALU, SABAH,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
630129-71-5063
|
|
Date of Birth
|
:
|
29/01/1963
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
11/08/1994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. WONG CHEN NAM @ MOHSIN WONG
|
|
Address
|
:
|
HSE 32,TMN GREEN VIEW, 88300 LUYANG, P.O.BOX 11863 88820 K.K,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
550318-12-5273
|
|
Date of Birth
|
:
|
18/03/1955
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
11/08/1994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
WONG CHEN YEE
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
LEVEL 10, KPMG TOWER,, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING
JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LIM SIEW KENG
|
|
|
|
|
|
|
|
New IC No
|
:
|
690815-07-5240
|
|
|
Address
|
:
|
E3, BLOCK 5,, ASOKA COURT,, JALAN BUNGA ULAM RAJA,, 88300 KOTA
KINABALU, SABAH, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HSBC BANK MALAYSIA BHD
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge
Description
|
Chargee Name
|
Total Charge
|
Status
|
|
1
|
07/10/2000
|
N/A
|
HSBC BANK MALAYSIA BERHAD
|
MYR 3,900,000.00
|
Satisfied
|
|
2
|
07/10/2000
|
N/A
|
HSBC BANK MALAYSIA BERHAD
|
MYR 4,745,900.00
|
Satisfied
|
|
3
|
20/07/2001
|
N/A
|
HSBC BANK MALAYSIA BERHAD
|
MYR 1,800,000.00
|
Satisfied
|
|
4
|
20/02/2002
|
N/A
|
HSBC BANK MALAYSIA BHD
|
MYR 1,500,000.00
|
Satisfied
|
|
5
|
11/08/2003
|
N/A
|
MALAYAN BANKING BERHAD
|
MYR 12,000,000.00
|
Unsatisfied
|
|
6
|
28/07/2006
|
N/A
|
MALAYAN BANKING BHD
|
MYR 5,200,000.00
|
Unsatisfied
|
|
7
|
28/07/2006
|
N/A
|
MALAYAN BANKING BHD
|
MYR 5,200,000.00
|
Unsatisfied
|
|
8
|
03/05/2007
|
N/A
|
MALAYAN BANKING BHD
|
MYR 550,000.00
|
Satisfied
|
|
9
|
28/12/2009
|
N/A
|
CIMB ISLAMIC BANK BERHAD
|
MYR 4,920,000.00
|
Unsatisfied
|
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
|
:
|
N/A
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
The SC refused to disclose its suppliers.
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
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
X
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
NIGERIA
EGYPT
AUSTRALIA
CANADA
ASIA
SOUTH AFRICA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Brand Name
|
:
|
WANTOTIL, PREMIUM, SUPER A
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
SMI ASSOCIATION OF MALAYSIA
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)
CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
43
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacture and sale of
chemicals.
The SC produces Bleaching Earth, Fuller Earth, Activated Clay and others.
The SC also has a related company in Klang.
PROJECTS
No projects found in our databank
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
6088 266966
|
|
Current Telephone Number
|
:
|
089-674885
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT NO. 77-1, GROUND AND 1ST FLOOR, WISMA NEW FAR EAST, JALAN
LINTAS, 88300 KOT
|
|
Current Address
|
:
|
12KM, MILES 8, JALAN KAMPUNG MELAYU, 90000 SANDAKAN, SABAH,
MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
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 headquarters.
The SC refused to disclose its number of employees.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
41.88%
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
155.79%
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's turnover increased steadily as the demand for its products
/ services increased due to the goodwill built up over the years.The SC incurred
losses during the year due to the inefficient control of its operating
costs. Although the SC's returns showed positive figures it is not
reflective of the true situation. The SC incurred losses during the year
and its shareholders' funds have turned red. The positive returns on
shareholders' funds is the result of losses divided by negative
shareholders' funds. The SC's management was inefficient in utilising the
assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Unfavourable
|
[
|
123 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Acceptable
|
[
|
60 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
13 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC could be incurring higher holding cost. As its capital was
tied up in stocks, it could face liquidity problems. 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 where the SC could be taking
advantage of the cash discounts and also wanting to maintain goodwill with
its creditors.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.18 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.46 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the SC may be facing working capital deficiency.
If the SC cannot obtain additional financing or injection of fresh capital,
it may face difficulties in meeting its short term obligations.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Nil
|
[
|
0.00 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
<0.76
Times>
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was nil as it did not pay any interest
during the year. The SC's gearing was negative during the year as its shareholders'
funds was in the red. This means the SC is running its business using
borrowed money. We consider the SC as facing high financial risks.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Although the SC's turnover increased its profits however showed a
reverse trend. The losses could be due to the management's failure to
maintain its competitiveness in the market. Due to its weak liquidity
position, the SC will be faced 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 did not make any interest payment during the
year. The SC was dependent on its shareholders' funds to finance its
business needs. The SC has high financial risks. If its shareholders do not
inject more capital into the company or if its business performance does
not improve, its going concern may be in question.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : POOR
|
MALAYSIA ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2009
|
2010
|
2011
|
2012*
|
2013**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
28.13
|
28.35
|
28.70
|
29.30
|
29.80
|
|
Gross Domestic Products ( % )
|
<0.5>
|
7.2
|
5.1
|
5.6
|
5.3
|
|
Domestic Demand ( % )
|
2.9
|
6.3
|
8.2
|
9.4
|
5.6
|
|
Private Expenditure ( % )
|
<2.7>
|
8.1
|
8.2
|
8.0
|
7.4
|
|
Consumption ( % )
|
0.7
|
6.7
|
7.1
|
1.0
|
5.7
|
|
Investment ( % )
|
<17.2>
|
17.7
|
12.2
|
11.7
|
13.3
|
|
Public Expenditure ( % )
|
5.2
|
3.8
|
8.4
|
13.3
|
1.2
|
|
Consumption ( % )
|
3.1
|
0.2
|
16.1
|
11.3
|
<1.2>
|
|
Investment ( % )
|
8.0
|
2.8
|
<0.3>
|
15.9
|
4.2
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
89,650
|
118,356
|
116,058
|
106,300
|
110,700
|
|
Government Finance ( MYR Million )
|
<28,450>
|
<40,482>
|
<45,511>
|
<42,297>
|
<39,993>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.8>
|
<5.6>
|
<5.4>
|
<4.5>
|
<4.0>
|
|
Inflation ( % Change in Composite CPI)
|
<5.2>
|
5.1
|
3.1
|
1.6
|
2.5
|
|
Unemployment Rate
|
4.5
|
3.9
|
3.3
|
3.2
|
3.0
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
331
|
329
|
415
|
427
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
2.87
|
2.20
|
3.50
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
11.08
|
15.30
|
14.80
|
14.70
|
-
|
|
Average Base Lending Rate ( % )
|
5.53
|
6.30
|
6.60
|
6.53
|
-
|
|
Business Loans Disbursed( % )
|
10.5
|
14.7
|
15.3
|
32.2
|
-
|
|
Foreign Investment ( MYR Million )
|
22,156.8
|
22,517.9
|
23,546.1
|
26,230.4
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
41,578
|
44,148
|
45,455
|
45,441
|
-
|
|
Registration of New Companies ( % )
|
<0.1>
|
6.2
|
3.0
|
<0.0>
|
-
|
|
Liquidation of Companies ( No. )
|
39,075
|
25,585
|
132,476
|
-
|
-
|
|
Liquidation of Companies ( % )
|
39.6
|
<34.5>
|
417.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
312,581
|
271,414
|
284,598
|
324,761
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
19,345
|
19,738
|
20,121
|
-
|
-
|
|
Business Dissolved ( % )
|
2.4
|
2.0
|
1.9
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
486.3
|
543.6
|
535.1
|
552.2
|
-
|
|
Cellular Phone Subscribers ( Million )
|
30.1
|
32.8
|
35.3
|
38.5
|
-
|
|
Tourist Arrival ( Million Persons )
|
23.6
|
24.6
|
24.7
|
25.0
|
-
|
|
Hotel Occupancy Rate ( % )
|
58.0
|
63.0
|
60.6
|
62.4
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
12.8
|
14.1
|
15.6
|
12.6
|
-
|
|
Bad Cheque Offenders (No.)
|
36,667
|
33,568
|
32,627
|
26,982
|
-
|
|
Individual Bankruptcy ( No.)
|
16,228
|
18,119
|
19,167
|
19,575
|
-
|
|
Individual Bankruptcy ( % )
|
16.7
|
11.7
|
5.8
|
2.1
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2009
|
2010
|
2011
|
2012*
|
2013**
|
|
|
|
|
|
|
|
|
Agriculture
|
0.4
|
2.1
|
5.9
|
0.6
|
2.4
|
|
Palm Oil
|
<1.1>
|
<3.4>
|
10.8
|
<2.8>
|
-
|
|
Rubber
|
<19.8>
|
9.9
|
6.1
|
<0.6>
|
-
|
|
Forestry & Logging
|
<5.9>
|
<3.3>
|
<7.6>
|
<2.2>
|
-
|
|
Fishing
|
5.5
|
5.6
|
2.1
|
<0.7>
|
-
|
|
Other Agriculture
|
9.0
|
7.9
|
7.1
|
6.4
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
413.7
|
508.4
|
634.1
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
1.3
|
2.1
|
3.2
|
-
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<3.8>
|
0.2
|
<5.7>
|
1.5
|
2.7
|
|
Oil & Gas
|
2.1
|
0.5
|
<1.7>
|
-
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
44.2
|
49.7
|
46.5
|
-
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
-
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
<9.4>
|
11.4
|
4.7
|
4.2
|
4.9
|
|
Exported-oriented Industries
|
<19.0>
|
12.1
|
2.8
|
4.1
|
-
|
|
Electrical & Electronics
|
<30.3>
|
28.4
|
<4.9>
|
1.6
|
-
|
|
Rubber Products
|
<10.1>
|
25.3
|
15.4
|
3.6
|
-
|
|
Wood Products
|
<24.1>
|
20.1
|
<4.9>
|
4.6
|
-
|
|
Textiles & Apparel
|
<19.5>
|
<0.4>
|
14.8
|
<7.1>
|
-
|
|
Domestic-oriented Industries
|
<9.8>
|
16.3
|
6.5
|
8.6
|
-
|
|
Food, Beverages & Tobacco
|
0.2
|
3.0
|
4.2
|
-
|
-
|
|
Chemical & Chemical Products
|
<7.7>
|
16.2
|
5.5
|
9.9
|
-
|
|
Plastic Products
|
<9.1>
|
2.4
|
3.8
|
-
|
-
|
|
Iron & Steel
|
<32.7>
|
29.3
|
2.4
|
-
|
-
|
|
Fabricated Metal Products
|
<2.5>
|
14.9
|
25.2
|
-
|
-
|
|
Non-metallic Mineral
|
<15.5>
|
20.2
|
27.1
|
6.6
|
-
|
|
Transport Equipment
|
<13.5>
|
36.5
|
<10.4>
|
13.7
|
-
|
|
Paper & Paper Products
|
<5.0>
|
18.7
|
14.8
|
<7.8>
|
-
|
|
Crude Oil Refineries
|
0.2
|
<11.4>
|
9.3
|
-
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,007.3
|
6,217.5
|
6,537.2
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
18.3
|
23.8
|
25.7
|
-
|
-
|
|
|
|
|
|
|
|
|
Construction
|
5.8
|
5.1
|
4.4
|
15.5
|
11.2
|
|
Industry Non-Performing Loans ( MYR Million )
|
3,241.8
|
4,038.5
|
3,856.9
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
9.9
|
10.7
|
10.2
|
-
|
-
|
|
|
|
|
|
|
|
|
Services
|
2.6
|
6.5
|
6.4
|
5.5
|
5.6
|
|
Electric, Gas & Water
|
0.4
|
8.5
|
5.6
|
4.8
|
-
|
|
Transport, Storage & Communication
|
1.6
|
7.7
|
6.5
|
7.3
|
-
|
|
Wholesale, Retail, Hotel & Restaurant
|
2.8
|
4.7
|
5.2
|
6.9
|
-
|
|
Finance, Insurance & Real Estate
|
3.8
|
6.1
|
6.3
|
6.5
|
-
|
|
Government Services
|
2.0
|
6.7
|
7.6
|
5.6
|
-
|
|
Other Services
|
4.4
|
4.2
|
5.4
|
5.7
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,631.3
|
7,384.6
|
6,825.2
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
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
|
|
23921 : Manufacture of non-refractory ceramic
|
|
|
|
|
INDUSTRY :
|
CONSTRUCTION
|
|
|
|
|
|
|
The construction sector consists of four subsectors: residential,
non-residential, civil engineering and special trade works. During a period
of rapid economic expansion, the sector generally outperforms Gross
Domestic Product (GDP) growth.
|
|
|
|
Construction's contribution to gross domestic product (GDP) is
expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors
registering steady growth. The sector is expected to benefit from the
acceleration of ongoing construction activities, particularly from the
Economic Transformation Programme (ETP) and Second Rolling Plan (RP2)
construction-related projects. Of significance, exploration activities in
O&G industries and major projects such as the electrified
double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu,
MRT and the River of Life are expected to drive the growth of the civil
engineering subsector. The non-residential subsector is expected to expand
spurred by the industrial building segment and the commencement of
construction of the Tun Razak Exchange (TRX). The residential subsector is
also projected to expand, albeit at a moderate pace, after recording several
years of strong growth. Key housing development projects, particularly in
Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to
commence in 2013, will support residential construction activities.
According to the Minister of Finance, the domestic demand is expected to
grow at 5.6% and will remain the main driver of growth in 2013 underpinned
by strong private sector expenditure.
|
|
|
|
The industry is set to receive a further boost from a wave of new developments
earmarked for 2013, including rail projects worth an estimated $52 billion
that should be launched in the coming year. It was predicted that the
growth in other sectors will largely drive Malaysia's economy but the
construction sector's contribution to GDP could still remain stable.
However, while the construction sector is expected to have a solid 2013,
it remains hampered by a shortage of skilled labourers, with rapid growth
in recent years triggering a drain on its workforce. In late November of
2012, the Builders Association Malaysia (MBAM) request the government to
do more to facilitate the training of building workers or run the risk of
supply-side bottlenecks delaying new projects.
|
|
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated in 1994, the SC is a Private Limited company, focusing on
manufacture and sale of chemicals. Having been in the industry for over a decade,
the SC has achieved a certain market share and has built up a satisfactory
reputation in the market. It should have received supports from its regular
customers. With a weak shareholders' backing, the SC's capital position is
weak. Inadequate capital may be a constraint to the SC as it limits its
ability to expand its business in future. Presently, issued and paid up
capital of the SC stand at MYR 2million.
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. Overall, we regard that the SC's
management capability is weak. Without capable management, the SC is
unlikely to be successful and often contribute to unacceptable levels of
accountability. Weak management can affect productivity, profitability,
sales growth and ultimately can result in the failure of a business.
Despite the higher turnover, the SC suffered pre-tax losses which reflected
a highly competitive business environment. The SC has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. Due to its weak
liquidity position, the SC may face working capital deficiency in meeting
its short term financial obligations if no fresh capital are injected into
the SC. The SC has generated an unfavourable gearing ratio indicated that
the SC is in high financial risk. The SC's unfavourable financial
performance over the years has wiped out its shareholders' funds to a
deficit of MYR -7,036,030. Therefore, the SC as a going concern is much
dependent on its ability to generate sufficient cash flow and obtain additional
financing to meet its future obligations.
Without a strong assets backing, the SC may face difficulties in getting
loans for its future expansion and continued growth.
The poor payment habit may affect the goodwill between the SC and its
suppliers and the SC may inadvertently have to pay more for its future
supplies.
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.
Based on the above unfavourable condition, we regard granting credit to the
SC to be quite risky. Hence, credit is not recommended.
|
|
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS)
|
|
THE 'W' CLAY
INDUSTRIES 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
|
SUMMARY
|
SUMMARY
|
SUMMARY
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
31,854,423
|
26,581,144
|
25,472,449
|
24,568,140
|
11,760,913
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
31,854,423
|
26,581,144
|
25,472,449
|
24,568,140
|
11,760,913
|
|
Costs of Goods Sold
|
<31,598,512>
|
<23,000,678>
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
255,911
|
3,580,466
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<2,964,739>
|
520,439
|
936,423
|
1,911,698
|
<1,151,286>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<2,964,739>
|
520,439
|
936,423
|
1,911,698
|
<1,151,286>
|
|
Taxation
|
18,171
|
<64,495>
|
9,271
|
14,801
|
24,706
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
<2,946,568>
|
455,944
|
945,694
|
1,924,499
|
<1,126,580>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
<8,755,249>
|
<9,602,750>
|
<10,548,444>
|
<10,744,943>
|
<9,618,363>
|
|
Prior year adjustment
|
54,513
|
-
|
-
|
<1,728,000>
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
<8,700,736>
|
<9,602,750>
|
<10,548,444>
|
<12,472,943>
|
<9,618,363>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<11,647,304>
|
<9,146,806>
|
<9,602,750>
|
<10,548,444>
|
<10,744,943>
|
|
TRANSFER TO RESERVES - General
|
-
|
391,557
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
<11,647,304>
|
<8,755,249>
|
<9,602,750>
|
<10,548,444>
|
<10,744,943>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
BALANCE SHEET
|
THE 'W' CLAY INDUSTRIES
SDN. BHD.
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
19,477,240
|
18,341,180
|
11,103,525
|
11,248,706
|
9,821,643
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
19,477,240
|
18,341,180
|
11,103,525
|
11,248,706
|
9,821,643
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
10,731,736
|
6,500,979
|
-
|
-
|
-
|
|
Trade debtors
|
5,277,021
|
5,367,918
|
-
|
-
|
-
|
|
Other debtors, deposits & prepayments
|
422,134
|
291,878
|
-
|
-
|
-
|
|
Cash & bank balances
|
785,510
|
501,489
|
-
|
-
|
-
|
|
Others
|
728,630
|
8,944,066
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
17,945,031
|
21,606,330
|
17,390,213
|
16,817,191
|
9,223,174
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
37,422,271
|
39,947,510
|
28,493,738
|
28,065,897
|
19,044,817
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
1,128,198
|
794,994
|
-
|
-
|
-
|
|
Other creditors & accruals
|
1,719,211
|
622,135
|
-
|
-
|
-
|
|
Hire purchase & lease creditors
|
898,055
|
874,859
|
-
|
-
|
-
|
|
Bank overdraft
|
-
|
473,705
|
-
|
-
|
-
|
|
Short term borrowings/Term loans
|
186,696
|
271,982
|
-
|
-
|
-
|
|
Bill & acceptances payable
|
7,125,000
|
7,738,000
|
-
|
-
|
-
|
|
Amounts owing to director
|
27,970,000
|
26,970,000
|
-
|
-
|
-
|
|
Provision for taxation
|
447
|
447
|
-
|
-
|
-
|
|
Other liabilities
|
297,715
|
11,733
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
39,325,322
|
37,757,855
|
31,569,183
|
32,250,685
|
26,488,961
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
<21,380,291>
|
<16,151,525>
|
<14,178,970>
|
<15,433,494>
|
<17,265,787>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
<1,903,051>
|
2,189,655
|
<3,075,445>
|
<4,184,788>
|
<7,444,144>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
2,000,000
|
2,000,000
|
2,000,000
|
2,000,000
|
2,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
2,000,000
|
2,000,000
|
2,000,000
|
2,000,000
|
2,000,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Share premium
|
-
|
-
|
3,057,344
|
3,057,344
|
-
|
|
Revaluation reserve
|
2,611,274
|
2,665,787
|
-
|
-
|
-
|
|
Retained profit/(loss) carried forward
|
<11,647,304>
|
<8,755,249>
|
<9,602,750>
|
<10,548,444>
|
<10,744,943>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
<9,036,030>
|
<6,089,462>
|
<6,545,406>
|
<7,491,100>
|
<10,744,943>
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
<7,036,030>
|
<4,089,462>
|
<4,545,406>
|
<5,491,100>
|
<8,744,943>
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Long term loans
|
4,103,795
|
4,690,330
|
-
|
-
|
-
|
|
Hire purchase creditors
|
158,759
|
700,191
|
-
|
-
|
-
|
|
Deferred taxation
|
870,425
|
888,596
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
5,132,979
|
6,279,117
|
1,469,961
|
1,306,312
|
1,300,799
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
<1,903,051>
|
2,189,655
|
<3,075,445>
|
<4,184,788>
|
<7,444,144>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL RATIO
|
THE 'W' CLAY
INDUSTRIES SDN. BHD.
|
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
785,510
|
501,489
|
-
|
-
|
-
|
|
Net Liquid Funds
|
785,510
|
27,784
|
-
|
-
|
-
|
|
Net Liquid Assets
|
<32,112,027>
|
<22,652,504>
|
<14,178,970>
|
<15,433,494>
|
<17,265,787>
|
|
Net Current Assets/(Liabilities)
|
<21,380,291>
|
<16,151,525>
|
<14,178,970>
|
<15,433,494>
|
<17,265,787>
|
|
Net Tangible Assets
|
<1,903,051>
|
2,189,655
|
<3,075,445>
|
<4,184,788>
|
<7,444,144>
|
|
Net Monetary Assets
|
<37,245,006>
|
<28,931,621>
|
<15,648,931>
|
<16,739,806>
|
<18,566,586>
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
5,347,305
|
7,011,067
|
-
|
-
|
-
|
|
Total Liabilities
|
44,458,301
|
44,036,972
|
33,039,144
|
33,556,997
|
27,789,760
|
|
Total Assets
|
37,422,271
|
39,947,510
|
28,493,738
|
28,065,897
|
19,044,817
|
|
Net Assets
|
<1,903,051>
|
2,189,655
|
<3,075,445>
|
<4,184,788>
|
<7,444,144>
|
|
Net Assets Backing
|
<7,036,030>
|
<4,089,462>
|
<4,545,406>
|
<5,491,100>
|
<8,744,943>
|
|
Shareholders' Funds
|
<7,036,030>
|
<4,089,462>
|
<4,545,406>
|
<5,491,100>
|
<8,744,943>
|
|
Total Share Capital
|
2,000,000
|
2,000,000
|
2,000,000
|
2,000,000
|
2,000,000
|
|
Total Reserves
|
<9,036,030>
|
<6,089,462>
|
<6,545,406>
|
<7,491,100>
|
<10,744,943>
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.02
|
0.01
|
-
|
-
|
-
|
|
Liquid Ratio
|
0.18
|
0.40
|
-
|
-
|
-
|
|
Current Ratio
|
0.46
|
0.57
|
0.55
|
0.52
|
0.35
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
123
|
89
|
-
|
-
|
-
|
|
Debtors Ratio
|
60
|
74
|
-
|
-
|
-
|
|
Creditors Ratio
|
13
|
13
|
-
|
-
|
-
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
<0.76>
|
<1.71>
|
-
|
-
|
-
|
|
Liabilities Ratio
|
<6.32>
|
<10.77>
|
<7.27>
|
<6.11>
|
<3.18>
|
|
Times Interest Earned Ratio
|
0.00
|
0.00
|
-
|
-
|
-
|
|
Assets Backing Ratio
|
<0.95>
|
1.09
|
<1.54>
|
<2.09>
|
<3.72>
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
<9.31>
|
1.96
|
3.68
|
7.78
|
<9.79>
|
|
Net Profit Margin
|
<9.25>
|
1.72
|
3.71
|
7.83
|
<9.58>
|
|
Return On Net Assets
|
155.79
|
23.77
|
<30.45>
|
<45.68>
|
15.47
|
|
Return On Capital Employed
|
295.00
|
14.71
|
<30.45>
|
<45.68>
|
15.47
|
|
Return On Shareholders' Funds/Equity
|
41.88
|
<11.15>
|
<20.81>
|
<35.05>
|
12.88
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
-
|
-
|
-
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
|
|
|
|