MIRA INFORM REPORT

 

 

Report Date :

01.10.2011

 

IDENTIFICATION DETAILS

 

Name :

SAMLING FLOORING PRODUCTS SDN. BHD.

 

 

Registered Office :

Lot 191, Block 1, CDT 148 Kuala Baram Industrial Estate Miri  Sarawak  98000

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2010

 

 

Date of Incorporation :

17.01.1984

 

 

Legal Form :

Private Limited Company Limited By Shares

 

 

Line of Business :

Distributor of wood flooring.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                :           SAMLING FLOORING PRODUCTS SDN. BHD.

 

 

Business address          :           Lot 191, Block 1, CDT 148

Kuala Baram Industrial Estate

 

 

Town                             :           Miri

Province                        :           Sarawak

Zip/postal code              :           98000

Country                         :           Malaysia

 

Tel                                :           +60 85 604596

 

Fax                               :           +60 85 604339

 

Email                            :           enquiry@samling.com

 

Website                        :           www.samling.com

 

 

Registered address        :           Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

 

Town                             :           Miri

Province                        :           Sarawak

Zip/postal code              :           98000

Country                                                           :                       Malaysia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered          :   17/01/1984

 

Legal form                                 :   Private Limited Company Limited By Shares

 

Chief executive                          :   Yaw Chee Chik

 

Issued & paid up capital             :   MYR 10,000,000

 

Sales turnover                            :   MYR 2,632,652 (Non-consolidated 12 months, 30/06/2010)

Net income                                :   MYR -6,603,584 (Non-consolidated 12 months, 30/06/2010)

Total fixed assets                       :   MYR 82,007,488 (Non-consolidated 12 months, 30/06/2010)

Line of business             :   Distributor of wood flooring.

Staff employed                                                                        :   Nil (Subject); 11,281 (Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk                               :   Country risk is minimal

Operation trend                          :   Operational trend is declining

Management experience :   Management is inadequately experienced

Financial performance                :   Financial performance is poor

Organization structure                :   Organizational structure is acceptable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion           :   Fully secured terms.

Credit amount asked                  :   Not described.

 

 

STATUTORY DETAILS

 

 

Registry Data

 

Registration date            :   17/01/1984

 

Legal form                     :   Private Limited Company Limited By Shares

 

Registration no  113194-K

 

Registered authority       :   Companies Commission of Malaysia

 

Registry status              :   Live/Active

 

Previous name               :   Subject was incorporated as SAMLING INDUSTRY SDN. BHD. in 17-01-1984 and changed to the current style on 10-02-1995.

 

Change of legal form             :   None reported.

 

 

MANAGEMENT / DIRECTORS

 

 

Key Management

 

Name                            :           Yaw Chee Chik

 

Designation                   :           Director

 

Name                            :           Ho Yam Kuan

 

Designation                            :                       Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name                            :           Ho Yam Kuan

Designation                   :           Director

Identification no              :           460109-13-5089

Appointment date           :           28/08/09

Address                        :           L900 & 901, A/7/3A/A

The Brighton Condominium

Jln D. Oyong Lawai Jau

98000 Miri

Sarawak

 

Name                            :           Tan Seng Hock

Designation                   :           Director

Identification no              :           520916-07-5563

Appointment date           :           06/05/94

Address                        :           6 Jalan BK 6A/2B Bandar Kinrara

47100 Puchong Selangor Darul Ehsan Malaysia

Name                            :           Yaw Chee Chik

Designation                   :           Director

Identification no              :           600629-13-5631

Appointment date           :           11/08/93

Address                        :           Lot 1895, Piasau 6

Jalan Pujut-Lutong

98000 Miri

Sarawak

 

Name                            :           Yong Nyan Siong

Designation                   :           Company Secretary

Identification no              :           540304-13-5551

Appointment date           :           20/10/06

Address                        :           Lot 373

Jalan Tai Foo 5A

98000 Miri

Sarawak

 

Staff employed               :           Nil (Subject); 11,281 (Group)

 

 

Key Advisors

 

 

Auditors                        :           KPMG

KPMG Tower

8 First Avenue

Bandar Utama, 47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital          :   MYR 10,000,000

 

No of shares                  :   10,000,000 Ordinary Shares

 

Share par value              :   MYR 1

 

Issued capital                :   MYR 10,000,000

 

Paid up capital                                                :   MYR 10,000,000

 

 

OWNERSHIP / SHAREHOLDERS

 

 

How listed                     :   Full List

 

Composition

 

Shareholder name          :   SYARIKAT SAMLING TIMBER SDN. BHD.

 

Address                        :   Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

 

No. of shares                 :   10,000,000 Ordinary Shares

 

% of shares                            :   100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

 

Structure

 

Name                :   SAMLING GLOBAL LIMITED

Affiliation type    :   Ultimate Holding Company

Address            :   Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

 

 

Comments        :   Samling Global Limited, through its subsidiaries, operates as an integrated forest resource and wood products company. The company involves in the extraction and sale of timber logs; and manufacture and sale of flooring products, veneer, plywood, sawn timber, rubber retread compounds, door and door facings, furniture, and particle boards, as well as kitchen and wardrobe solutions. It also engages in the rental, repair, and re-conditioning of equipment; provision of management and logistic services; operation of power generating facilities; licensing and operation of quarry; and the investment and letting of industrial properties. In addition, the company trades in spare parts, petrol, oil, and lubricants, as well as operates as an insurance agent. Further, it involves in the forest plantation and market research activities; and the ownership of trademarks. The company offers its products and services primarily in Asia, the United States, and Europe. The company was founded in 1963 and is headquartered in Miri, Malaysia. Samling Global Limited is a subsidiary of Samling Strategic Corporation Sdn. Bhd.

 

 

Name                :   SYARIKAT SAMLING TIMBER SDN. BHD.

Affiliation type    :   Parent Company

Address            :   Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

 

Name                :   YAW HOLDING SDN BHD

Affiliation type    :   Sister Company

Address            :   Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

 

 

Comments        :   Yaw Holding Sdn Bhd operates through its subsidiary Samling Strategic Corporation that manufactures, markets, and distributes wood products. The company provides timber management and harvesting services including natural forest concessions and tree plantations management.

 

 

Name                :   LINGUI DEVELOPMENTS BERHAD

Affiliation type    :   Sister Company

Address            :   Malaysia

 

Comments        :   Lingui Developments Berhad is a well-established, integrated forest resource and wood products company listed on the Main Board of Bursa Malaysia since 28

August 1973. The Group's core business is divided into upstream and downstream timber operations.

 

The upstream operations comprise timber harvesting and management of natural forest concessions in Malaysia as well as tree plantations in New Zealand. The downstream operations comprise manufacturing, marketing and distribution of wood products including plywood, veneer, and other value-added products such as doors and door facings. These products exported to international key markets including Japan, China, Europe and North America. The Group went further downstream in the wood value chain with the establishment of its kitchen systems retail business, AinoKitchen.

 

Its diversified business interests also spans across other industries such as oil palm plantations, quarrying, rubber retread manufacturing, property investment and investment holding, and will continue to grow with the times. Currently, Lingui is a 59.69% subsidiary of Samling Global Limited, its holding company that is listed on the Hong Kong Stock Exchange.

 

Lingui has more than 30 years of experience and track record in developing, investing in and operating forest concessions and downstream wood products processing operations. As a company in the natural resources sector, we are committed to implementing sustainable practices to ensure the future supply of our forest resources.

 

The Company has more than 6,000 employees across its operations, including foresters, tractor operators, cartographers, scalers, graders, engineers, surveyors, factory operators, technical, marketing, finance, legal and administrative staff.

 

 

Name                :   RIVERSIDE PLYWOOD CORPORATION

Affiliation type    :   Sister Company

Address            :   China

 

Comments        :   Manufacturing and sales of plywood and flooring products.

 

 

Name                :   BARAMA COMPANY LIMITED

Affiliation type    :   Sister Company

Address            :   Guyana

 

Comments        :   Leading forest resource and wood products company in Guyana. One of Guyana's biggest employers with approximately 1000 employees. Core business includes the sale of hardwood logs and sawn timber and the manufacturing of plywood, decking and flooring products.

 

 

Name                :   SAMLING STRATEGIC CORPORATION SDN. BHD.

Affiliation type    :   Sister Company

Address            :   Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

 

 

Comments        :   Samling Strategic Corporation Sdn. Bhd. operates as a holding company. The company, through its subsidiaries, engages in forest resource management,

wood products, plantations, and properties. The company owns forest area in the state of Sarawak, Malaysia. The company was incorporated in 1979 and is based in Miri, Malaysia. Samling Strategic Corporation Sdn. Bhd. operates as a subsidiary of Yaw Holding Sdn Bhd.

 

 

Name                :   SAMLING CHINA INC.

Affiliation type    :   Sister Company

Address            :   British Virgin Islands

Comments        :   Investment Holding.

 

 

Name                :   SAMLING  GLOBAL USA INC.

Affiliation type    :   Sister Company

Address            :   British Virgin Islands

Comments        :   Sales of veneer and plywood.

 

 

Name                :   RAVENSCOURT SDN. BHD.

Affiliation type :   Sister Company

Address            :   Miri, Sarawak

Comments      :   Log contracting.

 

Related companies and corporate affiliations comments :   Other companies of the Samling Group should be considered affiliates of the

Subject.

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank    :   RHB Bank Berhad

 

Address            :   Malaysia

 

Account details  :   Current Account

 

 

Comments        :   It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

 

 

Mortgages                              :   Total of Charge: 24,500,000.00

Date of Creation: 14-06-1994

Name of Chargee: DEVELOPMENT  COMMERCIAL BANK BERHAD Charge Status: UNSATISFIED

 

Total of Charge: 12,000,000.00

Date of Creation: 13-07-2001

Name of Chargee: BANK MUAMALAT MALAYSIA BERHAD Charge Status: UNSATISFIED

 

Total of Charge: 10,000,000.00

Date of Creation: 03-09-2001

Name of Chargee: RHB BANK BERHAD Charge Status: UNSATISFIED

 

Total of Charge: 15,500,000.00

Date of Creation: 28-09-2001

Name of Chargee: RHB BANK BERHAD Charge Status: UNSATISFIED

 

Legal Fillings

 

Bankruptcy fillings          :   None reported.

Court judgements           :   None reported.

Tax liens                       :   None reported.

Others                          :   None reported

 

 

FINANCIAL DATA

 

Description

 

Source of financial statement      :   Commercial Registry Filings

 

Financial statement date            :   30/06/10

 

Type of accounts                       :   Full audited

 

Currency                                   :   Malaysia, Ringgit (MYR)

 

Exchange rate                                                                        :   1 USD = MYR 3.19 as of 26-09-2011

 

 

Summarized Financial Information

Consolidation type                                                                                    :   Non Consolidated                Non Consolidated               Group Consolidated Currency                                                                                                   :   Malaysia, Ringgit (MYR)       Malaysia, Ringgit (MYR)     US Dollar (USD) Denomination                                                                                           :   (x1) One                             (x1) One                            (x1) One

Date of financial year end                                                                        :   30/06/10                             30/06/09                            30/06/11

 

Length of accounts                                                                                   :   12 months                           12 months                         12 months

 

Sale turnover / Income                                                                             :   2,632,652                            49,739,498                        729,047,000

 

Gross profit                                                                                              :                                                                                                                                                                        83,210,000

 

Operating profit                                                                                        :                                                                                                                                                                        21,729,000

 

Profit before tax                                                                                        :   0                                        0                                       57,777,000

 

Net income                                                                                               :   -6,603,584                           -18,714,642                       45,617,000

 

Non current assets                                                                                  :   57,537,545                          74,310,295                        936,109,000

 

Current assets                                                                                         :   24,469,943                          24,899,213                        452,520,000

 

Inventories                                                                                                :                                                                                                                                                                        161,802

 

Total assets                                                                                              :   82,007,488                          99,209,508                        1,388,629,000

 

Current liabilities                                                                                     :   23,679,760                          57,098,193                        316,448,000

 

Non current liabilities                                                                              :   49,025,665                          26,205,668                        237,438,000

 

Total liabilities                                                                                          :   72,705,425                          83,303,861                        553,886,000

 

Share equity                                                                                             :   9,302,063                            15,905,647                        834,743,000

 

Reserve                                                                                                    :                                                                                                                                                                        195,357,000

 

Retained earning                                                                                     :   -697,937                             5,905,647

 

 

Comments       :   The representative contacted Ms. Michelle from the Finance Department advised that the Subject has ceased production and is now only engaged is clearing of existing stocks. Future of the Subject is yet to be determined. The large decline in turnover was affected due to the changes and the Subject now operates on a small scale.

The non-consolidated financial information above relates to the Subject only. The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company Samling Global Limited and all its subsidiaries which

include the Subject

 

 

OPERATION DETAILS

 

Main activities    :   The Subject engages in distribution of wood flooring, plywood and veneer products.

 

The Subject is part of Samling Global Limited is an integrated forest resource and wood products company. It operates within six segments: Logs - Hardwood and Logs Softwood, both engaged in the sale of timber logs; Plywood and veneer; Flooring products; Upstream support, providing supporting services, such as tree-falling, barging, repairs and

re-conditioning of equipment and machineries primarily to group companies, and Other operations segment, engaged in the sale of timber related products, such as chipboard, door facings, doors, housing products and sawn timber, and the provision of logistics and electrical services. On May 20, 2010, the Company completed the acquisition of the entire equity interest of Suzhou Times Flooring Co., Ltd., a Foreign Invested Enterprise established in the People’s Republic of China. Samling Global Limited has forest resources, processing facilities and distribution networks situated in Malaysia, Guyana, People’s Republic of China, New Zealand and

Australia

 

 

Purchases

International       :   China

 

 

Sales

 

Local                :   Yes

 

International       :   India

 

Property & Assets

 

 

Premises          :   The Subject operates from premises located at the verified heading address consisting of production facilities, administrative office and warehouse. The production facility is now occupied by an associated company.

Branches        :   None reported.

 

 

SUMMARIZED COUNTRY RISK

 

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$136.3 billion as of 29 August 2011

 

Gross domestic product - GDP               :   US$ 247.781 billion

 

GPP (Purchasing power parity)               :   442.01 billion of International dollars

 

GDP per capita - current prices               :   US$ 8,624

 

GDP - composition by sector                  :   agriculture: 9.4% industry: 40.9% services: 49.7%

 

Inflation                                                 :   2008: 5.4%

2009: 0.6%

2010: 1.7%

 

 

Unemployment rate                                :   2008: 3.3%

2009: 3.6%

2010: 3.3%

 

 

Public debt

(General Government gross debt as a % GDP) :   2008: 42.8%

2009: 55.4%

2010: 54.2%

 

Government bond ratings                        :   Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

Moody's outlook: STA

 

Market value of publicly traded shares:   US$420 billion

 

Largest companies in the country            :   CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank (Banking), Maybank (Banking), Tenaga Nasional(Utilities), Petronas Chemicals, Maxis Berhad

 

Trade & Competitiveness Overview

 

 

Total exports                 :   US$210.3 billion

 

Exports commodities     :   electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals

Total imports                 :   US$156.2 billion

 

Imports commodities      :   electronics, machinery, petroleum products, plastics, vehicles, iron andsteel products, chemicals

Export - major partners   :   US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, HongKong 4.6%

Import - major partners   :   Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

 

FDI Inflows                    :   2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

 

FDI Outflows                  :   2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

 

Best countries for doing business            :   21 out of 183 countries

 

Global competitiveness ranking   :   26 (ranking by country on a basis of 133, the first is the best)

 

Country and Population Overview

 

 

Total population :   28.23 million

 

Total area          :   329,847 km2

 

Capital              :   Kuala Lumpur

 

Currency         :   Malaysia Ringgits (MYR)

 

 

Internet users as % of total population:   57.61%

 

 

PAYMENT HISTORY

 

 

Purchase Term

 

International       :   Credit 30-60 days

 

 

Sales Term

 

Local                :   Cash against document, Credit 30-60 days

 

International       :   Credit 30-60 days

 

 

Trade Reference/ Payment

Behaviour

 

Comments        :   As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

 

Investigation Note

 

Sources            :   Interviews and material provided by the Subject

 

:   Other official and local business sources

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.92

UK Pound

1

Rs.76.52

Euro

1

Rs.66.64

 

 

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.