MIRA INFORM REPORT

Report Date :

10.12.2013

IDENTIFICATION DETAILS

Name :	COLFORM SDN. BHD.
Registered Office :	Lot 164, Lorong Sedco 8, Sedco Light Industrial Estate, Off Mile 2 1/2, Jalan Utara, P O Box 1166, 90713 Sandakan, Sabah
Country :	Malaysia
Financials (as on) :	31.12.2012
Date of Incorporation :	11.02.2003
Com. Reg. No.:	605945-H
Legal Form :	Private Limited Company
Line of Business :	manufacturer and supplier of steel roofing, steel cladding and other related steel products
No. of Employees :	Not Available

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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.	:	605945-H
COMPANY NAME	:	COLFORM SDN. BHD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	11/02/2003
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	LOT 164, LORONG SEDCO 8, SEDCO LIGHT INDUSTRIAL ESTATE, OFF MILE 2 1/2, JALAN UTARA, P O BOX 1166, 90713 SANDAKAN, SABAH, MALAYSIA.
BUSINESS ADDRESS	:	LOT 164, LORONG SEDCO 8, SEDCO LIGHT INDUSTRIAL ESTATE, OFF MILE 2 1/2, JALAN UTARA, P O BOX 1166, 90713 SANDAKAN, SABAH, MALAYSIA.
TEL.NO.	:	089-238833
FAX.NO.	:	089-272829
WEB SITE	:	WWW.COLFORM.COM.MY
CONTACT PERSON	:	KANG AH HIN ( DIRECTOR )
INDUSTRY CODE	:	23953
PRINCIPAL ACTIVITY	:	MANUFACTURING AND TRADING OF ROOFING MATERIALS
AUTHORISED CAPITAL	:	MYR 500,000.00 DIVIDED INTO  ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 500,000.00 DIVIDED INTO  ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.
SALES	:	MYR 35,317,396 [2012]
NET WORTH	:	MYR 28,956,369 [2012]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
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) manufacturing and trading of roofing materials.

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

The immediate holding company of the SC is KANG MING TRADING SDN BHD, a company incorporated in MALAYSIA.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
KANG MING TRADING SDN BHD	LOT 9 & 10, BLOCK E, BANDAR RAMAI-RAMAI, GROUND FLOOR, 90000 SANDAKAN, SABAH, MALAYSIA.	76847A	350,000.00	70.00
ATAS ABADI SDN BHD	WISMA CITY TOP, LORONG BURUNG KELETO, MILE 5 1/2, JALAN TUARAN, 88450 KOTA KINABALU, SABAH, MALAYSIA.	483056X	150,000.00	30.00
			---------------	------
			500,000.00	100.00
			============	=====

+ Also Director

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
859915H	MALAYSIA	COLFORM STEEL SDN. BHD.	100.00	29/03/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. KANG AH HIN
Address	:	DETACHED HOUSE, LOT 37, LORONG 5, TAMAN SENTOSA, MILE 2 1/2, LABUK ROAD, 90000 SANDAKAN, SABAH, MALAYSIA.
New IC No	:	521120-09-5037
Date of Birth	:	20/11/1952
Nationality	:	MALAYSIAN
Date of Appointment	:	10/03/2003

DIRECTOR 2

Name Of Subject	:	MR. KANG KET HUNG
Address	:	DETACHED HOUSE LOT 37, TAMAN SENTOSA, MILE 2 1/2, LABUK ROAD, 90000 SANDAKAN, SABAH, MALAYSIA.
New IC No	:	811018-12-5303
Date of Birth	:	18/10/1981
Nationality	:	MALAYSIAN
Date of Appointment	:	10/03/2003

MANAGEMENT

1)	Name of Subject	:	KANG AH HIN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG
Auditor' Address	:	LOT 3, BLOCK 16, LORONG BANDAR INDAH 4, BANDAR INDAH, NORTH ROAD, P O BOX 654, 90707 SANDAKAN, SABAH, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. TEO GIM SUAN
	IC / PP No	:	6994094
	New IC No	:	630323-04-5374
	Address	:	TL 435, MILE 1 1/2, BEATRICE ESTATE, LABUK ROAD, P O BOX 2881, 90732 SANDAKAN, SABAH, MALAYSIA.

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	25/09/2004	N/A	RHB BANK BERHAD	MYR 700,000.00	Unsatisfied
2	04/05/2007	N/A	UNITED OVERSEAS BANK (MALAYSIA) BHD	N/A	Unsatisfied
3	28/06/2012	N/A	AMISLAMIC BANK BERHAD	MYR 4,671,360.00	Unsatisfied
4	11/09/2012	N/A	PUBLIC BANK BHD	MYR 1,350,000.00	Unsatisfied

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank against 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. 

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	:	N/A
Overseas	:	N/A

The SC refused to disclose its clientele. 

OPERATIONS

Products manufactured

:

ROOFING MATERIALS

Award

:

1 ) ENTERPRISE 50 AWARD Year :2009

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) manufacturing and trading of roofing materials. 

The SC is an established local manufacturing company that has been in roofing business

The SC is principally in the manufacture and supply of steel roofing, steel cladding and other related steel products in Sabah with more than ten production lines. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	089-238833
Match	:	N/A
Address Provided by Client	:	P.O. BOX 1166, 90713 SANDAKAN, SABAH, MALAYSIA
Current Address	:	LOT 164, LORONG SEDCO 8, SEDCO LIGHT INDUSTRIAL ESTATE, OFF MILE 2 1/2, JALAN UTARA, P O BOX 1166, 90713 SANDAKAN, SABAH, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

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

The address provided is incomplete.

The SC refused to disclose its number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2008 - 2012	]
Profit/(Loss) Before Tax	:	Increased	[	2008 - 2012	]
Return on Shareholder Funds	:	Acceptable	[	17.71%	]
Return on Net Assets	:	Acceptable	[	21.24%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Unfavourable	[	68 Days	]
Debtor Ratio	:	Unfavourable	[	84 Days	]
Creditors Ratio	:	Favourable	[	55 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 where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	3.10 Times	]
Current Ratio	:	Favourable	[	4.17 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	135.03 Times	]
Gearing Ratio	:	Favourable	[	0.13 Times	]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : STRONG

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	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
23953 : Manufacture of prefabricated structural components for building or civil engineering of cement, concrete or artificial stone
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 supplyside bottlenecks delaying new projects.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2003, the SC is a Private Limited company, focusing on manufacturing and trading of roofing materials. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 

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. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to 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. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 28,956,369, 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. 

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. 

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

PROFIT AND LOSS ACCOUNT

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

COLFORM SDN. BHD.

Financial Year End	2012-12-31	2011-12-31	2010-12-31	2009-12-31	2008-12-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	SUMMARY	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	35,317,396	26,600,443	29,044,221	23,992,643	23,343,960
	----------------	----------------	----------------	----------------	----------------
Total Turnover	35,317,396	26,600,443	29,044,221	23,992,643	23,343,960
Costs of Goods Sold	<26,996,190>	<20,670,377>	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	8,321,206	5,930,066	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	6,752,850	4,932,579	7,608,910	6,408,025	5,000,752
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	6,752,850	4,932,579	7,608,910	6,408,025	5,000,752
Taxation	<1,623,800>	<565,250>	<1,903,250>	<1,573,100>	<1,201,900>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	5,129,050	4,367,329	5,705,660	4,834,925	3,798,852
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	23,627,319	19,259,990	13,654,330	8,819,405	5,220,353
	----------------	----------------	----------------	----------------	----------------
As restated	23,627,319	19,259,990	13,654,330	8,819,405	5,220,353
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	28,756,369	23,627,319	19,359,990	13,654,330	9,019,205
DIVIDENDS - Ordinary (paid & proposed)	<300,000>	-	<100,000>	-	<199,800>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	28,456,369	23,627,319	19,259,990	13,654,330	8,819,405
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	50,383	9,382	-	-	-
	----------------	----------------
	50,383	9,382

BALANCE SHEET

COLFORM SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	12,427,497	10,665,647	4,945,168	3,402,104	1,927,857
LONG TERM INVESTMENTS/OTHER ASSETS
Associated companies	21	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	21	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	12,427,518	10,665,647	4,945,168	3,402,104	1,927,857
CURRENT ASSETS
Short term quoted/unquoted investments	-	41,634	-	-	-
Stocks	6,591,731	7,365,676	-	-	-
Trade debtors	8,081,703	6,053,143	-	-	-
Other debtors, deposits & prepayments	1,880,457	570,252	-	-	-
Short term deposits	305,527	301,818	-	-	-
Amount due from holding company	1,381,880	1,250,876	-	-	-
Amount due from associated companies	4,950,923	-	-	-	-
Cash & bank balances	2,606,181	1,312,840	-	-	-
Others	-	693,873	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	25,798,402	17,590,112	15,725,835	13,162,139	8,856,739
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	38,225,920	28,255,759	20,671,003	16,564,243	10,784,596
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	4,036,085	2,808,552	-	-	-
Other creditors & accruals	524,177	977,888	-	-	-
Hire purchase & lease creditors	154,517	-	-	-	-
Bank overdraft	100,780	-	-	-	-
Short term borrowings/Term loans	700,000	-	-	-	-
Provision for taxation	673,124	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	6,188,683	3,786,440	688,863	2,280,613	1,278,868
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	19,609,719	13,803,672	15,036,972	10,881,526	7,577,871
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	32,037,237	24,469,319	19,982,140	14,283,630	9,505,728
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	500,000	500,000	500,000	500,000	500,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	500,000	500,000	500,000	500,000	500,000
RESERVES
Retained profit/(loss) carried forward	28,456,369	23,627,319	19,259,990	13,654,330	8,819,405
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	28,456,369	23,627,319	19,259,990	13,654,330	8,819,405
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	28,956,369	24,127,319	19,759,990	14,154,330	9,319,405
LONG TERM LIABILITIES
Long term loans	2,566,667	-	-	-	-
Hire purchase creditors	239,301	-	-	-	-
Deferred taxation	274,900	342,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	3,080,868	342,000	222,150	129,300	186,323
	----------------	----------------	----------------	----------------	----------------
	32,037,237	24,469,319	19,982,140	14,283,630	9,505,728
	=============	=============	=============	=============	=============

FINANCIAL RATIO

COLFORM SDN. BHD.

TYPES OF FUNDS
Cash	2,911,708	1,614,658	-	-	-
Net Liquid Funds	2,810,928	1,614,658	-	-	-
Net Liquid Assets	13,017,988	6,437,996	15,036,972	10,881,526	7,577,871
Net Current Assets/(Liabilities)	19,609,719	13,803,672	15,036,972	10,881,526	7,577,871
Net Tangible Assets	32,037,237	24,469,319	19,982,140	14,283,630	9,505,728
Net Monetary Assets	9,937,120	6,095,996	14,814,822	10,752,226	7,391,548
BALANCE SHEET ITEMS
Total Borrowings	3,761,265	0	-	-	-
Total Liabilities	9,269,551	4,128,440	911,013	2,409,913	1,465,191
Total Assets	38,225,920	28,255,759	20,671,003	16,564,243	10,784,596
Net Assets	32,037,237	24,469,319	19,982,140	14,283,630	9,505,728
Net Assets Backing	28,956,369	24,127,319	19,759,990	14,154,330	9,319,405
Shareholders' Funds	28,956,369	24,127,319	19,759,990	14,154,330	9,319,405
Total Share Capital	500,000	500,000	500,000	500,000	500,000
Total Reserves	28,456,369	23,627,319	19,259,990	13,654,330	8,819,405
LIQUIDITY (Times)
Cash Ratio	0.47	0.43	-	-	-
Liquid Ratio	3.10	2.70	-	-	-
Current Ratio	4.17	4.65	22.83	5.77	6.93
WORKING CAPITAL CONTROL (Days)
Stock Ratio	68	101	-	-	-
Debtors Ratio	84	83	-	-	-
Creditors Ratio	55	50	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.13	0.00	-	-	-
Liabilities Ratio	0.32	0.17	0.05	0.17	0.16
Times Interest Earned Ratio	135.03	526.75	-	-	-
Assets Backing Ratio	64.07	48.94	39.96	28.57	19.01
PERFORMANCE RATIO (%)
Operating Profit Margin	19.12	18.54	26.20	26.71	21.42
Net Profit Margin	14.52	16.42	19.64	20.15	16.27
Return On Net Assets	21.24	20.20	38.08	44.86	52.61
Return On Capital Employed	21.07	20.20	38.08	44.86	52.61
Return On Shareholders' Funds/Equity	17.71	18.10	28.87	34.16	40.76
Dividend Pay Out Ratio (Times)	0.06	0.00	0.02	-	0.05
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.79
UK Pound	1	Rs.100.01
Euro	1	Rs.83.82

INFORMATION DETAILS

Report Prepared by :

MNL

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.