MIRA INFORM REPORT

 

Report Date :

31.03.2012

 

IDENTIFICATION DETAILS

 

Name :

TG ORIENTAL STEEL SDN. BHD.

 

 

Formerly Known As :

TG ENGINEERING SDN. BHD.

 

 

Registered Office :

C/o MUSHTARI MANAGEMENT SERVICES SDN. BHD.

45, Jalan Perak Georgetown Pulau Pinang 10150

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

23.10.1978

 

 

Com. Reg. No.:

42683-P

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Manufacturer of cold finished & polished stainless / steel bars.

 

 

No. of Employees :

30 employees (Subject); 400 employees (Group)

 

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 160,000

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              TG ORIENTAL STEEL SDN. BHD.

Business address :        No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

Town :                           Prai

Province :                      Pulau Pinang

Zip/postal code :            13600

Country :                       Malaysia

Tel :                              +60 4 5021155

Fax :                             +60 4 5021100

Email :                          oriental@tattgiap.com.my

Website :                      www.tgoriental.com

 

Registered address :      C/o MUSHTARI MANAGEMENT SERVICES SDN. BHD.

45, Jalan Perak

Town :                           Georgetown

Province :                      Pulau Pinang

Zip/postal code :            10150

Country :                       Malaysia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        23/10/1978

Legal form :                               Private Company Limited By Shares

Chief executive :                        Siah Kok Poay

Issued & paid up capital :           MYR 1,500,000

Sales turnover :              MYR 14,898,345 (Non-consolidated 12 months, 31/12/2010)

Net income :                              MYR 86,845 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets :                     MYR 16,293,212 (Non-consolidated 12 months, 31/12/2010)

Line of business :                       Manufacturer of cold finished & polished stainless / steel bars.

Staff employed :                         30 employees (Subject); 400 employees (Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is fair

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental records found

Payment history :                      No payment delays noted

Credit amount suggestion :         USD 160,000

Credit amount asked :                Not described.

Comments :                              Larger credit can still be considered. The Subject is well positioned in the market

and the financial stability of the group is positive.

 

STATUTORY DETAILS

 

Registry Data

Registration date :          23/10/1978

Legal form :                   Private Company Limited By Shares

Registration no              42683-P

Registered authority :     Companies Commission of Malaysia

Registry status :            Live/Active

Previous name :             The Subject was established under the name TG ENGINEERING SDN. BHD. and

changed to the current style on 21-02-2007.

Change of legal form :     None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :              Siah Kok Poay

Designation :     Managing Director

 

Name :              Siah Lee Beng

Designation :     Director

 

Name                 Tan Lu Eng

Designation :     Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Siah Lee Beng

Designation :                 Director

Identification no :            500102-08-5377

Appointment date :         09/02/12

Address :                      30, Medan Pantai Jerjak

Sungai Nibong

11900 Bayan Lepas

Pulau Pinang

Malaysia

Biography :                    Mr. Siah Lee Beng serves as Executive Director of Tatt Giap Group

Bhd. He was appointed on December 1, 2008. He is the co-founder

and Managing Director of Tatt Giap Hardware Sdn Bhd (TGH). He

started his career as Production Assistant at Tong Giap Foundry in

1968 after he completed his secondary education in 1967. He has 20

years of experience in metal casting industry and 20 years of

experience in steel and stainless steel business. He is involved in

various organizations, such as being the President of Lion Club of

Tanjung, Penang and Director of the Jelutong Chinese Primary

School. He is also the President of the Jelutong Chinese Primary

School ex-pupil Association.

 

Name :                          Tan Cheng Meng

Designation :                 Director

Identification no :            521016-07-5167

Appointment date :         29/05/07

Address :                      50 Lebuh Binjai Dua

Taman Sri Rambai

14000 Bukit Mertajam

Pulau Pinang

Malaysia

 

Name :                          Siah Kok Poay

Designation :                 Director

Identification no :            541010-07-5615

Appointment date :         06/01/99

Address :                      6 Lorong Tambun Indah 5

Taman Tambun Indah

14100 Simpang Ampat

Pulau Pinang

Malaysia

Biography :                    Dato' Siah Kok Poay serves as Chairman of the Board and President

of Tatt Giap Group Bhd. He was appointed to the Board on

December 1, 2008. He obtained his Bachelor of Science in

Mathematics and Computer Science in 1976 and a diploma in

Business Administration in 1977 from Nanyang University, Singapore.

He co-founded Tatt Giap Hardware Sdn Bhd (TGH) in 1978. He is

also active in various trade organizations, such as the Malaysian

Hardware, Machinery and Building Materials Dealers Association,

Penang Hardware and Machinery Merchants Association and the

Penang Chinese Chamber of Commerce. He has served in Masinox

Industry Sdn Bhd and Pin Wooi Hardware Sdn Bhd.

 

Name :                          Tan Lu Eng

Designation :                 Director

Identification no :            641004-07-5764

Appointment date :         12/05/92

Address :                      22,Lorong Cengkeh 5

Taman Cengkeh

13400 Butterworth

Pulau Pinang

Malaysia

Biography :                    Ms. Tan Lu Eng serves as Executive Director of Tatt Giap Group

Bhd. She was appointed on December 1, 2008. She is also the

Managing Director of Tatt Giap Steel Centre Sdn Bhd (TGSC). She

started her career in 1987 as Accounts Assistant of Tatt Giap

Hardware Sdn Bhd (TGH) after obtaining her Sijil Tinggi Pelajaran

Malaysia in 1984. She became a Director of TGH in 1996,

responsible for the sales and marketing, human resources and

administration activities. She has 20 years of experience in the steel

and stainless steel business.

 

Name :                          Siah Chin Joo

Designation :                 Director

Identification no :            760106-07-5521

Appointment date :         06/06/07

Address :                      30 Medan Pantai Jerjak

11900 Bayan Lepas

Pulau Pinang

Malaysia

 

Name :                          Siah Chin Hoo

Designation :                 Director

Identification no :            840614-07-5229

Appointment date :         06/03/08

Address :                      No. 6, Lorong Tambun Indah 5

Taman Tambun Indah

14100 Simpang Ampat

Pulau Pinang

Malaysia

 

Name :                          Kong Hwan Kwan @ Kong Fam Kwan

Designation :                 Company Secretary

Identification no :            530922-07-5577

Appointment date :         19/06/89

Address :                      C/o MUSHTARI MANAGEMENT SERVICES SDN. BHD.

45, Jalan Perak

Georgetown 10150

Pulau Pinang

Malaysia

 

Name :                          Yeoh Wee Lee

Designation :                 Company Secretary

Identification no :            670805-07-5097

Appointment date :         06/06/07

Address :                      B2-16-7, Bayswater Condominium

Jalan Tengku Kudin 2

11700 Gelugor

Pulau Pinang

Malaysia

Staff employed : 30 (Subject); 400 (Group)

 


Key Advisors

Auditors :          KPMG

KPMG Tower, 8 First Avenue

Bandar Utama , 47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        MYR 5,000,000

No of shares :                5,000,000 Ordinary Shares

Share par value :            MYR 1

Issued capital :              MYR 1,500,000

Paid up capital :             MYR 1,500,000

Changed in capital :       The Subject increased its share capital from MYR 1,000,000 to MYR 5,000,000

on 26-12-2007.

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

 

Shareholder name :        TATT GIAP GROUP BERHAD

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

13600 Prai, Penang

Malaysia

No. of shares :               1,500,000 Ordinary Shares

% of shares :                 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          TATT GIAP GROUP BERHAD

Affiliation type :              Parent Company

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

13600 Prai, Penang

Malaysia

Comments :                  Tatt Giap Group Berhad, an investment holding company, engages in the

manufacture and trade of cold drawn and polished stainless steel bars primarily in

Malaysia. It also involves in the provision of stainless steel tubes and pipes, as

well as other ferrous and non ferrous metal products; perforated metal products;

Superinox stainless steel industrial welded tubes and pipes; and phosphate and

anti finger treatment electro-galvanized steel coils. In addition, the company

engages in the import, export, wholesale, and retail of stainless steel products;

and invests in properties. It supplies a range of products to various industrial and

building sectors. The company exports its products to ASEAN countries, India,

Australia, the United States, and the Middle East. Tatt Giap Group Berhad was

founded in 1978 and is headquartered in Prai, Malaysia.

 

Name :                          TATT GIAP HARDWARE SDN. BHD.

Affiliation type :              Sister Company

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

Prai 13600

Pulau Pinang

Malaysia

Comments :                  Importers, wholesalers and retailer of stainless steel products.

 

Name :                          TATT GIAP STEEL CENTRE SDN. BHD.

Affiliation type :              Sister Company

Address :                      Plot 33, Jalan Perusahaan Bukit Minyak

Bukit Minyak Industrial Park

14000, Bukit Mertajam

Penang

Malaysia

Comments :                  Manufacturing and trading of stainless steel tubes and pipes and other ferrous

and non ferrous metal products.

 

Name :                          SUPERINOX PIPE INDUSTRY SDN. BHD.

Affiliation type :              Sister Company

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

13600 Prai

Penang

Malaysia

Comments :                  Manufacturing and distribution of Superinox stainless steel pipes and tubes.

 

Name :                          NIPPON E-GALV STEEL SDN. BHD.

Affiliation type :              Sister Company

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

13600 Prai, Penang

Malaysia

Comments :                  Manufacturing of electro-galvanised steel.

 

Name :                          TGMI INDUSTRIES SDN. BHD.

Affiliation type :              Sister Company

Address :                      No. 6, Jalan Perusahaan 5

Beranang Industrial Park

43700 Beranang

Selangor Darul Ehsan

Malaysia

Comments :                  Manufacture of perforated metals in all steels, aluminium coil and sheet.

 

Name :                          SUPERINOX INTERNATIONAL SDN. BHD.

Affiliation type :              Sister Company

Address :                      Plot 33 Jalan Perusahaan Bukit Minyak

Bukit Minyak Industrial Park

14000 Bukit Mertajam, Penang

Malaysia

Comments :                  Exporter of Superinox stainless steel tubes and pipes.

 

Name :                          TATT GIAP PERFORATED METALS SDN. BHD.

Affiliation type :              Sister Company

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

13600 Prai, Penang

Malaysia

Comments :                  Trading of metal products.

 

Name :                          FORMOSA INDUSTRIES SDN. BHD.

Affiliation type :              Sister Company

Address :                      No. 1617, Lorong Perusahaan Maju 6

Prai Industrial Estate IV

13600 Prai, Penang

Malaysia

Comments :                  Investment in properties.

Related companies and corporate

affiliations comments:     Other companies of the Tat Giap Group should be considered affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              CIMB Bank Berhad

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              Alliance Bank Malaysia Berhad

Address :                      Malaysia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

 

Mortgages :                   Total of Charge: 1,391,000.00

Date of Creation: 12-04-2004

Name of Chargee: ALLIANCE ISLAMIC BANK BERHAD

Charge Status: UNSATISFIED

Total of Charge: 1,391,000.00

Date of Creation: 12-04-2004

Name of Chargee: ALLIANCE ISLAMIC BANK BERHAD

Charge Status: UNSATISFIED

 

Total of Charge: 3,800,000.00

Date of Creation: 15-05-2007

Name of Chargee: ALLIANCE BANK MALAYSIA BERHAD

Charge Status: UNSATISFIED

 

Total of Charge: 2,400,000.00

Date of Creation: 15-05-2007

Name of Chargee: ALLIANCE ISLAMIC BANK BERHAD

Charge Status: UNSATISFIED

 

Total of Charge: OPEN CHARGE

Date of Creation: 26-02-2008

Name of Chargee: CIMB BANK BERHAD

Charge Status: UNSATISFIED

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

FINANCIAL DATA

 

Description

Source of financial statement :    Commercial Registry Filings

Financial statement date :          31/12/10

Type of accounts :                     Full audited

Currency :                                 Malaysia, Ringgit (MYR)

Exchange rate :                         1 USD = MYR 3.07 as of 30-03-2012

 

Summarized Financial Information

 

Consolidation type :                   Non Consolidated           Non Consolidated           Group Consolidated

Currency :                                 Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          31/12/10                        31/12/09                       31/12/11

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income : 14,898,345                    10,856,613                    312,140,000

Gross profit :                             777,159                         721,180             28,619,000

Operating profit :                        817,938                         382,590                         7,840,000

Profit before tax :                       217,205             -201,721                       2,618,000

Net income :                              86,845                          -270,344                       1,690,000

Non current assets :                   6,433,912                      6,914,119                      137,831,000

Current assets :                         9,859,300                      10,260,114                    214,512,000

Inventories :                               5,535,997                      5,647,658                      128,698,000

Total assets :                            16,293,212                    17,174,233                    352,343,000

Current liabilities :                      14,759,688                    15,037,114                    193,387,000

Non current liabilities :                456,278                         1,146,718                      35,954,000

Total liabilities :                          15,215,966                    16,183,832                    229,341,000

Share equity :                            1,077,246                      990,401                         123,002,000

Retained earning :                      -422,754                       -509,599

Comments :                  The non-consolidated financial information above relates to the Subject only.

The group’s consolidated financial information above relates to the Subject’s

Parent Company Tatt Giap Group Berhad and all its subsidiaries which include

the Subject.

 

OPERATION DETAILS

 

Main activities :              The Subject is engaged as manufacturer of cold finished & polished

stainless / steel bars.

The Subject is part of Tatt Giap Group Berhad (TGG), which is a Malaysia

based investment holding company. The Company, through its

subsidiaries, is engaged in manufacturing of stainless steel pipes and

tubes, manufacturing of cold drawn and polished carbon steel/stainless

steel bars, manufacturing of electro galvanized steel coils and steel

distribution. Its products have downstream applications in the industries,

such as automotive, metal stamping and fabrication, oil and gas, and

building, construction and infrastructure. The Company’s direct

subsidiaries are Tatt Giap Hardware Sdn Bhd, which is an importer,

wholesaler and retailer of stainless steel and steel products, and TG

Oriental Steel Sdn Bhd, which is engaged in manufacturing of cold drawn

and polished carbon steel/stainless steel bars. In addition, the Company

also has indirect subsidiaries, including Formosa Industries Sdn Bhd,

Nippon EGalv Steel Sdn Bhd, Superinox Pipe Industry Sdn Bhd and

Superinox International Sdn Bhd, among others.

 

Product & services :       Cold finished and polished stainless steel bars

 

Purchases

Local :              Yes

International :     Asian countries

 

Sales

Local :              Yes

International :     Southeast Asia, India, Australia, United States and Middle East

 

Key events :      Tatt Giap buys land for RM18.8m

September 9, 2011

Tatt Giap Group Bhd, through its wholly-owned subsidiary, Superinox Pipe

Industry Sdn Bhd, has entered into a sale and purchase agreement for two

pieces of land from GUH Electrical Appliances Sdn Bhd for a cash

consideration of RM18.8 million.

In a filing to Bursa Malaysia today, Tatt Giap said the agreement is to

purchase the land measuring 2.017 hectares and 3.092 hectares

respectively, together with buildings erected there on.

"The proposed acquisition is to cater for future expansion of the stainless

steel industrial pipes business and venture into new activity, namely, the

manufacture of stainless steel fittings

"The proposed acquisition is not expected to have a significant effect on

the group's earnings for the financial year ending December 31, 2011,

other than the interest to be charged on the bank borrowing of

approximately RM108,000," the company said.

TATT GIAP GROUP SIGNS UNDERWRITING AGREEMENT

Penang, 13 May 2010 - Marking a milestone towards its listing on the Main

Market of Bursa Malaysia, Tatt Giap Group Berhad ("Tatt Giap" or "the

Group") and its major shareholders, namely Giapxin Sdn Bhd ("GSB"),

Perbadanan Nasional Berhad ("PNS"), today signed an underwriting

agreement with Alliance Investment Bank Berhad ("Alliance").

Dato' Steven Siah Kok Poay, Chairman and President of Tatt Giap said,

"The listing of Tatt Giap is the way to go for the expansion of the Group.

With our established track record, growing geographical presence and

continued product and service enhancements, the listing should provide us

with the necessary resources to strengthen our position in the growing

steel processing industry."

According to a market research report by Frost & Sullivan, the Malaysian

steel processing industry is expected to grow from RM3.1 billion in 2010 to

RM4.1 billion in 2014, representing a compounded annual growth rate of

7.3%.

The Group aims to raise RM8.45 million through the public issue of 14.56

million new ordinary shares comprising 6,000,000 new shares to the

Malaysia public, 2,000,000 new shares to eligible directors, employees and

individuals who have contributed to the success of the Group, and

6,560,000 shares to identified investors. In addition, 14,200,000 vendor

shares will be offered collectively by GSB and PNS to bumiputra and

identified investors. The shares will be priced at RM0.58 each.

Tatt Giap's listing will be managed by Alliance as the adviser, sole

underwriter and placement agent. Net proceeds from the public issue

amounting to RM8.45 million will be used to repay bank borrowings and

defray listing expenses.

With some 20 years of track record for consistently delivering high-quality

products and services, Tatt Giap Group is today, primarily engaged in the

manufacturing and trading of stainless and steel related products. In

addition to its steel processing activities, the Group distributes steel and

provides comprehensive value-added, customised solutions for its

customers.Tatt Giap's base of customers spans the automotive,

construction, electrical & electronics, manufacturing and retail industries.

Commenting on the Company's prospects, Dato' Steven Siah said, "Over

the years, we have demonstrated considerable success in transforming

and expanding our business activities and presence. Going forward, we

seek to further expand our market share both locally and globally, by

enhancing and expanding our products and service offerings, particularly in

the downstream steel product area."

For the financial year ended 31 December 2009, Tatt Giap achieved profit

after tax of RM6.9 million on revenue of RM225.4 million.

The listing of Tatt Giap shares is expected to take place at the beginning of

July 2010.

PROPOSED DISPOSAL OF SHARES IN NIPPON EGALV STEEL SDN

BHD (“NIPPON EGALV”)

7 April 2011

Tatt Giap Group Berhad (“TGG” or “Company”)

The Board of Directors of TGG is pleased to announce that the Company

has on 7 April 2011 executed a Letter of Intent (“Letter”) with Nippon Steel

Corporation (“NSC”) to confirm the potential sale by its wholly-owned

sub-subsidiary, Tatt Giap Steel Centre Sdn Bhd (“TGSC”) and acquisition

by NSC of 9,022,500 ordinary shares of RM1.00 each representing 40.1%

of the entire issued share capital of Nippon EGalv (“Sale Shares”) for an

aggregate purchase price of RM19,172,812.50 (“the Proposed Disposal”)

9 December 2009

JOINT VENTURE AGREEMENT BETWEEN NIPPON STEEL

CORPORATION, HANWA CO.LTD AND NIPPON EGALV STEEL SDN.BHD.

NIPPON STEEL CORPORATION, Japan's largest and the world's

second-largest steel maker, HANWA CO., LTD., one of the biggest trading

company in Japan and Nippon EGalv Steel Sdn. Bhd. (Formerly known as

E-Galv Steel Industry Sdn. Bhd.), a member of TATT GIAP Group as one

of the pioneer manufacturer to produce Electro Galvanized Steel Coils in

Malaysia, signed a Joint Venture Agreement (JVA) on 9th December 2009

in Tokyo, Japan.

With the signing of the Join Venture Agreement, NIPPON STEEL

CORPORATION will have a stake of 10% and HANWA CO., LTD. will have

a stake of 15% in Nippon EGalv Steel Sdn. Bhd.

The JV will enable Nippon EGalv Steel to expand and create a substantial

knowledge and technical base, while maintaining the long term relationship

between TATT GIAP Group, Nippon Steel Corporation and Hanwa Co. Ltd.

which has been enduring for more than 15 years.

Malaysia is one of the biggest areas in great demand for

Electro-Galvanized steel where a number of Japanese

consumer-electronics manufacturers are moving in and expanding their

production. By investing in Nippon EGalv Steel, Nippon Steel and HANWA

foresee that they will be able to participate with Nippon EGalv Steel in

constructing an Electro-Galvanized steel sheet supply system in order to

meet the demand from Local and Japanese consumer-electronics

manufacturers through provision of technical assistance and stable supply

of raw material to Nippon EGalv Steel. On the other hand, the joint venture

will also support Nippon Steel Corporation in maintaining its market shares

in Malaysia.

We believe that this strong partnership will generate a milestone for Tatt

Giap Group and well placed to make the most of the tremendous growth

potential and will add momentum to seeing this company grow and

prosper. Nevertheless, it will also enhance Malaysia's status in the steel

industry while strengthening our national economy. Nippon EGalv Steel in

our part, we remain committed to bring high standards of corporate

governance, environment protection, and a strong culture of striving for

excellence.

"This joint venture will be a strong platform to pursue growth opportunities

and we look forward to the future success of this partnership".

 

Property & Assets

Premises : The Subject operates from group headquarters located at the verified

heading address consisting of production facilities, administrative office and

warehouse.

Branches : None reported.

Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR

4,372,671.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Central Bank of Malaysia

Reserve of foreign exchange & gold :       US$ 134.8 billion as of 15 March 2012

Gross domestic product - GDP :             US$ 247.781 billion

GPP (Purchasing power parity) :             US$ 442.01 billion of International dollar

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

 

GDP - composition by sector :                agriculture: 10.2%

industry: 42.1%

services: 47.8%

 

Inflation :                                               2008: 5.4%

2009: 0.6%

2010: 1.7%

2011: 2.8%

 

Unemployment rate :                              2008: 3.3%

2009: 3.6%

2010: 3.3%

2011: 3.2%

Public debt

(General Government gross debt as

a % GDP):                                            2008: 42.8%

2009: 55.4%

2010: 54.2%

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

Moody's rating: A3

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US $420 billion

 

Largest companies in the country :          CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public

Bank Berhad (Banking), Maybank (Banking), Tenaga Nasional Berhad (Utilities), Petronas Chemicals, Maxis Berhad

 

Trade & Competitiveness Overview

Total exports :               US$210.3 billion

Exports commodities :   electronic equipment, petroleum and liquefied natural gas, wood and wood

products, palm oil, rubber, textiles, chemicals

Total imports :               US$156.2 billion

Imports commodities :    electronics, machinery, petroleum products, plastics, vehicles, iron and

steel products, chemicals

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

Kong 4.6%

Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%,

Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

FDI Inflows :                              2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

FDI Outflows :                            2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

Best countries for doing business : 21 out of 183 countries

Global competitiveness ranking : 21 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

Total population :           28.23 million

Total area :                    329,847 km2

Capital :                        Kuala Lumpur

Currency :                     Malaysia Ringgits (MYR)

Internet users as % of total

population:                    55.3%

 

PAYMENT HISTORY

 

Purchase Term

Local : Prepayment, Bank transfer, Document against payment, Credit 30-90 days

International : L/C, Document against payment, Telegraphic transfer, Credit 30-90 days

 

Sales Term

Local : Prepayment, Bank transfer, Document against payment, Credit 30-90 days

International : L/C, Document against payment, Telegraphic transfer, Credit 30-90 days

 

Trade Reference/ Payment

 

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.15

UK Pound

1

Rs.81.80

Euro

1

Rs.68.34

 

 

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

 

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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.