MIRA INFORM REPORT

Report Date :

25.09.2012

IDENTIFICATION DETAILS

Name :	ASIA MARINE PRODUCTS SDN BHD
Registered Office :	Lot 824, Kompleks Sun, Jalan Bukit Bintang, 8th Floor, 55100 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2010
Date of Incorporation :	31.03.1975
Com. Reg. No.:	22393-K
Legal Form :	Private Limited
Line of Business :	Trading of Seafood
No. of Employees :	21

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 – 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.

:

22393-K

COMPANY NAME

:

ASIA MARINE PRODUCTS SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

31/03/1975

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 824, KOMPLEKS SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

15 LEBUH RAYA PETAI, PANDAMARAN INDUSTRIAL ESTATE, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31689806

FAX.NO.

:

03-31683557

CONTACT PERSON

:

TAN SUAN CHEW ( MANAGING DIRECTOR )

INDUSTRY CODE

:

51222

PRINCIPAL ACTIVITY

:

TRADING OF SEAFOOD

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,045,975.00 DIVIDED INTO
ORDINARY SHARES 1,062,359 CASH AND 983,616 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 28,295,019 [2010]

NET WORTH

:

MYR 4,434,656 [2010]

STAFF STRENGTH

:

21 [2012]

BANKER (S)

:

MALAYAN BANKING BHD UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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) trading of seafood.

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

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. TAN SUAN CHEW +	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	460611-10-5467 1195235	1,216,854.00	59.48
MS. QUAK NEE HOONG @ QUAH NEE HOONG +	8, RD 19, OVERSEAS UNION GARDEN, BATU 5, JALAN KELANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	471130-10-5160 3677432	317,626.00	15.52
MR. TAN YEE SAN +	8, JALAN 19, OVERSEAS UNION GARDEN, BATU 5, JALAN KELANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	740430-14-5677 A2676999	237,963.00	11.63
MS. TAN SEE SEE	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	690811-10-5588	68,383.00	3.34
MS. TAN KIM SIEW	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	730119-14-5050 A2481136	68,383.00	3.34
MS. TAN KIM CHOOI	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	780126-14-5740	68,383.00	3.34
MS. TAN LE CHENG	8, LORONG HUJAN 2, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	700705-10-6292	68,383.00	3.34
			---------------	------
			2,045,975.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

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

DIRECTOR 2

Name Of Subject	:	MR. TAN YEE SAN
Address	:	8, JALAN 19, OVERSEAS UNION GARDEN, BATU 5, JALAN KELANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	A2676999
New IC No	:	740430-14-5677
Date of Birth	:	30/04/1974
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	11/01/2001

DIRECTOR 3

Name Of Subject	:	MS. QUAK NEE HOONG @ QUAH NEE HOONG
Address	:	8, RD 19, OVERSEAS UNION GARDEN, BATU 5, JALAN KELANG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	3677432
New IC No	:	471130-10-5160
Date of Birth	:	30/11/1947
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	13/09/1996

DIRECTOR 4

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

MANAGEMENT

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

AUDITOR

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

COMPANY SECRETARIES

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

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

ENCUMBRANCE (S)

ENCUMBRANCE 1

Date of Creation

:

15/05/2002

Description Of Charge

:

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

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

FDR E129553

Name & Address Of Chargee

:

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

Form 40 Dated 24/05/2002

Registered and Numbered 10 In The Register of Charges

ENCUMBRANCE 2

Date of Creation

:

10/09/2007

Description Of Charge

:

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

Amount Secured

:

N/A

Description Of Property Affected

:

FDR E129553

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

Form 40 Dated 20/09/2007

Registered and Numbered 13 In The Register of Charges

ENCUMBRANCE 3

Date of Creation

:

24/09/2008

Description Of Charge

:

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

Amount Secured

:

N/A

Description Of Property Affected

:

FDR E129553

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

Form 40 Dated 10/10/2008

Registered and Numbered 14 In The Register of Charges

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC

* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The SC refused to disclose its suppliers.

CLIENTELE

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

OPERATIONS

Goods Traded

:

FROZEN SEAFOOD

Competitor(s)

:

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

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2012	2011
GROUP	N/A	N/A
COMPANY	21	21

Branch

:

NO

Other Information:

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

The SC is mainly involved in trading of seafoods.

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

The SC does not have any branch at this moment.

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

PROJECTS

No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

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

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2007 - 2010	]
Profit/(Loss) Before Tax	:	Decreased	[	2007 - 2010	]
Return on Shareholder Funds	:	Unfavourable	[	2.87%	]
Return on Net Assets	:	Acceptable	[	12.67%	]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. 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	:	Unfavourable	[	82 Days	]
Debtor Ratio	:	Unfavourable	[	65 Days	]
Creditors Ratio	:	Favourable	[	0 Days	]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.64 Times	]
Current Ratio	:	Unfavourable	[	1.26 Times	]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Unfavourable	[	1.45 Times	]
Gearing Ratio	:	Favourable	[	0.34 Times	]
The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
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. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : 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
51222 : Wholesale of fish and other seafood
INDUSTRY :	AGRICULTURE
The agricultural sector has contributed to the growth and be major contributors to national income and export earnings.The agricultural sector initially derived from the increase in the production of livestock, fisheries, and other miscellaneous crops. The agricultural industry more valuable with the increase in earnings from major commodities such as palm oil, rubber and food commodities.
Palm oil production expected to growth 13.2% at the year 2015/16 which 20.6million tonnes while Poultry production expected to 9.9% at the year 2015/16 which 1.35million tonnes in 2015/16. The 10th Malaysia Economic Plan will boost growth in this industry by attracte more investment. Moreover, sugar consumption expected to reach 7.5% due to contribution of greater disposable income from an average 5.4% real GDP growth over the year 2013-2016 where will allow Malaysians to spend more on processed foods with high sugar content such as soft drinks and sugar confectionery.
The Agriculture sector expanded with a slower pace of 2.1% at the second quarter 2012 compared to 6.9% in the first quarter 2012. The slower growth was attributed by the decline in the production of Rubber and Fishing. However, Livestock showed favourable growth of 11.0% while Forestry turned around to 5.4% as compared to negative 6.3% in the first quarter. Oil Palm registered a growth of 3.5% in second quarter 2012.
The agriculture is a strong contributer to Malaysia's GDP, employment, export revenue, export tax and duty, as well as the economic development. This sector provide income, employment and good investment to the rural areas where enhance the community. Hence, the Government of Malaysia allocated RM1.1bil under the longterm projects (2011-2020) budget 2012 for the development of the agriculture sector and increase productivity and generate higher returns in this sector.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1975, the SC is a Private Limited company, focusing on trading of seafood. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up certain goodwill with its clients over times. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

Information revealed that the SC solely focuses on domestic market rather than overseas market. We believe that this narrow market segment would limit the SC's business opportunities and the SC is likely to be affected by the uncertainties in local economy. However, its long presence in the market has enabled the SC to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. Being a small company, the SC's business operation is supported by 21 employees. 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. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. Fortunately, being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 4,434,656, the SC should be able to maintain its business in the near terms.

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. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields.

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)

ASIA MARINE PRODUCTS SDN BHD

Financial Year End	31/12/2010	31/12/2009	31/12/2008	31/12/2007
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	SUMMARY
Currency	MYR	MYR	MYR	MYR
TURNOVER	28,295,019	27,573,706	26,765,243	20,301,300
	----------------	----------------	----------------	----------------
Total Turnover	28,295,019	27,573,706	26,765,243	20,301,300
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	177,621	218,910	145,126	193,232
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	177,621	218,910	145,126	193,232
Taxation	<50,331>	<183,826>	<47,666>	12,942
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	127,290	35,084	97,460	206,174
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,261,391	2,226,307	2,128,847	1,922,673
	----------------	----------------	----------------	----------------
As restated	2,261,391	2,226,307	2,128,847	1,922,673
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,388,681	2,261,391	2,226,307	2,128,847
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,388,681	2,261,391	2,226,307	2,128,847
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	395,111	381,721	502,240	-
	----------------	----------------	----------------
	395,111	381,721	502,240

BALANCE SHEET

ASIA MARINE PRODUCTS SDN BHD

ASSETS EMPLOYED:
FIXED ASSETS	1,007,607	1,098,105	995,704	1,267,185
LONG TERM INVESTMENTS/OTHER ASSETS
Investments	882,947	882,947	882,947	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	882,947	882,947	882,947	0
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,890,554	1,981,052	1,878,651	1,267,185
CURRENT ASSETS
Stocks	6,370,037	4,290,704	4,035,151	-
Trade debtors	5,050,235	5,170,966	5,688,875	-
Other debtors, deposits & prepayments	146,623	149,175	110,939	-
Short term deposits	1,092,237	1,065,306	1,039,528	-
Cash & bank balances	274,991	814,064	216,643	-
Others	-	-	477,273	-
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	12,934,123	11,490,215	11,568,409	9,966,239
	----------------	----------------	----------------	----------------
TOTAL ASSET	14,824,677	13,471,267	13,447,060	11,233,424
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	-	274,733	1,044,780	-
Other creditors & accruals	29,950	32,016	27,769	-
Hire purchase & lease creditors	61,074	66,844	38,836	-
Bank overdraft	628,968	654,884	684,914	-
Short term borrowings/Term loans	726,145	897,471	-	-
Bill & acceptances payable	8,398,000	6,658,000	6,918,000	-
Amounts owing to associated companies	424,750	424,750	386,750	-
Provision for taxation	34,973	7,968	-	-
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	10,303,860	9,016,666	9,101,049	6,946,038
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	2,630,263	2,473,549	2,467,360	3,020,201
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	4,520,817	4,454,601	4,346,011	4,287,386
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,045,975	2,045,975	2,045,975	2,045,975
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,045,975	2,045,975	2,045,975	2,045,975
RESERVES
Retained profit/(loss) carried forward	2,388,681	2,261,391	2,226,307	2,128,847
	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,388,681	2,261,391	2,226,307	2,128,847
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,434,656	4,307,366	4,272,282	4,174,822
LONG TERM LIABILITIES
Hire purchase creditors	86,161	147,235	73,729	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	86,161	147,235	73,729	112,564
	----------------	----------------	----------------	----------------
	4,520,817	4,454,601	4,346,011	4,287,386
	=============	=============	=============	=============

FINANCIAL RATIO

ASIA MARINE PRODUCTS SDN BHD

TYPES OF FUNDS
Cash	1,367,228	1,879,370	1,256,171	-
Net Liquid Funds	738,260	1,224,486	571,257	-
Net Liquid Assets	<3,739,774>	<1,817,155>	<1,567,791>	3,020,201
Net Current Assets/(Liabilities)	2,630,263	2,473,549	2,467,360	3,020,201
Net Tangible Assets	4,520,817	4,454,601	4,346,011	4,287,386
Net Monetary Assets	<3,825,935>	<1,964,390>	<1,641,520>	2,907,637
BALANCE SHEET ITEMS
Total Borrowings	1,502,348	1,766,434	797,479	-
Total Liabilities	10,390,021	9,163,901	9,174,778	7,058,602
Total Assets	14,824,677	13,471,267	13,447,060	11,233,424
Net Assets	4,520,817	4,454,601	4,346,011	4,287,386
Net Assets Backing	4,434,656	4,307,366	4,272,282	4,174,822
Shareholders' Funds	4,434,656	4,307,366	4,272,282	4,174,822
Total Share Capital	2,045,975	2,045,975	2,045,975	2,045,975
Total Reserves	2,388,681	2,261,391	2,226,307	2,128,847
LIQUIDITY (Times)
Cash Ratio	0.13	0.21	0.14	-
Liquid Ratio	0.64	0.80	0.83	-
Current Ratio	1.26	1.27	1.27	1.43
WORKING CAPITAL CONTROL (Days)
Stock Ratio	82	57	55	-
Debtors Ratio	65	68	78	-
Creditors Ratio	0	4	14	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.34	0.41	0.19	-
Liabilities Ratio	2.34	2.13	2.15	1.69
Times Interest Earned Ratio	1.45	1.57	1.29	-
Assets Backing Ratio	2.21	2.18	2.12	2.10
PERFORMANCE RATIO (%)
Operating Profit Margin	0.63	0.79	0.54	0.95
Net Profit Margin	0.45	0.13	0.36	1.02
Return On Net Assets	12.67	13.48	14.90	4.51
Return On Capital Employed	10.99	11.60	12.77	4.51
Return On Shareholders' Funds/Equity	2.87	0.81	2.28	4.94
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.29
UK Pound	1	Rs.86.43
Euro	1	Rs.68.95

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.