MIRA INFORM REPORT

Report Date :

04.01.2014

IDENTIFICATION DETAILS

Name :	SYARIKAT CHENG SUN QUARRY SDN. BHD.

Registered Office :	A-12-01, Block A, PJ8, 23, Jalan Barat, Seksyen 8, Level 12, 46050 Petaling Jaya, Selangor

Country :	Malaysia

Financials (as on) :	31.12.2012

Date of Incorporation :	23.07.1975

Com. Reg. No.:	23584-M

Legal Form :	Private Limited

Line of Business :	Quarrying & Production of calcium carbonate powder manufacture minerals/mineral water

No. of Employees :	30 [2013]

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 :	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 – September 30, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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

EXECUTIVE SUMMARY

REGISTRATION NO.	:	23584-M
COMPANY NAME	:	SYARIKAT CHENG SUN QUARRY SDN. BHD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	23/07/1975
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	A-12-01, BLOCK A, PJ8, 23, JALAN BARAT, SEKSYEN 8, LEVEL 12, 46050 PETALING JAYA, SELANGOR, MALAYSIA.
BUSINESS ADDRESS	:	LOT 67887, MUKIM SUNGAI RAJA, KERAMAT PULAI,, 31300 IPOH, PERAK, MALAYSIA.
TEL.NO.	:	05-3571502
FAX.NO.	:	05-3571504
CONTACT PERSON	:	SUDARSHAN SINGH A/L TRISHAN SINGH ( DIRECTOR )
INDUSTRY CODE	:	23942
PRINCIPAL ACTIVITY	:	QUARRYING & PRODUCTION OF CALCIUM CARBONATE POWDER MANUFACTURE MINERALS/MINERAL WATER
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 3,200,000.00 DIVIDED INTO ORDINARY SHARES 2,192,000 CASH AND 1,008,000 OTHERWISE OF MYR 1.00 EACH.
SALES	:	MYR 9,316,036 [2012]
NET WORTH	:	MYR 11,418,533 [2012]

STAFF STRENGTH	:	30 [2013]
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	AVERAGE 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) quarrying & production of calcium carbonate powder manufacture minerals/mineral water.

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

The immediate holding company of the Subject is CHENG SUN INDUSTRIES SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the Subject is MEGA FIRST CORPORATION BERHAD, a company incorporated in MALAYSIA.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	MYR 5,000,000.00	MYR 3,200,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHENG SUN INDUSTRIES SDN. BHD.	LOT 67887, MUKIM SUNGAI RAJA, 31300 IPOH, PERAK, MALAYSIA.	84285P	3,200,000.00	100.00
			---------------	------
			3,200,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. LIEW KWANG YEN
Address	:	22, JALAN NEW PASIR PUTEH, OFF SATIN PARK, 31650 IPOH, PERAK, MALAYSIA.
IC / PP No	:	7111466
New IC No	:	630915-06-5184
Date of Birth	:	15/09/1963

Nationality	:	MALAYSIAN
Date of Appointment	:	25/09/1999

DIRECTOR 2

Name Of Subject	:	MR. SUDARSHAN SINGH A/L TRISHAN SINGH
Address	:	17, JALAN JUPITER, STAR PARK, 31400 IPOH, PERAK, MALAYSIA.
IC / PP No	:	4480192
New IC No	:	530819-08-5443
Date of Birth	:	19/08/1953

Nationality	:	MALAYSIAN
Date of Appointment	:	01/07/2009

DIRECTOR 3

Name Of Subject	:	MR. CHU BENG HAN
Address	:	89, JALAN BRP 1/12, BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
IC / PP No	:	A0134209
New IC No	:	650721-04-5183
Date of Birth	:	21/07/1965

Nationality	:	MALAYSIAN
Date of Appointment	:	28/02/2005

MANAGEMENT

1)	Name of Subject	:	SUDARSHAN SINGH A/L TRISHAN SINGH
	Position	:	DIRECTOR

AUDITOR

Auditor	:	CROWE HORWATH
Auditor' Address	:	TOWER C, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. YONG LAI SIM
	IC / PP No	:	5321070
	New IC No	:	580407-10-5730
	Address	:	11A, JALAN SS5B/1, TAMAN SUBANG, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

2)	Company Secretary	:	MS. GHEE YOKE PING
	IC / PP No	:	A0246895
	New IC No	:	651108-08-5122
	Address	:	60, JALAN TEMPUA 4, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	30/03/1983	N/A	DEVELOPMENT COMMERCIAL BANK BHD	MYR 2,500,000.00	Unsatisfied
3	07/11/1984	N/A	DEVELOPMENT COMMERCIAL BANK BHD	MYR 850,000.00	Unsatisfied
3(BK 222/81)	07/11/1984	DEBENTURE & CHARGE	DEVELOPMENT & COMMERCIAL BANK BHD	400,000.00	Unsatisfied
4	02/04/1988	CHARGE	DEVELOPMENT COMMERCIAL BANK BERAHD	$ 3,750,000.00	Unsatisfied
5	09/11/1989	CHARGE & DEBENTURE	DEVELOPMENT COMMERCIAL BANK BERHAD	$ 4,250,000.00	Unsatisfied

LEGAL 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 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

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
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	N/A

Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

LIMESTONE POWDER & CALCIUM CARBONATE POWDER

Total Number of Employees:
YEAR	2013

GROUP	N/A
COMPANY	30

Branch

Other Information:

The Subject is principally engaged in the (as a / as an) quarrying & production of calcium carbonate powder manufacture minerals/mineral water.

The Subject principally involved in the quarrying of limestone for processing into fine calcium carbonate powder.

The raw material which is high quality limestone, is obtained from an adjoining 9-acre limestone hill belonging to the Subject.

The fine calcium carbonate powder is used as a filler in the paint, shoe, plastic and rubber glove industries.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	05-3571502
Match	:	N/A

Address Provided by Client	:	LOT 67887, MUKIM SG RAIA 31300 KERAMAT PULAI, IPOH PERAK
Current Address	:	LOT 67887, MUKIM SUNGAI RAJA, KERAMAT PULAI,, 31300 IPOH, PERAK, MALAYSIA.
Match	:	NO

Latest Financial Accounts	:	YES

Other Investigations

On 26th December 2013 we contacted one of the staff from the Subject and she provided some information.

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2008 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	8.08%	]
Return on Net Assets	:	Acceptable	[	11.92%	]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control
Stock Ratio	:	Favourable	[	48 Days	]
Debtor Ratio	:	Unfavourable	[	78 Days	]
Creditors Ratio	:	Favourable	[	40 Days	]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity
Liquid Ratio	:	Favourable	[	6.68 Times	]
Current Ratio	:	Favourable	[	8.09 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	[	27.86 Times	]
Gearing Ratio	:	Favourable	[	0.00 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 had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.


Overall Assessment :
The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : 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

INDUSTRY ANALYSIS

MSIC CODE
23942 : Manufacture of lime and plaster

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 1975, the Subject is a Private Limited company, focusing on quarrying & production of calcium carbonate powder manufacture minerals/mineral water. Its long establishment in the market has allowed the Subject to build up a good reputation and gain higher market share against its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject's business operation is supported by 30 employees. 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

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, 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 zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 11,418,533, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

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

PROFIT AND LOSS ACCOUNT

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

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	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
Unit

TURNOVER	9,316,036	9,618,309	6,692,989	6,562,156	5,554,542
Other Income	794,666	81,217	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	10,110,702	9,699,526	6,692,989	6,562,156	5,554,542
Costs of Goods Sold	<5,008,966>	<4,999,064>	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	5,101,736	4,700,462	-	-	-
	----------------	----------------	----------------	----------------	----------------

PROFIT/(LOSS) FROM OPERATIONS	1,347,547	1,646,555	872,868	1,026,032	964,648
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,347,547	1,646,555	872,868	1,026,032	964,648
Taxation	<424,675>	316,758	<241,721>	<317,733>	<251,631>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	922,872	1,963,313	631,147	708,299	713,017
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	7,295,661	5,332,348	4,701,201	3,992,902	3,279,885
	----------------	----------------	----------------	----------------	----------------
As restated	7,295,661	5,332,348	4,701,201	3,992,902	3,279,885
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	8,218,533	7,295,661	5,332,348	4,701,201	3,992,902
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	8,218,533	7,295,661	5,332,348	4,701,201	3,992,902
	=============	=============	=============	=============	=============

INTEREST EXPENSE (as per notes to P&L)
Others	50,160	51,014
	50,160	51,014

BALANCE SHEET


ASSETS EMPLOYED:
FIXED ASSETS	5,543,960	4,995,747	4,338,265	1,194,972	1,655,098

	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	5,543,960	4,995,747	4,338,265	1,194,972	1,655,098

CURRENT ASSETS
Stocks	1,225,941	813,515	-	-	-
Trade debtors	1,980,521	2,515,349	-	-	-
Other debtors, deposits & prepayments	379,954	207,509	-	-	-
Short term deposits	300,000	1,050,000	-	-	-
Amount due from holding company	2,404,960	2,403,546	-	-	-
Cash & bank balances	462,715	304,724	-	-	-
Others	304,878	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	7,058,969	7,294,643	6,511,427	9,014,466	7,728,361
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	12,602,929	12,290,390	10,849,692	10,209,438	9,383,459
	=============	=============	=============	=============	=============

CURRENT LIABILITIES
Trade creditors	552,713	664,145	-	-	-
Other creditors & accruals	319,990	354,759	-	-	-
Amounts owing to related companies	-	499,982	-	-	-
Provision for taxation	-	34,843	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	872,703	1,553,729	1,499,344	1,490,237	1,269,557
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	6,186,266	5,740,914	5,012,083	7,524,229	6,458,804
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	11,730,226	10,736,661	9,350,348	8,719,201	8,113,902
	=============	=============	=============	=============	=============

SHARE CAPITAL
Ordinary share capital	3,200,000	3,200,000	3,200,000	3,200,000	3,200,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	3,200,000	3,200,000	3,200,000	3,200,000	3,200,000

RESERVES
Retained profit/(loss) carried forward	8,218,533	7,295,661	5,332,348	4,701,201	3,992,902
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	8,218,533	7,295,661	5,332,348	4,701,201	3,992,902

	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	11,418,533	10,495,661	8,532,348	7,901,201	7,192,902

LONG TERM LIABILITIES
Deferred taxation	311,693	241,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	311,693	241,000	818,000	818,000	921,000
	----------------	----------------	----------------	----------------	----------------
	11,730,226	10,736,661	9,350,348	8,719,201	8,113,902
	=============	=============	=============	=============	=============

FINANCIAL RATIO


TYPES OF FUNDS
Cash	762,715	1,354,724	-	-	-
Net Liquid Funds	762,715	1,354,724	-	-	-
Net Liquid Assets	4,960,325	4,927,399	5,012,083	7,524,229	6,458,804
Net Current Assets/(Liabilities)	6,186,266	5,740,914	5,012,083	7,524,229	6,458,804
Net Tangible Assets	11,730,226	10,736,661	9,350,348	8,719,201	8,113,902
Net Monetary Assets	4,648,632	4,686,399	4,194,083	6,706,229	5,537,804
BALANCE SHEET ITEMS
Total Borrowings	0	0	-	-	-
Total Liabilities	1,184,396	1,794,729	2,317,344	2,308,237	2,190,557
Total Assets	12,602,929	12,290,390	10,849,692	10,209,438	9,383,459
Net Assets	11,730,226	10,736,661	9,350,348	8,719,201	8,113,902
Net Assets Backing	11,418,533	10,495,661	8,532,348	7,901,201	7,192,902
Shareholders' Funds	11,418,533	10,495,661	8,532,348	7,901,201	7,192,902
Total Share Capital	3,200,000	3,200,000	3,200,000	3,200,000	3,200,000
Total Reserves	8,218,533	7,295,661	5,332,348	4,701,201	3,992,902
LIQUIDITY (Times)
Cash Ratio	0.87	0.87	-	-	-
Liquid Ratio	6.68	4.17	-	-	-
Current Ratio	8.09	4.69	4.34	6.05	6.09
WORKING CAPITAL CONTROL (Days)
Stock Ratio	48	31	-	-	-
Debtors Ratio	78	95	-	-	-
Creditors Ratio	40	48	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	-	-	-
Liabilities Ratio	0.10	0.17	0.27	0.29	0.30
Times Interest Earned Ratio	27.86	33.28	-	-	-
Assets Backing Ratio	3.67	3.36	2.92	2.72	2.54
PERFORMANCE RATIO (%)
Operating Profit Margin	14.46	17.12	13.04	15.64	17.37
Net Profit Margin	9.91	20.41	9.43	10.79	12.84
Return On Net Assets	11.92	15.81	9.34	11.77	11.89
Return On Capital Employed	11.92	15.81	9.34	11.77	11.89
Return On Shareholders' Funds/Equity	8.08	18.71	7.40	8.96	9.91
Dividend Pay Out Ratio (Times)	0.00	0.00	-	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.41
UK Pound	1	Rs.102.54
Euro	1	Rs.85.20

INFORMATION DETAILS

Report Prepared by :

NNA

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.