MIRA INFORM REPORT

Report Date :

13.06.2014

IDENTIFICATION DETAILS

Name :	EUROX FINE INGREDIENTS SDN. BHD.
Formerly Known As :	NANWEST CHEMICALS (M) SDN BHD
Registered Office :	Wisma Samudra, 1, Jalan Kontraktor Ui/14, Hicom-Glenmarie Industrial Park, Level 3, 40150 Shah Alam, Selangor,
Country :	Malaysia
Financials (as on) :	31.12.2012
Date of Incorporation :	17.08.1984
Com. Reg. No.:	125215-W
Legal Form :	Private Limited
Line of Business :	Trading of food ingredients
No. of Employees	10 [2014]

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

Company name and address

REGISTRATION NO.	:	125215-W
COMPANY NAME	:	EUROX FINE INGREDIENTS SDN. BHD.
FORMER NAME	:	NANWEST CHEMICALS (M) SDN BHD (31/05/2002) DATA ELEKTRONIK SDN BHD (08/09/1995)
INCORPORATION DATE	:	17/08/1984
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	WISMA SAMUDRA, 1, JALAN KONTRAKTOR UI/14, HICOM-GLENMARIE INDUSTRIAL PARK, LEVEL 3, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
BUSINESS ADDRESS	:	LEVEL 2, WISMA SAMUDRA, 1 JALAN KONTRAKTOR U1/14, SEKSYEN 41, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
TEL.NO.	:	03-55694701/55693198
FAX.NO.	:	03-55693216
CONTACT PERSON	:	KHOO HENG SUAN ( DIRECTOR )
INDUSTRY CODE	:	46329
PRINCIPAL ACTIVITY	:	TRADING OF FOOD INGREDIENTS
AUTHORISED CAPITAL	:	MYR 1,000,000.00 DIVIDED INTO ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 600,002.00 DIVIDED INTO ORDINARY SHARES 600,002 CASH OF MYR 1.00 EACH.
SALES	:	MYR 7,233,943 [2012]
NET WORTH	:	MYR 4,013,554 [2012]
STAFF STRENGTH	:	10 [2014]
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	MODERATE
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
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) trading of food ingredients.

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

The immediate holding company of the Subject is SUKA TECHNICAL SERVICES SDN. BHD., a company incorporated in MALAYSIA.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	MYR 1,000,000.00	MYR 600,002.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. KHOO HENG SUAN +	21, JALAN SS 2/57, 47300 PETALING JAYA, SELANGOR, MALAYSIA.	470109-04-5509 0869939	294,001.00	49.00
MS. LAI MEOW HUNG +	21, JALAN SS 2/57, 47300 PETALING JAYA, SELANGOR, MALAYSIA.	490720-07-5356 3079954	1.00	0.00
SUKA TECHNICAL SERVICES SDN. BHD.	LEVEL 3,WISMA SAMUDRA, NO.1,JALAN KONTRAKTOR U1/14, HICOM-GLENMARIE INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.	349766V	306,000.00	51.00
			---------------	------
			600,002.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. LAI MEOW HUNG
Address	:	21, JALAN SS 2/57, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	3079954
New IC No	:	490720-07-5356
Date of Birth	:	20/07/1949
Nationality	:	MALAYSIAN
Date of Appointment	:	15/08/1991

DIRECTOR 2

Name Of Subject	:	MR. KHOO HENG SUAN
Address	:	21, JALAN SS 2/57, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	0869939
New IC No	:	470109-04-5509
Date of Birth	:	09/01/1947
Nationality	:	MALAYSIAN
Date of Appointment	:	15/08/1991

MANAGEMENT

1)	Name of Subject	:	KHOO HENG SUAN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	WK CO.
Auditor' Address	:	18-1, JALAN 2/131A, PROJEK JAYA INDUSTRIAL ESTATE, 6TH MILE, JALAN KLANG LAMA, FIRST FLOOR, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. PHANG CHUI PAIK
	IC / PP No	:	5753727
	New IC No	:	590522-08-5164
	Address	:	51, JALAN SARJANA 5, TAMAN CONNAUGHT, CHERAS, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	06/09/1994	LOAN AGREEMENT & ASSIGNMENT	THE PACIFIC BANK BERHAD	MYR 710,000.00	Unsatisfied
2	06/09/1994	AGREEMENT	THE PACIFIC BANK BERHAD	MYR 710,000.00	Unsatisfied
3	06/09/1994	ASSIGNMENT OF RENTAL PROCEEDS	THE PACIFIC BANK BERHAD	MYR 1,420,000.00	Unsatisfied
4	06/09/1996	THIRD LOAN AGREEMENT	THE PACIFIC BANK BERHAD	MYR 2,300,000.00	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	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO
Credit Term	:	N/A
Payment Mode	:	CHEQUES

OPERATIONS

Goods Traded

:

FOOD INGREDIENTS

Total Number of Employees:
YEAR	2014
GROUP	N/A
COMPANY	10

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of food ingredients.

The Subject sells all kinds of food ingredients.

The Subject however refused to disclose further information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-55694701/55693198
Match	:	N/A
Address Provided by Client	:	LEVEL 2, WISMA SAMUDRA, 1 JALAN KONTRAKTOR U1/14, SEKSYEN 41,40150,SHAH ALAM,SELANGOR.
Current Address	:	LEVEL 2, WISMA SAMUDRA, 1 JALAN KONTRAKTOR U1/14, SEKSYEN 41, 40150 SHAH ALAM, SELANGOR, 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	[	2008 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	4.73%	]
Return on Net Assets	:	Unfavourable	[	6.92%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. 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	:	Acceptable	[	58 Days	]
Debtor Ratio	:	Unfavourable	[	75 Days	]
Creditors Ratio	:	Favourable	[	16 Days	]
The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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	[	1.07 Times	]
Current Ratio	:	Unfavourable	[	1.50 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	:	Acceptable	[	7.46 Times	]
Gearing Ratio	:	Favourable	[	0.20 Times	]
The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. 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 :
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. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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 : LIMITED

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

INDUSTRY ANALYSIS

MSIC CODE
46329 : Wholesale of other foodstuffs
INDUSTRY :	TRADING
According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.
The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.
In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.
Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.
Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1984, the Subject is a Private Limited company, focusing on trading of food ingredients. With its long presence in the industry coupled with its vast experiences in the business, the Subject should have built up certain goodwill with its clients over times. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. The Subject's business operation is supported by 10 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. The Subject however 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 4,013,554, 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.

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 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)

EUROX FINE INGREDIENTS SDN. BHD.

Financial Year End	2012-12-31	2011-12-31	2010-12-31	2009-12-31	2008-12-31
Months	12	12	12	12	12
Consolidated Account	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	FULL	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	7,233,943	12,232,914	12,128,333	12,994,789	10,741,056
	----------------	----------------	----------------	----------------	----------------
Total Turnover	7,233,943	12,232,914	12,128,333	12,994,789	10,741,056
Costs of Goods Sold	(6,588,679)	(10,947,285)	(10,813,925)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	645,264	1,285,629	1,314,408	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	240,656	769,815	916,613	596,330	458,069
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	240,656	769,815	916,613	596,330	458,069
Taxation	(50,849)	(180,372)	(218,375)	(132,150)	(90,239)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	189,807	589,443	698,238	464,180	367,830
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	3,223,745	2,634,302	1,936,064	1,471,884	1,104,054
	----------------	----------------	----------------	----------------	----------------
As restated	3,223,745	2,634,302	1,936,064	1,471,884	1,104,054
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,413,552	3,223,745	2,634,302	1,936,064	1,471,884
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,413,552	3,223,745	2,634,302	1,936,064	1,471,884
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	37,233	35,882	32,715	-	-
Others	10	138	2,466	-	-
	----------------	----------------	----------------	----------------	----------------
	37,243	36,020	35,181	-	-
	=============	=============	=============

BALANCE SHEET

EUROX FINE INGREDIENTS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	2,654,547	2,671,132	2,687,436	2,726,504	2,749,782
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	2,654,547	2,671,132	2,687,436	2,726,504	2,749,782
Stocks	1,156,075	1,618,263	1,636,318	-	-
Trade debtors	1,489,373	1,721,913	1,313,155	-	-
Other debtors, deposits & prepayments	190,330	228,979	57,105	-	-
Short term deposits	750,000	1,750,000	750,000	-	-
Cash & bank balances	484,201	70,581	1,103,378	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	4,069,979	5,389,736	4,859,956	4,745,970	3,869,316
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	6,724,526	8,060,868	7,547,392	7,472,474	6,619,098
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	294,565	1,795,732	1,802,310	-	-
Other creditors & accruals	299,547	311,264	304,653	-	-
Short term borrowings/Term loans	810,000	810,000	810,000	-	-
Amounts owing to related companies	1,336,125	1,336,125	1,336,125	-	-
Provision for taxation	(29,265)	(16,000)	60,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	2,710,972	4,237,121	4,313,088	4,936,408	4,547,212
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,359,007	1,152,615	546,868	(190,438)	(677,896)
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	600,002	600,002	600,002	600,002	600,002
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	600,002	600,002	600,002	600,002	600,002
Retained profit/(loss) carried forward	3,413,552	3,223,745	2,634,302	1,936,064	1,471,884
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	3,413,552	3,223,745	2,634,302	1,936,064	1,471,884
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
	----------------	----------------	----------------	----------------	----------------
	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
	=============	=============	=============	=============	=============

FINANCIAL RATIO

EUROX FINE INGREDIENTS SDN. BHD.

TYPES OF FUNDS
Cash	1,234,201	1,820,581	1,853,378	-	-
Net Liquid Funds	1,234,201	1,820,581	1,853,378	-	-
Net Liquid Assets	202,932	(465,648)	(1,089,450)	(190,438)	(677,896)
Net Current Assets/(Liabilities)	1,359,007	1,152,615	546,868	(190,438)	(677,896)
Net Tangible Assets	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
Net Monetary Assets	202,932	(465,648)	(1,089,450)	(190,438)	(677,896)
BALANCE SHEET ITEMS
Total Borrowings	810,000	810,000	810,000	-	-
Total Liabilities	2,710,972	4,237,121	4,313,088	4,936,408	4,547,212
Total Assets	6,724,526	8,060,868	7,547,392	7,472,474	6,619,098
Net Assets	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
Net Assets Backing	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
Shareholders' Funds	4,013,554	3,823,747	3,234,304	2,536,066	2,071,886
Total Share Capital	600,002	600,002	600,002	600,002	600,002
Total Reserves	3,413,552	3,223,745	2,634,302	1,936,064	1,471,884
LIQUIDITY (Times)
Cash Ratio	0.46	0.43	0.43	-	-
Liquid Ratio	1.07	0.89	0.75	-	-
Current Ratio	1.50	1.27	1.13	0.96	0.85
WORKING CAPITAL CONTROL (Days)
Stock Ratio	58	48	49	-	-
Debtors Ratio	75	51	40	-	-
Creditors Ratio	16	60	61	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.20	0.21	0.25	-	-
Liabilities Ratio	0.68	1.11	1.33	1.95	2.19
Times Interest Earned Ratio	7.46	22.37	27.05	-	-
Assets Backing Ratio	6.69	6.37	5.39	4.23	3.45
PERFORMANCE RATIO (%)
Operating Profit Margin	3.33	6.29	7.56	4.59	4.26
Net Profit Margin	2.62	4.82	5.76	3.57	3.42
Return On Net Assets	6.92	21.07	29.43	23.51	22.11
Return On Capital Employed	6.92	21.07	29.43	23.51	22.11
Return On Shareholders' Funds/Equity	4.73	15.42	21.59	18.30	17.75
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.33
UK Pound	1	Rs.99.68
Euro	1	Rs.80.30

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIS

RATING EXPLANATIONS

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

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

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

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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