MIRA INFORM REPORT

 

 

Report Date :

24.11.2012

 

IDENTIFICATION DETAILS

 

Name :

FELLA DESIGN SDN. BHD.

 

 

Registered Office :

8.03. Plaza First Nationwide, 161, Jalan Tun H.S Lee, 8th Floor, 50000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Date of Incorporation :

29.03.1988

 

 

Com. Reg. No.:

169579-H

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing & trading of sofa settees

 

 

No. of Employees :

250 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Unknown

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

169579-H

COMPANY NAME

:

FELLA DESIGN SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

29/03/1988

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

8.03. PLAZA FIRST NATIONWIDE, 161, JALAN TUN H.S LEE, 8TH FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2791, PERSIARAN ELEKTRON, BUKIT SUBANG, SEKSYEN U16, 40160 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78465433

FAX.NO.

:

03-78465432

EMAIL

:

fellagroup@fella.com.my

WEB SITE

:

www.fella.com.my

CONTACT PERSON

:

CHING KOK KEONG ( CEO )

 

 

 

INDUSTRY CODE

:

36101 51311

PRINCIPAL ACTIVITY

:

MANUFACTURING & TRADING OF SOFA SETTEES

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

N/A

NET WORTH

:

N/A

 

 

 

STAFF STRENGTH

:

250 [2012]

BANKER (S)

:

AFFIN BANK BERHAD
PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The SC is principally engaged in the (as a / as an) manufacturing & trading of sofa settees.

 

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

 

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

FELLA HOLDING BHD

 

262669

500,000.00

100.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. CHEN CHEE HOCK

Address

:

NO. 2 JALAN TR 7/3, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

610825-08-5933

Date of Birth

:

25/08/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/03/1988

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN AH PENG

Address

:

NO. 4 JALAN TR 7/3, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

601030-04-5319

Date of Birth

:

30/10/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/03/1988

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. WONG CHEE ONN

Address

:

NO. 6 JALAN TR 7/3, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

630426-10-6571

Date of Birth

:

26/04/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/03/1988

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

CHING KOK KEONG

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

MUN TONG LEONG

 

Position

:

ACCOUNT MANAGER

 

 

 

 

 

3)

Name of Subject

:

JASON TAN

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

4)

Name of Subject

:

YU KONG CING

 

Position

:

OPERATIONS MANAGER

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

WESTMOORE HOUSE, TWIN TOWER CENTRE, ROCK ROAD, LEVEL 6, 93200 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LOOI KWOK LEONG

 

 

 

 

 

New IC No

:

520927-08-5935

 

Address

:

28-03-16,BLOK 28, TMN SRI SENTOSA, JLN KLANG LAMA, 58000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. CHOONG YOKE LENG

 

 

 

 

 

New IC No

:

521204-08-5477

 

Address

:

37,JALAN BK 5/11H, BANDAR KINRARA, 47180 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AFFIN BANK BERHAD

 

 

 

 

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

21/05/1992

Description Of Charge

:

N/A

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 17/06/1992

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

06/01/1994

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,400,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 23/02/1994

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

10/08/1995

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 19/08/1995

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

08/09/1997

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 16/09/1997

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

08/09/1997

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 16/09/1997

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

08/09/1997

Description Of Charge

:

N/A

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 16/09/1997

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

08/09/1997

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,400,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 16/09/1997

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

08/09/1997

Description Of Charge

:

N/A

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 16/09/1997

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

23/09/1997

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 01/10/1997

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

06/12/1999

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 11

Date of Creation

:

06/12/1999

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 12

Date of Creation

:

20/08/2001

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 19/09/2001

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 13

Date of Creation

:

20/08/2001

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 30/12/1899

Registered and Numbered 14 In The Register of Charges



ENCUMBRANCE 14

Date of Creation

:

20/08/2001

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 19/09/2001

Registered and Numbered 15 In The Register of Charges



ENCUMBRANCE 15

Date of Creation

:

16/07/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 29/07/2002

Registered and Numbered 16 In The Register of Charges



ENCUMBRANCE 16

Date of Creation

:

21/04/2008

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 21 In The Register of Charges



ENCUMBRANCE 17

Date of Creation

:

21/04/2008

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,200,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 22 In The Register of Charges



LEGAL CHECK AGAINST SC


* 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.

No legal action was found in our databank. 

No winding up petition was found in our databank. 


DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 


PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

BRAZIL,UNITED STATES

 

A trade enquiry with SC's suppliers revealed the following:

 

 

Supplier 1

Types of Supplies

:

RUBBER FORM AND SPOGE

Time Known

:

ABOUT 12 YEARS

Credit Term

:

90-120 DAYS

Mode of Payment

:

CHEQUES

Credit Limit

:

RM 2 MILLION

Mthly Avg Trx.

:

N/A

Outstanding amount

:

N/A

Payment Record

:

AS AGREED



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA, NEW ZEALAND, SINGAPORE, MIDDLE EAST, ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

HOTEL,CORPORATES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

SOFA SET, SETTEE

 

 

 

Goods Traded

:

FABRICS

 

 

 

 

Brand Name

:

DAYTON, NEW YORK, PHILADEPHINA

 

 

 

 

Competitor(s)

:

CLASSIC SCENIC BHD
EURO HOLDINGS BHD
KIMBLE FURNITURE CORPORATION (M) SDN BHD
MALAYSIA AICA BHD
SIGNATURE INTERNATIONAL BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIA FURNITURE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

250

250

250

250

250

260

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing & trading of sofa settees.

The SC is known as one of Malaysia's largest fabric wholesaler.

A wide collective series of high quality designer fabrics imported mainly for USA and Europes ranging from printer fabrics, cotton to jacquards.

We were informed that the SC also offers tailor-made sofa to customers' own specific choice of sofa model and fabric design. 

The SC's product range covers a wide collection of fabric sofasets and recliners, armchairs, coffee tables, occasionals, bedroom and dining sets as well as curtain. 

The best, treated wood is used for making the sofa frames while the seat cushions are made of high-resilient polyurethane foam for comfort and durability. Fella Design also provides reupholstery services to the customers. 

According to the SC, it has about 18 showrooms throughout Peninsular and East Malaysia. 

 

PROJECTS


No projects found in our databank 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78465433

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 2791, PERSIARAN ELEKTRON, BUKIT SUBANG, SEKSYEN U16,40160,SHAH ALAM,SELANGOR.

Current Address

:

LOT 2791, PERSIARAN ELEKTRON, BUKIT SUBANG, SEKSYEN U16, 40160 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations

we contacted one of the staff from the Admin Department. She provided some information on the SC.




FINANCIAL ANALYSIS

 

 

No latest financial accounts are available at the Registry Office, thus we are not able to comment on the SC's financial performance.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)




INDUSTRY ANALYSIS

 

MSIC CODE

36101 : Manufacture of wooden and cane furniture

51311 : Wholesale of textiles, clothing, house linens, towels and blankets

 

 

INDUSTRY :

FURNITURE & FIXTURES

 

 

 


Malaysia accounted as 10th largest furniture exporter in the world where exports around 80% of total poroduction. Government target growth of 6.5% where it estimated to reach RM53 billion by 2020. For 2012, a boom expected with more orders coming from emerging markets, especially from nortern Africa and India.


According The Malaysian Furniture Entrepreneurs Association (MFEA), export sales of Malaysian made furniture products expected to increase between 3% and 5% to about RM8billion end of 2012 from RM7.67billion in 2011. At the first half 2012, Malaysia's total furniture export reached RM3.16 billion, or a 10.3% increase compared with first half 2011.


In April 2012, rubber-wood prices per tonne hovers between RM1,800 to RM2,000, compared to RM1,500 to RM1,800 per tonne in November 2011. At January 2012, US purchase Malaysian made furniture products at the value of RM163million compared with RM158.8million in January 2011, an increase of about 3%. Eventhough, Malaysia External Trade Corporation (MATRADE) reported In January 2012, where Malaysia's furniture export total sales came down by 14.7% to RM571million in January 2012 from RM670.6million in January 2011 due to the shorter working days in January 2012 and also less orders from key customers such as Japan and Singapore. Japan imported about RM64.2million worth of furniture products from Malaysia in January 2012, compared to RM80.8million in January 2011, down by 20.6%.


Under the the National Timber Industry Policy (MTIP), the government has targeted RM16 billion furniture exports by 2020. The value of Malaysian furniture exports represented 3% of total world exports. Demand for Malaysian furniture increasing due to rising afflunce and sophistication in customer expectation. Malaysia furniture stand with its original design as well its good work ethics in world furniture market.


The furniture industry is highly export oriented with over 90% of its production are destined for overseas market which accounted 3% value of global exports.The furniture industry's adoption of high technology production manufacturing capabilities coupled with greater emphasis on design, market expansion and aggressive promotional efforts, the Malaysian furniture industry has the potential to increase exports for a bigger global market share.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1988, the SC is a Private Limited company, focusing on manufacturing & trading of sofa settees. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. The SC is considered as a medium size company with issued and paid up capital standing at MYR 500,000. 


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 250 staff in its operations. Overall, we regard that the SC's management capability is average.


No financial accounts are available for analysis. As such, we are not able to comment on the SC's current financial standing.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


We noted that the SC's total encumbrances in year 2008 is exceeding its current paid up capital. As such, the financial risk in default the payment is high. Hence, credit is not recommended.



FINANCIAL ACCOUNT


No latest financial accounts are available at the Registry Office. 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.34

UK Pound

1

Rs.88.30

Euro

1

Rs.71.37

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.