|
Report No. : |
325157 |
|
Report Date : |
03.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
FERCO SEATING SYSTEMS (M) SDN. BHD. |
|
|
|
|
Registered Office : |
Block 8-16-1, Jalan Jalil Perkasa 15, Arcade Esplanad, Taman Bukit Jalil,
57000 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
09.12.1992 |
|
|
|
|
Com. Reg. No.: |
253650-W |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing of public seating systems |
|
|
|
|
No. of Employee : |
100 [2015] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.
|
Source
: CIA |
EXECUTIVE
SUMMARY
|
|
REGISTRATION
NO. |
: |
253650-W |
||||
|
COMPANY
NAME |
: |
FERCO SEATING
SYSTEMS (M) SDN. BHD. |
||||
|
FORMER
NAME |
: |
N/A |
||||
|
INCORPORATION
DATE |
: |
09/12/1992 |
||||
|
COMPANY
STATUS |
: |
EXIST |
||||
|
LEGAL
FORM |
: |
PRIVATE
LIMITED |
||||
|
LISTED
STATUS |
: |
NO |
||||
|
REGISTERED
ADDRESS |
: |
BLOCK
8-16-1, JALAN JALIL PERKASA 15, ARCADE ESPLANAD, TAMAN BUKIT JALIL, 57000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
BUSINESS
ADDRESS |
: |
7,
JALAN SUNGAI BESAR 26/7, SECTION 26, 40400 SHAH ALAM, SELANGOR, MALAYSIA. |
||||
|
TEL.NO. |
: |
03-51913233 |
||||
|
FAX.NO. |
: |
03-51929313 |
||||
|
EMAIL |
: |
MARKETING@FERCOSEATING.COM |
||||
|
WEB
SITE |
: |
WWW.FERCOSEATING.COM |
||||
|
CONTACT
PERSON |
: |
TIMOTHY
ROWAND BARR ( CEO ) |
||||
|
INDUSTRY
CODE |
: |
31
|
||||
|
PRINCIPAL
ACTIVITY |
: |
MANUFACTURING
OF PUBLIC SEATING SYSTEMS |
||||
|
AUTHORISED
CAPITAL |
: |
MYR
5,000,000.00 DIVIDED INTO |
||||
|
ISSUED
AND PAID UP CAPITAL |
: |
MYR
5,000,000.00 DIVIDED INTO |
||||
|
SALES |
: |
MYR
32,509,109 [2013] |
||||
|
NET
WORTH |
: |
MYR
14,442,533 [2013] |
||||
|
STAFF
STRENGTH |
: |
100
[2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER
CHECK |
: |
CLEAR |
||||
|
FINANCIAL
CONDITION |
: |
FAIR |
||||
|
PAYMENT |
: |
POOR |
||||
|
MANAGEMENT
CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL
RISK |
: |
LOW |
||||
|
CURRENCY
EXPOSURE |
: |
MODERATE |
||||
|
GENERAL
REPUTATION |
: |
SATISFACTORY |
||||
|
INDUSTRY
OUTLOOK |
: |
MARGINAL
GROWTH |
||||
The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.
The Subject is principally engaged in the (as a / as an) manufacturing of public seating systems.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The ultimate holding company of the Subject is FERCO SEATING SYSTEMS PTE LTD, a company incorporated in SINGAPORE.
Share
Capital History
|
Date |
Authorised
Shared Capital |
Issue
& Paid Up Capital |
|
30/06/2014 |
MYR
5,000,000.00 |
MYR
5,000,000.00 |
|
09/05/2003 |
MYR
5,000,000.00 |
MYR
2,000,000.00 |
|
10/05/2001 |
MYR
5,000,000.00 |
MYR
1,500,000.00 |
|
01/12/2000 |
MYR
1,000,000.00 |
MYR
750,000.00 |
|
20/06/2000 |
MYR
1,000,000.00 |
MYR
250,000.00 |
|
21/07/1993 |
MYR
200,000.00 |
MYR
100,002.00 |
|
09/12/1992 |
MYR
200,000.00 |
MYR
2.00 |
The
major shareholder(s) of the Subject are shown as follows :
Name |
Address |
IC/PP/Loc
No |
Shareholding |
(%) |
|
FERCO
SEATING SYSTEMS PTE. LTD. |
120,
HILLVIEW AVENUE, 04-04, KEWALRAM HILLVIEW, 669594, SINGAPORE. |
198305496H |
5,000,000.00 |
100.00 |
|
--------------- |
------ |
|||
|
5,000,000.00 |
100.00 |
|||
|
============ |
===== |
+
Also Director
The
Subject's interest in other companies (Subsidiaries/Associates) are shown as
follow :
Local
No |
Country |
Company |
(%) |
As
At |
|
349171D |
MALAYSIA |
IDEAL
SEATING SYSTEMS SDN. BHD. |
100.00 |
31/12/2013 |
DIRECTORS
|
DIRECTOR
1
|
Name
Of Subject |
: |
RICHARD
NIGEL CRESE AUSTEN |
|
Address |
: |
23,
NASSIM ROAD, 258399, SINGAPORE. |
|
IC
/ PP No |
: |
761248999 |
|
Date
of Appointment |
: |
27/07/2009 |
DIRECTOR
2
|
Name
Of Subject |
: |
MR.
TIMOTHY ROWAND BARR |
|
Address |
: |
13-05,
SRI DUTA II CONDOMINIUM, 11, JALAN LANGGAK DUTA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA. |
|
New
IC No |
: |
501222-87-5087 |
|
Date
of Birth |
: |
22/12/1950 |
|
Nationality |
: |
MALAYSIAN |
|
Date
of Appointment |
: |
09/12/1992 |
DIRECTOR
3
|
Name
Of Subject |
: |
MS.
FLORENCE NIBOR |
|
Address |
: |
76,
EVER BRIGHT PARK, LANE 1, BATU 3, JALAN PENRISSEN, 93250 KUCHING, SARAWAK,
MALAYSIA. |
|
IC
/ PP No |
: |
K0189166 |
|
New
IC No |
: |
690905-13-5008 |
|
Date
of Birth |
: |
05/09/1969 |
|
Nationality |
: |
MALAYSIAN |
|
Date
of Appointment |
: |
27/12/2004 |
|
1)
|
Name
of Subject |
: |
TIMOTHY
ROWAND BARR |
|
Position |
: |
CEO |
|
|
|
|
AUDITOR |
|
Auditor |
: |
MICHAEL NG & ASSOCIATES |
|
Auditor' Address |
: |
BLOCK 8-16-G, JALAN JALIL PERKASA 15, ARCADE ESPLANAD, TAMAN BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
|
COMPANY
SECRETARIES
|
|
1) |
Company Secretary |
: |
DR NG CHEE LOONG |
|
New IC No |
: |
690611-10-5823 |
|
|
Address |
: |
66, JALAN HUJAN EMAS 5, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
|
|
BANKING
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
HONG LEONG BANK BHD |
|
2) |
Name |
: |
MALAYAN BANKING BHD |
|
3) |
Name |
: |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
ENCUMBRANCE
(S)
|
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
06/04/2001 |
N/A |
HONG LEONG BANK BERHAD |
MYR 6,920,000.00 |
Satisfied |
|
2 |
12/09/2001 |
N/A |
HONG LEONG BANK BERHAD |
MYR 6,920,000.00 |
Satisfied |
|
3 |
21/03/2006 |
FIXED DEPOSIT |
MALAYAN BANKING BERHAD |
- |
Unsatisfied |
|
4 |
07/07/2006 |
1ST LEGAL CHARGE |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
MYR 2,200,000.00 |
Unsatisfied |
|
5 |
07/07/2006 |
2ND LEGAL CHARGE |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
MYR 4,000,000.00 |
Unsatisfied |
|
6 |
07/07/2006 |
DEED OF ASSIGNMENT |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
- |
Unsatisfied |
|
7 |
26/02/2009 |
3RD LEGAL CHARGE |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
MYR 2,700,000.00 |
Unsatisfied |
|
8 |
22/02/2011 |
4TH LEGAL CHARGE |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
MYR 1,300,000.00 |
Unsatisfied |
LITIGATION
CHECK AGAINST SUBJECT
|
* A check has been conducted in our databank againt the Subject whether the
Subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER
CHECK AGAINST SUBJECT
|
* We have checked through the Subject in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT
RECORD
|
|
||
|
SOURCES OF RAW MATERIALS: |
||
|
Local |
: |
YES |
|
Overseas |
: |
YES |
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
] |
Good 31-60 Days |
[ |
] |
Average 61-90 Days |
[ |
] |
||||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
X |
] |
||||||||
CLIENTELE
|
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|||
|
Export Market |
: |
ASIA |
|||
|
Credit Term |
: |
AS AGREED |
|||
|
Payment Mode |
: |
CHEQUES |
|||
OPERATIONS
|
|
Products manufactured |
: |
|
|
|
Product Brand Name |
: |
|
|
|
Member(s) / Affiliate(s) |
: |
SMI ASSOCIATION OF MALAYSIA MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE) |
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2015 |
2013 |
2010 |
||||||
|
GROUP |
N/A |
N/A |
N/A |
||||||
|
COMPANY |
100 |
100 |
100 |
||||||
|
Branch |
: |
|
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of
public seating systems.
The Subject offers an extremely wide choice of seating for auditoria of all
types, including conference centres, sports venues, theatres, cinemas,
multi-purpose halls and lecture theatres.
The range includes not only a choice of design for each application but also a
range of finishes to suit most budgets.
Besides that the Subject has built up its own design expertise to develop
highly space-efficient seating systems, engineered for ease of installation,
economical maintenance and adaptability to different venues.
CURRENT
INVESTIGATION
|
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
03-51913233 |
|
Match |
: |
N/A |
|
Address Provided by Client |
: |
NO 7, JALAN SUNGAI BESAR 26/7, SECTION 26,40400,SHAH ALAM,SELANGOR. |
|
Current Address |
: |
7, JALAN SUNGAI BESAR 26/7, SECTION 26, 40400 SHAH ALAM, SELANGOR, MALAYSIA. |
|
Match |
: |
YES |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
On 29th May 2015 we contacted one of the staff from the Subject and he provided
some information.
FINANCIAL
ANALYSIS
|
||||||
|
Profitability |
||||||
|
Turnover |
: |
Erratic |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
8.35% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
13.51% |
] |
|
|
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns. |
||||||
|
Working Capital Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
9 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
69 Days |
] |
|
|
Creditors Ratio |
: |
Unfavourable |
[ |
107 Days |
] |
|
|
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Acceptable |
[ |
0.90 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
0.96 Times |
] |
|
|
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due. |
||||||
|
Solvency |
||||||
|
Interest Cover |
: |
Acceptable |
[ |
8.89 Times |
] |
|
|
Gearing Ratio |
: |
Favourable |
[ |
0.25 Times |
] |
|
|
The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry. |
||||||
|
Overall Assessment : |
||||||
|
The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations. |
||||||
|
Overall financial condition of the Subject : FAIR |
||||||
MALAYSIA
ECONOMIC / INDUSTRY OUTLOOK
|
|
Major Economic Indicators: |
2011 |
2012 |
2013 |
2014* |
2015** |
|
||||
|
||||||||||
|
Population ( Million) |
28.7 |
29.3 |
29.8 |
30.3 |
30.5 |
|
||||
|
Gross Domestic Products ( % ) |
5.1 |
5.6 |
5.3 |
6.0 |
6.0 |
|
||||
|
Domestic Demand ( % ) |
8.2 |
9.4 |
5.6 |
6.4 |
6.2 |
|
||||
|
Private Expenditure ( % ) |
8.2 |
8.0 |
8.6 |
7.9 |
6.9 |
|
||||
|
Consumption ( % ) |
7.1 |
1.0 |
5.7 |
6.5 |
5.6 |
|
||||
|
Investment ( % ) |
12.2 |
11.7 |
13.3 |
12.0 |
10.7 |
|
||||
|
Public Expenditure ( % ) |
8.4 |
13.3 |
4.4 |
2.3 |
4.2 |
|
||||
|
Consumption ( % ) |
16.1 |
11.3 |
(1.2) |
2.1 |
3.8 |
|
||||
|
Investment ( % ) |
(0.3) |
15.9 |
4.2 |
2.6 |
4.7 |
|
||||
|
||||||||||
|
Balance of Trade ( MYR Million ) |
116,058 |
106,300 |
71,298 |
52,314 |
- |
|
||||
|
Government Finance ( MYR Million ) |
(45,511) |
(42,297) |
(39,993) |
(37,291) |
- |
|
||||
|
Government Finance to GDP / Fiscal Deficit ( % ) |
(5.4) |
(4.5) |
(4.0) |
(3.5) |
(3.0) |
|
||||
|
Inflation ( % Change in Composite CPI) |
3.1 |
1.6 |
2.5 |
3.3 |
4.0 |
|
||||
|
Unemployment Rate |
3.3 |
3.2 |
3.0 |
3.0 |
3.0 |
|
||||
|
||||||||||
|
Net International Reserves ( MYR Billion ) |
415 |
427 |
- |
417 |
- |
|
||||
|
Average Risk-Weighted Capital Adequacy Ratio ( % ) |
3.50 |
2.20 |
- |
- |
- |
|
||||
|
Average 3 Months of Non-performing Loans ( % ) |
14.80 |
14.70 |
- |
- |
- |
|
||||
|
Average Base Lending Rate ( % ) |
6.60 |
6.53 |
6.53 |
- |
- |
|
||||
|
Business Loans Disbursed( % ) |
15.3 |
32.2 |
- |
- |
- |
|
||||
|
Foreign Investment ( MYR Million ) |
23,546.1 |
26,230.4 |
38,238.0 |
- |
- |
|
||||
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
||||
|
||||||||||
|
Registration of New Companies ( No. ) |
45,455 |
45,441 |
46,321 |
- |
- |
|
||||
|
Registration of New Companies ( % ) |
3.0 |
(0.0) |
1.9 |
- |
- |
|
||||
|
Liquidation of Companies ( No. ) |
132,485 |
17,092 |
26,430 |
- |
- |
|
||||
|
Liquidation of Companies ( % ) |
417.8 |
(87.1) |
54.6 |
- |
- |
|
||||
|
||||||||||
|
Registration of New Business ( No. ) |
284,598 |
324,761 |
329,895 |
- |
- |
|
||||
|
Registration of New Business ( % ) |
5.0 |
14.0 |
2.0 |
- |
- |
|
||||
|
Business Dissolved ( No. ) |
20,121 |
20,380 |
18,161 |
- |
- |
|
||||
|
Business Dissolved ( % ) |
1.9 |
1.3 |
(10.9) |
- |
- |
|
||||
|
||||||||||
|
Sales of New Passenger Cars (' 000 Unit ) |
535.1 |
552.2 |
576.7 |
598.4 |
610.3 |
|
||||
|
Cellular Phone Subscribers ( Million ) |
35.3 |
38.5 |
43.0 |
43.8 |
- |
|
||||
|
Tourist Arrival ( Million Persons ) |
24.7 |
25.0 |
25.7 |
28.0 |
- |
|
||||
|
Hotel Occupancy Rate ( % ) |
60.6 |
62.4 |
62.6 |
- |
- |
|
||||
|
||||||||||
|
Credit Cards Spending ( % ) |
15.6 |
12.6 |
- |
- |
- |
|
||||
|
Bad Cheque Offenders (No.) |
32,627 |
26,982 |
28,876 |
- |
- |
|
||||
|
Individual Bankruptcy ( No.) |
19,167 |
19,575 |
21,984 |
- |
- |
|
||||
|
Individual Bankruptcy ( % ) |
5.8 |
2.1 |
12.3 |
- |
- |
|
||||
|
|
|
|||||||||
|
|
2011 |
2012 |
2013 |
2014* |
2015** |
|||||
|
Agriculture |
5.8 |
1.0 |
2.1 |
3.8 |
3.1 |
|||||
|
Palm Oil |
10.8 |
(0.3) |
2.6 |
6.7 |
- |
|||||
|
Rubber |
6.1 |
(7.9) |
(10.1) |
(10.4) |
- |
|||||
|
Forestry & Logging |
(7.6) |
(4.5) |
(7.8) |
(4.2) |
- |
|||||
|
Fishing |
2.1 |
4.3 |
1.6 |
2.7 |
- |
|||||
|
Other Agriculture |
7.1 |
6.4 |
8.2 |
6.2 |
- |
|||||
|
Industry Non-Performing Loans ( MYR Million ) |
634.1 |
- |
- |
- |
- |
|||||
|
% of Industry Non-Performing Loans |
3.2 |
- |
- |
- |
- |
|||||
|
Mining |
(5.4) |
1.4 |
0.9 |
(0.8) |
2.8 |
|||||
|
Oil & Gas |
(1.7) |
- |
- |
- |
- |
|||||
|
Other Mining |
- |
- |
- |
- |
- |
|||||
|
Industry Non-performing Loans ( MYR Million ) |
46.5 |
- |
- |
- |
- |
|||||
|
% of Industry Non-performing Loans |
0.1 |
- |
- |
- |
- |
|||||
|
Manufacturing # |
4.7 |
4.8 |
3.4 |
6.6 |
5.5 |
|||||
|
Exported-oriented Industries |
4.1 |
6.5 |
3.3 |
5.6 |
- |
|||||
|
Electrical & Electronics |
(4.0) |
12.7 |
6.9 |
13.3 |
- |
|||||
|
Rubber Products |
20.7 |
3.0 |
11.7 |
(0.3) |
- |
|||||
|
Wood Products |
(5.1) |
8.7 |
(2.7) |
5.1 |
- |
|||||
|
Textiles & Apparel |
13.2 |
(7.1) |
(2.6) |
11.5 |
- |
|||||
|
Domestic-oriented Industries |
10.7 |
1.7 |
6.8 |
9.4 |
- |
|||||
|
Food, Beverages & Tobacco |
4.80 |
2.70 |
3.60 |
6.13 |
6.13 |
|||||
|
Chemical & Chemical Products |
10.0 |
10.8 |
5.6 |
- |
- |
|||||
|
Plastic Products |
3.8 |
- |
- |
- |
- |
|||||
|
Iron & Steel |
2.2 |
(6.6) |
5.0 |
0.1 |
- |
|||||
|
Fabricated Metal Products |
21.8 |
13.8 |
9.9 |
2.9 |
- |
|||||
|
Non-metallic Mineral |
12.1 |
2.9 |
(2.0) |
5.4 |
- |
|||||
|
Transport Equipment |
12.0 |
3.4 |
13.8 |
22.9 |
- |
|||||
|
Paper & Paper Products |
9.5 |
3.1 |
1.8 |
4.7 |
- |
|||||
|
Crude Oil Refineries |
9.3 |
- |
- |
- |
- |
|||||
|
Industry Non-Performing Loans ( MYR Million ) |
6,537.2 |
- |
- |
- |
- |
|||||
|
% of Industry Non-Performing Loans |
25.7 |
- |
- |
- |
- |
|||||
|
Construction |
4.7 |
18.6 |
10.9 |
12.7 |
10.7 |
|||||
|
Industry Non-Performing Loans ( MYR Million ) |
3,856.9 |
- |
- |
- |
- |
|||||
|
% of Industry Non-Performing Loans |
10.2 |
- |
- |
- |
- |
|||||
|
Services |
7.1 |
6.4 |
5.9 |
5.9 |
5.6 |
|||||
|
Electric, Gas & Water |
3.5 |
4.4 |
4.2 |
3.6 |
3.9 |
|||||
|
Transport, Storage & Communication |
6.50 |
7.10 |
7.30 |
7.50 |
7.15 |
|||||
|
Wholesale, Retail, Hotel & Restaurant |
5.2 |
4.7 |
5.9 |
6.9 |
6.5 |
|||||
|
Finance, Insurance & Real Estate |
6.90 |
9.70 |
3.70 |
4.65 |
4.25 |
|||||
|
Government Services |
12.4 |
9.4 |
8.3 |
6.1 |
5.6 |
|||||
|
Other Services |
5.1 |
3.9 |
5.1 |
4.8 |
4.5 |
|||||
|
Industry Non-Performing Loans ( MYR Million ) |
6,825.2 |
- |
- |
- |
- |
|||||
|
% of Industry Non-Performing Loans |
23.4 |
- |
- |
- |
- |
|||||
|
* Estimate / Preliminary |
||||||||||
|
** Forecast |
||||||||||
|
# Based On Manufacturing Production Index |
||||||||||
|
MSIC CODE |
|
|
31 : MANUFACTURE OF FURNITURE |
|
|
INDUSTRY : |
FURNITURE & FIXTURES |
|
Malaysia's Furniture Manufacturing Industry has been blooming in recent years. Malaysia ranks comfortably as the 10th largest exporter of furniture in the world in 2014. It exports 80% of their total furniture production around the world. With existing strong export base like Japan, United States and Australia, the nation continues its tremendous growth towards Saudi Arabia, Philippines and Russia. Malaysia is believed to diversify their export base to countries like Algeria, Greece, Puerto Rico, Libya and other countries awaiting confirmation. |
|
|
Increased demand from major export destinations such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output of wooden and cane furniture, which rebounded by 2.2% in the first seven months of 2014. Thus, shipments of wood products rebounded by 4.7% in the same time mainly driven by export growth of wooden furniture (13.4%) to the US, Japan and Australia. Amid higher demand, exports of bedroom furniture and seats with wooden frame increased significantly by 21.6% and 15.2%. However, in 2013, Malaysia's furniture export decreased 8.1% compared to 2012. Furniture exports to the United States in 2013, which is the largest market, also recorded a decrease of 6.1% compared to 2012. This performance was nevertheless commendable, taking into account the slowdown in the global economy in 2013, especially in the United States and Euro zone countries. |
|
|
Despite numerous economic downturns, the industry is still supported by a strong global demand. While lower priced Chinese and Vietnamese furniture pose strong competition, Malaysian furniture continues to set itself apart with original design that places importance on aesthetics as well as its good work ethics. The government also plays an important role in nurturing the industry. Providing Pioneer Status for tax exemption and Investment Tax Allowance, the pro-business environment makes doing business easier and faster. With a business-friendly environment, good quality products and a high potential market, the Malaysian furniture industry is poised to exceed expectations and to continue its exponential growth. |
|
|
Conclusively, Malaysia has always been known for its wood based furniture, owing to its natural resources. The government has set an annual growth target of 6.5% for wood based furniture, estimated to reach up to RM53 billion by year 2020. In recent years, the growth has shifted from producing general products towards designing its own, and this has been the key in propelling Malaysia onto the international arena. Popular with overseas buyers of the middle to high category, foreign buyers look to Malaysia for manufacturers who can meet their high production demand. |
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth |
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
|
|
|
|
PROFIT
AND LOSS ACCOUNT
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS) |
|
FERCO SEATING SYSTEMS (M) SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
2011-12-31 |
2010-12-31 |
2009-12-31 |
|
Months |
12 |
12 |
12 |
12 |
12 |
|
Consolidated Account |
GROUP |
GROUP |
GROUP |
GROUP |
GROUP |
|
Audited Account |
YES |
YES |
YES |
YES |
YES |
|
Unqualified Auditor's Report (Clean Opinion) |
YES |
YES |
YES |
YES |
YES |
|
Financial Type |
FULL |
FULL |
SUMMARY |
SUMMARY |
SUMMARY |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
32,509,109 |
42,302,237 |
37,704,637 |
38,465,261 |
30,366,460 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
32,509,109 |
42,302,237 |
37,704,637 |
38,465,261 |
30,366,460 |
|
Costs of Goods Sold |
(23,232,850) |
(33,055,358) |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
9,276,259 |
9,246,879 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
1,792,462 |
2,753,120 |
(2,341,574) |
1,861,678 |
2,121,310 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
1,792,462 |
2,753,120 |
(2,341,574) |
1,861,678 |
2,121,310 |
|
Taxation |
(587,130) |
(540,663) |
119,061 |
(593,658) |
(641,679) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
1,205,332 |
2,212,457 |
(2,222,513) |
1,268,020 |
1,479,631 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
27,357 |
(206,826) |
2,015,687 |
1,747,667 |
4,268,036 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
27,357 |
(206,826) |
2,015,687 |
1,747,667 |
4,268,036 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
1,232,689 |
2,005,631 |
(206,826) |
3,015,687 |
5,747,667 |
|
TRANSFER TO RESERVES - General |
- |
- |
- |
- |
(3,000,000) |
|
DIVIDENDS - Ordinary (paid & proposed) |
- |
(1,978,274) |
- |
(1,000,000) |
(1,000,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
1,232,689 |
27,357 |
(206,826) |
2,015,687 |
1,747,667 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE (as per notes to P&L) |
|||||
|
Bank overdraft |
77,968 |
44,290 |
- |
- |
- |
|
Bankers' acceptance |
139,037 |
106,449 |
- |
- |
- |
|
Hire purchase |
10,287 |
10,264 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
227,292 |
161,003 |
- |
- |
- |
|
|
============= |
============= |
- |
- |
- |
|
|
DEPRECIATION (as per notes to P&L) |
849,575 |
846,007 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
849,575 |
846,007 |
- |
- |
- |
|
|
============= |
============= |
BALANCE
SHEET
|
|
FERCO SEATING SYSTEMS (M) SDN. BHD. |
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
15,583,388 |
16,023,388 |
- |
14,001,580 |
10,922,118 |
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
- |
- |
- |
167,607 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
15,583,388 |
16,023,388 |
- |
14,169,187 |
10,922,118 |
|
Stocks |
818,743 |
598,053 |
- |
- |
- |
|
Contract work-in-progress |
- |
1,050,286 |
- |
- |
- |
|
Trade debtors |
6,119,081 |
6,808,131 |
- |
- |
- |
|
Other debtors, deposits & prepayments |
1,198,346 |
1,965,869 |
- |
- |
- |
|
Short term deposits |
- |
43,557 |
- |
- |
- |
|
Amount due from holding company |
53,780 |
- |
- |
- |
- |
|
Cash & bank balances |
5,939,713 |
499,345 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
14,129,663 |
10,965,241 |
24,214,310 |
16,275,386 |
10,641,983 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
29,713,051 |
26,988,629 |
24,214,310 |
30,444,573 |
21,564,101 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT LIABILITIES |
|||||
|
Trade creditors |
6,833,191 |
5,911,589 |
- |
- |
- |
|
Other creditors & accruals |
3,333,800 |
3,447,371 |
- |
- |
- |
|
Hire purchase & lease creditors |
77,409 |
77,409 |
- |
- |
- |
|
Bank overdraft |
- |
1,138,068 |
- |
- |
- |
|
Deposits from customers |
607,248 |
794,267 |
- |
- |
- |
|
Bill & acceptances payable |
3,257,000 |
1,442,000 |
- |
- |
- |
|
Other liabilities |
657,475 |
245,920 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
14,766,123 |
13,056,624 |
13,335,892 |
16,947,842 |
12,149,483 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
(636,460) |
(2,091,383) |
10,878,418 |
(672,456) |
(1,507,500) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
14,946,928 |
13,932,005 |
10,878,418 |
13,496,731 |
9,414,618 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
5,000,000 |
5,000,000 |
5,000,000 |
5,000,000 |
5,000,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
5,000,000 |
5,000,000 |
5,000,000 |
5,000,000 |
5,000,000 |
|
RESERVES |
|||||
|
Share premium |
8,209,844 |
8,209,844 |
5,992,844 |
5,992,844 |
1,706,925 |
|
Retained profit/(loss) carried forward |
1,232,689 |
27,357 |
(206,826) |
2,015,687 |
1,747,667 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
9,442,533 |
8,237,201 |
5,786,018 |
8,008,531 |
3,454,592 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
14,442,533 |
13,237,201 |
10,786,018 |
13,008,531 |
8,454,592 |
|
Hire purchase creditors |
212,395 |
289,804 |
- |
- |
- |
|
Deferred taxation |
292,000 |
405,000 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
504,395 |
694,804 |
92,400 |
488,200 |
960,026 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
14,946,928 |
13,932,005 |
10,878,418 |
13,496,731 |
9,414,618 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL
RATIO
|
|
FERCO SEATING SYSTEMS (M) SDN. BHD. |
|
TYPES OF FUNDS |
|||||
|
Cash |
5,939,713 |
542,902 |
- |
- |
- |
|
Net Liquid Funds |
2,682,713 |
(2,037,166) |
- |
- |
- |
|
Net Liquid Assets |
(1,455,203) |
(2,689,436) |
10,878,418 |
(672,456) |
(1,507,500) |
|
Net Current Assets/(Liabilities) |
(636,460) |
(2,091,383) |
10,878,418 |
(672,456) |
(1,507,500) |
|
Net Tangible Assets |
14,946,928 |
13,932,005 |
10,878,418 |
13,496,731 |
9,414,618 |
|
Net Monetary Assets |
(1,959,598) |
(3,384,240) |
10,786,018 |
(1,160,656) |
(2,467,526) |
|
BALANCE SHEET ITEMS |
|||||
|
Total Borrowings |
3,546,804 |
2,947,281 |
- |
- |
- |
|
Total Liabilities |
15,270,518 |
13,751,428 |
13,428,292 |
17,436,042 |
13,109,509 |
|
Total Assets |
29,713,051 |
26,988,629 |
24,214,310 |
30,444,573 |
21,564,101 |
|
Net Assets |
14,946,928 |
13,932,005 |
10,878,418 |
13,496,731 |
9,414,618 |
|
Net Assets Backing |
14,442,533 |
13,237,201 |
10,786,018 |
13,008,531 |
8,454,592 |
|
Shareholders' Funds |
14,442,533 |
13,237,201 |
10,786,018 |
13,008,531 |
8,454,592 |
|
Total Share Capital |
5,000,000 |
5,000,000 |
5,000,000 |
5,000,000 |
5,000,000 |
|
Total Reserves |
9,442,533 |
8,237,201 |
5,786,018 |
8,008,531 |
3,454,592 |
|
LIQUIDITY (Times) |
|||||
|
Cash Ratio |
0.40 |
0.04 |
- |
- |
- |
|
Liquid Ratio |
0.90 |
0.79 |
- |
- |
- |
|
Current Ratio |
0.96 |
0.84 |
1.82 |
0.96 |
0.88 |
|
WORKING CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
9 |
14 |
- |
- |
- |
|
Debtors Ratio |
69 |
59 |
- |
- |
- |
|
Creditors Ratio |
107 |
65 |
- |
- |
- |
|
SOLVENCY RATIOS (Times) |
|||||
|
Gearing Ratio |
0.25 |
0.22 |
- |
- |
- |
|
Liabilities Ratio |
1.06 |
1.04 |
1.24 |
1.34 |
1.55 |
|
Times Interest Earned Ratio |
8.89 |
18.10 |
- |
- |
- |
|
Assets Backing Ratio |
2.99 |
2.79 |
2.18 |
2.70 |
1.88 |
|
PERFORMANCE RATIO (%) |
|||||
|
Operating Profit Margin |
5.51 |
6.51 |
(6.21) |
4.84 |
6.99 |
|
Net Profit Margin |
3.71 |
5.23 |
(5.89) |
3.30 |
4.87 |
|
Return On Net Assets |
13.51 |
20.92 |
(21.52) |
13.79 |
22.53 |
|
Return On Capital Employed |
13.44 |
19.24 |
(21.52) |
13.79 |
22.53 |
|
Return On Shareholders' Funds/Equity |
8.35 |
16.71 |
(20.61) |
9.75 |
17.50 |
|
Dividend Pay Out Ratio (Times) |
0.00 |
0.89 |
- |
0.79 |
0.68 |
|
NOTES TO ACCOUNTS |
|||||
|
Contingent Liabilities |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.83 |
|
|
1 |
Rs.97.10 |
|
Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.