MIRA INFORM REPORT

Report Date :

20.12.2014

IDENTIFICATION DETAILS

Name :	CIVIC TAI MANUFACTURING SDN. BHD.

Registered Office :	46 ,Jalan Arab, 1st Floor, 84000 Muar, Johor

Country :	Malaysia

Financials (as on) :	28.02.2013

Date of Incorporation :	09.12.2000

Com. Reg. No.:	534389-T

Legal Form :	Private Limited

Line of Business :	Manufacturer Of Furniture Products.

No of Employees :	80 [2014]

RATING & COMMENTS

MIRA’s Rating :

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 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Malaysia

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

534389-T

COMPANY NAME

CIVIC TAI MANUFACTURING SDN. BHD.

FORMER NAME

N/A

INCORPORATION DATE

09/12/2000

COMPANY STATUS

EXIST

LEGAL FORM

PRIVATE LIMITED

LISTED STATUS

REGISTERED ADDRESS

46 ,JALAN ARAB, 1ST FLOOR, 84000 MUAR, JOHOR, MALAYSIA.

BUSINESS ADDRESS

LOT 5299, BATU 7 1/2, JALAN BAKRI, 84200 MUAR, JOHOR, MALAYSIA.

TEL.NO.

06-9868781

FAX.NO.

06-9868805

INFO@CIVICTAIFURNITURE.COM

WEB SITE

WWW.CIVICTAIFURNITURE.COM

CONTACT PERSON

WU,CHIH-CHIEN ( MANAGING DIRECTOR )

INDUSTRY CODE

PRINCIPAL ACTIVITY

MANUFACTURER OF FURNITURE PRODUCTS

AUTHORISED CAPITAL

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

ISSUED AND PAID UP CAPITAL

MYR 2,050,000.00 DIVIDED INTO
ORDINARY SHARES 1,330,000 CASH AND 720,000 OTHERWISE OF MYR 1.00 EACH.

SALES

MYR 14,105,319 [2013]

NET WORTH

MYR 4,471,690 [2013]

STAFF STRENGTH

80 [2014]

BANKER (S)

OCBC BANK (MALAYSIA) BHD

LITIGATION

CLEAR

DEFAULTER CHECK

CLEAR

FINANCIAL CONDITION

STRONG

PAYMENT

AVERAGE

MANAGEMENT CAPABILITY

AVERAGE

COMMERCIAL RISK

LOW

CURRENCY EXPOSURE

MODERATE

GENERAL REPUTATION

SATISFACTORY

INDUSTRY OUTLOOK

MARGINAL GROWTH

HISTORY / BACKGROUND

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacturer of furniture products.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
31/08/2013	MYR 5,000,000.00	MYR 2,050,000.00
22/07/2005	MYR 5,000,000.00	MYR 2,000,000.00
19/05/2003	MYR 5,000,000.00	MYR 1,280,000.00
25/07/2001	MYR 500,000.00	MYR 250,000.00
27/02/2001	MYR 500,000.00	MYR 100,000.00
09/12/2000	MYR 500,000.00	MYR 3.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. WU, CHIH-CHIEN +	LOT 5299-1, BATU 7 1/2, JALAN BAKRI, 84200 MUAR, JOHOR, MALAYSIA.	135039003	806,250.00	39.33
WU, CHIA-EN +	LOT 5299-1, BATU 7 1/2, JALAN BAKRI, JOHOR, MALAYSIA.	132010595	806,250.00	39.33
CHANG, HSU-CHUNG +	LOT 5299-1, BATU 7 1/2, JALAN BAKRI, JOHOR, MALAYSIA.	133933675	437,500.00	21.34
			---------------	------
			2,050,000.00	100.00
			============	=====

DIRECTORS

DIRECTOR 1

Name Of Subject	:	CHANG, HSU-CHUNG
Address	:	LOT 5299-1, BATU 7 1/2, JALAN BAKRI, JOHOR, MALAYSIA.
IC / PP No	:	133933675



Nationality	:	CHINESE
Date of Appointment	:	15/05/2003

DIRECTOR 2

Name Of Subject	:	WU, CHIA-EN
Address	:	LOT 5299-1, BATU 7 1/2, JALAN BAKRI, JOHOR, MALAYSIA.
IC / PP No	:	132010595



Nationality	:	CHINESE
Date of Appointment	:	09/10/2001

DIRECTOR 3

Name Of Subject	:	MR. WU, CHIH-CHIEN
Address	:	LOT 5299-1, BATU 7 1/2, JALAN BAKRI, 84200 MUAR, JOHOR, MALAYSIA.
IC / PP No	:	135039003



Nationality	:	CHINESE
Date of Appointment	:	09/12/2000

MANAGEMENT

1)	Name of Subject	:	WU,CHIH-CHIEN
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	TCMK ASSOCIATED
Auditor' Address	:	48, JALAN ARAB, 1ST FLOOR, 84000 MUAR, JOHOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. TAN WEI CHUAN
	IC / PP No	:	5974398
	New IC No	:	600824-01-5491
	Address	:	72-5, JALAN JUNID, 84000 MUAR, JOHOR, MALAYSIA.



2)	Company Secretary	:	MR. GOH THIAN SOO
	IC / PP No	:	2238498
	New IC No	:	360608-01-5067
	Address	:	10-2, JALAN DATO HAJI HASSAN, 84000 MUAR, JOHOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

Name

OCBC BANK (MALAYSIA) BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	14/10/2011	CASH-BACKED FOREX FORWARD LINE APPLICATION	OCBC BANK (MALAYSIA) BERHAD	-	Unsatisfied
2	27/06/2013	JOINT AND SEVERAL GUARANTEE	HSBC BANK MALAYSIA BERHAD	MYR 1,000,000.00	Unsatisfied

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank againt the Subject 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 SUBJECT

* We have checked through the Subject 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.

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

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The Subject 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

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

CLIENTELE

Local	:	YES	Percentage	:	10%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	90%
Export Market	:	WORLDWIDE
Credit Term	:	N/A

Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

TABLE TOP, WOODEN DINING FURNITURE

Competitor(s)

ATRINA (M) SDN BHD
BAN LENG FIBRE SDN BHD
CORINTHIAN INDUSTRIES (ASIA) SDN BHD
EVERFINE POLYESTER INDUSTRIES SDN BHD
SUTRASEGI SDN BHD

Member(s) / Affiliate(s)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA FURNITURE INDUSTRY

Total Number of Employees:
YEAR	2014	2013
GROUP	N/A	N/A
COMPANY	80	70

Branch

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturer of furniture products.

The Subject's Furnitures are from different Wood Spices ( Rubber Wood , MDF, Veneer etc ) in C.K.D ( Complete Knock Down ) or semi Knock Down in Flat Pack form.

The products are rRanging from Tile Top Dining Set , Wooden dining set , Occasional Set , TV unit, Buffet & Hutch

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	06-9868781
Match	:	N/A

Address Provided by Client	:	LOT 5299, BATU 7 1/2, JALAN BAKRI,84200,MUAR,JOHOR.
Current Address	:	LOT 5299, BATU 7 1/2, JALAN BAKRI, 84200 MUAR, JOHOR, MALAYSIA.
Match	:	YES

Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	10.32%	]
Return on Net Assets	:	Acceptable	[	13.16%	]

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 Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control
Stock Ratio	:	Favourable	[	10 Days	]
Debtor Ratio	:	Favourable	[	18 Days	]
Creditors Ratio	:	Unfavourable	[	61 Days	]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity
Liquid Ratio	:	Favourable	[	2.47 Times	]
Current Ratio	:	Favourable	[	2.63 Times	]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency
Interest Cover	:	Favourable	[	37.39 Times	]
Gearing Ratio	:	Favourable	[	0.02 Times	]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject 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 Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject 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 Subject : STRONG

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2011	2012	2013	2014*	2015**

Population ( Million)	28.7	29.3	29.8	30.3	30.5
Gross Domestic Products ( % )	5.1	5.6	5.3	6.0	6.0
Domestic Demand ( % )	8.2	9.4	5.6	6.4	6.2
Private Expenditure ( % )	8.2	8.0	8.6	7.9	6.9
Consumption ( % )	7.1	1.0	5.7	6.5	5.6
Investment ( % )	12.2	11.7	13.3	12.0	10.7
Public Expenditure ( % )	8.4	13.3	4.4	2.3	4.2
Consumption ( % )	16.1	11.3	(1.2)	2.1	3.8
Investment ( % )	(0.3)	15.9	4.2	2.6	4.7

Balance of Trade ( MYR Million )	116,058	106,300	71,298	52,314	-
Government Finance ( MYR Million )	(45,511)	(42,297)	(39,993)	(37,291)	-
Government Finance to GDP / Fiscal Deficit ( % )	(5.4)	(4.5)	(4.0)	(3.5)	(3.0)
Inflation ( % Change in Composite CPI)	3.1	1.6	2.5	3.3	4.0
Unemployment Rate	3.3	3.2	3.0	3.0	3.0

Net International Reserves ( MYR Billion )	415	427	-	417	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.50	2.20	-	-	-
Average 3 Months of Non-performing Loans ( % )	14.80	14.70	-	-	-
Average Base Lending Rate ( % )	6.60	6.53	6.53	-	-
Business Loans Disbursed( % )	15.3	32.2	-	-	-
Foreign Investment ( MYR Million )	23,546.1	26,230.4	38,238.0	-	-
Consumer Loans ( % )	-	-	-	-	-

Registration of New Companies ( No. )	45,455	45,441	46,321	-	-
Registration of New Companies ( % )	3.0	(0.0)	1.9	-	-
Liquidation of Companies ( No. )	132,485	17,092	26,430	-	-
Liquidation of Companies ( % )	417.8	(87.1)	54.6	-	-

Registration of New Business ( No. )	284,598	324,761	329,895	-	-
Registration of New Business ( % )	5.0	14.0	2.0	-	-
Business Dissolved ( No. )	20,121	20,380	18,161	-	-
Business Dissolved ( % )	1.9	1.3	(10.9)	-	-

Sales of New Passenger Cars (' 000 Unit )	535.1	552.2	576.7	598.4	610.3
Cellular Phone Subscribers ( Million )	35.3	38.5	43.0	43.8	-
Tourist Arrival ( Million Persons )	24.7	25.0	25.7	28.0	-
Hotel Occupancy Rate ( % )	60.6	62.4	62.6	-	-

Credit Cards Spending ( % )	15.6	12.6	-	-	-
Bad Cheque Offenders (No.)	32,627	26,982	28,876	-	-
Individual Bankruptcy ( No.)	19,167	19,575	21,984	-	-
Individual Bankruptcy ( % )	5.8	2.1	12.3	-	-

INDUSTRIES ( % of Growth ):	2011	2012	2013	2014*	2015**

Agriculture	5.8	1.0	2.1	3.8	3.1
Palm Oil	10.8	(0.3)	2.6	6.7	-
Rubber	6.1	(7.9)	(10.1)	(10.4)	-
Forestry & Logging	(7.6)	(4.5)	(7.8)	(4.2)	-
Fishing	2.1	4.3	1.6	2.7	-
Other Agriculture	7.1	6.4	8.2	6.2	-
Industry Non-Performing Loans ( MYR Million )	634.1	-	-	-	-
% of Industry Non-Performing Loans	3.2	-	-	-	-

Mining	(5.4)	1.4	0.9	(0.8)	2.8
Oil & Gas	(1.7)	-	-	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	46.5	-	-	-	-
% of Industry Non-performing Loans	0.1	-	-	-	-

Manufacturing #	4.7	4.8	3.4	6.6	5.5
Exported-oriented Industries	4.1	6.5	3.3	5.6	-
Electrical & Electronics	(4.0)	12.7	6.9	13.3	-
Rubber Products	20.7	3.0	11.7	(0.3)	-
Wood Products	(5.1)	8.7	(2.7)	5.1	-
Textiles & Apparel	13.2	(7.1)	(2.6)	11.5	-
Domestic-oriented Industries	10.7	1.7	6.8	9.4	-
Food, Beverages & Tobacco	4.80	2.70	3.60	6.13	6.13
Chemical & Chemical Products	10.0	10.8	5.6	-	-
Plastic Products	3.8	-	-	-	-
Iron & Steel	2.2	(6.6)	5.0	0.1	-
Fabricated Metal Products	21.8	13.8	9.9	2.9	-
Non-metallic Mineral	12.1	2.9	(2.0)	5.4	-
Transport Equipment	12.0	3.4	13.8	22.9	-
Paper & Paper Products	9.5	3.1	1.8	4.7	-
Crude Oil Refineries	9.3	-	-	-	-
Industry Non-Performing Loans ( MYR Million )	6,537.2	-	-	-	-
% of Industry Non-Performing Loans	25.7	-	-	-	-

Construction	4.7	18.6	10.9	12.7	10.7
Industry Non-Performing Loans ( MYR Million )	3,856.9	-	-	-	-
% of Industry Non-Performing Loans	10.2	-	-	-	-

Services	7.1	6.4	5.9	5.9	5.6
Electric, Gas & Water	3.5	4.4	4.2	3.6	3.9
Transport, Storage & Communication	6.50	7.10	7.30	7.50	7.15
Wholesale, Retail, Hotel & Restaurant	5.2	4.7	5.9	6.9	6.5
Finance, Insurance & Real Estate	6.90	9.70	3.70	4.65	4.25
Government Services	12.4	9.4	8.3	6.1	5.6
Other Services	5.1	3.9	5.1	4.8	4.5
Industry Non-Performing Loans ( MYR Million )	6,825.2	-	-	-	-
% of Industry Non-Performing Loans	23.4	-	-	-	-


* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
31 : MANUFACTURE OF FURNITURE

INDUSTRY :	FURNITURE & FIXTURES


Malaysia's Furniture Manufacturing Industry has been blooming in recent years. Malaysia ranks comfortably as the 10th largest exporter of furniture in the world in 2014. It exports 80% of their total furniture production around the world. With existing strong export base like Japan, United States and Australia, the nation continues its tremendous growth towards Saudi Arabia, Philippines and Russia. Malaysia is believed to diversify their export base to countries like Algeria, Greece, Puerto Rico, Libya and other countries awaiting confirmation.

Increased demand from major export destinations such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output of wooden and cane furniture, which rebounded by 2.2% in the first seven months of 2014. Thus, shipments of wood products rebounded by 4.7% in the same time mainly driven by export growth of wooden furniture (13.4%) to the US, Japan and Australia. Amid higher demand, exports of bedroom furniture and seats with wooden frame increased significantly by 21.6% and 15.2%. However, in 2013, Malaysia's furniture export decreased 8.1% compared to 2012. Furniture exports to the United States in 2013, which is the largest market, also recorded a decrease of 6.1% compared to 2012. This performance was nevertheless commendable, taking into account the slowdown in the global economy in 2013, especially in the United States and Euro zone countries.

Despite numerous economic downturns, the industry is still supported by a strong global demand. While lower priced Chinese and Vietnamese furniture pose strong competition, Malaysian furniture continues to set itself apart with original design that places importance on aesthetics as well as its good work ethics. The government also plays an important role in nurturing the industry. Providing Pioneer Status for tax exemption and Investment Tax Allowance, the pro-business environment makes doing business easier and faster. With a business-friendly environment, good quality products and a high potential market, the Malaysian furniture industry is poised to exceed expectations and to continue its exponential growth.

Conclusively, Malaysia has always been known for its wood based furniture, owing to its natural resources. The government has set an annual growth target of 6.5% for wood based furniture, estimated to reach up to RM53 billion by year 2020. In recent years, the growth has shifted from producing general products towards designing its own, and this has been the key in propelling Malaysia onto the international arena. Popular with overseas buyers of the middle to high category, foreign buyers look to Malaysia for manufacturers who can meet their high production demand.

OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2000, the Subject is a Private Limited company, focusing on manufacturer of furniture products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. A paid up capital of MYR 2,050,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a moderate size company, the Subject has a total workforce of 80 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

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 Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 4,471,690, the Subject should be able to maintain its business in the near terms.

The Subject'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 Subject has a good control over its resources.

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

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

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

PROFIT AND LOSS ACCOUNT

Financial Year End	2013-02-28	2012-02-29	2011-02-28	2010-02-28	2009-02-28
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	FULL	FULL	SUMMARY	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR

TURNOVER	14,105,319	13,253,567	13,397,723	12,191,924	11,981,080
	----------------	----------------	----------------	----------------	----------------
Total Turnover	14,105,319	13,253,567	13,397,723	12,191,924	11,981,080
Costs of Goods Sold	(12,291,592)	(11,620,920)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	1,813,727	1,632,647	-	-	-
	----------------	----------------	----------------	----------------	----------------

PROFIT/(LOSS) FROM OPERATIONS	591,323	415,141	404,839	317,243	369,667
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	591,323	415,141	404,839	317,243	369,667
Taxation	(130,018)	(71,050)	(80,055)	(85,650)	(70,563)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	461,305	344,091	324,784	231,593	299,104
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,960,385	1,616,294	1,360,698	1,215,205	1,516,101
	----------------	----------------	----------------	----------------	----------------
As restated	1,960,385	1,616,294	1,360,698	1,215,205	1,516,101
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,421,690	1,960,385	1,685,482	1,446,798	1,815,205
DIVIDENDS - Ordinary (paid & proposed)	-	-	(69,188)	(86,100)	(600,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,421,690	1,960,385	1,616,294	1,360,698	1,215,205
	=============	=============	=============	=============	=============

INTEREST EXPENSE (as per notes to P&L)
Hire purchase	4,575	3,408	-	-	-
Others	11,676	10,189	-	-	-
	----------------	----------------	----------------	----------------	----------------
	16,251	13,597	-	-	-
	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	601,464	680,235	745,858	738,578	868,848

	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	601,464	680,235	745,858	738,578	868,848

Stocks	400,571	454,443	-	-	-
Trade debtors	684,888	693,656	-	-	-
Other debtors, deposits & prepayments	107,933	107,940	-	-	-
Short term deposits	93,396	90,669	-	-	-
Amount due from director	3,308,474	3,388,221	-	-	-
Cash & bank balances	1,877,472	1,145,633	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	6,472,734	5,880,562	4,962,591	5,145,683	3,681,277
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	7,074,198	6,560,797	5,708,449	5,884,261	4,550,125
	=============	=============	=============	=============	=============

CURRENT LIABILITIES
Trade creditors	2,068,652	2,243,255	-	-	-
Other creditors & accruals	330,020	125,100	-	-	-
Hire purchase & lease creditors	13,058	12,321	-	-	-
Provision for taxation	45,400	16,700	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	2,457,130	2,397,376	1,915,431	2,397,663	1,062,385
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	4,015,604	3,483,186	3,047,160	2,748,020	2,618,892
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	4,617,068	4,163,421	3,793,018	3,486,598	3,487,740
	=============	=============	=============	=============	=============

SHARE CAPITAL
Ordinary share capital	2,050,000	2,050,000	2,050,000	2,050,000	2,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,050,000	2,050,000	2,050,000	2,050,000	2,000,000

Retained profit/(loss) carried forward	2,421,690	1,960,385	1,616,294	1,360,698	1,215,205
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,421,690	1,960,385	1,616,294	1,360,698	1,215,205

	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,471,690	4,010,385	3,666,294	3,410,698	3,215,205

Hire purchase creditors	70,678	83,736	-	-	-
Deferred taxation	74,700	69,300	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	145,378	153,036	126,724	75,900	272,535
	----------------	----------------	----------------	----------------	----------------
	4,617,068	4,163,421	3,793,018	3,486,598	3,487,740
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	1,970,868	1,236,302	-	-	-
Net Liquid Funds	1,970,868	1,236,302	-	-	-
Net Liquid Assets	3,615,033	3,028,743	3,047,160	2,748,020	2,618,892
Net Current Assets/(Liabilities)	4,015,604	3,483,186	3,047,160	2,748,020	2,618,892
Net Tangible Assets	4,617,068	4,163,421	3,793,018	3,486,598	3,487,740
Net Monetary Assets	3,469,655	2,875,707	2,920,436	2,672,120	2,346,357
BALANCE SHEET ITEMS
Total Borrowings	83,736	96,057	-	-	-
Total Liabilities	2,602,508	2,550,412	2,042,155	2,473,563	1,334,920
Total Assets	7,074,198	6,560,797	5,708,449	5,884,261	4,550,125
Net Assets	4,617,068	4,163,421	3,793,018	3,486,598	3,487,740
Net Assets Backing	4,471,690	4,010,385	3,666,294	3,410,698	3,215,205
Shareholders' Funds	4,471,690	4,010,385	3,666,294	3,410,698	3,215,205
Total Share Capital	2,050,000	2,050,000	2,050,000	2,050,000	2,000,000
Total Reserves	2,421,690	1,960,385	1,616,294	1,360,698	1,215,205
LIQUIDITY (Times)
Cash Ratio	0.80	0.52	-	-	-
Liquid Ratio	2.47	2.26	-	-	-
Current Ratio	2.63	2.45	2.59	2.15	3.47
WORKING CAPITAL CONTROL (Days)
Stock Ratio	10	13	-	-	-
Debtors Ratio	18	19	-	-	-
Creditors Ratio	61	70	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.02	0.02	-	-	-
Liabilities Ratio	0.58	0.64	0.56	0.73	0.42
Times Interest Earned Ratio	37.39	31.53	-	-	-
Assets Backing Ratio	2.25	2.03	1.85	1.70	1.74
PERFORMANCE RATIO (%)
Operating Profit Margin	4.19	3.13	3.02	2.60	3.09
Net Profit Margin	3.27	2.60	2.42	1.90	2.50
Return On Net Assets	13.16	10.30	10.67	9.10	10.60
Return On Capital Employed	13.12	10.27	10.67	9.10	10.60
Return On Shareholders' Funds/Equity	10.32	8.58	8.86	6.79	9.30
Dividend Pay Out Ratio (Times)	0.00	0.00	0.21	0.37	2.01
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.07
UK Pound	1	Rs.98.73
Euro	1	Rs.77.46

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	ANK

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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