|
Report No. : |
344464 |
|
Report Date : |
10.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
TIOXIDE (MALAYSIA) SDN. BHD. |
|
|
|
|
Formerly Known As : |
TAPL
(MALAYSIA) SDN BHD (18/07/1989) |
|
|
|
|
Registered Office : |
The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
04.08.1982 |
|
|
|
|
Com. Reg. No.: |
88183-K |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Manufacturing of Chemicals and Inorganic Pigment Products |
|
|
|
|
No. of Employees : |
330 [2015] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.
The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.
Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.
Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.
|
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 |
: |
V.VISAGARAN A/L E.VISVALINGAM ( DIRECTOR ) |
||||
|
INDUSTRY CODE |
: |
20119 |
||||
|
PRINCIPAL ACTIVITY |
: |
MANUFACTURING OF CHEMICALS AND INORGANIC
PIGMENT PRODUCTS |
||||
|
AUTHORISED CAPITAL |
: |
ORDINARY SHARE 10,000,000.00 OF MYR 1.00
EACH. |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
ORDINARY SHARES 5,125,000 CASH OF MYR 1.00
EACH. |
||||
|
SALES |
: |
MYR 724,637,000 [2013] |
||||
|
NET WORTH |
: |
MYR 470,807,000 [2013] |
||||
|
M1000 OVERALL RANKING |
: |
511[2011] |
||||
|
M1000 INDUSTRY RANKING |
: |
27[2011] |
||||
|
STAFF STRENGTH |
: |
330 [2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
FAIR |
||||
|
PAYMENT |
: |
GOOD |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL RISK |
: |
LOW |
||||
|
CURRENCY EXPOSURE |
: |
MODERATE |
||||
|
GENERAL REPUTATION |
: |
SATISFACTORY |
||||
|
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) manufacturing of chemicals and inorganic pigment 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 |
|
The immediate holding company of the Subject is HUNTSMAN ICI INVESTMENT (NETHERLANDS) BV, a company incorporated in NETHERLANDS.
Share Capital History
|
Date |
Authorised
Shared Capital |
Issue & Paid
Up Capital |
|
06/06/2014 |
MYR 0.00 |
MYR 5,125,000.00 & USD 3,000,000.00 |
|
27/11/1990 |
MYR 0.00 |
MYR 5,125,000.00 & USD 1,750,000.00 |
|
26/09/1990 |
USD 10,000,000.00 |
USD 5,125,000.00 |
|
07/08/1990 |
USD 5,000,000.00 |
USD 3,125,000.00 |
|
08/03/1990 |
USD 5,000,000.00 |
USD 2,125,000.00 |
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,
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 |
26/11/2014 |
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 |
: |
MICHAEL CHRISTOPHER DIXON |
|
Address |
: |
WHITLEY GRANCE, SOUTH OTTERINGTON,
NORTHALLERTON, DL 7 9HU, UNITED KINGDOM. |
|
IC / PP No |
: |
800580318 |
|
Nationality |
: |
BRITISH |
|
Date of Appointment |
: |
12/03/2014 |
DIRECTOR 3
|
Name Of Subject |
: |
DATO' MIZANUR RAHMAN BIN S M ABDUL GHANI |
|
Address |
: |
8, JALAN BEKA, DAMANSARA HEIGHTS, 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 4
|
Name Of Subject |
: |
DAVID JEREMY GILLILAND |
|
Address |
: |
23, DURHAM MOOR CRESENT, DURHAM DH1 5AW,
UNITED KINGDOM. |
|
IC / PP No |
: |
456383634 |
|
Date of Appointment |
: |
30/06/2014 |
DIRECTOR 5
|
Name Of Subject |
: |
RICHARD JUSTIN JAMES PHILIPSON |
|
Address |
: |
2, VANDA AVENUE, ORCHID VILLAGE, 287941,
SINGAPORE. |
|
IC / PP No |
: |
761278736 |
|
Nationality |
: |
BRITISH |
|
Date of Appointment |
: |
03/11/2014 |
MANAGEMENT
|
|
1) |
Name of Subject |
: |
V.VISAGARAN A/L E.VISVALINGAM |
|
Position |
: |
DIRECTOR |
|
|
2) |
Name of Subject |
: |
UBAIDILLAH HASSAN |
|
Position |
: |
FINANCE & ACCOUNTS MANAGER |
|
AUDITOR
|
|
Auditor |
: |
DELOITTE & TOUCHE |
|
Auditor' Address |
: |
MENARA LGB, 1 JALAN WAN KADIR, TAMAN TUN DR. ISMAIL, LEVEL 16, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
COMPANY
SECRETARIES
|
|
1) |
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. |
|
|
2) |
Company Secretary |
: |
MR. KUMAR A/L RAMU |
|
IC / PP No |
: |
A0413045 |
|
|
New IC No |
: |
660413-08-5289 |
|
|
Address |
: |
8, LORONG BKT PELINDUNG 77, TMN BKT PELINDUNG AMAN, 25050 KUANTAN, PAHANG, 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.
LITIGATION
CHECK AGAINST SUBJECT
|
* A check has been conducted in our databank against 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.
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 |
[ |
] |
Good 31-60 Days |
[ |
X |
] |
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 |
|||
OPERATIONS
|
|
Products manufactured |
: |
|
||
|
Award |
: |
1 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL
TRADE AND INDUSTRY (MITI) Year :2003 |
||
|
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 |
2015 |
2014 |
2013 |
2012 |
2011 |
||||
|
|
|||||||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
||||
|
COMPANY |
330 |
300 |
300 |
300 |
330 |
||||
|
Branch |
: |
YES |
|
|
No of Branches |
: |
1 |
|
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of
chemicals and inorganic pigment products.
The Subject is engage in manufacturing of chemical and pigments.
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.
The Subject's line of business includes the manufacturing of inorganic pigments
including black, white, and color.
The Subject work with their customers, using expertise and pioneering spirit to
create value and to help the customers succeed by delivering titanium solutions
that meet the needs of an ever changing world.
The Subject's brands include TIOXIDE® titanium dioxide pigments, one of the
best known titanium dioxide pigment brands in the world, representing
world-class quality and performance, DELTIO® free-flow titanium dioxide
pigments, low dust products that help make TiO2 pigment processing easier and
ALTIRIS® infrared reflecting pigments that reflect solar energy which can
damage colorful exterior coatings and polymers.
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 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 he provided some
information.
The address provided belongs to the Subject's headquarters.
FINANCIAL
ANALYSIS
|
|
|
|
Profitability |
||||||
|
Turnover |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
0.07% |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
0.54% |
] |
|
|
The continuous fall in turnover could be due to the lower demand for
the Subject's products / services. The Subject's profit fell sharply because
of the high operating costs incurred. The unfavourable return on
shareholders' funds could indicate that the Subject was inefficient in
utilising its assets to generate returns. |
||||||
|
Working Capital
Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
55 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
77 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
14 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 |
[ |
1.50 Times |
] |
|
|
Current Ratio |
: |
Favourable |
[ |
2.29 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's performance deteriorated over the years with lower
turnover and profit. 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 : FAIR |
||||||
MALAYSIA
ECONOMIC / INDUSTRY OUTLOOK
|
|
Major Economic
Indicators: |
2011 |
2012 |
2013 |
2014* |
2015** |
|
Population ( Million) |
28.7 |
29.3 |
29.8 |
30.3 |
30.5 |
|
Gross Domestic
Products ( % ) |
5.1 |
5.6 |
5.3 |
6.0 |
6.0 |
|
Domestic Demand ( % ) |
8.2 |
9.4 |
5.6 |
6.4 |
6.2 |
|
Private
Expenditure ( % ) |
8.2 |
8.0 |
8.6 |
7.9 |
6.9 |
|
Consumption ( % ) |
7.1 |
1.0 |
5.7 |
6.5 |
5.6 |
|
Investment ( % ) |
12.2 |
11.7 |
13.3 |
12.0 |
10.7 |
|
Public
Expenditure ( % ) |
8.4 |
13.3 |
4.4 |
2.3 |
4.2 |
|
Consumption ( % ) |
16.1 |
11.3 |
(1.2) |
2.1 |
3.8 |
|
Investment ( % ) |
(0.3) |
15.9 |
4.2 |
2.6 |
4.7 |
|
Balance of Trade ( MYR Million ) |
116,058 |
106,300 |
71,298 |
52,314 |
- |
|
Government Finance ( MYR Million ) |
(45,511) |
(42,297) |
(39,993) |
(37,291) |
- |
|
Government
Finance to GDP / Fiscal Deficit ( % ) |
(5.4) |
(4.5) |
(4.0) |
(3.5) |
(3.0) |
|
Inflation ( % Change in Composite CPI) |
3.1 |
1.6 |
2.5 |
3.3 |
4.0 |
|
Unemployment Rate |
3.3 |
3.2 |
3.0 |
3.0 |
3.0 |
|
Net International Reserves ( MYR Billion ) |
415 |
427 |
- |
417 |
- |
|
Average Risk-Weighted Capital Adequacy
Ratio ( % ) |
3.50 |
2.20 |
- |
- |
- |
|
Average 3 Months
of Non-performing Loans ( % ) |
14.80 |
14.70 |
- |
- |
- |
|
Average Base Lending Rate ( % ) |
6.60 |
6.53 |
6.53 |
- |
- |
|
Business Loans Disbursed( % ) |
15.3 |
32.2 |
- |
- |
- |
|
Foreign Investment ( MYR Million ) |
23,546.1 |
26,230.4 |
38,238.0 |
- |
- |
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
Registration of
New Companies ( No. ) |
45,455 |
45,441 |
46,321 |
- |
- |
|
Registration of New Companies ( % ) |
3.0 |
(0.0) |
1.9 |
- |
- |
|
Liquidation of
Companies ( No. ) |
132,485 |
17,092 |
26,430 |
- |
- |
|
Liquidation of Companies ( % ) |
417.8 |
(87.1) |
54.6 |
- |
- |
|
Registration of
New Business ( No. ) |
284,598 |
324,761 |
329,895 |
- |
- |
|
Registration of New Business ( % ) |
5.0 |
14.0 |
2.0 |
- |
- |
|
Business
Dissolved ( No. ) |
20,121 |
20,380 |
18,161 |
- |
- |
|
Business Dissolved ( % ) |
1.9 |
1.3 |
(10.9) |
- |
- |
|
Sales of New Passenger Cars (' 000 Unit ) |
535.1 |
552.2 |
576.7 |
598.4 |
610.3 |
|
Cellular Phone Subscribers ( Million ) |
35.3 |
38.5 |
43.0 |
43.8 |
- |
|
Tourist Arrival ( Million Persons ) |
24.7 |
25.0 |
25.7 |
28.0 |
- |
|
Hotel Occupancy Rate ( % ) |
60.6 |
62.4 |
62.6 |
- |
- |
|
Credit Cards Spending ( % ) |
15.6 |
12.6 |
- |
- |
- |
|
Bad Cheque Offenders (No.) |
32,627 |
26,982 |
28,876 |
- |
- |
|
Individual Bankruptcy ( No.) |
19,167 |
19,575 |
21,984 |
- |
- |
|
Individual Bankruptcy ( % ) |
5.8 |
2.1 |
12.3 |
- |
- |
|
INDUSTRIES ( %
of Growth ): |
2011 |
2012 |
2013 |
2014* |
2015** |
|
Agriculture |
5.8 |
1.0 |
2.1 |
3.8 |
3.1 |
|
Palm Oil |
10.8 |
(0.3) |
2.6 |
6.7 |
- |
|
Rubber |
6.1 |
(7.9) |
(10.1) |
(10.4) |
- |
|
Forestry & Logging |
(7.6) |
(4.5) |
(7.8) |
(4.2) |
- |
|
Fishing |
2.1 |
4.3 |
1.6 |
2.7 |
- |
|
Other Agriculture |
7.1 |
6.4 |
8.2 |
6.2 |
- |
|
Industry
Non-Performing Loans ( MYR Million ) |
634.1 |
- |
- |
- |
- |
|
% of Industry
Non-Performing Loans |
3.2 |
- |
- |
- |
- |
|
Mining |
(5.4) |
1.4 |
0.9 |
(0.8) |
2.8 |
|
Oil & Gas |
(1.7) |
- |
- |
- |
- |
|
Other Mining |
- |
- |
- |
- |
- |
|
Industry
Non-performing Loans ( MYR Million ) |
46.5 |
- |
- |
- |
- |
|
% of Industry
Non-performing Loans |
0.1 |
- |
- |
- |
- |
|
Manufacturing # |
4.7 |
4.8 |
3.4 |
6.6 |
5.5 |
|
Exported-oriented
Industries |
4.1 |
6.5 |
3.3 |
5.6 |
- |
|
Electrical & Electronics |
(4.0) |
12.7 |
6.9 |
13.3 |
- |
|
Rubber Products |
20.7 |
3.0 |
11.7 |
(0.3) |
- |
|
Wood Products |
(5.1) |
8.7 |
(2.7) |
5.1 |
- |
|
Textiles & Apparel |
13.2 |
(7.1) |
(2.6) |
11.5 |
- |
|
Domestic-oriented
Industries |
10.7 |
1.7 |
6.8 |
9.4 |
- |
|
Food, Beverages & Tobacco |
4.80 |
2.70 |
3.60 |
6.13 |
6.13 |
|
Chemical & Chemical Products |
10.0 |
10.8 |
5.6 |
- |
- |
|
Plastic Products |
3.8 |
- |
- |
- |
- |
|
Iron & Steel |
2.2 |
(6.6) |
5.0 |
0.1 |
- |
|
Fabricated Metal Products |
21.8 |
13.8 |
9.9 |
2.9 |
- |
|
Non-metallic Mineral |
12.1 |
2.9 |
(2.0) |
5.4 |
- |
|
Transport Equipment |
12.0 |
3.4 |
13.8 |
22.9 |
- |
|
Paper & Paper Products |
9.5 |
3.1 |
1.8 |
4.7 |
- |
|
Crude Oil Refineries |
9.3 |
- |
- |
- |
- |
|
Industry
Non-Performing Loans ( MYR Million ) |
6,537.2 |
- |
- |
- |
- |
|
% of Industry
Non-Performing Loans |
25.7 |
- |
- |
- |
- |
|
Construction |
4.7 |
18.6 |
10.9 |
12.7 |
10.7 |
|
Industry Non-Performing Loans ( MYR
Million ) |
3,856.9 |
- |
- |
- |
- |
|
% of Industry
Non-Performing Loans |
10.2 |
- |
- |
- |
- |
|
Services |
7.1 |
6.4 |
5.9 |
5.9 |
5.6 |
|
Electric, Gas & Water |
3.5 |
4.4 |
4.2 |
3.6 |
3.9 |
|
Transport, Storage & Communication |
6.50 |
7.10 |
7.30 |
7.50 |
7.15 |
|
Wholesale, Retail, Hotel & Restaurant |
5.2 |
4.7 |
5.9 |
6.9 |
6.5 |
|
Finance, Insurance & Real Estate |
6.90 |
9.70 |
3.70 |
4.65 |
4.25 |
|
Government Services |
12.4 |
9.4 |
8.3 |
6.1 |
5.6 |
|
Other Services |
5.1 |
3.9 |
5.1 |
4.8 |
4.5 |
|
Industry
Non-Performing Loans ( MYR Million ) |
6,825.2 |
- |
- |
- |
- |
|
% of Industry
Non-Performing Loans |
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 expected to grow by 5.5% in 2015. It will be
bolstered by strong domestic and export-oriented industries in line with
growing investment activities and favorable external demand. Moreover, in
2014, the manufacturing sectors have spearheading growth. The manufacturing
sector is estimated to grow at a faster pace in 2014 on higher exports of
electronics and electrical (E&E) products as external demand improves. |
|
|
The manufacturing sector expanded strongly during the first half of
2014, the highest growth in three years, spurred by higher global
semiconductor sales. Value-added of the manufacturing sector expanded 7.1%
during the first half of 2014. Production of the sector rose 6.6% in the
first seven months of 2014 supported by resilient domestic demand and
recovery in the external sector during the first seven months of the years.
The sales value of manufactured products rebounded by 7.7% in the first seven
months of 2014. The strong performance of the sector was on account of higher
output at 9.4% from the domestic-oriented industries, particularly transport
equipment, food and beverage. |
|
|
The manufacturing sector continued to attract domestic and foreign
investment with investment approved by Malaysian Investment Development
Authority (MIDA) totaling RM47.4 billion during the first six months of 2014,
mainly from Japan, China and Germany. Meanwhile, the capacity utilization
rate remained steady at 80.4% during the second quarter of 2014 while average
wage per employee and productivity improved to RM2,772 per month and 5.9%,
respectively during the first seven months of 2014. Boosted by favorable
domestic economic activity and recovery in the external sector, the
manufacturing sector is expected to record a better performance with growth
of 6.4% in 2014. |
|
|
In the meantime, production of wood products rebounded by 5.1% largely
supported by higher output in the saw-milling and planning of wood segment at
25.9% during the first seven months of 2014. The positive performance was
attributed to vibrant residential and commercial construction activities
which contributed to increased use of timber frame and glued laminated timber
for cost savings compared to the use of concrete and steel. Increased demand
from major export destination such as the US, Japan and Australia for
Malaysian made furniture contributed to the higher output, particularly
wooden and cane furniture which rebounded by 2.2%. |
|
|
Production of rubber products contracted 0.3% in the first seven
months of 2014 on account of slower demand for rubber gloves and rubber
tyres. The decline in rubber tyres for vehicles was due to the weaker
external demand from the automotive industry, particularly from China. Output
of other rubber products contracted 3.8% following the product shift from
rubber-based to plastics, silicones and metal alloys in the manufacture of
medical devices. |
|
|
Besides, exports of manufactured products are expected to grow 6.1% in
2014 boosted by the growing demand from advanced economies. However, during
the first seven months of 2014, manufactured exports surged 11.4%. The robust
growth was buoyed by strengthening demand in the US and EU, reflecting
significant exposure of Malaysian exports to the economic performance in the
advance economies. The strength in export was broad-based with robust growth
in both E&E and non- E&E subsectors. |
|
|
Under budget 2015, the Government will provide incentive in the form
of capital allowance on automation expenditure to encourage automation in the
manufacturing sector, which may help in the manufacturing sector. |
|
|
OVERALL INDUSTRY
OUTLOOK : Average Growth |
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
|
The Subject's business performance showed
a reverse trend as both its turnover and pre-tax profit have decreased
compared to the previous year. The Subject has generated an unfavourable
return on shareholders' funds indicating that the management was inefficient
in utilising its funds to generate return. 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 470,807,000, 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. Overall, the Subject's payment habit is
good as the Subject 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 Subject is
expected to benefit from the favourable outlook of the industry. Based on the above condition, we recommend
credit be granted to the Subject promptly. |
|
|
PROFIT
AND LOSS ACCOUNT
|
|
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS) |
|
TIOXIDE
(MALAYSIA) SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
2011-12-31 |
2010-12-31 |
2009-12-31 |
|
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 |
724,637,000 |
756,802,000 |
1,009,837,000 |
877,334,000 |
683,126,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
724,637,000 |
756,802,000 |
1,009,837,000 |
877,334,000 |
683,126,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
2,553,000 |
63,068,000 |
152,200,000 |
91,804,000 |
15,414,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
2,553,000 |
63,068,000 |
152,200,000 |
91,804,000 |
15,414,000 |
|
Taxation |
(2,204,000) |
13,650,000 |
(43,878,000) |
(17,487,000) |
(9,259,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
349,000 |
76,718,000 |
108,322,000 |
74,317,000 |
6,155,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
418,992,000 |
393,716,000 |
314,865,000 |
246,910,000 |
243,008,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
418,992,000 |
393,716,000 |
314,865,000 |
246,910,000 |
243,008,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
419,341,000 |
470,434,000 |
423,187,000 |
321,227,000 |
249,163,000 |
|
TRANSFER TO RESERVES - General |
- |
(51,442,000) |
(29,471,000) |
(6,362,000) |
(2,253,000) |
|
DIVIDENDS - Ordinary (paid & proposed) |
(18,993,000) |
- |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
400,348,000 |
418,992,000 |
393,716,000 |
314,865,000 |
246,910,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE
(as per notes to P&L) |
|||||
|
Term loan / Borrowing |
- |
- |
- |
- |
74,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
- |
- |
- |
- |
74,000 |
|
|
- |
- |
- |
- |
============= |
|
|
DEPRECIATION (as per notes to P&L) |
35,466,000 |
53,695,000 |
52,924,000 |
48,769,000 |
48,091,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
35,466,000 |
53,695,000 |
52,924,000 |
48,769,000 |
48,091,000 |
|
|
============= |
============= |
============= |
============= |
============= |
BALANCE
SHEET
|
|
|
|
TIOXIDE
(MALAYSIA) SDN. BHD. |
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
289,858,000 |
260,779,000 |
252,258,000 |
273,306,000 |
295,899,000 |
|
Associated companies |
1,250,000 |
1,250,000 |
1,250,000 |
1,250,000 |
1,250,000 |
|
Deferred assets |
1,899,000 |
1,272,000 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
3,149,000 |
2,522,000 |
1,250,000 |
1,250,000 |
1,250,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
293,007,000 |
263,301,000 |
253,508,000 |
274,556,000 |
297,149,000 |
|
Stocks |
108,838,000 |
109,178,000 |
117,921,000 |
64,992,000 |
71,400,000 |
|
Trade debtors |
152,337,000 |
133,000,000 |
177,683,000 |
182,585,000 |
121,128,000 |
|
Other debtors, deposits & prepayments |
4,074,000 |
3,524,000 |
1,967,000 |
1,775,000 |
1,554,000 |
|
Short term deposits |
- |
150,000 |
153,000 |
- |
23,236,000 |
|
Deposits with financial institutions |
- |
- |
- |
30,625,000 |
- |
|
Amount due from related companies |
31,497,000 |
41,036,000 |
- |
4,986,000 |
1,109,000 |
|
Amount due from associated companies |
2,610,000 |
676,000 |
- |
1,899,000 |
1,378,000 |
|
Cash & bank balances |
8,633,000 |
39,111,000 |
47,060,000 |
153,000 |
19,117,000 |
|
Others |
7,699,000 |
6,905,000 |
- |
- |
207,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
315,688,000 |
333,580,000 |
344,784,000 |
287,015,000 |
239,129,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
608,695,000 |
596,881,000 |
598,292,000 |
561,571,000 |
536,278,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT
LIABILITIES |
|||||
|
Trade creditors |
27,110,000 |
22,919,000 |
62,800,000 |
36,872,000 |
42,853,000 |
|
Other creditors & accruals |
50,197,000 |
48,266,000 |
34,646,000 |
43,857,000 |
34,130,000 |
|
Amounts owing to related companies |
52,626,000 |
28,290,000 |
- |
34,107,000 |
27,631,000 |
|
Provision for taxation |
- |
- |
18,642,000 |
- |
- |
|
Other liabilities |
7,955,000 |
8,750,000 |
13,256,000 |
6,720,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
137,888,000 |
108,225,000 |
129,344,000 |
121,556,000 |
104,614,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
177,800,000 |
225,355,000 |
215,440,000 |
165,459,000 |
134,515,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
470,807,000 |
488,656,000 |
468,948,000 |
440,015,000 |
431,664,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
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 |
|
Capital reserve |
65,334,000 |
64,539,000 |
60,033,000 |
54,732,000 |
48,370,000 |
|
Retained profit/(loss) carried forward |
400,348,000 |
418,992,000 |
393,716,000 |
314,865,000 |
246,910,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
465,682,000 |
483,531,000 |
453,749,000 |
399,833,000 |
341,180,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
470,807,000 |
488,656,000 |
458,874,000 |
404,958,000 |
346,305,000 |
|
Deferred taxation |
- |
- |
10,074,000 |
16,500,000 |
9,500,000 |
|
Others |
- |
- |
- |
18,557,000 |
75,859,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
- |
- |
10,074,000 |
35,057,000 |
85,359,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
470,807,000 |
488,656,000 |
468,948,000 |
440,015,000 |
431,664,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL
RATIO
|
|
|
|
TIOXIDE
(MALAYSIA) SDN. BHD. |
|
TYPES OF FUNDS |
|||||
|
Cash |
8,633,000 |
39,261,000 |
47,213,000 |
153,000 |
42,353,000 |
|
Net Liquid Funds |
8,633,000 |
39,261,000 |
47,213,000 |
153,000 |
42,353,000 |
|
Net Liquid Assets |
68,962,000 |
116,177,000 |
97,519,000 |
100,467,000 |
63,115,000 |
|
Net Current Assets/(Liabilities) |
177,800,000 |
225,355,000 |
215,440,000 |
165,459,000 |
134,515,000 |
|
Net Tangible Assets |
470,807,000 |
488,656,000 |
468,948,000 |
440,015,000 |
431,664,000 |
|
Net Monetary Assets |
68,962,000 |
116,177,000 |
87,445,000 |
65,410,000 |
(22,244,000) |
|
PROFIT &
LOSS ITEMS |
|||||
|
Earnings Before Interest & Tax (EBIT) |
2,553,000 |
63,068,000 |
152,200,000 |
91,804,000 |
15,488,000 |
|
Earnings Before Interest, Taxes,
Depreciation And Amortization (EBITDA) |
38,019,000 |
116,763,000 |
205,124,000 |
140,573,000 |
63,579,000 |
|
BALANCE SHEET
ITEMS |
|||||
|
Total Borrowings |
0 |
0 |
0 |
0 |
0 |
|
Total Liabilities |
137,888,000 |
108,225,000 |
139,418,000 |
156,613,000 |
189,973,000 |
|
Total Assets |
608,695,000 |
596,881,000 |
598,292,000 |
561,571,000 |
536,278,000 |
|
Net Assets |
470,807,000 |
488,656,000 |
468,948,000 |
440,015,000 |
431,664,000 |
|
Net Assets Backing |
470,807,000 |
488,656,000 |
458,874,000 |
404,958,000 |
346,305,000 |
|
Shareholders' Funds |
470,807,000 |
488,656,000 |
458,874,000 |
404,958,000 |
346,305,000 |
|
Total Share Capital |
5,125,000 |
5,125,000 |
5,125,000 |
5,125,000 |
5,125,000 |
|
Total Reserves |
465,682,000 |
483,531,000 |
453,749,000 |
399,833,000 |
341,180,000 |
|
LIQUIDITY
(Times) |
|||||
|
Cash Ratio |
0.06 |
0.36 |
0.37 |
0.00 |
0.40 |
|
Liquid Ratio |
1.50 |
2.07 |
1.75 |
1.83 |
1.60 |
|
Current Ratio |
2.29 |
3.08 |
2.67 |
2.36 |
2.29 |
|
WORKING CAPITAL
CONTROL (Days) |
|||||
|
Stock Ratio |
55 |
53 |
43 |
27 |
38 |
|
Debtors Ratio |
77 |
64 |
64 |
76 |
65 |
|
Creditors Ratio |
14 |
11 |
23 |
15 |
23 |
|
SOLVENCY RATIOS
(Times) |
|||||
|
Gearing Ratio |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
Liabilities Ratio |
0.29 |
0.22 |
0.30 |
0.39 |
0.55 |
|
Times Interest Earned Ratio |
0.00 |
0.00 |
0.00 |
0.00 |
209.30 |
|
Assets Backing Ratio |
91.86 |
95.35 |
91.50 |
85.86 |
84.23 |
|
PERFORMANCE
RATIO (%) |
|||||
|
Operating Profit Margin |
0.35 |
8.33 |
15.07 |
10.46 |
2.26 |
|
Net Profit Margin |
0.05 |
10.14 |
10.73 |
8.47 |
0.90 |
|
Return On Net Assets |
0.54 |
12.91 |
32.46 |
20.86 |
3.59 |
|
Return On Capital Employed |
0.54 |
12.91 |
32.46 |
20.86 |
3.59 |
|
Return On Shareholders' Funds/Equity |
0.07 |
15.70 |
23.61 |
18.35 |
1.78 |
|
Dividend Pay Out Ratio (Times) |
54.42 |
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. 64.78 |
|
|
1 |
Rs. 99.54 |
|
Euro |
1 |
Rs. 73.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.