MIRA INFORM REPORT

 

 

Report Date :

04.10.2013

 

IDENTIFICATION DETAILS

 

Name :

TOYOCHEM SPECIALTY CHEMICAL SDN. BHD.

 

 

Formerly Known as:

T.I.P.P. (MALAYSIA) SDN BHD

 

 

Registered Office :

Symphony House, Blok D13, Pusat Dagangan Dana 1, Jalan Pju 1a/46, Level 8, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.01.1996

 

 

Com. Reg. No.:

373634-A

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Manufacturer and Distributor of polymer, industrial adhesives and its related products

manufacturers of Pressure Sensitive Adhesives (PSA)

 

 

No. of Employees :

100 [2013]

 

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 :

Regular

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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



* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

373634-A

COMPANY NAME

:

TOYOCHEM SPECIALTY CHEMICAL SDN. BHD.

FORMER NAME

:

T.I.P.P. (MALAYSIA) SDN BHD (24/06/2009)

INCORPORATION DATE

:

12/01/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SYMPHONY HOUSE, BLOK D13, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, LEVEL 8, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 17942-44 & 17950-52, TUANKU JAAFAR INDUSTRIAL PARK, SUNGAI GADUT, 71450 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

TEL.NO.

:

06-6791800

FAX.NO.

:

06-6791802

CONTACT PERSON

:

HISAYUKI ABE ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

202

PRINCIPAL ACTIVITY

:

MANUFACTURING AND DISTRIBUTION OF POLYMER, INDUSTRIAL ADHESIVES AND ITS RELATED PRODUCTS

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO 
ORDINARY SHARE 200,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 153,923,230.00 DIVIDED INTO 
ORDINARY SHARES 142,182,775 CASH AND 11,740,455 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 210,445,400 [2012]

NET WORTH

:

MYR 168,871,534 [2012]

 

 

 

STAFF STRENGTH

:

100 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

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) manufacturing and distribution of polymer, industrial adhesives and its related products.

 

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

 

The immediate holding company of the SC is TOYO INK PAN PACIFIC PTE LTD, a company incorporated in SINGAPORE.

 

The ultimate holding company of the SC is TOYO INK SC HOLDINGS CO LTD, a company incorporated in JAPAN.

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

TOYO INK PAN PACIFIC PTE LTD

C/O TOYOCHEM INK PTE LTD, 31, TUAS AVENUE 2, 2263, SINGAPORE.

AFXLZ000010696

153,923,230.00

100.00

 

 

 

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

------

 

 

 

153,923,230.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MAMI AOTANI

Address

:

LIONS-MANSION, 303, 31-2, AOTO 5-CHOME, KATSUSHIKA-KU, TOKYO, 125-0062, JAPAN.

IC / PP No

:

TZ0278100

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/05/2012

 

 

 

 

 

 

 

 

 

 

 

 

 


DIRECTOR 2

Name Of Subject

:

TAICHIRO MATSUOKA

Address

:

3-13-25, HAYAMINE, NERIMA, TOKYO, JAPAN.

IC / PP No

:

TZ0278173

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

01/07/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

HISAYUKI ABE

Address

:

A-23A-07, MONT KIARA MERIDIN, 19, JALAN DUTA KIARA, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TH0032181

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

04/07/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. TAN CHUAN FOOK

Address

:

5, JALAN KENYALANG 11/15D, PJU 5, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5080013

New IC No

:

560409-02-5103

Date of Birth

:

09/04/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

03/07/2008

 

 

 

Qualification

:

B.SC (CHEMISTRY & MATHEMATICS) UM IN 1979

Profile

:

JOINED BEHN MEYER & CO (M) SDN BHD IN 1980 IN 1988 JOINED TOYOCHEM GRAPHICS SDN BHD (TG) AS THE SALES GM IN 1989. IN 1994, PROMOTED TO GM OF TG APPOINTED AS GM OF TOYOCHEM SDN BHD IN JANUARY 1997

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

KOJI UENO

Address

:

20-18, AOTO 8-CHOME, KATASUSHIKA-KU, TOKYO, 125-0062, JAPAN.

IC / PP No

:

TZ0591871

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/05/2012

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ELLYNA GOMEZ

 

Position

:

ADMIN MANAGER

 

 

 

 

 

2)

Name of Subject

:

HISAYUKI ABE

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

LIANG YAT HONG

 

Position

:

FACTORY MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, P.O.BOX, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEONG CHOON YIN

 

IC / PP No

:

1998972

 

New IC No

:

711103-03-5216

 

Address

:

8, JALAN PUTRA HARMONI 1/3H, SEKSYEN 1, PUTRA HEIGHTS, 47650 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. WONG SIEW YEEN

 

IC / PP No

:

A1529478

 

New IC No

:

700305-05-5166

 

Address

:

3, JALAN SS 15/5E, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

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 against 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

Percentage

:

70%

Overseas

:

YES

Percentage

:

30%

Import Countries

:

SINGAPORE,JAPAN,TAIWAN,INDONESIA



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

30%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

70%

Export Market

:

EUROPE

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

DISTRIBUTORS,MANUFACTURING INDUSTRIES

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

POLYMER, INDUSTRIAL ADHESIVES AND ITS RELATED PRODUCTS

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 


 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

100

100

100

100

71

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and distribution of polymer, industrial adhesives and its related products. 

The SC is the one of the leading manufacturers of Pressure Sensitive Adhesives (PSA).

The SC's products are distributed in tanks and for export market the products are distributed in 180kg drums.

Besides that the SC utilizes advanced automated and semi-automated machineries to ensure production of high quality products.

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

06-6791800

Match

:

N/A

 

 

 

Address Provided by Client

:

10, JALAN PENGAPIT (15/19), SECTION 15, 40000, SHAH ALAM, SELANGOR DARUL EHSAN

Current Address

:

LOT 17942-44 & 17950-52, TUANKU JAAFAR INDUSTRIAL PARK, SUNGAI GADUT, 71450 SEREMBAN, NEGERI SEMBILAN, 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.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

26.28%

]

 

Return on Net Assets

:

Acceptable

[

29.27%

]

 

 

 

 

 

 

 

 

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

:

Unfavourable

[

69 Days

]

 

Debtor Ratio

:

Acceptable

[

65 Days

]

 

Creditors Ratio

:

Favourable

[

49 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

:

Favourable

[

1.69 Times

]

 

Current Ratio

:

Favourable

[

2.55 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

57.43 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC had no 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

 

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

202 : Manufacture of other chemical products

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domestic oriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand. 

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first seven months of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domestic oriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion. 

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China. 

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. 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.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries. 

 

Tax and non-tax incentives provided by government encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by government 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 1996, the SC is a Private Limited company, focusing on manufacturing and distribution of polymer, industrial adhesives and its related products. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect. 

Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC has a total workforce of 100 employees in its business 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. 

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 168,871,534, the SC should be able to maintain its business in the near terms. 

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. 

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

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 condition, we recommend credit be granted to the SC promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

TOYOCHEM SPECIALTY CHEMICAL SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

210,445,400

193,391,168

163,821,437

77,330,145

73,300,052

 

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

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

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

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

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

Total Turnover

210,445,400

193,391,168

163,821,437

77,330,145

73,300,052

Costs of Goods Sold

<176,937,007>

<166,892,482>

<148,301,817>

<72,168,581>

<67,850,753>

 

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

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

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

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

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

Gross Profit

33,508,393

26,498,686

15,519,620

5,161,564

5,449,299

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

50,222,519

10,972,546

1,323,233

<2,825,205>

<158,645>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

50,222,519

10,972,546

1,323,233

<2,825,205>

<158,645>

Taxation

<5,842,334>

<2,114,000>

6,796,500

4,365,500

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

44,380,185

8,858,546

8,119,733

1,540,295

<158,645>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

<47,791,810>

 

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

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

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

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

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

As restated

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

<47,791,810>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

14,948,304

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

14,948,304

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

-

-

-

56,236

Bankers' acceptance

-

-

-

24,738

-

Hire purchase

-

-

9,449

9,449

4,724

Lease interest

-

4,727

-

-

-

Term loan / Borrowing

69,224

65,476

1,186,609

821,542

1,549,519

Others

820,835

1,242,557

175,858

-

33,506

 

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

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

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

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

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

 

890,059

1,312,760

1,371,916

855,729

1,643,985

 

 

 

BALANCE SHEET

 

 

TOYOCHEM SPECIALTY CHEMICAL SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

72,177,898

79,201,871

81,954,665

81,917,989

62,768,995

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

20,017,000

64,462,005

64,462,005

64,462,005

-

Investments

5,789,177

5,158,347

4,788,114

3,027,506

-

Deferred assets

4,839,000

9,048,000

11,162,000

4,365,500

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

30,645,177

78,668,352

80,412,119

71,855,011

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

102,823,075

157,870,223

162,366,784

153,773,000

62,768,995

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

39,767,530

38,384,141

32,805,182

22,129,989

13,644,621

Trade debtors

37,450,445

37,754,971

4,079,465

4,029,736

-

Other debtors, deposits & prepayments

1,298,162

1,165,902

792,956

347,834

240,881

Short term deposits

-

-

-

-

2,530,000

Amount due from holding company

995,140

595,334

212,585

789,581

6,635,327

Amount due from related companies

18,067,466

15,139,572

19,458,968

16,067,948

3,474,771

Cash & bank balances

16,551,587

5,443,165

7,101,504

7,322,489

1,442,525

Others

4,014,433

6,000

16,143,868

8,574,808

1,474,308

 

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

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

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

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

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

TOTAL CURRENT ASSETS

118,144,763

98,489,085

80,594,528

59,262,385

29,442,433

 

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

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

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

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

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

TOTAL ASSET

220,967,838

256,359,308

242,961,312

213,035,385

92,211,428

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

23,625,196

20,572,223

20,162,522

17,004,856

8,086,539

Other creditors & accruals

7,766,574

6,348,889

7,721,055

1,784,532

1,451,485

Hire purchase & lease creditors

-

-

27,808

55,620

55,624

Short term borrowings/Term loans

-

6,428,000

6,254,000

24,566,850

34,466,800

Bill & acceptances payable

-

-

-

-

1,046,128

Amounts owing to holding company

7,163,234

6,751,475

8,310,306

9,203,937

4,481,048

Amounts owing to related companies

7,814,288

61,759,599

49,977,440

37,634,261

1,582,608

Other liabilities

-

25,000,000

30,131,867

12,262,557

617,806

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

46,369,292

126,860,186

122,584,998

102,512,613

51,788,038

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

71,775,471

<28,371,101>

<41,990,470>

<43,250,228>

<22,345,605>

 

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

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

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

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

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

TOTAL NET ASSETS

174,598,546

129,499,122

120,376,314

110,522,772

40,423,390

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

153,923,230

153,923,230

153,923,230

153,923,230

87,923,230

 

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

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

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

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

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

TOTAL SHARE CAPITAL

153,923,230

153,923,230

153,923,230

153,923,230

87,923,230

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

14,948,304

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

 

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

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

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

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

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

TOTAL RESERVES

14,948,304

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

168,871,534

124,491,349

115,632,803

107,513,070

39,972,775

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

-

-

-

27,816

83,435

Retirement benefits provision

5,727,012

5,007,773

4,743,511

2,981,886

367,180

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

5,727,012

5,007,773

4,743,511

3,009,702

450,615

 

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

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

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

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

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

 

174,598,546

129,499,122

120,376,314

110,522,772

40,423,390

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

TOYOCHEM SPECIALTY CHEMICAL SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

16,551,587

5,443,165

7,101,504

7,322,489

3,972,525

Net Liquid Funds

16,551,587

5,443,165

7,101,504

7,322,489

2,926,397

Net Liquid Assets

32,007,941

<66,755,242>

<74,795,652>

<65,380,217>

<35,990,226>

Net Current Assets/(Liabilities)

71,775,471

<28,371,101>

<41,990,470>

<43,250,228>

<22,345,605>

Net Tangible Assets

174,598,546

129,499,122

120,376,314

110,522,772

40,423,390

Net Monetary Assets

26,280,929

<71,763,015>

<79,539,163>

<68,389,919>

<36,440,841>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

6,428,000

6,281,808

24,650,286

35,651,987

Total Liabilities

52,096,304

131,867,959

127,328,509

105,522,315

52,238,653

Total Assets

220,967,838

256,359,308

242,961,312

213,035,385

92,211,428

Net Assets

174,598,546

129,499,122

120,376,314

110,522,772

40,423,390

Net Assets Backing

168,871,534

124,491,349

115,632,803

107,513,070

39,972,775

Shareholders' Funds

168,871,534

124,491,349

115,632,803

107,513,070

39,972,775

Total Share Capital

153,923,230

153,923,230

153,923,230

153,923,230

87,923,230

Total Reserves

14,948,304

<29,431,881>

<38,290,427>

<46,410,160>

<47,950,455>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.36

0.04

0.06

0.07

0.08

Liquid Ratio

1.69

0.47

0.39

0.36

0.31

Current Ratio

2.55

0.78

0.66

0.58

0.57

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

69

72

73

104

68

Debtors Ratio

65

71

9

19

0

Creditors Ratio

49

45

50

86

44

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.05

0.05

0.23

0.89

Liabilities Ratio

0.31

1.06

1.10

0.98

1.31

Times Interest Earned Ratio

57.43

9.36

1.96

<2.30>

0.90

Assets Backing Ratio

1.13

0.84

0.78

0.72

0.46

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

23.86

5.67

0.81

<3.65>

<0.22>

Net Profit Margin

21.09

4.58

4.96

1.99

<0.22>

Return On Net Assets

29.27

9.49

2.24

<1.78>

3.67

Return On Capital Employed

29.27

9.49

2.24

<1.78>

3.67

Return On Shareholders' Funds/Equity

26.28

7.12

7.02

1.43

<0.40>

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.61.93

UK Pound

1

Rs.100.44

Euro

1

Rs.84.24

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.