MIRA INFORM REPORT

Report Date :

17.05.2014

IDENTIFICATION DETAILS

Name :	TIMBER ART DESIGN SDN. BHD.
Formerly Known As :	TRENDY CONSORTIUM SDN. BHD
Registered Office :	1-1 (Room B), Jalan Marin, Taman Marin, Jalan Haji Abdullah, 1st Floor, 84000 Muar, Johor
Country :	Malaysia
Financials (as on) :	31.12.2012
Date of Incorporation :	28.02.2004
Com. Reg. No.:	643799-P
Legal Form :	Private Limited
Line of Business :	Manufacturing of Furniture and Furniture Parts
No. of Employees	Not Available

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
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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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

EXECUTIVE SUMMARY

REGISTRATION NO.

:

643799-P

COMPANY NAME

:

TIMBER ART DESIGN SDN. BHD.

FORMER NAME

:

TRENDY CONSORTIUM SDN. BHD. (30/10/2009)

INCORPORATION DATE

:

28/02/2004

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1-1 (ROOM B), JALAN MARIN, TAMAN MARIN, JALAN HAJI ABDULLAH, 1ST FLOOR, 84000 MUAR, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

JBB 20/14, PTD 10638, KAWASAN PERINDUSTRI 2, JALAN KEMPAS 1, BATU 7, JALAN BAKRI,, 84200 MUAR, JOHOR, MALAYSIA.

TEL.NO.

:

06-69867322

FAX.NO.

:

06-9868332

WEB SITE

:

WWW.TIMBERARTDESIGN.COM

CONTACT PERSON

:

KOH CHENG HUAT ( DIRECTOR )

INDUSTRY CODE

:

31

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FURNITURE AND FURNITURE PARTS

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 5,974,408 [2012]

NET WORTH

:

MYR 44,669 [2012]

STAFF STRENGTH

:

N/A

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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) manufacturing of furniture and furniture parts.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	MYR 100,000.00	MYR 100,000.00
28/02/2004	MYR 100,000.00	MYR 2.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. KOH CHENG HUAT +	10, JALAN KASTURI OFF JALAN UTARA, BUKIT BAKRI, 84200 MUAR, JOHOR, MALAYSIA.	770617-01-5925 A3769425	50,000.00	50.00
MR. TOH CHIN LOY +	50, JALAN BALAI RAYA, BAKRI N/V, 84200 MUAR, JOHOR, MALAYSIA.	740623-01-6169 A2694530	50,000.00	50.00
			---------------	------
			100,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. KOH CHENG HUAT
Address	:	10, JALAN KASTURI OFF JALAN UTARA, BUKIT BAKRI, 84200 MUAR, JOHOR, MALAYSIA.
IC / PP No	:	A3769425
New IC No	:	770617-01-5925
Date of Birth	:	17/06/1977
Nationality	:	MALAYSIAN
Date of Appointment	:	26/08/2009

DIRECTOR 2

Name Of Subject	:	MR. TOH CHIN LOY
Address	:	50, JALAN BALAI RAYA, BAKRI N/V, 84200 MUAR, JOHOR, MALAYSIA.
IC / PP No	:	A2694530
New IC No	:	740623-01-6169
Date of Birth	:	23/06/1974
Nationality	:	MALAYSIAN
Date of Appointment	:	26/08/2009

MANAGEMENT

1)	Name of Subject	:	KOH CHENG HUAT
	Position	:	DIRECTOR

AUDITOR

Auditor	:	SEE HOCK CHUAN & CO.
Auditor' Address	:	1-1, JALAN MARIN, TAMAN MARIN, JALAN ABDULLAH, 1ST FLOOR (A), 84000 MUAR, JOHOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. PANG CHONG SENG
	IC / PP No	:	A2112069
	New IC No	:	711231-01-5113
	Address	:	144-9, JALAN SALLEH, 84000 MUAR, JOHOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST 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	[	X	]

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

FURNITURE AND FURNITURE PARTS

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of furniture and furniture parts.

The Subject specializes in furniture made using particleboard, fiberboard (MDF), melamine board, and solid wood. Our range of products includes OEM items, and covers home and office furniture, such as:

* Living room
* Shoe cabinets

* Dining series
* Storage cabinets

* Bedroom series
* Office furniture systems

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	606-9867322/ 9868322
Current Telephone Number	:	06-69867322
Match	:	YES
Address Provided by Client	:	JBB 20/14 PTD 10638 KAWASAN INDUSTRI 2 JALAN KEMPAS 1, BATU JALAM BAKRI , 84200 MUAR JOHOR WEST MALAYSIA
Current Address	:	JBB 20/14, PTD 10638, KAWASAN PERINDUSTRI 2, JALAN KEMPAS 1, BATU 7, JALAN BAKRI,, 84200 MUAR, JOHOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

On 12th May 2014 we contacted one of the staff from the Subject and she provided some information.

The Subject refused to disclose its number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	1,751.79%	]
Profit/(Loss) Before Tax	:	Decreased	[	(2,236.47%)	]
Return on Shareholder Funds	:	Favourable	[	188.07%	]
Return on Net Assets	:	Favourable	[	46.99%	]
The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	91 Days	]
Debtor Ratio	:	Unfavourable	[	86 Days	]
Creditors Ratio	:	Unfavourable	[	170 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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	:	Unfavourable	[	0.53 Times	]
Current Ratio	:	Unfavourable	[	0.98 Times	]
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Acceptable	[	8.82 Times	]
Gearing Ratio	:	Unfavourable	[	7.16 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 highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
The higher turnover had helped to reduce the Subject's losses. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. 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's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the 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
# Based On Manufacturing Production Index (Source : Department of Statistics / Economic Report / Bank Negara Report)

INDUSTRY ANALYSIS

MSIC CODE
31 : MANUFACTURE OF FURNITURE
INDUSTRY :	FURNITURE & FIXTURES
Malaysia is a leading furniture exporter and was ranked as the 8th world furniture exporter in 2011. Exports account for 67% of domestic production. Exports are mainly destined for the United States, Japan, Singapore, Australia and the United Kingdom, which together absorbed almost 60% of the total.Government target growth of 6.5% where it estimated to reach RM53 billion by 2020.
In April 2012, rubber-wood prices per tonne hovers between RM1,800 to RM2,000, compared to RM1,500 to RM1,800 per tonne in November 2011. At January 2012, US purchase Malaysian made furniture products at the value of RM163million compared with RM158.8million in January 2011, an increase of about 3%. Eventhough, Malaysia External Trade Corporation (MATRADE) reported In January 2012, where Malaysia's furniture export total sales came down by 14.7% to RM571million in January 2012 from RM670.6million in January 2011 due to the shorter working days in January 2012 and also less orders from key customers such as Japan and Singapore. Japan imported about RM64.2million worth of furniture products from Malaysia in January 2012, compared to RM80.8million in January 2011, down by 20.6%.
In 2012, Malaysian furniture was exported to 199 countries worldwide and was valued at RM8billion, increasing 4.3% from the year before with a 10.9% increase in furniture exports to the United States. The Ministry of Plantation Industries and Commodities aims to surpass in year 2013, the RM8 billion mark for total Malaysian furniture exported in 2012.
Under the the National Timber Industry Policy (MTIP), the government has targeted RM16 billion furniture exports by 2020. The value of Malaysian furniture exports represented 3% of total world exports. Demand for Malaysian furniture increasing due to rising afflunce and sophistication in customer expectation. Malaysia furniture stand with its original design as well its good work ethics in world furniture market.
The furniture industry is highly export oriented with over 90% of its production are destined for overseas market which accounted 3% value of global exports.The furniture industry’s adoption of high technology production manufacturing capabilities coupled with greater emphasis on design, market expansion and aggressive promotional efforts, the Malaysian furniture industry has the potential to increase exports for a bigger global market share.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2004, the Subject is a Private Limited company, focusing on manufacturing of furniture and furniture parts. Having been in the industry for a decade, the Subject should have built up its reputation and image in the market. However, with a weak shareholders' backing, the Subject's capital position is weak. Inadequate capital may be a constraint to the Subject as it limits its ability to expand its business in future. The capital standing of the Subject is weak. The Subject may face difficulties to expand its business compared to other large corporation.

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. Overall, we regard that the Subject's management capability is average.

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. The Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. Unfortunately, due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.

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.

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

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.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

PROFIT AND LOSS ACCOUNT

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

TIMBER ART DESIGN 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	SUMMARY	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	5,974,408	322,628	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	5,974,408	322,628	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	134,555	(6,298)	(1,881)	(2,116)	(6,928)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	134,555	(6,298)	(1,881)	(2,116)	(6,928)
Taxation	(50,544)	-	0	0	0
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	84,011	(6,298)	(1,881)	(2,116)	(6,928)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(139,342)	(133,044)	(131,163)	(129,047)	(122,119)
	----------------	----------------	----------------	----------------	----------------
As restated	(139,342)	(133,044)	(131,163)	(129,047)	(122,119)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(55,331)	(139,342)	(133,044)	(131,163)	(129,047)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(55,331)	(139,342)	(133,044)	(131,163)	(129,047)
	=============	=============	=============	=============	=============
Hire purchase	3,609	-	-	-	-
Others	13,596	752	-	-	-
	----------------	----------------	----------------	----------------	----------------
	17,205	752	-	-	-
	=============	=============

BALANCE SHEET

TIMBER ART DESIGN SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	397,872	90,273	-	-	5
Trademarks	3,186	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	3,186	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	401,058	90,273	-	-	5
Stocks	1,490,292	12,199	-	-	-
Trade debtors	1,403,977	-	-	-	-
Other debtors, deposits & prepayments	183,988	47,000	-	-	-
Cash & bank balances	178,491	79,936	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	3,256,748	139,135	5,078	100	147
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	3,657,806	229,408	5,078	100	152
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	2,787,057	135,050	-	-	-
Other creditors & accruals	438,964	121,936	-	-	-
Hire purchase & lease creditors	41,597	-	-	-	-
Amounts owing to director	24,233	111,664	-	-	-
Provision for taxation	43,000	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	3,334,851	368,650	138,022	131,163	129,099
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(78,103)	(229,515)	(132,944)	(131,063)	(128,952)
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	322,955	(139,242)	(132,944)	(131,063)	(128,947)
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	100,000	100	100	100	100
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	100,000	100	100	100	100
Retained profit/(loss) carried forward	(55,331)	(139,342)	(133,044)	(131,163)	(129,047)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	(55,331)	(139,342)	(133,044)	(131,163)	(129,047)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	44,669	(139,242)	(132,944)	(131,063)	(128,947)
Hire purchase creditors	278,286	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	278,286	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
	322,955	(139,242)	(132,944)	(131,063)	(128,947)
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TIMBER ART DESIGN SDN. BHD.

TYPES OF FUNDS
Cash	178,491	79,936	-	-	-
Net Liquid Funds	178,491	79,936	-	-	-
Net Liquid Assets	(1,568,395)	(241,714)	(132,944)	(131,063)	(128,952)
Net Current Assets/(Liabilities)	(78,103)	(229,515)	(132,944)	(131,063)	(128,952)
Net Tangible Assets	319,769	(139,242)	(132,944)	(131,063)	(128,947)
Net Monetary Assets	(1,846,681)	(241,714)	(132,944)	(131,063)	(128,952)
BALANCE SHEET ITEMS
Total Borrowings	319,883	0	-	-	-
Total Liabilities	3,613,137	368,650	138,022	131,163	129,099
Total Assets	3,657,806	229,408	5,078	100	152
Net Assets	322,955	(139,242)	(132,944)	(131,063)	(128,947)
Net Assets Backing	44,669	(139,242)	(132,944)	(131,063)	(128,947)
Shareholders' Funds	44,669	(139,242)	(132,944)	(131,063)	(128,947)
Total Share Capital	100,000	100	100	100	100
Total Reserves	(55,331)	(139,342)	(133,044)	(131,163)	(129,047)
LIQUIDITY (Times)
Cash Ratio	0.05	0.22	-	-	-
Liquid Ratio	0.53	0.34	-	-	-
Current Ratio	0.98	0.38	0.04	0.00	0.00
WORKING CAPITAL CONTROL (Days)
Stock Ratio	91	14	-	-	-
Debtors Ratio	86	0	-	-	-
Creditors Ratio	170	153	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	7.16	0.00	-	-	-
Liabilities Ratio	80.89	(2.65)	(1.04)	(1.00)	(1.00)
Times Interest Earned Ratio	8.82	(7.38)	-	-	-
Assets Backing Ratio	3.20	(1,392.42)	(1,329.44)	(1,310.63)	(1,289.47)
PERFORMANCE RATIO (%)
Operating Profit Margin	2.25	(1.95)	-	-	-
Net Profit Margin	1.41	(1.95)	-	-	-
Return On Net Assets	46.99	3.98	1.41	1.61	5.37
Return On Capital Employed	41.27	3.98	1.41	1.61	5.37
Return On Shareholders' Funds/Equity	188.07	4.52	1.41	1.61	5.37
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.58.86
UK Pound	1	Rs.98.82
Euro	1	Rs.80.71

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	PDT

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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