MIRA INFORM REPORT

 

 

Report Date :

13.06.2014

 

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

 

 

Financials (as on) :

31.05.2005

 

 

Date of Incorporation :

29.03.1988

 

 

Com. Reg. No.:

169579-H

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

·         Engaged in manufacturing & trading of sofa settees

·         Subject also offers tailor-made sofa to customers' own specific choice of sofa model and fabric design. 

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

 

 

No of Employees :

300 [2014]

 

 

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 :

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB 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 (LIMITED BY SHARE)

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

:

31001

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

:

300 [2014]

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

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL 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 & trading of sofa settees.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 500,000.00

MYR 500,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

FELLA HOLDING BERHAD

LOT 2791, PERSIARAN ELEKTRON, BUKIT SUBANG, SEKSYEN U 16, 40160 SHAH ALAM, SELANGOR, MALAYSIA.

262669W

500,000.00

100.00

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

------

500,000.00

100.00

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. CHEN CHEE HOCK

Address

:

2, JALAN TR 7/3, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6297897

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

:

4, JALAN TR 7/3, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6045897

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

:

69, JALAN 3/62B, BANDAR MENJALARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

7063897

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

:

JASON TAN

Position

:

FINANCE DIRECTOR

 

3)

Name of Subject

:

MUN TONG LEONG

Position

:

ACCOUNT MANAGER

 

4)

Name of Subject

:

YU KONG CING

Position

:

OPERATIONS MANAGER

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. CHOONG YOKE LENG

IC / PP No

:

8116065

New IC No

:

521204-08-5477

Address

:

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

 

2)

Company Secretary

:

MR. LOOI KWOK LEONG

IC / PP No

:

4304576

New IC No

:

520927-08-5935

Address

:

A-3-3, CASA KIARA 1, JALAN KIARA 3, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AFFIN BANK BERHAD

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

04/10/1991

N/A

AMFINANCE BERHAD

MYR 130,000.00

Satisfied

2

21/05/1992

N/A

PERWIRA HABIB BANK MALAYSIA BERHAD

MYR 600,000.00

Unsatisfied

3

06/01/1994

N/A

PERWIRA HABIB BANK MALAYSIA BERHAD

MYR 2,400,000.00

Unsatisfied

4

10/08/1995

N/A

PUBLIC BANK BERHAD

MYR 1,000,000.00

Unsatisfied

5

08/09/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 1,500,000.00

Unsatisfied

6

08/09/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 1,000,000.00

Unsatisfied

7

08/09/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 600,000.00

Unsatisfied

8

08/09/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 2,400,000.00

Unsatisfied

9

08/09/1997

N/A

PERWIRA AFFIN BANK BERHAD

MYR 600,000.00

Unsatisfied

10

23/09/1997

N/A

PUBLIC BANK BERHAD

MYR 1,000,000.00

Unsatisfied

11

06/12/1999

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Unsatisfied

12

06/12/1999

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Unsatisfied

13

20/08/2001

N/A

PUBLIC BANK BERHAD

MYR 1,000,000.00

Unsatisfied

14

20/08/2001

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Unsatisfied

15

20/08/2001

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Unsatisfied

16

16/07/2002

N/A

AFFIN BANK BERHAD

MYR 2,000,000.00

Unsatisfied

17

24/04/2006

N/A

AFFIN BANK BERHAD

-

Satisfied

18

24/04/2006

N/A

AFFIN BANK BERHAD

-

Satisfied

19

24/04/2006

N/A

AFFIN BANK BERHAD

-

Satisfied

20

27/03/2008

N/A

PUBLIC BANK BHD

-

Satisfied

21

21/04/2008

N/A

AFFIN BANK BERHAD

MYR 2,600,000.00

Unsatisfied

22

21/04/2008

N/A

AFFIN BANK BERHAD

MYR 2,200,000.00

Unsatisfied

 

 

LEGAL 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 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

 

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

:

CORPORATES

 

OPERATIONS

 

Products manufactured

:

SOFA SET, SETTEE

Goods Traded

:

FABRICS

Product Brand Name

:

DAYTON, NEW YORK, PHILADEPHINA

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIA FURNITURE INDUSTRY

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2014

2012

2011

2010

2009

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

300

250

250

250

250

 

Branch

:

NO

 

Other Information:

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

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

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

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

The Subject'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 subject, it has more than 10 showrooms throughout Peninsular and East Malaysia. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject 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 Subject and she provided some information.

FINANCIAL ANALYSIS

 

 

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

Overall financial condition of the Subject : N/A

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

* Estimate / Preliminary

** Forecast

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

31001 : Manufacture of wooden and cane furniture

INDUSTRY :

FURNITURE & FIXTURES

Malaysia is a leading furniture exporter and was ranked as the 8th world furniture exporter in 2011. Exports account for 67% of domestic production. Exports are mainly destined for the United States, Japan, Singapore, Australia and the United Kingdom, which together absorbed almost 60% of the total.Government target growth of 6.5% where it estimated to reach RM53 billion by 2020. 

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%.

In 2012, Malaysian furniture was exported to 199 countries worldwide and was valued at RM8billion, increasing 4.3% from the year before with a 10.9% increase in furniture exports to the United States. The Ministry of Plantation Industries and Commodities aims to surpass in year 2013, the RM8 billion mark for total Malaysian furniture exported in 2012.

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 Subject is a Private Limited company, focusing on manufacturing & trading of sofa settees. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having a strong shareholders' backing , the Subject has the advantage to compete with its rivals and it is expected to enjoy timely financial assistance should the needs arise. 

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

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

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. 

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 Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. .

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

FELLA DESIGN SDN. BHD.

 

Financial Year End

2005-05-31

2004-05-31

2003-05-31

Months

12

12

23

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

TURNOVER

6,136,630

12,661,927

12,576,317

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

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

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

Total Turnover

6,136,630

12,661,927

12,576,317

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

142,052

42,488

298,852

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

142,052

42,488

298,852

Taxation

0

0

(287,174)

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

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

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

PROFIT/(LOSS) AFTER TAXATION

142,052

42,488

11,678

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

142,052

42,488

11,678

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

142,052

42,488

11,678

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

865,261

822,773

811,095

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

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

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

As restated

865,261

822,773

811,095

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,007,313

865,261

822,773

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,007,313

865,261

822,773

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

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

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

 

 

 

BALANCE SHEET

 

 

FELLA DESIGN SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

5,452,729

6,052,761

6,540,934

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

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

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

TOTAL LONG TERM ASSETS

5,452,729

6,052,761

6,540,934

TOTAL CURRENT ASSETS

4,604,310

7,201,590

7,412,813

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

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

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

TOTAL ASSET

10,057,039

13,254,351

13,953,747

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

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

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

TOTAL CURRENT LIABILITIES

8,549,726

11,889,090

12,513,021

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(3,945,416)

(4,687,500)

(5,100,208)

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

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

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

TOTAL NET ASSETS

1,507,313

1,365,261

1,440,726

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

500,000

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

Retained profit/(loss) carried forward

1,007,313

865,261

822,773

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

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

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

TOTAL RESERVES

1,007,313

865,261

822,773

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,507,313

1,365,261

1,322,773

TOTAL LONG TERM LIABILITIES

-

-

117,953

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

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

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

1,507,313

1,365,261

1,440,726

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

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

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

 

 

 

FINANCIAL RATIO

 

 

FELLA DESIGN SDN. BHD.

 

TYPES OF FUNDS

Net Liquid Assets

(3,945,416)

(4,687,500)

(5,100,208)

Net Current Assets/(Liabilities)

(3,945,416)

(4,687,500)

(5,100,208)

Net Tangible Assets

1,507,313

1,365,261

1,440,726

Net Monetary Assets

(3,945,416)

(4,687,500)

(5,218,161)

BALANCE SHEET ITEMS

Total Liabilities

8,549,726

11,889,090

12,630,974

Total Assets

10,057,039

13,254,351

13,953,747

Net Assets

1,507,313

1,365,261

1,440,726

Net Assets Backing

1,507,313

1,365,261

1,322,773

Shareholders' Funds

1,507,313

1,365,261

1,322,773

Total Share Capital

500,000

500,000

500,000

Total Reserves

1,007,313

865,261

822,773

LIQUIDITY (Times)

Current Ratio

0.54

0.61

0.59

SOLVENCY RATIOS (Times)

Liabilities Ratio

5.67

8.71

9.55

Assets Backing Ratio

3.01

2.73

2.88

PERFORMANCE RATIO (%)

Operating Profit Margin

2.31

0.34

2.38

Net Profit Margin

2.31

0.34

0.09

Return On Net Assets

9.42

3.11

20.74

Return On Capital Employed

9.42

3.11

20.74

Return On Shareholders' Funds/Equity

9.42

3.11

0.88





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.33

UK Pound

1

Rs.99.68

Euro

1

Rs.80.30

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.