|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
781769-K
|
|
COMPANY NAME
|
:
|
RECRON (MALAYSIA)
SDN BHD
|
|
FORMER NAME
|
:
|
REAL AIM DEVELOPMENT SDN BHD (20/08/2007)
|
|
INCORPORATION DATE
|
:
|
20/07/2007
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 7.01-7.03, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, 7TH FLOOR,
50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
WISMA GOLDHILL, LEVEL 8 & 9, , 67, JALAN RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20316000
|
|
FAX.NO.
|
:
|
03-20315000
|
|
CONTACT PERSON
|
:
|
JOHSON SHU ( ASSISTANT GENERAL MANAGER )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
17299
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURER OF TEXTILES AND FIBRE PRODUCTS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
2,500,000.00 DIVIDED INTO
ORDINARY SHARES 2,500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
N/A
|
|
NET WORTH
|
:
|
N/A
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
7,000 [2008]
|
|
BANKER (S)
|
:
|
|
HONG LEONG
ASSURANCE BHD
MALAYAN BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
DECLINING
|
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) manufacturer of textiles and fibre products
.The SC is not listed on Bursa
Malaysia
(Malaysia Stock Exchange).
The SC is not qualified to be one of the
Top Corporate Performers in the Malaysia 1000 (M1000)
publication, a directory jointly published by Companies Commission of
Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer
Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
RELIANCE NETHERLANDS
B V
|
|
|
2,499,998.00
|
|
MS. NG LUI KENG @ NG JOO KENG
|
|
480514-04-5106
1771120
|
1.00
|
|
MS. TAN WANG TIANG
|
|
450211-04-5048
0193086
|
1.00
|
|
|
|
|
---------------
|
|
|
|
|
2,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. JAWAHARIAL MANIKCHAND SANCHETI
|
|
Address
|
:
|
A-25-02, BLOCK A, SUASANA SENTRAL CONDOMINIUM, 2 JALAN STATION 5,
50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
B1632602
|
|
Nationality
|
:
|
N/A
|
|
Date of Appointment
|
:
|
03/12/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
JUTTI CHANDRA SURESH
|
|
Address
|
:
|
10, JALAN 8/155A, BUKIT JALIL GOLF RESORT, 57100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1584700
|
|
Nationality
|
:
|
N/A
|
|
Date of Appointment
|
:
|
24/03/2008
|
DIRECTOR 3
|
Name Of Subject
|
:
|
ANIL KUMAR RAJBANSHI
|
|
IC / PP No
|
:
|
Z-1403026
|
|
New IC No
|
:
|
Z-1403026
|
|
Date of Birth
|
:
|
03/14/19Z-
|
|
Date of Appointment
|
:
|
05/02/2008
|
DIRECTOR 4
|
Name Of Subject
|
:
|
JAIN PRAVEEN KUMAR
|
|
Address
|
:
|
604, NIRAJ BUILDING, RACHNA NIRAJ CO-OP, HGS SOCIETY, NEAR
KOPRI POLICE STATION, THANA EAST, MAHARASTRA, INDIA.
|
|
IC / PP No
|
:
|
E0238257
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MAN MOHAN
|
|
Address
|
:
|
41, BAKHTAWAR ANNEXE, 22, NARAYAN
DABHOLKAR ROAD, MALABAR HILL, BOMBAY,
400 006, BOMBAY, INDIA.
|
|
IC / PP No
|
:
|
F3673620
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
DIRECTOR 6
|
Name Of Subject
|
:
|
UDESHI RAJEN DWARKADAS
|
|
Address
|
:
|
502, SHANTI APARTMENT, 98, WALKESHWAR
ROAD, 400 006, BOMBAY, INDIA.
|
|
IC / PP No
|
:
|
G0600014
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
|
1)
|
Name of Subject
|
:
|
JOHSON SHU
|
|
|
Position
|
:
|
ASSISTANT GENERAL MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
J C SURESH
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
YOONG YIEN PING
|
|
|
Position
|
:
|
ASSISTANT FINANCE MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
WONG YEN CHI
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
5)
|
Name of Subject
|
:
|
KU CHOY HA
|
|
|
Position
|
:
|
PRODUCTION MANAGER
|
|
|
|
|
|
No Auditor found in our databank
|
1)
|
Company Secretary
|
:
|
MS. CHEONG CHOON YIN
|
|
|
IC / PP No
|
:
|
A1998972
|
|
|
New IC No
|
:
|
711103-03-5216
|
|
|
Address
|
:
|
11, JALAN USJ 3/4J, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. CATHERINE MAH SUIK CHING
|
|
|
|
|
|
|
|
New IC No
|
:
|
600421-10-6364
|
|
|
Address
|
:
|
19, JALAN BK3/8D, BANDAR KINRARA, PUCHONG, 58200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HONG LEONG ASSURANCE BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s). No
adverse record was found during our investigation.
No encumbrance was found in our databank at the time of investigation.
* A check has been conducted in our databank againt the SC whether the subject
has been involved in any litigation. Our databank consists of 99% of the
wound up companies in Malaysia
back dated since 1900.
No legal action was found in our databank.
No
winding up petition was found in our databank.
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
INDIA
|
|
Local
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Export Market
|
:
|
SOUTHEAST ASIA, AFRICA, MIDDLE EAST,
UNITED STATES, GERMANY,
EUROPE, TURKEY
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
TEXTILES AND GARMENT INDUSTRIES,RETAIL
|
|
|
|
|
|
|
|
|
Products manufactured
|
:
|
TEXTILES AND FIBRE PRODUCTS
|
|
|
|
|
|
Competitor(s)
|
:
|
EMAS KIARA
INDUSTRIES BHD
FIBERTEX NONWOVENS SDN BHD
HUALON CORPORATION (M) SDN BHD
PCCS GROUP BHD
WINITEX HOLDINGS BHD
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
7,000
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer of textiles
and fibre products.
The SC mainly an export-oriented company and its manufacturing plants are
located in Nilai, Negeri Sembilan and Melaka.
We were informed that the SC started its business activities on 1st December
2007 and mainly involved in producing of a world class textile products
including polyester, cotton and nylon.
The SC's products including resins, synthetic yarns, knitted fabrics, woven
fabrics, speciality yarns, staple fibers and others.
The products are used for making ready made garments, home furnishings, curtain
materials and others.
No projects found in our databank
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-20316000
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
(COMPANY NO. 781769) - K, LEVEL 9, WISHMA GOLDHILL 67 JALAN RAJA
CHULAN 50250
|
|
Current Address
|
:
|
WISMA GOLDHILL, LEVEL 8 & 9, , 67, JALAN RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
NO
|
Other Investigations
We conducted an interview with Ms Wong from the SC's Human Resource
Department. She revealed some information pertaining to the SC.
No latest financial accounts are available
at the Registry Office, thus we are not able to comment on the SC's financial
performance
ECONOMIC
/ INDUSTRY OUTLOOK
|
|
Major Economic Indicators:
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
26.13
|
26.64
|
27.17
|
27.73
|
28.31
|
|
Gross Domestic Products ( % )
|
5.3
|
5.8
|
6.3
|
5.0
|
3.5
|
|
Domestic Demand ( % )
|
7.3
|
7.0
|
9.0
|
6.1
|
6.0
|
|
Private Expenditure ( % )
|
9.5
|
7.0
|
8.6
|
6.6
|
6.4
|
|
Consumption ( % )
|
9.2
|
7.1
|
9.0
|
6.8
|
6.5
|
|
Investment ( % )
|
8.5
|
7.0
|
7.1
|
6.2
|
5.8
|
|
Public Expenditure ( % )
|
3.6
|
6.8
|
10.1
|
4.7
|
5.1
|
|
Consumption ( % )
|
5.4
|
5.0
|
10.8
|
5.7
|
4.0
|
|
Investment ( % )
|
1.9
|
8.9
|
9.3
|
3.6
|
6.4
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
99,760
|
108,192
|
100,340
|
115,563
|
126,650
|
|
Government Finance ( MYR Million )
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
<28,450>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
3.9
|
2.0
|
4.4
|
5.0
|
|
Unemployment Rate
|
3.5
|
3.4
|
3.2
|
3.3
|
3.2
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
266
|
290
|
336
|
388
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
5.13
|
4.21
|
3.04
|
1.91
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.63
|
12.91
|
13.30
|
13.24
|
-
|
|
Average Base Lending Rate ( % )
|
6.00
|
6.61
|
6.72
|
6.72
|
-
|
|
Business Loans Disbursed( % )
|
8.7
|
<2.5>
|
9.1
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
37,474
|
38,293
|
43,337
|
-
|
-
|
|
Registration of New Companies ( % )
|
<2.9>
|
2.2
|
13.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,069
|
8,647
|
22,629
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<7.9>
|
181.8
|
161.5
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
193,095
|
216,147
|
227,410
|
-
|
-
|
|
Registration of New Business ( % )
|
2.1
|
11.9
|
5.2
|
-
|
-
|
|
Business Dissolved ( No. )
|
73,355
|
52,879
|
20,431
|
-
|
-
|
|
Business Dissolved ( % )
|
43.0
|
<27.9>
|
<61.4>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
400.8
|
446.2
|
442.9
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
18.5
|
19.5
|
23.3
|
25.1
|
-
|
|
Tourist Arrival ( Million Persons )
|
16.7
|
17.5
|
20.9
|
21.5
|
-
|
|
Hotel Occupancy Rate ( % )
|
63.6
|
64.8
|
70.0
|
68.0
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
13.9
|
15.4
|
20.1
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
57,316
|
36,555
|
30,004
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
15,868
|
13,596
|
13,238
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Agriculture
|
2.5
|
5.3
|
3.1
|
3.6
|
3.7
|
|
Palm Oil
|
7.1
|
5.8
|
<0.6>
|
7.0
|
-
|
|
Rubber
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
-
|
|
Forestry & Logging
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
-
|
|
Fishing
|
<0.4>
|
9.3
|
5.2
|
4.0
|
-
|
|
Other Agriculture
|
3.2
|
5.3
|
7.0
|
5.9
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
563.7
|
516.5
|
487.3
|
393
|
0
|
|
% of Industry Non-Performing Loans
|
1.19
|
1.06
|
1.08
|
0
|
0
|
|
|
|
|
|
|
|
|
Mining
|
0.8
|
<0.4>
|
3.3
|
2.8
|
3.4
|
|
Oil & Gas
|
1.6
|
4.6
|
2.2
|
12.7
|
-
|
|
Other Mining
|
<1.0>
|
5.1
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
68.8
|
55.4
|
42.2
|
36.0
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
-
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
5.1
|
7.3
|
3.1
|
4.7
|
4.3
|
|
Exported-oriented Industries
|
3.0
|
11.1
|
<1.9>
|
2.7
|
-
|
|
Electrical & Electronics
|
3.6
|
13.4
|
3.0
|
2.4
|
-
|
|
Rubber Products
|
2.4
|
0.4
|
8.0
|
4.2
|
-
|
|
Wood Products
|
0.9
|
0.7
|
3.3
|
<6.0>
|
-
|
|
Textiles & Apparel
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
-
|
|
Domestic-oriented Industries
|
6.9
|
5.0
|
5.3
|
9.9
|
-
|
|
Food, Beverages & Tobacco
|
7.7
|
4.8
|
5.6
|
9.5
|
-
|
|
Chemical & Chemical Products
|
6.9
|
1.7
|
9.2
|
1.4
|
-
|
|
Plastic Products
|
18.6
|
21.3
|
<3.6>
|
6.5
|
-
|
|
Iron & Steel
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
-
|
|
Fabricated Metal Products
|
<7.5>
|
20.0
|
26.2
|
14.7
|
-
|
|
Non-metallic Mineral
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
-
|
|
Transport Equipment
|
10.4
|
5.3
|
<19.0>
|
27.1
|
-
|
|
Paper & Paper Products
|
4.6
|
4.1
|
14.9
|
8.6
|
-
|
|
Crude Oil Refineries
|
8.2
|
12.1
|
8.6
|
7.8
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
-
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
3.1
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
-
|
|
% of Industry Non-Performing Loans
|
10.9
|
11.4
|
11.3
|
-
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.6
|
7.2
|
9.7
|
7.7
|
6.9
|
|
Electric, Gas & Water
|
5.5
|
5.2
|
4.6
|
5.0
|
4.3
|
|
Transport, Storage & Communication
|
6.3
|
5.2
|
7.6
|
7.8
|
7.3
|
|
Wholesale, Retail, Hotel & Restaurant
|
8.0
|
7.1
|
11.6
|
10.0
|
7.4
|
|
Finance, Insurance & Real Estate
|
7.0
|
7.7
|
10.7
|
9.2
|
8.1
|
|
Government Services
|
7.6
|
9.8
|
4.6
|
8.6
|
4.0
|
|
Other Services
|
5.0
|
4.7
|
5.0
|
5.9
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,716.8
|
11,593.2
|
10,207.8
|
8,281.4
|
-
|
|
% of Industry Non-Performing Loans
|
18.4
|
23.9
|
22.6
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
MSIC CODE
|
|
17299 : Manufacture of other textiles n.e.c.
|
|
|
|
|
INDUSTRY :
|
TEXTILE
|
|
The textiles and textiles products industry comprises four sub-sectors, namely
primary textiles which cover activities such as polymerization, spinning,
weaving, knitting and wet processing; made-up garments; made-up textiles;
and textile accessories.
|
|
This industry is still export-oriented. The slowing down of export activity
in 2007 is expected to continue in 2008. Structurally, industry players are
mostly Small and Medium Enterprise ("SME") that serve as contract
manufacturers to larger multinationals. Thus, there is a direct link to the
lower output arising from weaker external demand and loss of
competitiveness to cheaper production bases like India
and Vietnam.
Local players do not seem aggressive enough in securing export businesses,
as highlighted by their low participation level in important international
trade shows, thereby losing out to more high profile fabric manufacturers
from China and Pakistan.
This industry appears to be on a natural decline, as evident from the
apparent structural characteristics, unless such companies can successfully
capture a niche market in world demand that is not necessarily or fully
dependant on the cost factor. In the textiles sector, it is vital that
local players move into niche products, to stay competitive against
low-cost producers.
|
|
The production of textiles, apparels and footwear industry declined by
10.1% in the first six months of 2007 (January-June 2006: 12.6%). The
decline was due to 21.4% contraction in output of textiles and 2.5% in
apparels (January- June 2006: 9.8%; 31.4%), as a result of stiff
competition from low-cost producing countries, in particular China, India,
Thailand and Viet Nam. In an effort to improve profit margins, the textile
and apparels manufacturers are engaging in outsourcing and cross-border
investments.
|
|
In 2006, the International Trade and Industry Ministry's effort to launch a
free trade agreement (FTA) with the US have propel the local textile and
apparel industry into the global market place and assist the industry
players to gain market shares in US. FTA could pave the way for import
duties for Malaysian textile and apparel products entering US to be reduced
or abolished and thus bring down the prices of the products.
|
|
There are over 1,000 factories involved in the textile and apparel industry
and the competitiveness are highly dependent on their ability to deliver
good quality products on time with competitive pricing. Malaysia is
dependent on imports for the basic natural raw materials for the textile
and apparel industry. There is increasing competition from low-cost
producing countries like China,
Thailand, Indonesia and Vietnam.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Decline
|
|
Started July 2007, as a private limited company, the SC is principally engaged
in the manufacturing of textile and fibre products. Backed by its well
established shareholders coupled with a paid up capital of RM2.5 million,
the SC has the potential of capturing a higher market shares as it is
competing aggressively in the market.
|
|
Although the SC has been in the industry for a year, the SC has expanded
steadily in the international arena. Currently, the SC's main revenues are
derived from overseas market such as Germany,
Europe, Turkey
and so forth. It has a strong footing in the international markets and its
ability to penetrate into the global market has well diversified its
business risk. However, as an export-oriented company, the SC faces high
foreign exchange risk. The SC growing fast with 7,000 employess in the operation.
Its management capability is regarded as average.
|
|
As the SC is a new start-up, no financial accounts are available for
analysis. As such, we are not able to comment on the SC's current financial
standing.
|
|
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. About 60% of the SC's products are imported
from India.
As a result, the SC is exposed to foreign currency fluctuation risk.
|
|
Based on our databank, there are no legal suits against the SC.
|
|
The industry demonstrates downward trend and the immediate outlook for the
industry is uncertain. Moreover, there are many competitors involved in the
textile and apparel industry. Being a young player in the industry, the SC
will face fierce competition from other well-established players. It is
highly dependent on the SC ability to deliver good quality products on time
with competitive pricing.
|
|
In view of the above, we recommend credit be granted to the SC with close
monitoring.
|
|
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