MIRA INFORM REPORT

Report Date :

03.08.2011

IDENTIFICATION DETAILS

Name :	ASIA MARINE PRODUCTS SDN BHD
Registered Office :	Lot 824, Kompleks Sun, Jalan Bukit Bintang, 8th Floor, 55100 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2009
Date of Incorporation :	31.03.1975
Com. Reg. No.:	22393-K
Legal Form :	Private Limited Company
Line of Business :	Trading of seafood

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 8,987.00
Status :	Moderate
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Malaysia	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

* Adopted abbreviations : SC - Subject Company (the company enquired by you)

N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	22393-K
COMPANY NAME	:	ASIA MARINE PRODUCTS SDN BHD
FORMER NAME	:	N/A
INCORPORATION DATE	:	31/03/1975
COMPANY STATUS	:	EXIST
LEGAL STATUS	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	LOT 824, KOMPLEKS SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
BUSINESS ADDRESS	:	15 LEBUH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.
TEL.NO.	:	03-31689806
FAX.NO.	:	03-31683557
CONTACT PERSON	:	TAN SUAN CHEW ( MANAGING DIRECTOR )
INDUSTRY CODE	:	51222
PRINCIPAL ACTIVITY	:	TRADING OF SEAFOOD
AUTHORISED CAPITAL	:	MYR 5,000,000.00 DIVIDED INTO  ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 2,045,975.00 DIVIDED INTO  ORDINARY SHARES 1,062,359 CASH AND 983,616 OTHERWISE OF MYR 1.00 EACH.
SALES	:	MYR 27,573,706 [2009]
NET WORTH	:	MYR 4,307,366 [2009]
STAFF STRENGTH	:	21 [2011]
BANKER (S)		UNITED OVERSEAS BANK (MALAYSIA) BHD MALAYAN BANKING BHD
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	POOR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	MODERATE
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MATURE
PROPOSED CREDIT LIMIT	:	USD8,987.00

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) trading of seafood.

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
MR. TAN SUAN CHEW +	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	460611-10-5467 1195235	1,216,854.00
MS. QUAK NEE HOONG @ QUAH NEE HOONG +	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	471130-10-5160 3677432	317,626.00
MR. TAN YEE SAN +	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	740430-14-5677 A2676999	237,963.00
MS.TAN SEE SEE	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	690811-10-5588	68,383.00
MS.TAN KIM SIEW	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	730119-14-5050 A2481136	68,383.00
MS.TAN KIM CHOOI	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	780126-14-5740	68,383.00
MS.TAN LE CHENG	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	700705-10-6292	68,383.00
			---------------
			2,045,975.00
			============

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. TAN CHOON HAI
Address	:	35-H, JALAN BERINGIN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.
IC / PP No	:	4876146
New IC No	:	550905-10-6229
Date of Birth	:	05/09/1955
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	13/08/1977

DIRECTOR 2

Name Of Subject	:	MR. TAN YEE SAN
Address	:	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	A2676999
New IC No	:	740430-14-5677
Date of Birth	:	30/04/1974
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	11/01/2001

DIRECTOR 3

Name Of Subject	:	MS. QUAK NEE HOONG @ QUAH NEE HOONG
Address	:	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	3677432
New IC No	:	471130-10-5160
Date of Birth	:	30/11/1947
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	13/09/1996

DIRECTOR 4

Name Of Subject	:	MR. TAN SUAN CHEW
Address	:	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	1195235
New IC No	:	460611-10-5467
Date of Birth	:	11/06/1946
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	31/03/1975

MANAGEMENT

1)	Name of Subject	:	TAN SUAN CHEW
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	CHEW & ASSOCIATES
Auditor' Address	:	LOT 828, KOMPLEKS SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. LAI SOOK HEAN
	IC / PP No	:	A1854741
	New IC No	:	710503-08-6122
	Address	:	164, JELAPANG NEW VILLAGE, 30020 IPOH, PERAK, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

2)

Name

:

MALAYAN BANKING 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

:

15/05/2002

Description Of Charge

:

LOAN AGREEMENT, LETTER OF GUARANTEE, LETTER OF SET-OFF & MEMO OF DEPOSIT

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

FDR E129553

Name & Address Of Chargee

:

ARAB-MALAYSIAN FINANCE BHD
PLAZA SEE HOY CHAN, JLN RAJA CHULAN, 1ST FLR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Form 40 Dated 24/05/2002

Registered and Numbered 10 In The Register of Charges

ENCUMBRANCE 2

Date of Creation

:

10/09/2007

Description Of Charge

:

LOAN AGREEMENT, LETTER OF GUARANTEE, LETTER OF SET-OFF & MEMO OF DEPOSIT

Amount Secured

:

N/A

Description Of Property Affected

:

FDR E129553

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

Form 40 Dated 20/09/2007

Registered and Numbered 13 In The Register of Charges

ENCUMBRANCE 3

Date of Creation

:

24/09/2008

Description Of Charge

:

LOAN AGREEMENT, LETTER OF GUARANTEE, LETTER OF SET-OFF & MEMO OF DEPOSIT

Amount Secured

:

N/A

Description Of Property Affected

:

FDR E129553

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

Form 40 Dated 10/10/2008

Registered and Numbered 14 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	Percentage	:	60%
Overseas	:	YES	Percentage	:	40%

The SC 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	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO	Percentage	:	0%
Credit Term	:	AS AGREED
Payment Mode	:	CASH, CHEQUES.

OPERATIONS

Goods Traded

:

FROZEN SEAFOOD

Competitor(s)

:

HAI KEE HUNG SDN BHD
KMC COLDSTORAGE & WAREHOUSING SDN BHD
PIAU KEE HOLDINGS SDN BHD
THAI CHIA MARKETING SDN BHD
TROPICAL CONSOLIDATED CORPORATION SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2011
GROUP	N/A
COMPANY	21

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading of seafood.

The SC is mainly involved in trading of seafoods.

Currently the SC offers various types of local and overseas fishes such as "Tenggiri" and "Salmon". It also trades other seafoods

including squids and crabs.

The SC does not have any branch at this moment.

The SC only accepts order by tonnes from its customers. The SC also provides delivery services to its customers.

PROJECTS

No projects found in our databank 

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-31689806
Match	:	N/A
Address Provided by Client	:	15 LEBUH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE, 42000, PELABUHAN KLANG, SELANGOR.
Current Address	:	15 LEBUH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the SC staff and she provided some information regarding to the SC.

FINANCIAL COMMENTS

Profitability:

Turnover	:	Increased	[	3.02%	]
Profit/(Loss) Before Tax	:	Increased	[	50.84%	]
Return on Shareholder Funds	:	Unfavourable	[	0.81%	]
Return on Net Assets	:	Acceptable	[	13.48%	]

The higher turnover could be attributed to the favourable market condition. The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilising its assets to generate returns.

Working Capital Control:

Stock Ratio	:	Acceptable	[	57 Days	]
Debtors Ratio	:	Unfavourable	[	68 Days	]
Creditors Ratio	:	Favourable	[	4 Days	]

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity:

Liquid Ratio	:	Unfavourable	[	0.80 Times	]
Current Ratio	:	Unfavourable	[	1.27 Times	]

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover	:	Unfavourable	[	1.57 Times	]
Gearing Ratio	:	Favourable	[	0.41 Times	]

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment:

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC 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 SC : POOR

ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2007	2008	2009	2010*	2011**
Population ( Million)	27.17	27.73	28.31	28.88	29.13
Gross Domestic Products ( % )	6.3	4.6	<0.5>	6.9	5.8
Domestic Demand ( % )	9.0	6.9	2.9	4.6	4.8
Private Expenditure ( % )	8.6	7.1	<2.7>	8.1	7.0
Consumption ( % )	9.0	8.4	0.7	6.7	6.3
Investment ( % )	7.1	1.5	<17.2>	15.2	10.2
Public Expenditure ( % )	10.1	6.5	5.2	3.8	2.8
Consumption ( % )	10.8	11.6	3.1	0.2	4.6
Investment ( % )	9.3	0.7	8.0	8.3	0.6
Balance of Trade ( MYR Million )	100,340	129,563	89,650	118,356	116,058
Government Finance ( MYR Million )	<19,948>	<34,462>	<28,450>	<40,482>	-
Government Finance to GDP / Fiscal Deficit ( % )	<3.2>	<4.8>	<4.8>	<5.6>	<5.4>
Inflation ( % Change in Composite CPI)	2.0	<3.3>	<5.2>	5.1	-
Unemployment Rate	3.2	3.7	4.5	3.9	-
Net International Reserves ( MYR Billion )	336	388	331	394	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.04	1.91	2.87	2.20	-
Average 3 Months of Non-performing Loans ( % )	13.30	13.24	11.08	15.30	-
Average Base Lending Rate ( % )	6.72	6.72	5.53	5.70	-
Business Loans Disbursed( % )	9.1	11.6	10.5	14.7	-
Foreign Investment ( MYR Million )	33,426.0	23,261.4	22,156.8	22,517.9	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	43,337	41,599	41,578	-	-
Registration of New Companies ( % )	13.2	<4.0>	<0.1>	-	-
Liquidation of Companies ( No. )	22,629	27,992	39,075	-	-
Liquidation of Companies ( % )	161.5	23.7	39.6	-	-
Registration of New Business ( No. )	227,410	269,866	312,581	-	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	20,431	18,885	19,345	-	-
Business Dissolved ( % )	<61.4>	<7.6>	2.4	-	-
Sales of New Passenger Cars (' 000 Unit )	442.9	497.5	319.4	369.7	-
Cellular Phone Subscribers ( Million )	23.3	25.1	30.1	32.8	-
Tourist Arrival ( Million Persons )	20.9	21.5	23.6	24.0	25.0
Hotel Occupancy Rate ( % )	70	68	58	63	-
Credit Cards Spending ( % )	20.1	17.1	12.8	15.1	-
Bad Cheque Offenders (No.)	30,004	34,834	-	-	-
Individual Bankruptcy ( No.)	13,238	13,907	-	-	-
Individual Bankruptcy ( % )	<2.6>	5.1	-	-	-

INDUSTRIES ( % of Growth ):	2007	2008	2009	2010*	2011**
Agriculture	3.1	3.6	0.4	3.4	4.5
Palm Oil	<0.6>	7.0	<1.1>	1.3	-
Rubber	1.0	<1.1>	<19.8>	9.9	-
Forestry & Logging	2.8	<1.5>	<5.9>	<1.3>	-
Fishing	5.2	4.0	5.5	4.1	-
Other Agriculture	7.0	5.9	9.0	6.6	-
Industry Non-Performing Loans ( MYR Million )	487.3	393.0	413.7	508.4	-
% of Industry Non-Performing Loans	1.1	<2.0>	1.3	2.1	-
Mining	3.3	<0.8>	<3.8>	1.0	2.9
Oil & Gas	2.2	12.7	2.1	4.9	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	42.2	36.0	44.2	49.7	-
% of Industry Non-performing Loans	0.1	0.1	0.1	0.1	-
Manufacturing #	3.1	1.3	<9.4>	10.8	6.7
Exported-oriented Industries	<1.9>	2.7	<19.0>	12.1	-
Electrical & Electronics	3.0	2.4	<30.3>	27.4	-
Rubber Products	8.0	4.2	<10.1>	25.3	-
Wood Products	3.3	<6.0>	<24.1>	19.7	-
Textiles & Apparel	<10.1>	1.9	<19.5>	<1.3>	-
Domestic-oriented Industries	5.3	9.9	<9.8>	16.3	-
Food, Beverages & Tobacco	5.6	9.5	0.2	3.0	-
Chemical & Chemical Products	9.2	1.4	<7.7>	20.4	-
Plastic Products	<3.6>	6.5	<9.1>	2.4	-
Iron & Steel	17.5	16.8	<32.7>	30.0	-
Fabricated Metal Products	26.2	14.7	<2.5>	14.9	-
Non-metallic Mineral	6.6	8.3	<15.5>	20.2	-
Transport Equipment	<19.0>	27.1	<13.5>	36.5	-
Paper & Paper Products	14.9	8.6	<5.0>	20.5	-
Crude Oil Refineries	8.6	7.8	0.2	<11.4>	-
Industry Non-Performing Loans ( MYR Million )	6,366.2	5,729.4	6,007.3	6,217.5	-
% of Industry Non-Performing Loans	14.1	16.8	18.3	23.8	-
Construction	4.6	2.1	5.8	4.9	4.4
Industry Non-Performing Loans ( MYR Million )	5,116.7	4,149.8	3,241.8	4,038.5	-
% of Industry Non-Performing Loans	11.3	12.2	9.9	10.7	-
Services	9.7	7.3	2.6	6.5	5.3
Electric, Gas & Water	4.6	5.0	0.4	8.5	5.6
Transport, Storage & Communication	7.60	7.80	1.60	7.15	7.55
Wholesale, Retail, Hotel & Restaurant	11.6	10.0	2.8	4.7	5.2
Finance, Insurance & Real Estate	10.7	9.2	3.8	6.0	5.2
Government Services	4.6	8.6	2.0	6.7	1.9
Other Services	5.0	5.9	4.4	4.2	5.4
Industry Non-Performing Loans ( MYR Million )	10,207.8	8,281.4	6,631.3	7,384.6	-
% of Industry Non-Performing Loans	22.6	24.3	20.2	25.7	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index  (Source : Department of Statistics / Economic Report / Bank Negara Report)

INDUSTRY COMMENTS

MSIC CODE
51222 : Wholesale of fish and other seafood
INDUSTRY :	AGRICULTURE
Global infation is expected to decelerate further in 2009 due to sluggish real economic activity and the sharp declines in commodity prices.
The agriculture sector is expected to register a decline of 2.0%, due mainly to lower production of both palm oil and rubber as the expected lower prices of both commodities will reduce the incentive for marginal producers to maintain the output growth trend seen in recent years. However, this decline will be partially mitigated by positive growth in the food crops sub-sector, particularly livestock, fsheries and vegetables.
With commodity prices having dropped rapidly in the final quarter of 2008, the situation is now reversed. The world price for palm oil has fallen from more than US$1,200 per tonne a year ago to little over US$500 a tonne at the beginning of March 2009. Rubber prices have shown a similar trend, falling from around US$0.270/kg in March 2008 to US$0.135/kg a year later. This will see agricultural export earnings fall sharply. Production of both rubber and palm oil is also likely to fall as the government implements policies to attempt to shore up prices and producers bring forward work on replanting and rejuvenating their estates.
The sharp increase in world cereal production (comprising wheat, rice and coarse grains) in 2008 will facilitate a rebalancing of the global cereal supply and demand in 2009. Data from the February 2009 edition of the Food and Agriculture Organization of the United Nations' (FAO) Crop Prospects and Food Situation indicates that the ratio of cereal production relative to utilization has increased from 0.97 in 2006/07, to 1 in 2007/08, and to 1.03 in 2008/09. This development has exerted downward pressure on international cereal prices.
The recession has also impacted the rice market, with the government struggling to deal with a surge in demand for subsidised low-cost rice. The government has been providing millers with subsidies to produce low-grade 15% broken Super Tempatan (ST15) rice. The cheap rice has, however, proved increasingly popular with regular consumers as the recession has hit pockets. Prices for chicken and pork rose sharply through the first half of the year and at the time of writing were back up around the level seen at the height of the 'food crisis' of 2008.
OVERALL INDUSTRY OUTLOOK : Mature

COMMENTS & RECOMMENDATION

Formed in 1975 as a private limited company, the SC is principally engaged in the trading of seafood. With experiences for about 36 years in the industry, the SC's operation has been running relatively stable since it has built up a relatively sound and stable clientele base which has contributed to its business growth. With RM2.04 million in issued and paid up capital, the SC has the potential of capturing a higher market shares as it is competing aggressively in the market.

Investigation revealed that the SC mainly supplies to the local market. This narrow market segment limits its business expansion opportunities and lowers the growth prospects. Moreover, any adverse changes to the local economy might have a negative impact on the SC's business performance. With its long presence in the market has enabled the SC to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. Currently, the SC has a total work force of 21 employees in its operation. Overall, the management capability of the SC is average.

For the financial year ended 2010, its turnover continued on an upward momentum, reaching RM27.57 million. Correspondingly, its pre-tax profit rose to RM218,910. This was achieved on the back of stronger performance of higher turnover. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. Fortunately, being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. With the comfortable networth standing at RM4.30 million, the SC is able to sustain its business performance in the near terms.

Investigation revealed that the SC imports its products from both local and overseas market. Thus it is affected by foreign currency fluctuation. However its long presence in the market should have enabled the SC to build up a long term relationship with its suppliers. As such, the SC has minimised its risk for any shortage and disruptions in the supply of raw materials.

Overall, we regard the SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts. Based on our databank, the SC is clear of any litigation action

The argiculture industry is reaching its maturity stage and a marginal growth is expected. As the seafood are major sources for some food industry and the rising population will further increase the demand for food products. Thus, these factors provided the SC with the necessary foundation to maintain its business. With its vast experience in the business, the SC has the potential of capturing a higher market share in line with the growth in the industry.

In view of the above, we recommend credit be granted to the SC with close monitoring.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
ASIA MARINE PRODUCTS SDN BHD
For The Year Ended 31-December-2009
	2009	2008
	MYR	MYR
TURNOVER	27,573,706	26,765,243
	==========	==========
PROFIT/(LOSS) FROM OPERATIONS	218,910	145,126
	------------	------------
PROFIT/(LOSS) BEFORE TAXATION	218,910	145,126
Taxation	<183,826>	<47,666>
PROFIT/(LOSS) AFTER TAXATION	------------ 35,084	------------ 97,460
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	------------ 35,084	------------ 97,460
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS  RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD	------------ 35,084	------------ 97,460
As previous reported	2,226,307	2,128,847
As restated	------------ 2,226,307	------------ 2,128,847
	------------	------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,261,391	2,226,307
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD	------------ 2,261,391 ==========	------------ 2,226,307 ==========
RETAINED BY: The Company	2,261,391	2,226,307
	------------ 2,261,391 ==========	------------ 2,226,307 ==========
INTEREST EXPENSE (as per notes to PL)
Other interest expenses	381,721	502,240
	------------ 381,721 ==========	------------ 502,240 ==========

BALANCE SHEET

ASIA MARINE PRODUCTS SDN BHD
As At 31-December-2009
		2009	2008
		MYR	MYR
ASSET EMPLOYED:
FIXED ASSETS		1,098,105	995,704
LONG TERM INVESTMENTS/OTHER ASSETS
	Investments	882,947	882,947
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS		------------ 882,947	------------ 882,947
TOTAL LONG TERM ASSETS		------------ 1,981,052	------------ 1,878,651
CURRENT ASSETS
	Stocks	4,290,704	4,035,151
	Trade debtors	5,170,966	5,688,875
	Other debtors, deposits & prepayments	149,175	110,939
	Short term deposits	1,065,306	1,039,528
	Cash & bank balances	814,064	216,643
	Advance tax prepaid	-	477,273
TOTAL CURRENT ASSETS		------------ 11,490,215	------------ 11,568,409
CURRENT LIABILITIES
	Trade creditors	274,733	1,044,780
	Other creditors & accruals	32,016	27,769
	Hire purchase & lease creditors	66,844	38,836
	Bank overdraft	654,884	684,914
	Short term borrowings/Term loans	897,471	-
	Bill & acceptances payable	6,658,000	6,918,000
	Amounts owing to associated companies	424,750	386,750
	Provision for taxation	7,968	-
TOTAL CURRENT LIABILITIES		------------ 9,016,666	------------ 9,101,049
NET CURRENT ASSETS/(LIABILITIES)		------------ 2,473,549	------------ 2,467,360
TOTAL NET ASSETS		------------ 4,454,601 ==========	------------ 4,346,011 ==========
FINANCED BY:
SHARE CAPITAL
	Ordinary share capital	2,045,975	2,045,975
TOTAL SHARE CAPITAL		------------ 2,045,975	------------ 2,045,975
RESERVES
	Retain profit/(Accumulated loss) carried forward	2,261,391	2,226,307
TOTAL RESERVES		------------ 2,261,391	------------ 2,226,307
SHAREHOLDERS' FUNDS/EQUITY		------------ 4,307,366	------------ 4,272,282
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
	Hire purchase creditors	147,235	73,729
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS		------------ 147,235	------------ 73,729
		------------	------------
		4,454,601	4,346,011
		==========	==========

FINANCIAL RATIOS

ASIA MARINE PRODUCTS SDN BHD
As At 31-December-2009
		2009	2008
		MYR	MYR
TYPES OF FUNDS
	Cash	1,879,370	1,256,171
	Net Liquid Funds	327,015	571,257
	Net Liquid Assets	<1,817,155>	<1,567,791>
	Net Current Assets/(Liabilities)	2,473,549	2,467,360
	Net Tangible Assets	4,454,601	4,346,011
	Net Monetary Assets	<1,964,390>	<1,641,520>
BALANCE SHEET ITEMS
	Total Borrowings	1,766,434	797,479
	Total Liabilities	9,163,901	9,174,778
	Total Assets	13,471,267	13,447,060
	Net Assets	4,454,601	4,346,011
	Net Assets Backing	4,307,366	4,272,282
	Shareholders" Funds	4,307,366	4,272,282
	Total Share Capital	2,045,975	2,045,975
	Total Reserves	2,261,391	2,226,307
LIQUIDITY(Times)
	Cash Ratio	0.21	0.14
	Liquid Ratio	0.80	0.83
	Current Ratio	1.27	1.27
WORKING CAPITAL CONTROL (Days)
	Stock Ratio	57	55
	Debtors Ratio	68	78
	Creditors Ratio	4	14
SOLVENCY RATIOS (Times)
	Gearing Ratio	0.41	0.19
	Liabilities Ratio	2.13	2.15
	Times Interest Earned Ratio	1.57	1.29
PERFORMANCE RATIO (%)
	Operating Profit Margin	0.79	0.54
	Net Profit Margin	0.13	0.36
	Return On Net Assets	13.48	14.90
	Return On Capital Employed	9.89	12.77
	Return On Shareholders' Funds/Equity	0.81	2.28
	Dividend Pay Out Ratio (Times)	0	0
NOTES TO ACCOUNTS
	Contingent Liabilities	0.00	0.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.23
UK Pound	1	Rs.72.09
Euro	1	Rs.62.99

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.