MIRA INFORM REPORT

Report Date :

03.09.2012

IDENTIFICATION DETAILS

Name :	MYDECOR SDN BHD
Formerly Known As :	ROMAN DECOR SDN BHD
Registered Office :	10a, Jalan Lim Swee Sim, 86000 Kluang, Johor
Country :	Malaysia
Financials (as on) :	30.06.2011
Date of Incorporation :	07.04.2000
Com. Reg. No.:	510273-W
Legal Form :	Private Limited
Line of Business :	Manufacture Tiles Bricks, Cement Blocks
No. of Employees :	125

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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.

:

510273-W

COMPANY NAME

:

MYDECOR SDN BHD

FORMER NAME

:

ROMAN DECOR SDN BHD (18/07/2008)

INCORPORATION DATE

:

07/04/2000

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

10A, JALAN LIM SWEE SIM, 86000 KLUANG, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

NO. 51 JALAN KERANJI, 86000 KLUANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-7718196

FAX.NO.

:

07-7765728

CONTACT PERSON

:

LYE EK SENG ( CEO )

INDUSTRY CODE

:

2695

PRINCIPAL ACTIVITY

:

MANUFACTURE TILES BRICKS, CEMENT BLOCKS

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 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 800,000 CASH AND 1,200,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 6,958,911 [2011]

NET WORTH

:

MYR 7,364,968 [2011]

STAFF STRENGTH

:

125 [2012]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE 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) manufacture tiles bricks, cement blocks.

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	(%)
DATUK LYE EK SEANG +	156, JALAN PASAR, 34000 TAIPING, PERAK, MALAYSIA.	641219-08-6065 7489472	880,000.00	44.00
MR. NG SEONG MOR +	2, JALAN PERWIRA 2/1, TAMAN TITIWANGSA, 86000 KLUANG, JOHOR, MALAYSIA.	640527-08-6011 7304102	360,000.00	18.00
MR. TEY BOON TIN +	3 JALAN 11, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.	670430-01-5089	360,000.00	18.00
MR. NG TIAN SIONG +	40, LINGKONGAN MATA AIR, TAMAN GENTING SETAPAK, 53200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	681221-01-5975	260,000.00	13.00
MR. LYE AIK BOON +	156 JALAN PASAR, 34000 TAIPING, PERAK, MALAYSIA.	560409-08-5843	100,000.00	5.00
DATO' MOHAMED YUNUS BIN MOHD NOOR	1, JALAN BUKIT BADAK (5/17), 46000 PETALING JAYA, SELANGOR, MALAYSIA.	400419-08-5473	40,000.00	2.00
			---------------	------
			2,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	TAN SRI DATUK SERI ABDUL KADIR BIN HJ SHEIKH FADZIR
Address	:	1, LORONG TITIWANGSA 2, OFF JALAN TITIWANGSA, 53200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	2746184
New IC No	:	390604-02-5003
Date of Birth	:	04/06/1939
Nationality	:	MALAYSIAN MALAY
Date of Appointment	:	01/03/2006

DIRECTOR 2

Name Of Subject	:	MR. LYE AIK BOON
Address	:	156 JALAN PASAR, 34000 TAIPING, PERAK, MALAYSIA.
New IC No	:	560409-08-5843
Date of Birth	:	09/04/1956
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	22/06/2000

DIRECTOR 3

Name Of Subject	:	MR. NG TIAN SIONG
Address	:	40, LINGKONGAN MATA AIR, TAMAN GENTING SETAPAK, 53200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
New IC No	:	681221-01-5975
Date of Birth	:	21/12/1968
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	29/12/2000

DIRECTOR 4

Name Of Subject	:	MR. TEY BOON TIN
Address	:	3 JALAN 11, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.
New IC No	:	670430-01-5089
Date of Birth	:	30/04/1967
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	29/12/2000

DIRECTOR 5

Name Of Subject	:	MR. NG SEONG MOR
Address	:	2, JALAN PERWIRA 2/1, TAMAN TITIWANGSA, 86000 KLUANG, JOHOR, MALAYSIA.
IC / PP No	:	7304102
New IC No	:	640527-08-6011
Date of Birth	:	27/05/1964
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	29/12/2000

DIRECTOR 6

Name Of Subject	:	DATUK LYE EK SEANG
Address	:	156, JALAN PASAR, 34000 TAIPING, PERAK, MALAYSIA.
IC / PP No	:	7489472
New IC No	:	641219-08-6065
Date of Birth	:	19/12/1964
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	22/06/2000

MANAGEMENT

1)	Name of Subject	:	LYE EK SENG
	Position	:	CEO

2)	Name of Subject	:	NG SEONG MOR
	Position	:	GENERAL MANAGER

AUDITOR

Auditor	:	SYARIKAT Y S TAY
Auditor' Address	:	12, JALAN LAMBAK, 86000 KLUANG, JOHOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. WAN MEE CHOO
	IC / PP No	:	8185650
	New IC No	:	551223-01-5316
	Address	:	29 JALAN NG PI TON, 86000 KLUANG, JOHOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

2)

Name

:

PUBLIC BANK 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

:

27/12/2005

Description Of Charge

:

N/A

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

Form 40 Dated

Registered and Numbered 1 In The Register of Charges

ENCUMBRANCE 2

Date of Creation

:

16/04/2007

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

Form 40 Dated

Registered and Numbered 2 In The Register of Charges

ENCUMBRANCE 3

Date of Creation

:

21/07/2004

Description Of Charge

:

N/A

Amount Secured

:

RM1,295,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

BANK INDUSTRI & TEKNOLOGI MALAYSIA BHD

Form 40 Dated

Registered and Numbered 3 In The Register of Charges

ENCUMBRANCE 4

Date of Creation

:

07/01/2009

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

PUBLIC BANK BHD

Form 40 Dated

Registered and Numbered 4 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
Overseas	:	YES

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
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	SINGAPORE, VIETNAM, BRUNEI DARUSSALAM, THAILAND, JAPAN, AUSTRALIA, CANADA, EUROPE
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES,TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured	:	DECORATIVE TILES
Member(s) / Affiliate(s)	:	SMALL & MEDIUM ENTERPRISE MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

Total Number of Employees:
YEAR	2012
GROUP	N/A
COMPANY	125

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) manufacture tiles bricks, cement blocks.

The SC specializes in manufacturing of all kind of decorative products such as Listello, Inserto, Water-jet cut decor, Polished tiles decor, Glass decor, Stainless steel mosaics, Glass Mosaics, Tumbled rustic tiles etc.

The SC is also able to supply decorative tiles to the local reputable base tiles manufacturers on Original Equipment Manufacturing (OEM) basis.

PROJECTS

No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	07-7718196
Match	:	N/A
Address Provided by Client	:	NO. 51 JALAN KERANJI 86000 KLUANG JOHOR
Current Address	:	NO. 51 JALAN KERANJI, 86000 KLUANG, JOHOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2008 - 2011	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2011	]
Return on Shareholder Funds	:	Unfavourable	[	4.16%	]
Return on Net Assets	:	Unfavourable	[	7.68%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Acceptable	[	64 Days	]
Debtor Ratio	:	Unfavourable	[	77 Days	]
Creditors Ratio	:	Favourable	[	25 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	:	Acceptable	[	0.82 Times	]
Current Ratio	:	Unfavourable	[	1.19 Times	]
The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	3.29 Times	]
Gearing Ratio	:	Favourable	[	0.24 Times	]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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 :
The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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 : LIMITED

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
2695 : Manufacture of articles of concrete, cement and plaster
INDUSTRY :	CONSTRUCTION
Construction industry expected to play a vital role by contribution of 7%to the GDP growth in 2012 . The productivity levels of the construction anticipated to grow by 5.6% in 2012, compared with 3.09% 2011 . The Government and the private sector work together in order to achieve this target. Malaysia's economy was expected to sustain its growth momentum in 2012, with productivity growing by more than 4%, driven by the construction.
The productivity levels of the construction and services sectors are anticipated to grow by 5.6% and 4.9%, respectively, in 2012, compared with 3.09% and 4.92% year 2011.
The construction sector expected turns to grow eventhough local players be presured by eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries due to goverment new projects. Growth in the construction sector more than doubled to 6.4%, led mainly by the residential and civil engineering sub-sectors construction at first quarter 2012.
The acceleration of government project such as the remaining contracts for six packages of the elevated portion of the Sungai Buloh-Kajang (SBK) line, the RM7 billion West Coast Expressway (WCE), the RM7 billion electrified double tracking (EDT) from Gemas to Johor Baru and the RM30 billion Sarawak Corridor of Renewable Energy (SCORE),easily increase job oppurtunity in year 2012.
Major infrastructure improvements in the Klang Valley such as the MRT (My Rapid Transit), River Rehabilitation and covered walkway projects are expected to boost property prices.
This sector estimate get no less than RM20 billion at the end of year 2012. The sector started strongly with RM5.9 billion job wins in the first quarter 2012, which was already 74.5 per cent of the total RM7.9 billion awarded at the year 2011. Government would progressively award contracts over the local players at third quarter 2012, to ensure the projects completed by July 2017. The construction sector is likely to have a banner year at year 2012 with up to RM20 billion worth of jobs to be awarded.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2000, the SC is a Private Limited company, focusing on manufacture tiles bricks, cement blocks. Having been in business for 12 years, the SC has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. But with an issued and paid up capital of MYR 2,000,000, the SC has strong capital position for its future expansion and continued growth.

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Moreover, the SC is a fairly large and rapidly growing company with over 125 staff in its 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.

The SC recorded lower profits due to lower turnover and inefficient control of operating costs compared to previous year. Moreover, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC's liquidity was at an acceptable range, indicating that the SC has enough working capital to meet its short term 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 7,364,968, 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. Moreover, investigation revealed that the SC's raw materials are sourced from both local and overseas suppliers. Hence, the SC is subjected to currency fluctuation risk and high operating costs.. Overall the SC has a good control over its resources.

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

The industry shows an upward trend and this trend is likely to sustain in the near future. With the promising outlook of the industry performance, the SC business potential should be favourable. The SC however faces moderate business risk as it has to compete with many well established players in the same field.

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

PROFIT AND LOSS ACCOUNT

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

MYDECOR SDN BHD

Financial Year End	30/06/2011	30/06/2010	30/06/2009	30/06/2008
Months	12	12	12	12
Consolidated Account	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR
TURNOVER	6,958,911	7,309,603	6,789,773	7,409,070
	----------------	----------------	----------------	----------------
Total Turnover	6,958,911	7,309,603	6,789,773	7,409,070
Costs of Goods Sold	<6,233,696>	<6,268,559>	-	-
	----------------	----------------	----------------	----------------
Gross Profit	725,215	1,041,044	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	439,913	657,644	93,949	325,261
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	439,913	657,644	93,949	325,261
Taxation	<133,389>	<176,312>	<4,757>	<85,274>
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	306,524	481,332	89,192	239,987
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	5,058,444	4,577,112	4,487,920	4,247,933
	----------------	----------------	----------------	----------------
As restated	5,058,444	4,577,112	4,487,920	4,247,933
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	5,364,968	5,058,444	4,577,112	4,487,920
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	5,364,968	5,058,444	4,577,112	4,487,920
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	191,720	176,821	185,486	178,891
	----------------	----------------	----------------	----------------
	191,720	176,821	185,486	178,891

BALANCE SHEET

MYDECOR SDN BHD

ASSETS EMPLOYED:
FIXED ASSETS	7,587,037	7,990,377	8,772,304	7,396,889
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	7,587,037	7,990,377	8,772,304	7,396,889
CURRENT ASSETS
Stocks	1,224,348	605,759	394,772	584,646
Trade debtors	1,474,474	1,922,594	1,698,275	2,031,482
Other debtors, deposits & prepayments	658,167	789,494	262,367	307,707
Short term deposits	360,006	350,702	334,448	445,641
Amount due from related companies	-	-	73,262	435,600
Amount due from director	-	-	-	900,000
Cash & bank balances	16,908	147,758	25,170	15,818
Others	200,907	104,296	280,608	274,532
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	3,934,810	3,920,603	3,068,902	4,995,426
	----------------	----------------	----------------	----------------
TOTAL ASSET	11,521,847	11,910,980	11,841,206	12,392,315
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	428,511	628,288	408,455	1,623,699
Other creditors & accruals	910,134	816,297	440,026	854,213
Hire purchase & lease creditors	350,390	338,828	338,827	379,033
Short term borrowings/Term loans	572,233	617,293	596,645	329,823
Bill & acceptances payable	930,000	780,000	-	760,000
Other liabilities & accruals	22,967	147,607	-	-
Amounts owing to related companies	-	-	1,079,319	41,780
Other liabilities	78,970	78,970	-	-
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	3,293,205	3,407,283	2,863,272	3,988,548
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	641,605	513,320	205,630	1,006,878
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	8,228,642	8,503,697	8,977,934	8,403,767
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,000,000	2,000,000	2,000,000	2,000,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,000,000	2,000,000	2,000,000	2,000,000
RESERVES
Retained profit/(loss) carried forward	5,364,968	5,058,444	4,577,112	4,487,920
	----------------	----------------	----------------	----------------
TOTAL RESERVES	5,364,968	5,058,444	4,577,112	4,487,920
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	7,364,968	7,058,444	6,577,112	6,487,920
LONG TERM LIABILITIES
Long term loans	426,807	998,644	1,615,385	1,003,909
Hire purchase creditors	436,867	446,609	785,437	911,938
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	863,674	1,445,253	2,400,822	1,915,847
	----------------	----------------	----------------	----------------
	8,228,642	8,503,697	8,977,934	8,403,767
	=============	=============	=============	=============

FINANCIAL RATIO

MYDECOR SDN BHD

TYPES OF FUNDS
Cash	376,914	498,460	359,618	461,459
Net Liquid Funds	376,914	498,460	359,618	461,459
Net Liquid Assets	<582,743>	<92,439>	<189,142>	422,232
Net Current Assets/(Liabilities)	641,605	513,320	205,630	1,006,878
Net Tangible Assets	8,228,642	8,503,697	8,977,934	8,403,767
Net Monetary Assets	<1,446,417>	<1,537,692>	<2,589,964>	<1,493,615>
BALANCE SHEET ITEMS
Total Borrowings	1,786,297	2,401,374	3,336,294	2,624,703
Total Liabilities	4,156,879	4,852,536	5,264,094	5,904,395
Total Assets	11,521,847	11,910,980	11,841,206	12,392,315
Net Assets	8,228,642	8,503,697	8,977,934	8,403,767
Net Assets Backing	7,364,968	7,058,444	6,577,112	6,487,920
Shareholders' Funds	7,364,968	7,058,444	6,577,112	6,487,920
Total Share Capital	2,000,000	2,000,000	2,000,000	2,000,000
Total Reserves	5,364,968	5,058,444	4,577,112	4,487,920
LIQUIDITY (Times)
Cash Ratio	0.11	0.15	0.13	0.12
Liquid Ratio	0.82	0.97	0.93	1.11
Current Ratio	1.19	1.15	1.07	1.25
WORKING CAPITAL CONTROL (Days)
Stock Ratio	64	30	21	29
Debtors Ratio	77	96	91	100
Creditors Ratio	25	37	22	80
SOLVENCY RATIOS (Times)
Gearing Ratio	0.24	0.34	0.51	0.40
Liabilities Ratio	0.56	0.69	0.80	0.91
Times Interest Earned Ratio	3.29	4.72	1.51	2.82
Assets Backing Ratio	4.11	4.25	4.49	4.20
PERFORMANCE RATIO (%)
Operating Profit Margin	6.32	9.00	1.38	4.39
Net Profit Margin	4.40	6.58	1.31	3.24
Return On Net Assets	7.68	9.81	3.11	6.00
Return On Capital Employed	7.36	9.44	3.00	5.74
Return On Shareholders' Funds/Equity	4.16	6.82	1.36	3.70
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.72
UK Pound	1	Rs.87.95
Euro	1	Rs.69.65

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.