MIRA INFORM REPORT

Report Date :

26.04.2013

IDENTIFICATION DETAILS

Name :	STRONG FORCE (M) SDN. BHD.
Formerly Known As :	XFORCE TECHNOLOGY SDN. BHD.
Registered Office :	7, Jalan 20/12, 46300 Petaling Jaya, Selangor
Country :	Malaysia
Financials (as on) :	30.09.2011
Date of Incorporation :	02.07.2009
Com. Reg. No.:	862877-H
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Tenderers, Contractors and Sub-Contractors of and For all Kinds of Constructional, Structural. Civil Engineering, Electrical, Mechanical, Plumbing, Interior Decoration and Renovation
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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.	:	862877-H
COMPANY NAME	:	STRONG FORCE (M) SDN. BHD.
FORMER NAME	:	XFORCE TECHNOLOGY SDN. BHD. (16/10/2009)
INCORPORATION DATE	:	02/07/2009
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED (LIMITED BY SHARE)
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	7, JALAN 20/12, 46300 PETALING JAYA, SELANGOR, MALAYSIA.
BUSINESS ADDRESS	:	NO. 57-2, JALAN PUTERI 5/7, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.
TEL.NO.	:	03-80655228
FAX.NO.	:	03-80654228
EMAIL	:	INFOMALAYSIA@STRONGFORCE.COM
WEB SITE	:	WWW.STRONGFORCE.COM
CONTACT PERSON	:	LIM CHIN BENG ( MANAGING DIRECTOR )
INDUSTRY CODE	:	429
PRINCIPAL ACTIVITY	:	TENDERERS, CONTRACTORS AND SUB-CONTRACTORS OF AND FOR ALL KINDS OF CONSTRUCTIONAL, STRUCTURAL. CIVIL ENGINEERING, ELECTRICAL, MECHANICAL, PLUMBING, INTERIOR DECORATION AND RENOVATION
AUTHORISED CAPITAL	:	MYR 100,000.00 DIVIDED INTO ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 90,000.00 DIVIDED INTO ORDINARY SHARES 90,000 CASH OF MYR 1.00 EACH.
SALES	:	MYR 162,491 [2011]
NET WORTH	:	MYR 20,910 [2011]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	STABLE
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) tenderers, contractors and sub-contractors of and for all kinds of constructional, structural. civil engineering, electrical, mechanical, plumbing, interior decoration and renovation.

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	(%)
STRONGFORCE HOLDINGS PTY LTD	MLC CENTRE, SYDNEY, NSW, LEVEL 57, AUSTRALIA.	AU011026	58,500.00	65.00
TAIKO ODYSSEY SDN. BHD.	7, JALAN 20/12, 46300 PETALING JAYA, SELANGOR, MALAYSIA.	730728	31,500.00	35.00
			---------------	------
			90,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. LIM CHIN BENG
Address	:	10, JALAN SUNGAI RAMAL 32/55D, BUKIT RIMAU, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	621020-07-5395
Date of Birth	:	20/10/1962
Nationality	:	MALAYSIAN
Date of Appointment	:	02/07/2009

DIRECTOR 2

Name Of Subject	:	MR. GOH KENG HOCK
Address	:	168, JALAN PP1/3, TA,AN PUTRA PRIMA, 47100 PUCHONG, SELANGOR, MALAYSIA.
New IC No	:	631203-08-5667
Date of Birth	:	03/12/1963
Nationality	:	MALAYSIAN
Date of Appointment	:	10/05/2010

MANAGEMENT

1)	Name of Subject	:	LIM CHIN BENG
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	GOH KENG HOCK
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KCSM
Auditor' Address	:	15-5-1, GOMAS BUSINESS CENTRE, JALAN PJU 1/42A, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. YOW SOOK KHENG
	New IC No	:	710330-08-5542
	Address	:	7, JALAN 20/12, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

BANKING

No Banker found in our databank.

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.

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	:	AUSTRALIA INDIA VIETNAM
Credit Term	:	AS AGREED
Payment Mode	:	TELEGRAPHIC TRANSFER (TT) LETTER OF CREDIT (LC)

OPERATIONS

Services

:

CONSTRUCTION AND ENGINEERING SERVICES

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) tenderers, contractors and sub-contractors of and for all kinds of constructional, structural. civil engineering, electrical, mechanical, plumbing, interior decoration and renovation.

SC is engaged is construction and engineering services.

Services provided by SC are as below :

Engineering Services:

- Concept and preliminary design input

- Building analysis and design

- Design of post-tensioned foundation structures

- Value engineering to civil and commercial structures

- Alternative post tension and conventional reinforcement solutions

- Drafting and shop drawing services

- Cost-benefit analysis of various structural arrangements

- Structural feasibility studies

- Onsite supervision services

- Remedial Engineering

Construction Services:

- Supply of onsite project management and site supervision

- Supply of post tension labour

- Supply of post tension plant and materials

- Execution of post tension works complying to Strongforce QA/QC procedure

- Remedial works

Furthermore, SC also has its own system which is "StrongForce Slab Post Tensioning System" is used in a variety of residential and commercial structures. The system offers substantial savings over conventionally reinforced concrete in the areas of material reductions, installation costs and reduced construction time. Its also offers opportunities for much larger spans and significant performance benefits.

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	:	03-80655228
Match	:	N/A
Address Provided by Client	:	57/2 JALAN PUTERI PUCHONG 47/100 SELANGOR D ESHAN
Current Address	:	NO. 57-2, JALAN PUTERI 5/7, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from Admin Department and she provide us some information on SC.

The address provided is incomplete.

The SC refused to disclose its bankers and number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	306.23%	]
Profit/(Loss) Before Tax	:	Decreased	[	<111.93%>	]
Return on Shareholder Funds	:	Favourable	[	44.74%	]
Return on Net Assets	:	Favourable	[	44.74%	]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Unfavourable	[	899 Days	]
Creditors Ratio	:	Unfavourable	[	1156 Days	]
As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Acceptable	[	0.94 Times	]
Current Ratio	:	Unfavourable	[	0.94 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	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the SC's losses. 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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : STABLE

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2009	2010	2011	2012*	2013**
Population ( Million)	28.13	28.35	28.70	29.30	29.80
Gross Domestic Products ( % )	<0.5>	7.2	5.1	5.6	5.3
Domestic Demand ( % )	2.9	6.3	8.2	9.4	5.6
Private Expenditure ( % )	<2.7>	8.1	8.2	8.0	7.4
Consumption ( % )	0.7	6.7	7.1	1.0	5.7
Investment ( % )	<17.2>	17.7	12.2	11.7	13.3
Public Expenditure ( % )	5.2	3.8	8.4	13.3	1.2
Consumption ( % )	3.1	0.2	16.1	11.3	<1.2>
Investment ( % )	8.0	2.8	<0.3>	15.9	4.2
Balance of Trade ( MYR Million )	89,650	118,356	116,058	106,300	110,700
Government Finance ( MYR Million )	<28,450>	<40,482>	<45,511>	<42,297>	<39,993>
Government Finance to GDP / Fiscal Deficit ( % )	<4.8>	<5.6>	<5.4>	<4.5>	<4.0>
Inflation ( % Change in Composite CPI)	<5.2>	5.1	3.1	1.6	2.5
Unemployment Rate	4.5	3.9	3.3	3.2	3.0
Net International Reserves ( MYR Billion )	331	329	415	427	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	2.87	2.20	3.50	2.20	-
Average 3 Months of Non-performing Loans ( % )	11.08	15.30	14.80	14.70	-
Average Base Lending Rate ( % )	5.53	6.30	6.60	6.53	-
Business Loans Disbursed( % )	10.5	14.7	15.3	32.2	-
Foreign Investment ( MYR Million )	22,156.8	22,517.9	23,546.1	26,230.4	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	41,578	44,148	45,455	45,441	-
Registration of New Companies ( % )	<0.1>	6.2	3.0	<0.0>	-
Liquidation of Companies ( No. )	39,075	25,585	132,476	-	-
Liquidation of Companies ( % )	39.6	<34.5>	417.8	-	-
Registration of New Business ( No. )	312,581	271,414	284,598	324,761	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	19,345	19,738	20,121	-	-
Business Dissolved ( % )	2.4	2.0	1.9	-	-
Sales of New Passenger Cars (' 000 Unit )	486.3	543.6	535.1	552.2	-
Cellular Phone Subscribers ( Million )	30.1	32.8	35.3	38.5	-
Tourist Arrival ( Million Persons )	23.6	24.6	24.7	25.0	-
Hotel Occupancy Rate ( % )	58.0	63.0	60.6	62.4	-
Credit Cards Spending ( % )	12.8	14.1	15.6	12.6	-
Bad Cheque Offenders (No.)	36,667	33,568	32,627	26,982	-
Individual Bankruptcy ( No.)	16,228	18,119	19,167	19,575	-
Individual Bankruptcy ( % )	16.7	11.7	5.8	2.1	-

INDUSTRIES ( % of Growth ):	2009	2010	2011	2012*	2013**
Agriculture	0.4	2.1	5.9	0.6	2.4
Palm Oil	<1.1>	<3.4>	10.8	<2.8>	-
Rubber	<19.8>	9.9	6.1	<0.6>	-
Forestry & Logging	<5.9>	<3.3>	<7.6>	<2.2>	-
Fishing	5.5	5.6	2.1	<0.7>	-
Other Agriculture	9.0	7.9	7.1	6.4	-
Industry Non-Performing Loans ( MYR Million )	413.7	508.4	634.1	-	-
% of Industry Non-Performing Loans	1.3	2.1	3.2	-	-
Mining	<3.8>	0.2	<5.7>	1.5	2.7
Oil & Gas	2.1	0.5	<1.7>	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	44.2	49.7	46.5	-	-
% of Industry Non-performing Loans	0.1	0.1	0.1	-	-
Manufacturing #	<9.4>	11.4	4.7	4.2	4.9
Exported-oriented Industries	<19.0>	12.1	2.8	4.1	-
Electrical & Electronics	<30.3>	28.4	<4.9>	1.6	-
Rubber Products	<10.1>	25.3	15.4	3.6	-
Wood Products	<24.1>	20.1	<4.9>	4.6	-
Textiles & Apparel	<19.5>	<0.4>	14.8	<7.1>	-
Domestic-oriented Industries	<9.8>	16.3	6.5	8.6	-
Food, Beverages & Tobacco	0.2	3.0	4.2	-	-
Chemical & Chemical Products	<7.7>	16.2	5.5	9.9	-
Plastic Products	<9.1>	2.4	3.8	-	-
Iron & Steel	<32.7>	29.3	2.4	-	-
Fabricated Metal Products	<2.5>	14.9	25.2	-	-
Non-metallic Mineral	<15.5>	20.2	27.1	6.6	-
Transport Equipment	<13.5>	36.5	<10.4>	13.7	-
Paper & Paper Products	<5.0>	18.7	14.8	<7.8>	-
Crude Oil Refineries	0.2	<11.4>	9.3	-	-
Industry Non-Performing Loans ( MYR Million )	6,007.3	6,217.5	6,537.2	-	-
% of Industry Non-Performing Loans	18.3	23.8	25.7	-	-
Construction	5.8	5.1	4.4	15.5	11.2
Industry Non-Performing Loans ( MYR Million )	3,241.8	4,038.5	3,856.9	-	-
% of Industry Non-Performing Loans	9.9	10.7	10.2	-	-
Services	2.6	6.5	6.4	5.5	5.6
Electric, Gas & Water	0.4	8.5	5.6	4.8	-
Transport, Storage & Communication	1.6	7.7	6.5	7.3	-
Wholesale, Retail, Hotel & Restaurant	2.8	4.7	5.2	6.9	-
Finance, Insurance & Real Estate	3.8	6.1	6.3	6.5	-
Government Services	2.0	6.7	7.6	5.6	-
Other Services	4.4	4.2	5.4	5.7	-
Industry Non-Performing Loans ( MYR Million )	6,631.3	7,384.6	6,825.2	-	-
% of Industry Non-Performing Loans	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
429 : Construction of other civil engineering projects
INDUSTRY :	CONSTRUCTION
The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth.
Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.
The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's economy but the construction sector's contribution to GDP could still remain stable. However, while the construction sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labourers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the government to do more to facilitate the training of building workers or run the risk of supply-side bottlenecks delaying new projects.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2009, the SC is a Private Limited company, focusing on tenderers, contractors and sub-contractors of and for all kinds of constructional, structural. civil engineering, electrical, mechanical, plumbing, interior decoration and renovation. The SC has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment. Presently, issued and paid up capital of the SC stand at MYR 90,000.

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. 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business.

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth .

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 very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.

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

PROFIT AND LOSS ACCOUNT

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

STRONG FORCE (M) SDN. BHD.

Financial Year End	30/09/2011	30/09/2010
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	162,491	40,000
	----------------	----------------
Total Turnover	162,491	40,000
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	9,355	<78,445>
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	9,355	<78,445>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	9,355	<78,445>
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	<78,445>	-
	----------------	----------------
As restated	<78,445>	-
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	<69,090>	<78,445>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	<69,090>	<78,445>
	=============	=============

BALANCE SHEET

STRONG FORCE (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	63,962	63,158
	----------------	----------------
TOTAL LONG TERM ASSETS	63,962	63,158
CURRENT ASSETS
Trade debtors	400,412	5,000
Other debtors, deposits & prepayments	86,124	125,094
Cash & bank balances	18,395	-
Amount owing by customer	188,521	-
	----------------	----------------
TOTAL CURRENT ASSETS	693,452	130,094
	----------------	----------------
TOTAL ASSET	757,414	193,252
	=============	=============
CURRENT LIABILITIES
Trade creditors	514,545	-
Other creditors & accruals	43,903	20,413
Deposits from customers	10,760	-
Amounts owing to holding company	161,284	161,284
Amounts owing to director	6,012	-
	----------------	----------------
TOTAL CURRENT LIABILITIES	736,504	181,697
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	<43,052>	<51,603>
	----------------	----------------
TOTAL NET ASSETS	20,910	11,555
	=============	=============
SHARE CAPITAL
Ordinary share capital	90,000	90,000
	----------------	----------------
TOTAL SHARE CAPITAL	90,000	90,000
RESERVES
Retained profit/(loss) carried forward	<69,090>	<78,445>
	----------------	----------------
TOTAL RESERVES	<69,090>	<78,445>
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	20,910	11,555
	----------------	----------------
	20,910	11,555
	=============	=============

FINANCIAL RATIO

STRONG FORCE (M) SDN. BHD.

TYPES OF FUNDS
Cash	18,395	0
Net Liquid Funds	18,395	0
Net Liquid Assets	<43,052>	<51,603>
Net Current Assets/(Liabilities)	<43,052>	<51,603>
Net Tangible Assets	20,910	11,555
Net Monetary Assets	<43,052>	<51,603>
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	736,504	181,697
Total Assets	757,414	193,252
Net Assets	20,910	11,555
Net Assets Backing	20,910	11,555
Shareholders' Funds	20,910	11,555
Total Share Capital	90,000	90,000
Total Reserves	<69,090>	<78,445>
LIQUIDITY (Times)
Cash Ratio	0.02	0.00
Liquid Ratio	0.94	0.72
Current Ratio	0.94	0.72
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	899	46
Creditors Ratio	1,156	0
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	35.22	15.72
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	0.23	0.13
PERFORMANCE RATIO (%)
Operating Profit Margin	5.76	<196.11>
Net Profit Margin	5.76	<196.11>
Return On Net Assets	44.74	<678.88>
Return On Capital Employed	44.74	<678.88>
Return On Shareholders' Funds/Equity	44.74	<678.88>
Dividend Pay Out Ratio (Times)	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.17
UK Pound	1	Rs.82.98
Euro	1	Rs.70.62

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%)

MIRA INFORM REPORT

Report Date :

26.04.2013

IDENTIFICATION DETAILS

Name :	STRONG FORCE (M) SDN. BHD.
Formerly Known As :	XFORCE TECHNOLOGY SDN. BHD.
Registered Office :	7, Jalan 20/12, 46300 Petaling Jaya, Selangor
Country :	Malaysia
Financials (as on) :	30.09.2011
Date of Incorporation :	02.07.2009
Com. Reg. No.:	862877-H
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Tenderers, Contractors and Sub-Contractors of and For all Kinds of Constructional, Structural. Civil Engineering, Electrical, Mechanical, Plumbing, Interior Decoration and Renovation
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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.	:	862877-H
COMPANY NAME	:	STRONG FORCE (M) SDN. BHD.
FORMER NAME	:	XFORCE TECHNOLOGY SDN. BHD. (16/10/2009)
INCORPORATION DATE	:	02/07/2009
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED (LIMITED BY SHARE)
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	7, JALAN 20/12, 46300 PETALING JAYA, SELANGOR, MALAYSIA.
BUSINESS ADDRESS	:	NO. 57-2, JALAN PUTERI 5/7, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.
TEL.NO.	:	03-80655228
FAX.NO.	:	03-80654228
EMAIL	:	INFOMALAYSIA@STRONGFORCE.COM
WEB SITE	:	WWW.STRONGFORCE.COM
CONTACT PERSON	:	LIM CHIN BENG ( MANAGING DIRECTOR )
INDUSTRY CODE	:	429
PRINCIPAL ACTIVITY	:	TENDERERS, CONTRACTORS AND SUB-CONTRACTORS OF AND FOR ALL KINDS OF CONSTRUCTIONAL, STRUCTURAL. CIVIL ENGINEERING, ELECTRICAL, MECHANICAL, PLUMBING, INTERIOR DECORATION AND RENOVATION
AUTHORISED CAPITAL	:	MYR 100,000.00 DIVIDED INTO ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 90,000.00 DIVIDED INTO ORDINARY SHARES 90,000 CASH OF MYR 1.00 EACH.
SALES	:	MYR 162,491 [2011]
NET WORTH	:	MYR 20,910 [2011]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	STABLE
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) tenderers, contractors and sub-contractors of and for all kinds of constructional, structural. civil engineering, electrical, mechanical, plumbing, interior decoration and renovation.

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	(%)
STRONGFORCE HOLDINGS PTY LTD	MLC CENTRE, SYDNEY, NSW, LEVEL 57, AUSTRALIA.	AU011026	58,500.00	65.00
TAIKO ODYSSEY SDN. BHD.	7, JALAN 20/12, 46300 PETALING JAYA, SELANGOR, MALAYSIA.	730728	31,500.00	35.00
			---------------	------
			90,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. LIM CHIN BENG
Address	:	10, JALAN SUNGAI RAMAL 32/55D, BUKIT RIMAU, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	621020-07-5395
Date of Birth	:	20/10/1962
Nationality	:	MALAYSIAN
Date of Appointment	:	02/07/2009

DIRECTOR 2

Name Of Subject	:	MR. GOH KENG HOCK
Address	:	168, JALAN PP1/3, TA,AN PUTRA PRIMA, 47100 PUCHONG, SELANGOR, MALAYSIA.
New IC No	:	631203-08-5667
Date of Birth	:	03/12/1963
Nationality	:	MALAYSIAN
Date of Appointment	:	10/05/2010

MANAGEMENT

1)	Name of Subject	:	LIM CHIN BENG
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	GOH KENG HOCK
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KCSM
Auditor' Address	:	15-5-1, GOMAS BUSINESS CENTRE, JALAN PJU 1/42A, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. YOW SOOK KHENG
	New IC No	:	710330-08-5542
	Address	:	7, JALAN 20/12, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

BANKING

No Banker found in our databank.

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.

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	:	AUSTRALIA INDIA VIETNAM
Credit Term	:	AS AGREED
Payment Mode	:	TELEGRAPHIC TRANSFER (TT) LETTER OF CREDIT (LC)

OPERATIONS

Services

:

CONSTRUCTION AND ENGINEERING SERVICES

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) tenderers, contractors and sub-contractors of and for all kinds of constructional, structural. civil engineering, electrical, mechanical, plumbing, interior decoration and renovation.

SC is engaged is construction and engineering services.

Services provided by SC are as below :

Engineering Services:

- Concept and preliminary design input

- Building analysis and design

- Design of post-tensioned foundation structures

- Value engineering to civil and commercial structures

- Alternative post tension and conventional reinforcement solutions

- Drafting and shop drawing services

- Cost-benefit analysis of various structural arrangements

- Structural feasibility studies

- Onsite supervision services

- Remedial Engineering

Construction Services:

- Supply of onsite project management and site supervision

- Supply of post tension labour

- Supply of post tension plant and materials

- Execution of post tension works complying to Strongforce QA/QC procedure

- Remedial works

Furthermore, SC also has its own system which is "StrongForce Slab Post Tensioning System" is used in a variety of residential and commercial structures. The system offers substantial savings over conventionally reinforced concrete in the areas of material reductions, installation costs and reduced construction time. Its also offers opportunities for much larger spans and significant performance benefits.

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	:	03-80655228
Match	:	N/A
Address Provided by Client	:	57/2 JALAN PUTERI PUCHONG 47/100 SELANGOR D ESHAN
Current Address	:	NO. 57-2, JALAN PUTERI 5/7, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from Admin Department and she provide us some information on SC.

The address provided is incomplete.

The SC refused to disclose its bankers and number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	306.23%	]
Profit/(Loss) Before Tax	:	Decreased	[	<111.93%>	]
Return on Shareholder Funds	:	Favourable	[	44.74%	]
Return on Net Assets	:	Favourable	[	44.74%	]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Unfavourable	[	899 Days	]
Creditors Ratio	:	Unfavourable	[	1156 Days	]
As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Acceptable	[	0.94 Times	]
Current Ratio	:	Unfavourable	[	0.94 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	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the SC's losses. 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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : STABLE

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2009	2010	2011	2012*	2013**
Population ( Million)	28.13	28.35	28.70	29.30	29.80
Gross Domestic Products ( % )	<0.5>	7.2	5.1	5.6	5.3
Domestic Demand ( % )	2.9	6.3	8.2	9.4	5.6
Private Expenditure ( % )	<2.7>	8.1	8.2	8.0	7.4
Consumption ( % )	0.7	6.7	7.1	1.0	5.7
Investment ( % )	<17.2>	17.7	12.2	11.7	13.3
Public Expenditure ( % )	5.2	3.8	8.4	13.3	1.2
Consumption ( % )	3.1	0.2	16.1	11.3	<1.2>
Investment ( % )	8.0	2.8	<0.3>	15.9	4.2
Balance of Trade ( MYR Million )	89,650	118,356	116,058	106,300	110,700
Government Finance ( MYR Million )	<28,450>	<40,482>	<45,511>	<42,297>	<39,993>
Government Finance to GDP / Fiscal Deficit ( % )	<4.8>	<5.6>	<5.4>	<4.5>	<4.0>
Inflation ( % Change in Composite CPI)	<5.2>	5.1	3.1	1.6	2.5
Unemployment Rate	4.5	3.9	3.3	3.2	3.0
Net International Reserves ( MYR Billion )	331	329	415	427	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	2.87	2.20	3.50	2.20	-
Average 3 Months of Non-performing Loans ( % )	11.08	15.30	14.80	14.70	-
Average Base Lending Rate ( % )	5.53	6.30	6.60	6.53	-
Business Loans Disbursed( % )	10.5	14.7	15.3	32.2	-
Foreign Investment ( MYR Million )	22,156.8	22,517.9	23,546.1	26,230.4	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	41,578	44,148	45,455	45,441	-
Registration of New Companies ( % )	<0.1>	6.2	3.0	<0.0>	-
Liquidation of Companies ( No. )	39,075	25,585	132,476	-	-
Liquidation of Companies ( % )	39.6	<34.5>	417.8	-	-
Registration of New Business ( No. )	312,581	271,414	284,598	324,761	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	19,345	19,738	20,121	-	-
Business Dissolved ( % )	2.4	2.0	1.9	-	-
Sales of New Passenger Cars (' 000 Unit )	486.3	543.6	535.1	552.2	-
Cellular Phone Subscribers ( Million )	30.1	32.8	35.3	38.5	-
Tourist Arrival ( Million Persons )	23.6	24.6	24.7	25.0	-
Hotel Occupancy Rate ( % )	58.0	63.0	60.6	62.4	-
Credit Cards Spending ( % )	12.8	14.1	15.6	12.6	-
Bad Cheque Offenders (No.)	36,667	33,568	32,627	26,982	-
Individual Bankruptcy ( No.)	16,228	18,119	19,167	19,575	-
Individual Bankruptcy ( % )	16.7	11.7	5.8	2.1	-

INDUSTRIES ( % of Growth ):	2009	2010	2011	2012*	2013**
Agriculture	0.4	2.1	5.9	0.6	2.4
Palm Oil	<1.1>	<3.4>	10.8	<2.8>	-
Rubber	<19.8>	9.9	6.1	<0.6>	-
Forestry & Logging	<5.9>	<3.3>	<7.6>	<2.2>	-
Fishing	5.5	5.6	2.1	<0.7>	-
Other Agriculture	9.0	7.9	7.1	6.4	-
Industry Non-Performing Loans ( MYR Million )	413.7	508.4	634.1	-	-
% of Industry Non-Performing Loans	1.3	2.1	3.2	-	-
Mining	<3.8>	0.2	<5.7>	1.5	2.7
Oil & Gas	2.1	0.5	<1.7>	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	44.2	49.7	46.5	-	-
% of Industry Non-performing Loans	0.1	0.1	0.1	-	-
Manufacturing #	<9.4>	11.4	4.7	4.2	4.9
Exported-oriented Industries	<19.0>	12.1	2.8	4.1	-
Electrical & Electronics	<30.3>	28.4	<4.9>	1.6	-
Rubber Products	<10.1>	25.3	15.4	3.6	-
Wood Products	<24.1>	20.1	<4.9>	4.6	-
Textiles & Apparel	<19.5>	<0.4>	14.8	<7.1>	-
Domestic-oriented Industries	<9.8>	16.3	6.5	8.6	-
Food, Beverages & Tobacco	0.2	3.0	4.2	-	-
Chemical & Chemical Products	<7.7>	16.2	5.5	9.9	-
Plastic Products	<9.1>	2.4	3.8	-	-
Iron & Steel	<32.7>	29.3	2.4	-	-
Fabricated Metal Products	<2.5>	14.9	25.2	-	-
Non-metallic Mineral	<15.5>	20.2	27.1	6.6	-
Transport Equipment	<13.5>	36.5	<10.4>	13.7	-
Paper & Paper Products	<5.0>	18.7	14.8	<7.8>	-
Crude Oil Refineries	0.2	<11.4>	9.3	-	-
Industry Non-Performing Loans ( MYR Million )	6,007.3	6,217.5	6,537.2	-	-
% of Industry Non-Performing Loans	18.3	23.8	25.7	-	-
Construction	5.8	5.1	4.4	15.5	11.2
Industry Non-Performing Loans ( MYR Million )	3,241.8	4,038.5	3,856.9	-	-
% of Industry Non-Performing Loans	9.9	10.7	10.2	-	-
Services	2.6	6.5	6.4	5.5	5.6
Electric, Gas & Water	0.4	8.5	5.6	4.8	-
Transport, Storage & Communication	1.6	7.7	6.5	7.3	-
Wholesale, Retail, Hotel & Restaurant	2.8	4.7	5.2	6.9	-
Finance, Insurance & Real Estate	3.8	6.1	6.3	6.5	-
Government Services	2.0	6.7	7.6	5.6	-
Other Services	4.4	4.2	5.4	5.7	-
Industry Non-Performing Loans ( MYR Million )	6,631.3	7,384.6	6,825.2	-	-
% of Industry Non-Performing Loans	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
429 : Construction of other civil engineering projects
INDUSTRY :	CONSTRUCTION
The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth.
Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.
The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's economy but the construction sector's contribution to GDP could still remain stable. However, while the construction sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labourers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the government to do more to facilitate the training of building workers or run the risk of supply-side bottlenecks delaying new projects.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2009, the SC is a Private Limited company, focusing on tenderers, contractors and sub-contractors of and for all kinds of constructional, structural. civil engineering, electrical, mechanical, plumbing, interior decoration and renovation. The SC has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment. Presently, issued and paid up capital of the SC stand at MYR 90,000.

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. 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business.

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth .

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 very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.

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

PROFIT AND LOSS ACCOUNT

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

STRONG FORCE (M) SDN. BHD.

Financial Year End	30/09/2011	30/09/2010
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	162,491	40,000
	----------------	----------------
Total Turnover	162,491	40,000
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	9,355	<78,445>
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	9,355	<78,445>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	9,355	<78,445>
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	<78,445>	-
	----------------	----------------
As restated	<78,445>	-
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	<69,090>	<78,445>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	<69,090>	<78,445>
	=============	=============

BALANCE SHEET

STRONG FORCE (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	63,962	63,158
	----------------	----------------
TOTAL LONG TERM ASSETS	63,962	63,158
CURRENT ASSETS
Trade debtors	400,412	5,000
Other debtors, deposits & prepayments	86,124	125,094
Cash & bank balances	18,395	-
Amount owing by customer	188,521	-
	----------------	----------------
TOTAL CURRENT ASSETS	693,452	130,094
	----------------	----------------
TOTAL ASSET	757,414	193,252
	=============	=============
CURRENT LIABILITIES
Trade creditors	514,545	-
Other creditors & accruals	43,903	20,413
Deposits from customers	10,760	-
Amounts owing to holding company	161,284	161,284
Amounts owing to director	6,012	-
	----------------	----------------
TOTAL CURRENT LIABILITIES	736,504	181,697
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	<43,052>	<51,603>
	----------------	----------------
TOTAL NET ASSETS	20,910	11,555
	=============	=============
SHARE CAPITAL
Ordinary share capital	90,000	90,000
	----------------	----------------
TOTAL SHARE CAPITAL	90,000	90,000
RESERVES
Retained profit/(loss) carried forward	<69,090>	<78,445>
	----------------	----------------
TOTAL RESERVES	<69,090>	<78,445>
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	20,910	11,555
	----------------	----------------
	20,910	11,555
	=============	=============

FINANCIAL RATIO

STRONG FORCE (M) SDN. BHD.

TYPES OF FUNDS
Cash	18,395	0
Net Liquid Funds	18,395	0
Net Liquid Assets	<43,052>	<51,603>
Net Current Assets/(Liabilities)	<43,052>	<51,603>
Net Tangible Assets	20,910	11,555
Net Monetary Assets	<43,052>	<51,603>
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	736,504	181,697
Total Assets	757,414	193,252
Net Assets	20,910	11,555
Net Assets Backing	20,910	11,555
Shareholders' Funds	20,910	11,555
Total Share Capital	90,000	90,000
Total Reserves	<69,090>	<78,445>
LIQUIDITY (Times)
Cash Ratio	0.02	0.00
Liquid Ratio	0.94	0.72
Current Ratio	0.94	0.72
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	899	46
Creditors Ratio	1,156	0
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	35.22	15.72
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	0.23	0.13
PERFORMANCE RATIO (%)
Operating Profit Margin	5.76	<196.11>
Net Profit Margin	5.76	<196.11>
Return On Net Assets	44.74	<678.88>
Return On Capital Employed	44.74	<678.88>
Return On Shareholders' Funds/Equity	44.74	<678.88>
Dividend Pay Out Ratio (Times)	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.17
UK Pound	1	Rs.82.98
Euro	1	Rs.70.62

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.