MIRA INFORM REPORT

Report Date :

29.06.2013

IDENTIFICATION DETAILS

Name :	ALFA-LAVAL (MALAYSIA) SDN BHD
Formerly Known As :	ALFA-LAVAL FAR EAST SDN BHD (20/12/1980)
Registered Office :	Lot 4, Jalan Angerik Mokara 31/54, Kota Kemuning, Seksyen 31, 40460 Shah Alam, Selangor
Country :	Malaysia
Financials (as on) :	31.12.2011
Date of Incorporation :	20.06.1969
Com. Reg. No.:	8682-H
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Trading In Plant, Equipment and Spare Parts and The Provision of Installation and Support Services
No. of Employees :	70 [2013]

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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.

:

8682-H

COMPANY NAME

:

ALFA-LAVAL (MALAYSIA) SDN BHD

FORMER NAME

:

ALFA-LAVAL FAR EAST SDN BHD (20/12/1980)

INCORPORATION DATE

:

20/06/1969

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 4, JALAN ANGERIK MOKARA 31/54, KOTA KEMUNING, SEKSYEN 31, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2.23, JALAN SU 7, PERINDUSTRIAN SUBANG UTAMA, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51912300

FAX.NO.

:

03-51915682

CONTACT PERSON

:

DANIEL NG ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46531

PRINCIPAL ACTIVITY

:

TRADING IN PLANT,EQUIPMENT AND SPARE PARTS AND THE PROVISION OF INSTALLATION AND SUPPORT SERVICES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000.00 OF MYR 100.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000 CASH AND 9,000 OTHERWISE OF MYR 100.00 EACH.

SALES

:

MYR 178,847,678 [2011]

NET WORTH

:

MYR 35,011,868 [2011]

STAFF STRENGTH

:

70 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) trading in plant,equipment and spare parts and the provision of installation and support services.

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

The immediate holding company of the SC is ALFA LAVAL CORPORATE AB, a company incorporated in SWEDEN.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
ALFA LAVAL CORPORATE AB	ZONNEBAAN 1, 1606 CG MAARSSEN, THE NETHERLANDS	XLZ000018225	10,000.00	100.00
			---------------	------
			10,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. DANIEL NG TECK CHONG
Address	:	NO. 19 JALAN SUNGAI MERBAU 32/77, BUKIT KEMUNING, SEKSYEN 32, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	690727-01-5109
Date of Birth	:	27/07/1969
Nationality	:	MALAYSIAN
Date of Appointment	:	01/01/2010

DIRECTOR 2

Name Of Subject	:	MR. RAYMOND JOHN FIELD
Address	:	41D, HA CHE TSUEN, PAT HUENG, YUEN LONG N.T, HONG KONG.
IC / PP No	:	LT0005135
Nationality	:	IRISH
Date of Appointment	:	06/01/2005

DIRECTOR 3

Name Of Subject	:	MS. WAN CHUI KHENG
Address	:	NO.63, JALAN USJ 11/4L, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.
New IC No	:	691116-10-6014
Date of Birth	:	16/11/1969
Nationality	:	MALAYSIAN
Date of Appointment	:	30/04/2012

MANAGEMENT

1)	Name of Subject	:	DANIEL NG
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	SOON BEE PENG
	Position	:	ACCOUNT MANAGER

AUDITOR

Auditor	:	ERNST & YOUNG
Auditor' Address	:	LEVEL 23A, MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. CHEN BEE LING
	IC / PP No	:	A2824767
	New IC No	:	740719-06-5256
	Address	:	B-3-3A, PANGSAPURI IMPIAN, OFF JALAN PIPIT, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

2)	Company Secretary	:	MS. CHIN NGEOK MUI
	IC / PP No	:	7311328
	New IC No	:	640423-10-7826
	Address	:	3, JALAN IBU KOTA EMPAT, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

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	:	YES
Overseas	:	YES

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

AGRICULTURAL AND INDUSTRIAL EQUIPMENT AND RELATED SPARE PARTS

Member(s) / Affiliate(s)

:

MALAYSIA LOGISTICS INDUSTRY

Ownership of premises

:

LEASED/RENTED

Total Number of Employees:
YEAR	2013	2012	2011	2010	2009
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	70	70	70	70	70

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading in plant,equipment and spare parts and the provision of installation and support services.

Alfa Laval focuses on energy optimization, environmental protection and food production through its technological leadership in heat transfer, separation and fluid handling.

The SC also provides repair and maintenance services for the equipments.

PROJECTS

No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	60 3 5191 2300
Current Telephone Number	:	03-51912300
Match	:	YES
Address Provided by Client	:	LOT 2-23 JALAN SU7, PERINDUSTRIAN SUBANG UTAMA 40000 SHAH ALAM, SELANGOR DARUL
Current Address	:	LOT 2.23, JALAN SU 7, PERINDUSTRIAN SUBANG UTAMA, 40000 SHAH ALAM, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

On 25th June 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2007 - 2011	]
Profit/(Loss) Before Tax	:	Increased	[	2007 - 2011	]
Return on Shareholder Funds	:	Favourable	[	52.22%	]
Return on Net Assets	:	Favourable	[	68.61%	]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. 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.
Liquidity
Current Ratio	:	Favourable	[	1.66 Times	]
The SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.
Solvency
Liability Ratio	:	Unfavourable	[	1.66 Times	]
The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and profit. 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. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
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
46531 : Wholesale of agricultural machinery, equipment and supplies
INDUSTRY :	MACHINERY
Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.
Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.
Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia. Exports of machinery and equipment registered a double-digit growth of 12.6% in the frst seven month of 2012 mainly driven by general industrial machinery and equipment as well as specialised machinery for specific industries.
For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1969, the SC is a Private Limited company, focusing on trading in plant, equipment and spare parts and the provision of installation and support services. Its long establishment in the market has allowed the SC to build up a good reputation and gain higher market share against its rivals. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

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. Being a moderate size company, the SC has a total workforce of 70 employees in its business operations. Overall, we regard that the SC's management capability is good.

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 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. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Nevertheless, given a positive net worth standing at MYR 35,011,868, 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 supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

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)

ALFA-LAVAL (MALAYSIA) SDN BHD

Financial Year End	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	SUMMARY	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	178,847,678	166,218,573	152,757,628	139,399,197	142,559,670
	----------------	----------------	----------------	----------------	----------------
Total Turnover	178,847,678	166,218,573	152,757,628	139,399,197	142,559,670
Costs of Goods Sold	-	<125,564,359>	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	-	40,654,214	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	25,852,956	22,030,220	30,772,968	23,427,995	25,713,672
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	25,852,956	22,030,220	30,772,968	23,427,995	25,713,672
Taxation	<7,569,004>	<5,619,029>	<7,541,083>	<5,910,283>	<6,865,000>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	18,283,952	16,411,191	23,231,885	17,517,712	18,848,672
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	31,727,916	27,316,725	21,084,840	29,567,128	20,718,456
	----------------	----------------	----------------	----------------	----------------
As restated	31,727,916	27,316,725	21,084,840	29,567,128	20,718,456
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	50,011,868	43,727,916	44,316,725	47,084,840	39,567,128
DIVIDENDS - Ordinary (paid & proposed)	<16,000,000>	<12,000,000>	<17,000,000>	<26,000,000>	<10,000,000>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	34,011,868	31,727,916	27,316,725	21,084,840	29,567,128
	=============	=============	=============	=============	=============

BALANCE SHEET

ALFA-LAVAL (MALAYSIA) SDN BHD

ASSETS EMPLOYED:
FIXED ASSETS	977,924	544,230	632,563	833,439	1,092,714
LONG TERM INVESTMENTS/OTHER ASSETS
Deferred assets	-	3,482,000	4,390,000	3,560,609	2,678,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	-	3,482,000	4,390,000	3,560,609	2,678,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	977,924	4,026,230	5,022,563	4,394,048	3,770,714
CURRENT ASSETS
Stocks	-	16,660,570	24,930,875	14,508,314	8,190,759
Trade debtors	-	25,499,692	19,184,609	29,672,246	13,159,735
Other debtors, deposits & prepayments	-	2,485,030	2,201,470	3,089,142	2,292,781
Short term deposits	-	10,132,905	2,764,107	4,343,492	8,130,000
Amount due from related companies	-	20,809,786	20,601,927	21,553,433	32,017,905
Cash & bank balances	-	5,292,963	3,174,486	6,325,781	2,148,088
Others	-	4,035,495	618,406	1,809,791	1,212,146
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	92,081,335	84,916,441	73,475,880	81,302,199	67,151,414
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	93,059,259	88,942,671	78,498,443	85,696,247	70,922,128
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	-	21,144,883	21,478,297	20,767,809	11,033,629
Other creditors & accruals	-	16,286,113	13,957,726	1,790,173	1,543,157
Amounts owing to related companies	-	14,168,903	9,719,332	17,105,540	14,281,683
Provision for taxation	-	-	-	54,612	2,382,140
Other liabilities	-	4,614,856	5,026,363	23,893,273	11,114,391
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	55,378,391	56,214,755	50,181,718	63,611,407	40,355,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	36,702,944	28,701,686	23,294,162	17,690,792	26,796,414
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	37,680,868	32,727,916	28,316,725	22,084,840	30,567,128
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
RESERVES
Retained profit/(loss) carried forward	34,011,868	31,727,916	27,316,725	21,084,840	29,567,128
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	34,011,868	31,727,916	27,316,725	21,084,840	29,567,128
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	35,011,868	32,727,916	28,316,725	22,084,840	30,567,128
LONG TERM LIABILITIES
TOTAL LONG TERM LIABILITIES	2,669,000	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
	37,680,868	32,727,916	28,316,725	22,084,840	30,567,128
	=============	=============	=============	=============	=============

FINANCIAL RATIO

ALFA-LAVAL (MALAYSIA) SDN BHD

TYPES OF FUNDS
Cash	-	15,425,868	5,938,593	10,669,273	10,278,088
Net Liquid Funds	-	15,425,868	5,938,593	10,669,273	10,278,088
Net Liquid Assets	36,702,944	12,041,116	<1,636,713>	3,182,478	18,605,655
Net Current Assets/(Liabilities)	36,702,944	28,701,686	23,294,162	17,690,792	26,796,414
Net Tangible Assets	37,680,868	32,727,916	28,316,725	22,084,840	30,567,128
Net Monetary Assets	34,033,944	12,041,116	<1,636,713>	3,182,478	18,605,655
BALANCE SHEET ITEMS
Total Borrowings	-	0	0	0	0
Total Liabilities	58,047,391	56,214,755	50,181,718	63,611,407	40,355,000
Total Assets	93,059,259	88,942,671	78,498,443	85,696,247	70,922,128
Net Assets	37,680,868	32,727,916	28,316,725	22,084,840	30,567,128
Net Assets Backing	35,011,868	32,727,916	28,316,725	22,084,840	30,567,128
Shareholders' Funds	35,011,868	32,727,916	28,316,725	22,084,840	30,567,128
Total Share Capital	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
Total Reserves	34,011,868	31,727,916	27,316,725	21,084,840	29,567,128
LIQUIDITY (Times)
Cash Ratio	-	0.27	0.12	0.17	0.25
Liquid Ratio	-	1.21	0.97	1.05	1.46
Current Ratio	1.66	1.51	1.46	1.28	1.66
WORKING CAPITAL CONTROL (Days)
Stock Ratio	-	37	60	38	21
Debtors Ratio	-	56	46	78	34
Creditors Ratio	-	61	51	54	28
SOLVENCY RATIOS (Times)
Gearing Ratio	-	0.00	0.00	0.00	0.00
Liabilities Ratio	1.66	1.72	1.77	2.88	1.32
Times Interest Earned Ratio	-	0.00	0.00	0.00	0.00
Assets Backing Ratio	37.68	32.73	28.32	22.08	30.57
PERFORMANCE RATIO (%)
Operating Profit Margin	14.46	13.25	20.14	16.81	18.04
Net Profit Margin	10.22	9.87	15.21	12.57	13.22
Return On Net Assets	68.61	67.31	108.67	106.08	84.12
Return On Capital Employed	68.61	67.31	108.67	106.08	84.12
Return On Shareholders' Funds/Equity	52.22	50.14	82.04	79.32	61.66
Dividend Pay Out Ratio (Times)	0.88	0.73	0.73	1.48	0.53
NOTES TO ACCOUNTS
Contingent Liabilities	-	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.69
UK Pound	1	Rs.91.14
Euro	1	Rs.77.97

INFORMATION DETAILS

Report Prepared by :

NLM

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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