MIRA INFORM REPORT

 

 

Report Date :

15.12.2014

 

IDENTIFICATION DETAILS

 

Name :

TIOXIDE (MALAYSIA) SDN. BHD.

 

 

Formerly Known As :

TAPL (MALAYSIA) SDN BHD

 

 

Registered Office :

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

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

04.08.1982

 

 

Com. Reg. No.:

88183-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of 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 :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

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 INDUSTRI TELUK KALONG, P.O. BOX 29,, 24007 KEMAMAN, TERENGGANU, MALAYSIA.

TEL.NO.

:

09-8628688

FAX.NO.

:

09-8631988

CONTACT PERSON

:

UBAIDILLAH HASSAN ( FINANCIAL CONTROLLER )

 

 

 

INDUSTRY CODE

:

20119

PRINCIPAL ACTIVITY

:

MANUFACTURE OF CHEMICAL PETROCHEMICAL PRODUCTS

AUTHORISED CAPITAL

:

ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 45,000,000.00 OF USD 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

ORDINARY SHARES 5,125,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 3,000,000 CASH OF USD 1.00 EACH.

 

 

 

SALES

:

MYR 756,802,000 [2012]

NET WORTH

:

MYR 488,656,000 [2012]

M1000 OVERALL RANKING

:

511[2011]

M1000 INDUSTRY RANKING

:

27[2011]

 

 

 

STAFF STRENGTH

:

300 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacture of chemical petrochemical products.

 

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

 

According to the Malaysia 1000 publication, the Subject'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

 

 

Share Capital History

Date

Issue & Paid Up Capital

01/07/2013

MYR 5,125,000.00 & USD 3,000,000.00

15/02/2013

MYR 5,125,000.00 & USD 3,300,000.00

30/06/2012

MYR 5,125,000.00 & USD 3,750,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

HUNTSMAN ICI INVESTMENT (NETHERLANDS) BV

MERSEYWEG 10, 3179KG, BOTLEK-ROTTERDAM THE NETHERLANDS

XLZ000016239

8,125,000.00

100.00

 

 

 

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

------

 

 

 

8,125,000.00

100.00

 

 

 

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

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

375458U

MALAYSIA

PACIFIC IRON PRODUCTS SDN. BHD.

50.00

29/03/2013

 

 

 

 

 



Directors

 

DIRECTOR 1

 

Name Of Subject

:

MR. V VISAGARAN A/L E.VISVALINGAM

Address

:

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

IC / PP No

:

7347209

New IC No

:

640718-04-5001

Date of Birth

:

18/07/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. MIZANUR RAHMAN BIN S M ABDUL GHANI

Address

:

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

IC / PP No

:

0663753

New IC No

:

451201-10-5291

Date of Birth

:

01/12/1945

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/07/1989

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

PETER RILEY HUNTSMAN

Address

:

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

IC / PP No

:

701739401

 

 

 

 

 

 

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

28/06/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

DARYL KENNETH WOOD

Address

:

APARTMENT 43-3-2, VILLA MUTIARA, 43, JALAN MEDANG TANDUK, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

E3083083

 

 

 

 

 

 

 

 

 

Nationality

:

AUSTRALIAN

Date of Appointment

:

15/02/2006

 

 

MANAGEMENT

 

1)

Name of Subject

:

UBAIDILLAH HASSAN

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

2)

Name of Subject

:

ALEX LEE

 

Position

:

MARKETING MANAGER

 

 

 

 

 

3)

Name of Subject

:

AZHAR AZIZ

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

ZUL AWANG

 

Position

:

EXECUTIVE

 

 

 

 

 

5)

Name of Subject

:

ZAMANI AHMAD

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

6)

Name of Subject

:

VISAGARAN VISVALINGAM

 

Position

:

SITE DIRECTOR

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

LEVEL 16, MENARA LGB, 1 JALAN WAN KADIR, TAMAN TUN DR. ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KUMAR A/L RAMU

 

IC / PP No

:

A0413045

 

New IC No

:

660413-08-5289

 

Address

:

8, LORONG BUKIT PELINDUNG 77, TAMAN BUKIT PELINGUNG AMAN, 25050 KUANTAN, PAHANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. THAM WAI YING

 

IC / PP No

:

A1008639

 

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

 

IC / PP No

:

A1845678

 

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

 

 

ENCUMBRANCE (S)

 

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

 

 

LEGAL CHECK AGAINST SUBJECT

 


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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 Subject 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

:

CHEMICAL PETROCHEMICAL PRODUCTS

 

 

 

Award

:

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

 

 

 

 

 

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

2014

2013

2012

2011

2010

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

300

300

300

330

325

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

1

 

 

 

Other Information:


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

The Subject'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 Subject 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.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that:

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

09-8628688

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 15, THE PINNACLE PERSIARAN LAGOON BANDAR SUNWAY 46150 PETALING

JAYA SELANGOIR DARUL EHSAN

Current Address

:

KAWASAN INDUSTRI TELUK KALONG, P.O. BOX 29,, 24007 KEMAMAN, TERENGGANU, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information on the Subject.


The Subject is not aware of the address provided.

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

15.70%

]

 

Return on Net Assets

:

Acceptable

[

12.91%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

53 Days

]

 

Debtor Ratio

:

Unfavourable

[

84 Days

]

 

Creditors Ratio

:

Favourable

[

25 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

2.07 Times

]

 

Current Ratio

:

Favourable

[

3.08 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject 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 Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the Subject : 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

28,876

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

21,984

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

12.3

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.1

2.4

5.8

1.3

2.1

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

(6.5)

(0.3)

(5.4)

1.0

0.7

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 #

(9.0)

11.9

4.7

4.8

3.5

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.0)

12.7

18.6

Rubber Products

(10.1)

25.3

20.7

3.0

8.2

Wood Products

(24.1)

20.1

(5.1)

8.7

(3.1)

Textiles & Apparel

(19.5)

(0.4)

13.2

(7.1)

(2.6)

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.8

2.7

3.6

Chemical & Chemical Products

(7.7)

16.2

10.0

10.8

(0.7)

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.2

(6.6)

3.4

Fabricated Metal Products

(2.5)

14.9

21.8

13.8

12.2

Non-metallic Mineral

(15.5)

20.2

12.1

2.9

(0.4)

Transport Equipment

(13.5)

36.5

12.0

3.4

13.8

Paper & Paper Products

(5.0)

18.7

9.5

3.1

2.3

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

6.2

11.4

4.7

18.6

10.9

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

2.9

7.4

7.1

6.4

5.9

Electric, Gas & Water

1.4

7.8

3.5

4.4

4.2

Transport, Storage & Communication

1.6

7.7

6.5

7.1

7.3

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

4.7

5.9

Finance, Insurance & Real Estate

3.8

6.1

6.9

9.7

3.7

Government Services

3.4

5.9

12.4

9.4

8.3

Other Services

3.8

4.4

5.1

3.9

5.1

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 

 

 

Industry Analysis

 

MSIC CODE

20119 : Manufacture of other basic chemicals n.e.c.

 

 

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 domesticoriented 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 sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented 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 goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar 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 Subject is a Private Limited company, focusing on manufacture of chemical petrochemical products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 300 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 Subject 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 488,656,000, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject'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 Subject has a good control over its resources.

We regard that the Subject's overall payment habit is prompt. The Subject 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 Subject 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 Subject 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

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

756,802,000

1,009,837,000

877,334,000

683,126,000

664,607,000

 

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

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

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

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

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

Total Turnover

756,802,000

1,009,837,000

877,334,000

683,126,000

664,607,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

63,068,000

152,200,000

91,804,000

15,414,000

6,816,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

63,068,000

152,200,000

91,804,000

15,414,000

6,816,000

Taxation

13,650,000

(43,878,000)

(17,487,000)

(9,259,000)

(92,000)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

76,718,000

108,322,000

74,317,000

6,155,000

6,724,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

393,716,000

314,865,000

246,910,000

243,008,000

237,610,000

 

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

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

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

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

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

As restated

393,716,000

314,865,000

246,910,000

243,008,000

237,610,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

470,434,000

423,187,000

321,227,000

249,163,000

244,334,000

TRANSFER TO RESERVES - General

(51,442,000)

(29,471,000)

(6,362,000)

(2,253,000)

(1,326,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

418,992,000

393,716,000

314,865,000

246,910,000

243,008,000

 

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

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

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

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

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

 

 

 

 

 

 

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

260,779,000

252,258,000

273,306,000

295,899,000

333,158,000

 

 

 

 

 

 

Associated companies

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

Deferred assets

1,272,000

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,522,000

1,250,000

1,250,000

1,250,000

1,250,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

263,301,000

253,508,000

274,556,000

297,149,000

334,408,000

 

 

 

 

 

 

Stocks

109,178,000

117,921,000

64,992,000

71,400,000

146,499,000

Trade debtors

174,712,000

177,683,000

182,585,000

121,128,000

74,644,000

Other debtors, deposits & prepayments

3,524,000

1,967,000

1,775,000

1,554,000

663,000

Short term deposits

150,000

153,000

-

23,236,000

20,233,000

Deposits with financial institutions

-

-

30,625,000

-

-

Amount due from related companies

-

-

4,986,000

1,109,000

468,000

Amount due from associated companies

-

-

1,899,000

1,378,000

690,000

Cash & bank balances

39,111,000

47,060,000

153,000

19,117,000

20,683,000

Others

6,905,000

-

-

207,000

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

333,580,000

344,784,000

287,015,000

239,129,000

263,880,000

 

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

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

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

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

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

TOTAL ASSET

596,881,000

598,292,000

561,571,000

536,278,000

598,288,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

51,209,000

62,800,000

36,872,000

42,853,000

29,014,000

Other creditors & accruals

48,266,000

34,646,000

43,857,000

34,130,000

33,694,000

Amounts owing to related companies

-

-

34,107,000

27,631,000

91,079,000

Provision for taxation

-

18,642,000

-

-

121,000

Other liabilities

8,750,000

13,256,000

6,720,000

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

108,225,000

129,344,000

121,556,000

104,614,000

153,908,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

225,355,000

215,440,000

165,459,000

134,515,000

109,972,000

 

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

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

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

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

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

TOTAL NET ASSETS

488,656,000

468,948,000

440,015,000

431,664,000

444,380,000

 

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

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

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

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

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

 

 

 

 

 

 

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

Capital reserve

64,539,000

60,033,000

54,732,000

48,370,000

46,117,000

Retained profit/(loss) carried forward

418,992,000

393,716,000

314,865,000

246,910,000

243,008,000

 

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

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

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

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

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

TOTAL RESERVES

483,531,000

453,749,000

399,833,000

341,180,000

335,025,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

488,656,000

458,874,000

404,958,000

346,305,000

340,150,000

 

 

 

 

 

 

Deferred taxation

-

10,074,000

16,500,000

9,500,000

-

Others

-

-

18,557,000

75,859,000

104,230,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

10,074,000

35,057,000

85,359,000

104,230,000

 

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

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

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

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

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

 

488,656,000

468,948,000

440,015,000

431,664,000

444,380,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

TIOXIDE (MALAYSIA) SDN. BHD.

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

39,261,000

47,213,000

153,000

42,353,000

40,916,000

Net Liquid Funds

39,261,000

47,213,000

153,000

42,353,000

40,916,000

Net Liquid Assets

116,177,000

97,519,000

100,467,000

63,115,000

(36,527,000)

Net Current Assets/(Liabilities)

225,355,000

215,440,000

165,459,000

134,515,000

109,972,000

Net Tangible Assets

488,656,000

468,948,000

440,015,000

431,664,000

444,380,000

Net Monetary Assets

116,177,000

87,445,000

65,410,000

(22,244,000)

(140,757,000)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

108,225,000

139,418,000

156,613,000

189,973,000

258,138,000

Total Assets

596,881,000

598,292,000

561,571,000

536,278,000

598,288,000

Net Assets

488,656,000

468,948,000

440,015,000

431,664,000

444,380,000

Net Assets Backing

488,656,000

458,874,000

404,958,000

346,305,000

340,150,000

Shareholders' Funds

488,656,000

458,874,000

404,958,000

346,305,000

340,150,000

Total Share Capital

5,125,000

5,125,000

5,125,000

5,125,000

5,125,000

Total Reserves

483,531,000

453,749,000

399,833,000

341,180,000

335,025,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.36

0.37

0.00

0.40

0.27

Liquid Ratio

2.07

1.75

1.83

1.60

0.76

Current Ratio

3.08

2.67

2.36

2.29

1.71

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

53

43

27

38

80

Debtors Ratio

84

64

76

65

41

Creditors Ratio

25

23

15

23

16

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.22

0.30

0.39

0.55

0.76

Times Interest Earned Ratio

0.00

0.00

0.00

209.30

20.70

Assets Backing Ratio

95.35

91.50

85.86

84.23

86.71

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

8.33

15.07

10.46

2.26

1.03

Net Profit Margin

10.14

10.73

8.47

0.90

1.01

Return On Net Assets

12.91

32.46

20.86

3.59

1.61

Return On Capital Employed

12.91

32.46

20.86

3.59

1.61

Return On Shareholders' Funds/Equity

15.70

23.61

18.35

1.78

1.98

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.62.44

UK Pound

1

Rs.98.15

Euro

1

Rs.77.38 

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

 

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.