IRA INFORM REPORT

Report Date :

02.11.2012

IDENTIFICATION DETAILS

Name :	BJ CABINET ENTERPRISE SDN BHD
Registered Office :	11-2 Jalan Sp 2/4, Serdang Perdana, 1st Floor, 43300 Balakong, Selangor
Country :	Malaysia
Financials (as on) :	31.12.2010
Date of Incorporation :	25.11.1999
Com. Reg. No.:	499810-X
Legal Form :	Private Limited
Line of Business :	Manufacturing of Furniture
No. of Employees :	50

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Malaysia	A2	A2

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

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.

:

499810-X

COMPANY NAME

:

BJ CABINET ENTERPRISE SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/11/1999

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

11-2 JALAN SP 2/4, SERDANG PERDANA, 1ST FLOOR, 43300 BALAKONG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 13260, JALAN HAJI ABDUL MANAN, 42200 KAPAR, SELANGOR, MALAYSIA.

TEL.NO.

:

03-32500010

FAX.NO.

:

03-33922935

CONTACT PERSON

:

ONG HOCK HENG ( DIRECTOR )

INDUSTRY CODE

:

36101

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FURNITURES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 250,000.00 DIVIDED INTO
ORDINARY SHARES 250,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 8,244,673 [2010]

NET WORTH

:

MYR 2,632,027 [2010]

STAFF STRENGTH

:

50 [2012]

BANKER (S)

:

HONG LEONG BANK BHD STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

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

The SC is principally engaged in the (as a / as an) manufacturing of furnitures.

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

The immediate holding company of the SC is ONG KIM TAK HOLDINGS SDN BHD, a company incorporated in MALAYSIA.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
ONG KIM TAK HOLDINGS SDN BHD		639843K	250,000.00	100.00
			---------------	------
			250,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	ONG HOCK HENG
Address	:	5 JALAN EHSAN 3, TAMAN EHSAN, SUNGAI JANGGUT, KAPAR, 42200 KAPAR, SELANGOR, MALAYSIA.
New IC No	:	660717-10-6843
Date of Birth	:	17/07/1966
Nationality	:	MALAYSIAN
Date of Appointment	:	25/11/1999

DIRECTOR 2

Name Of Subject	:	MR. ONG FOK TICK
Address	:	8, JALAN SETIA NUSANTARA, BANDAR SETIA ALAM, SECTION U13/22H, 40170 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	631216-10-5057
Date of Birth	:	16/12/1963
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	02/02/2004

MANAGEMENT

1)	Name of Subject	:	ONG HOCK HENG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	T H KUAN & CO
Auditor' Address	:	26A,JLN.21/19, SEA PARK, PETALING JAYA., 46300 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. LIN KUW MING
	IC / PP No	:	A0794405
	New IC No	:	670721-10-6095
	Address	:	491, KAWASAN 1, JALAN 1, 43300 BALAKONG, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

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	:	N/A
Overseas	:	N/A

The SC refused to disclose its supplier information.

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	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES	Percentage	:	5%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	95%
Export Market	:	MIDDLE EAST, ASIA, EUROPE, UNITED STATES, AFRICA
Credit Term	:	N/A
Payment Mode	:	TELEGRAPHIC TRANSFER (TT),CHEQUES

OPERATIONS

Products manufactured

:

CROWN SERIES AUDIO VISUAL,CD RACK, COMPUTER TABLE,TV , HI FI, SPEAKER CABINET

Brand Name

:

CROWN

Competitor(s)

:

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

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA FURNITURE INDUSTRY

Ownership of premises

:

LEASED/RENTED

Factory Size

:

20,000 SQF

Production Capacity

:

5,000 MONTHLY

Total Number of Employees:
YEAR	2012
GROUP	N/A
COMPANY	50

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) manufacturing of furnitures.

The SC is principally engaged in the manufacturing and exporting the TV cabinets, computer tables, CD racks, chairs and others.

The SC focuses more on TV cabinets and computer tables.

The SC products include:

1) Crown series audio visual

2) TV cabinets

3) Computer tables

4) CD Racks

TV cabinets are divided into two types of colours namely black and brown colours. Computer table has three types of colours, black, silver and cherry.

All the SC products are available in diffrent shapes, designs, colours, sizes and the price depends on the size and design of its products.

PROJECTS

No projects found in our databank

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA)

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	603 3392 1118
Current Telephone Number	:	03-32500010
Match	:	YES
Address Provided by Client	:	LOT 13260, JALAN HAJI ABDUL MANAN, 42200 MERU KLANG, SELANGOR, DARUL
Current Address	:	LOT 13260, JALAN HAJI ABDUL MANAN, 42200 KAPAR, SELANGOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

we contacted one of the Senior staff from the SC and she provided some information on the SC.

The address provided is incorrect.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	11.37%	]
Profit/(Loss) Before Tax	:	Decreased	[	24.25%	]
Return on Shareholder Funds	:	Acceptable	[	21.53%	]
Return on Net Assets	:	Acceptable	[	21.93%	]
The higher turnover could be attributed to the favourable market condition and the SC could be gaining the market share progressively.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	43 Days	]
Debtor Ratio	:	Favourable	[	22 Days	]
Creditors Ratio	:	Favourable	[	31 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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	:	Favourable	[	1.83 Times	]
Current Ratio	:	Favourable	[	2.90 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	13.72 Times	]
Gearing Ratio	:	Favourable	[	0.03 Times	]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. 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 :
Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2008	2009	2010	2011*	2012**
Population ( Million)	27.73	28.13	28.35	28.70	29.10
Gross Domestic Products ( % )	4.6	<0.5>	7.2	5.5	5.3
Domestic Demand ( % )	6.9	2.9	6.3	4.8	7.6
Private Expenditure ( % )	7.1	<2.7>	8.1	7.0	8.7
Consumption ( % )	8.4	0.7	6.7	6.3	7.1
Investment ( % )	1.5	<17.2>	17.7	16.2	15.9
Public Expenditure ( % )	6.5	5.2	3.8	7.6	4.7
Consumption ( % )	11.6	3.1	0.2	8.9	3.0
Investment ( % )	0.7	8.0	2.8	0.6	7.0
Balance of Trade ( MYR Million )	129,563	89,650	118,356	116,058	-
Government Finance ( MYR Million )	<34,462>	<28,450>	<40,482>	<45,511>	<43,021>
Government Finance to GDP / Fiscal Deficit ( % )	<4.8>	<4.8>	<5.6>	<5.4>	<4.7>
Inflation ( % Change in Composite CPI)	<3.3>	<5.2>	5.1	3.1	-
Unemployment Rate	3.7	4.5	3.9	3.3	-
Net International Reserves ( MYR Billion )	388	331	329	415	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	1.91	2.87	2.20	3.50	-
Average 3 Months of Non-performing Loans ( % )	13.24	11.08	15.30	14.80	-
Average Base Lending Rate ( % )	6.72	5.53	6.30	6.60	-
Business Loans Disbursed( % )	11.6	10.5	14.7	15.3	-
Foreign Investment ( MYR Million )	23,261.4	22,156.8	22,517.9	23,546.1	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	41,599	41,578	44,148	-	-
Registration of New Companies ( % )	<4.0>	<0.1>	6.2	-	-
Liquidation of Companies ( No. )	27,992	39,075	25,585	-	-
Liquidation of Companies ( % )	23.7	39.6	<34.5>	-	-
Registration of New Business ( No. )	269,866	312,581	271,414	-	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	18,885	19,345	19,738	-	-
Business Dissolved ( % )	<7.6>	2.4	2.0	-	-
Sales of New Passenger Cars (' 000 Unit )	497.5	486.3	543.6	363.0	-
Cellular Phone Subscribers ( Million )	25.1	30.1	32.8	35.3	-
Tourist Arrival ( Million Persons )	21.5	23.6	24.6	25.3	-
Hotel Occupancy Rate ( % )	68.0	58.0	63.0	51.3	-
Credit Cards Spending ( % )	17.1	12.8	14.1	15.6	-
Bad Cheque Offenders (No.)	34,834	36,667	33,568	27,208	-
Individual Bankruptcy ( No.)	13,907	16,228	18,119	16,155	-
Individual Bankruptcy ( % )	5.1	16.7	11.7	<10.8>	-

INDUSTRIES ( % of Growth ):	2008	2009	2010	2011*	2012**
Agriculture	3.6	0.4	2.1	4.7	4.1
Palm Oil	7.0	<1.1>	<3.4>	7.3	-
Rubber	<1.1>	<19.8>	9.9	6.4	-
Forestry & Logging	<1.5>	<5.9>	<3.3>	<4.7>	-
Fishing	4.0	5.5	5.6	2.8	-
Other Agriculture	5.9	9.0	7.9	8.5	-
Industry Non-Performing Loans ( MYR Million )	393.0	413.7	508.4	634.1	-
% of Industry Non-Performing Loans	<2.0>	1.3	2.1	3.2	-
Mining	<0.8>	<3.8>	0.2	<2.4>	2.5
Oil & Gas	12.7	2.1	0.5	<1.7>	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	36.0	44.2	49.7	46.5	-
% of Industry Non-performing Loans	0.1	0.1	0.1	0.1	-
Manufacturing #	1.3	<9.4>	11.4	5.6	4.5
Exported-oriented Industries	2.7	<19.0>	12.1	2.8	-
Electrical & Electronics	2.4	<30.3>	28.4	<4.9>	-
Rubber Products	4.2	<10.1>	25.3	15.4	-
Wood Products	<6.0>	<24.1>	20.1	<7.3>	-
Textiles & Apparel	1.9	<19.5>	<0.4>	14.8	-
Domestic-oriented Industries	9.9	<9.8>	16.3	6.3	-
Food, Beverages & Tobacco	9.5	0.2	3.0	4.2	-
Chemical & Chemical Products	1.4	<7.7>	16.2	5.6	-
Plastic Products	6.5	<9.1>	2.4	3.8	-
Iron & Steel	16.8	<32.7>	29.3	2.4	-
Fabricated Metal Products	14.7	<2.5>	14.9	25.2	-
Non-metallic Mineral	8.3	<15.5>	20.2	16.3	-
Transport Equipment	27.1	<13.5>	36.5	<9.4>	-
Paper & Paper Products	8.6	<5.0>	18.7	15.6	-
Crude Oil Refineries	7.8	0.2	<11.4>	9.3	-
Industry Non-Performing Loans ( MYR Million )	5,729.4	6,007.3	6,217.5	6,537.2	-
% of Industry Non-Performing Loans	16.8	18.3	23.8	25.7	-
Construction	2.1	5.8	5.1	4.4	7.0
Industry Non-Performing Loans ( MYR Million )	4,149.8	3,241.8	4,038.5	3,856.9	-
% of Industry Non-Performing Loans	12.2	9.9	10.7	10.2	-
Services	7.3	2.6	6.5	6.4	6.5
Electric, Gas & Water	5.0	0.4	8.5	5.6	4.8
Transport, Storage & Communication	7.8	1.6	7.7	6.5	7.3
Wholesale, Retail, Hotel & Restaurant	10.0	2.8	4.7	5.2	6.9
Finance, Insurance & Real Estate	9.2	3.8	6.1	6.3	6.5
Government Services	8.6	2.0	6.7	7.6	5.6
Other Services	5.9	4.4	4.2	5.4	5.7
Industry Non-Performing Loans ( MYR Million )	8,281.4	6,631.3	7,384.6	6,825.2	-
% of Industry Non-Performing Loans	24.3	20.2	25.7	23.4	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index (Source : Department of Statistics / Economic Report / Bank Negara Report)

INDUSTRY ANALYSIS

MSIC CODE
36101 : Manufacture of wooden and cane furniture
INDUSTRY :	FURNITURE & FIXTURES
Malaysia accounted as 10th largest furniture exporter in the world where exports around 80% of total poroduction. Government target growth of 6.5% where it estimated to reach RM53 billion by 2020. For 2012, a boom expected with more orders coming from emerging markets, especially from nortern Africa and India.
According The Malaysian Furniture Entrepreneurs Association (MFEA), export sales of Malaysian made furniture products expected to increase between 3% and 5% to about RM8billion end of 2012 from RM7.67billion in 2011. At the first half 2012, Malaysia's total furniture export reached RM3.16 billion, or a 10.3% increase compared with first half 2011.
In April 2012, rubber-wood prices per tonne hovers between RM1,800 to RM2,000, compared to RM1,500 to RM1,800 per tonne in November 2011. At January 2012, US purchase Malaysian made furniture products at the value of RM163million compared with RM158.8million in January 2011, an increase of about 3%. Eventhough, Malaysia External Trade Corporation (MATRADE) reported In January 2012, where Malaysia's furniture export total sales came down by 14.7% to RM571million in January 2012 from RM670.6million in January 2011 due to the shorter working days in January 2012 and also less orders from key customers such as Japan and Singapore. Japan imported about RM64.2million worth of furniture products from Malaysia in January 2012, compared to RM80.8million in January 2011, down by 20.6%.
Under the the National Timber Industry Policy (MTIP), the government has targeted RM16 billion furniture exports by 2020. The value of Malaysian furniture exports represented 3% of total world exports. Demand for Malaysian furniture increasing due to rising afflunce and sophistication in customer expectation. Malaysia furniture stand with its original design as well its good work ethics in world furniture market.
The furniture industry is highly export oriented with over 90% of its production are destined for overseas market which accounted 3% value of global exports.The furniture industry's adoption of high technology production manufacturing capabilities coupled with greater emphasis on design, market expansion and aggressive promotional efforts, the Malaysian furniture industry has the potential to increase exports for a bigger global market share.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1999, the SC is a Private Limited company, focusing on manufacturing of furnitures. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment.

Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is operating on a medium scale and it has approximately 50 employees in its business operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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. Given a positive net worth standing at MYR 2,632,027, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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

Based on the above condition, we recommend credit be granted to the SC promptly.

PROFIT AND LOSS ACCOUNT

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

BJ CABINET ENTERPRISE SDN BHD

Financial Year End	31/12/2010	31/12/2009
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	MYR	MYR
TURNOVER	8,244,673	7,403,012
Other Income	113,636	113,998
	----------------	----------------
Total Turnover	8,358,309	7,517,010
Costs of Goods Sold	<6,575,477>	<5,570,289>
	----------------	----------------
Gross Profit	1,782,832	1,946,721
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	582,647	769,164
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	582,647	769,164
Taxation	<15,864>	<42,000>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	566,783	727,164
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,815,244	1,463,080
	----------------	----------------
As restated	1,815,244	1,463,080
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,382,027	2,190,244
DIVIDENDS - Ordinary (paid & proposed)	-	<375,000>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,382,027	1,815,244
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	3,524	10,651
Bankers' acceptance	19,437	20,975
Hire purchase	22,833	53,451
	----------------	----------------
	45,794	85,077

BALANCE SHEET

BJ CABINET ENTERPRISE SDN BHD

ASSETS EMPLOYED:
FIXED ASSETS	1,120,551	1,305,870
	----------------	----------------
TOTAL LONG TERM ASSETS	1,120,551	1,305,870
CURRENT ASSETS
Stocks	980,666	1,216,090
Trade debtors	501,368	621,868
Other debtors, deposits & prepayments	214,060	57,442
Amount due from related companies	651,942	1,193,252
Cash & bank balances	157,973	270,918
Others	158,416	68,054
	----------------	----------------
TOTAL CURRENT ASSETS	2,664,425	3,427,624
	----------------	----------------
TOTAL ASSET	3,784,976	4,733,494
	=============	=============
CURRENT LIABILITIES
Trade creditors	560,403	1,543,267
Other creditors & accruals	55,072	57,583
Hire purchase & lease creditors	67,759	327,253
Bill & acceptances payable	207,000	303,000
Amounts owing to related companies	-	565
Amounts owing to director	29,476	285,584
	----------------	----------------
TOTAL CURRENT LIABILITIES	919,710	2,517,252
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,744,715	910,372
	----------------	----------------
TOTAL NET ASSETS	2,865,266	2,216,242
	=============	=============
SHARE CAPITAL
Ordinary share capital	250,000	100,000
	----------------	----------------
TOTAL SHARE CAPITAL	250,000	100,000
RESERVES
Retained profit/(loss) carried forward	2,382,027	1,815,244
	----------------	----------------
TOTAL RESERVES	2,382,027	1,815,244
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	2,632,027	1,915,244
LONG TERM LIABILITIES
Others	233,239	300,998
	----------------	----------------
TOTAL LONG TERM LIABILITIES	233,239	300,998
	----------------	----------------
	2,865,266	2,216,242
	=============	=============

FINANCIAL RATIO

BJ CABINET ENTERPRISE SDN BHD

TYPES OF FUNDS
Cash	157,973	270,918
Net Liquid Funds	157,973	270,918
Net Liquid Assets	764,049	<305,718>
Net Current Assets/(Liabilities)	1,744,715	910,372
Net Tangible Assets	2,865,266	2,216,242
Net Monetary Assets	530,810	<606,716>
BALANCE SHEET ITEMS
Total Borrowings	67,759	327,253
Total Liabilities	1,152,949	2,818,250
Total Assets	3,784,976	4,733,494
Net Assets	2,865,266	2,216,242
Net Assets Backing	2,632,027	1,915,244
Shareholders' Funds	2,632,027	1,915,244
Total Share Capital	250,000	100,000
Total Reserves	2,382,027	1,815,244
LIQUIDITY (Times)
Cash Ratio	0.17	0.11
Liquid Ratio	1.83	0.88
Current Ratio	2.90	1.36
WORKING CAPITAL CONTROL (Days)
Stock Ratio	43	60
Debtors Ratio	22	31
Creditors Ratio	31	101
SOLVENCY RATIOS (Times)
Gearing Ratio	0.03	0.17
Liabilities Ratio	0.44	1.47
Times Interest Earned Ratio	13.72	10.04
Assets Backing Ratio	28.65	22.16
PERFORMANCE RATIO (%)
Operating Profit Margin	7.07	10.39
Net Profit Margin	6.87	9.82
Return On Net Assets	21.93	38.54
Return On Capital Employed	21.43	33.59
Return On Shareholders' Funds/Equity	21.53	37.97
Dividend Pay Out Ratio (Times)	0.00	0.52
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.78
UK Pound	1	Rs.86.77
Euro	1	Rs.69.71

INFORMATION DETAILS

Report Prepared by :

PRL

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.