MIRA INFORM REPORT

Report Date :

11.09.2014

IDENTIFICATION DETAILS

Name :	BRIDGE TRADING SDN. BHD.
Formerly Known As :	STARLINKED RESULTS SDN BHD
Registered Office :	Suite 1.02, 74a, Jalan Tembikai, 14000 Bukit Mertajam, Pulau Pinang
Country :	Malaysia
Financials (as on) :	31.12.2012
Date of Incorporation :	14.04.1997
Com. Reg. No.:	427702-X
Legal Form :	Private Limited
Line of Business :	Trading in foodstuff
No. of Employees	40 [2014]

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Malaysia	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

MALAYSIA ECONOMIC OVERVIEW

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays

Source : CIA

Company name and address

REGISTRATION NO.

:

427702-X

COMPANY NAME

:

BRIDGE TRADING SDN. BHD.

FORMER NAME

:

STARLINKED RESULTS SDN BHD (07/04/2000)

INCORPORATION DATE

:

14/04/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 1.02, 74A, JALAN TEMBIKAI, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

2 & 4, JALAN NAFIRI 1, KAWASAN INDUSTRI VALDOR, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5829228

FAX.NO.

:

04-5824254

CONTACT PERSON

:

LOW CHENG WENG ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING IN FOODSTUFF

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 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 600,000 CASH AND 400,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 31,015,291 [2012]

NET WORTH

:

MYR 4,270,368 [2012]

STAFF STRENGTH

:

40 [2014]

BANKER (S)

:

UNITED OVERSEAS BANK (MALAYSIA) BHD PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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 in foodstuff.

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 1,000,000.00	MYR 1,000,000.00
02/06/2008	MYR 500,000.00	MYR 500,000.00
07/08/2000	MYR 100,000.00	MYR 100,000.00
14/04/1997	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	(%)
MS. TEE GAIK SIM +	2, LORONG IDAMAN, TAMAN IDAMAN, SIMPANG AMPAT, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.	681030-07-5270 A1179062	500,000.00	50.00
MR. LOW CHENG WENG +	2, LORONG IDAMAN 1, TAMAN IDAMAN, SIMPANG AMPAT,, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.	670514-07-5193 A0773337	500,000.00	50.00
			---------------	------
			1,000,000.00	100.00
			============	=====

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. TEE GAIK SIM
Address	:	2, LORONG IDAMAN, TAMAN IDAMAN, SIMPANG AMPAT, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.
IC / PP No	:	A1179062
New IC No	:	681030-07-5270
Date of Birth	:	30/10/1968
Nationality	:	MALAYSIAN
Date of Appointment	:	12/03/1999

DIRECTOR 2

Name Of Subject	:	MR. LOW CHENG WENG
Address	:	2, LORONG IDAMAN 1, TAMAN IDAMAN, SIMPANG AMPAT,, 14100 SEBERANG PERAI TENGAH, PULAU PINANG, MALAYSIA.
IC / PP No	:	A0773337
New IC No	:	670514-07-5193
Date of Birth	:	14/05/1967
Nationality	:	MALAYSIAN
Date of Appointment	:	12/03/1999

MANAGEMENT

1)	Name of Subject	:	LOW CHENG WENG
	Position	:	DIRECTOR

2)	Name of Subject	:	TEE GAIK SIM
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	OOI & ASSOCIATES
Auditor' Address	:	72A, JALAN TEMBIKAI,, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. OOI WAN KUAN
	IC / PP No	:	6374934
	New IC No	:	620115-07-5182
	Address	:	1, JALAN RAJA GOPAL, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

2)

Name

:

PUBLIC BANK BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	12/04/2003	N/A	PUBLIC BANK BERHAD	MYR 90,000.00	Unsatisfied
2	12/04/2003	N/A	PUBLIC BANK BERHAD	MYR 200,000.00	Unsatisfied
3	12/04/2003	N/A	PUBLIC BANK BERHAD	MYR 200,000.00	Unsatisfied
4	28/12/2006	CHARGE IN FORM 16A OF THE NATINAL LAND CODE	PUBLIC BANK BHD	MYR 147,691.99	Unsatisfied
5	31/01/2007	A FACILITIES AGREEMENT	PUBLIC BANK BHD	MYR 900,000.00	Unsatisfied
6	12/06/2008	MONIES LOAN AGREEMENT	UNITED OVERSEAS BANK (MALAYSIA) BHD	MYR 1,110,868.39	Unsatisfied
7	09/07/2009	A FACILITIES AGREEMENT	MALAYAN BANKING BHD	MYR 500,000.00	Unsatisfied
8	23/08/2010	LEGAL CHARGE	PUBLIC BANK BHD	MYR 257,244.10	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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers.

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	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES
Type of Customer	:	SUPERMARKETS,DEPARTMENTAL STORES,HYPERMARKETS

OPERATIONS

Goods Traded

:

FOODSTUFF

Total Number of Employees:
YEAR	2014	2013	2012	2010
GROUP	N/A	N/A	N/A	N/A
COMPANY	40	40	44	44

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading in foodstuff.

The Subject sells fried onions, potatoes and others.

The Subject supply to supermarket and hypermarket.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	04-5829228
Match	:	N/A
Address Provided by Client	:	NO 2,4, 6 JALN NAFIRI KAWASAN INDUSTRIAL VALDOR 142000 SUNGAL BAKAP SPS MALAYSIA
Current Address	:	2 & 4, JALAN NAFIRI 1, KAWASAN INDUSTRI VALDOR, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

we contacted one of the staff from the Subject's Ms Chandra and she provided some information on the Subject.

The address provided is incorrect and incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2008 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	8.47%	]
Return on Net Assets	:	Acceptable	[	10.40%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.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	:	Favourable	[	7 Days	]
Debtor Ratio	:	Favourable	[	29 Days	]
Creditors Ratio	:	Favourable	[	14 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The 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	:	Acceptable	[	0.89 Times	]
Current Ratio	:	Unfavourable	[	1.07 Times	]
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	3.48 Times	]
Gearing Ratio	:	Acceptable	[	0.82 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.
Overall Assessment :
Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.
Overall financial condition of the Subject : FAIR

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	28,876
Individual Bankruptcy ( No.)	16,228	18,119	19,167	19,575	21,984
Individual Bankruptcy ( % )	16.7	11.7	5.8	2.1	12.3

INDUSTRIES ( % of Growth ):	2009	2010	2011	2012*	2013**
Agriculture	0.1	2.4	5.8	1.3	2.1
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	(6.5)	(0.3)	(5.4)	1.0	0.7
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 #	(9.0)	11.9	4.7	4.8	3.5
Exported-oriented Industries	(19.0)	12.1	2.8	4.1	-
Electrical & Electronics	(30.3)	28.4	(4.0)	12.7	18.6
Rubber Products	(10.1)	25.3	20.7	3.0	8.2
Wood Products	(24.1)	20.1	(5.1)	8.7	(3.1)
Textiles & Apparel	(19.5)	(0.4)	13.2	(7.1)	(2.6)
Domestic-oriented Industries	(9.8)	16.3	6.5	8.6	-
Food, Beverages & Tobacco	0.2	3.0	4.8	2.7	3.6
Chemical & Chemical Products	(7.7)	16.2	10.0	10.8	(0.7)
Plastic Products	(9.1)	2.4	3.8	-	-
Iron & Steel	(32.7)	29.3	2.2	(6.6)	3.4
Fabricated Metal Products	(2.5)	14.9	21.8	13.8	12.2
Non-metallic Mineral	(15.5)	20.2	12.1	2.9	(0.4)
Transport Equipment	(13.5)	36.5	12.0	3.4	13.8
Paper & Paper Products	(5.0)	18.7	9.5	3.1	2.3
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	6.2	11.4	4.7	18.6	10.9
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	2.9	7.4	7.1	6.4	5.9
Electric, Gas & Water	1.4	7.8	3.5	4.4	4.2
Transport, Storage & Communication	1.6	7.7	6.5	7.1	7.3
Wholesale, Retail, Hotel & Restaurant	2.8	4.7	5.2	4.7	5.9
Finance, Insurance & Real Estate	3.8	6.1	6.9	9.7	3.7
Government Services	3.4	5.9	12.4	9.4	8.3
Other Services	3.8	4.4	5.1	3.9	5.1
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 1997, the Subject is a Private Limited company, focusing on trading in foodstuff. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. 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 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 is operating on a medium scale and it has approximately 40 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Fortunately, the Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 4,270,368, 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.

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 normally.

PROFIT AND LOSS ACCOUNT

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

BRIDGE TRADING 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	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	31,015,291	30,616,522	24,304,090	23,814,215	21,817,403
	----------------	----------------	----------------	----------------	----------------
Total Turnover	31,015,291	30,616,522	24,304,090	23,814,215	21,817,403
Costs of Goods Sold	(27,021,796)	(26,560,962)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	3,993,495	4,055,560	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	518,758	1,053,305	785,717	601,505	809,411
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	518,758	1,053,305	785,717	601,505	809,411
Taxation	(156,988)	(297,097)	(241,462)	(140,874)	(193,081)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	361,770	756,208	544,255	460,631	616,330
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,908,598	2,152,390	1,608,135	1,147,504	831,174
	----------------	----------------	----------------	----------------	----------------
As restated	2,908,598	2,152,390	1,608,135	1,147,504	831,174
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,270,368	2,908,598	2,152,390	1,608,135	1,447,504
CAPITALISATION FOR BONUS ISSUES	-	-	-	-	(300,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,270,368	2,908,598	2,152,390	1,608,135	1,147,504
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	20,498	11,262	-	-	6,173
Bankers' acceptance	11,753	20,160	-	-	-
Hire purchase	48,665	42,349	-	-	24,655
Term loan / Borrowing	128,058	136,734	-	-	23,002
Others	-	-	-	-	40,388
	----------------	----------------	----------------	----------------	----------------
	208,974	210,505	-	-	94,218
	=============	=============		=============	=============

BALANCE SHEET

BRIDGE TRADING SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	6,776,542	5,666,273	5,004,486	4,228,331	4,005,488
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	-	-	-	0	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	6,776,542	5,666,273	5,004,486	4,228,331	4,005,488
Stocks	574,980	477,403	-	-	553,810
Trade debtors	2,422,954	2,445,837	-	-	3,007,405
Other debtors, deposits & prepayments	286,697	197,259	-	-	65,975
Cash & bank balances	46,108	421,375	-	-	227,075
Others	12,744	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	3,343,483	3,541,874	3,322,695	3,797,341	3,854,265
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	10,120,025	9,208,147	8,327,181	8,025,672	7,859,753
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,072,878	1,035,929	-	-	1,724,173
Other creditors & accruals	586,037	458,253	-	-	367,524
Hire purchase & lease creditors	207,990	279,282	-	-	95,972
Bank overdraft	356,950	-	-	-	28,700
Short term borrowings/Term loans	143,490	133,450	-	-	80,264
Bill & acceptances payable	200,000	400,000	-	-	957,000
Amounts owing to director	554,582	554,582	-	-	479,096
Provision for taxation	-	107,351	-	-	7,885
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	3,121,927	2,968,847	3,122,207	3,480,429	3,740,614
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	221,556	573,027	200,488	316,912	113,651
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	6,998,098	6,239,300	5,204,974	4,545,243	4,119,139
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
Retained profit/(loss) carried forward	3,270,368	2,908,598	2,152,390	1,608,135	1,147,504
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	3,270,368	2,908,598	2,152,390	1,608,135	1,147,504
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,270,368	3,908,598	3,152,390	2,608,135	2,147,504
Long term loans	2,061,787	1,619,023	-	-	1,702,307
Hire purchase creditors	533,487	575,526	-	-	217,012
Deferred taxation	132,456	136,153	-	-	52,316
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	2,727,730	2,330,702	2,052,584	1,937,108	1,971,635
	----------------	----------------	----------------	----------------	----------------
	6,998,098	6,239,300	5,204,974	4,545,243	4,119,139
	=============	=============	=============	=============	=============

FINANCIAL RATIO

BRIDGE TRADING SDN. BHD.

TYPES OF FUNDS
Cash	46,108	421,375	-	-	227,075
Net Liquid Funds	(510,842)	21,375	-	-	(758,625)
Net Liquid Assets	(353,424)	95,624	200,488	316,912	(440,159)
Net Current Assets/(Liabilities)	221,556	573,027	200,488	316,912	113,651
Net Tangible Assets	6,998,098	6,239,300	5,204,974	4,545,243	4,119,139
Net Monetary Assets	(3,081,154)	(2,235,078)	(1,852,096)	(1,620,196)	(2,411,794)
BALANCE SHEET ITEMS
Total Borrowings	3,503,704	3,007,281	-	-	3,081,255
Total Liabilities	5,849,657	5,299,549	5,174,791	5,417,537	5,712,249
Total Assets	10,120,025	9,208,147	8,327,181	8,025,672	7,859,753
Net Assets	6,998,098	6,239,300	5,204,974	4,545,243	4,119,139
Net Assets Backing	4,270,368	3,908,598	3,152,390	2,608,135	2,147,504
Shareholders' Funds	4,270,368	3,908,598	3,152,390	2,608,135	2,147,504
Total Share Capital	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
Total Reserves	3,270,368	2,908,598	2,152,390	1,608,135	1,147,504
LIQUIDITY (Times)
Cash Ratio	0.01	0.14	-	-	0.06
Liquid Ratio	0.89	1.03	-	-	0.88
Current Ratio	1.07	1.19	1.06	1.09	1.03
WORKING CAPITAL CONTROL (Days)
Stock Ratio	7	6	-	-	9
Debtors Ratio	29	29	-	-	50
Creditors Ratio	14	14	-	-	29
SOLVENCY RATIOS (Times)
Gearing Ratio	0.82	0.77	-	-	1.43
Liabilities Ratio	1.37	1.36	1.64	2.08	2.66
Times Interest Earned Ratio	3.48	6.00	-	-	9.59
Assets Backing Ratio	7.00	6.24	5.20	4.55	4.12
PERFORMANCE RATIO (%)
Operating Profit Margin	1.67	3.44	3.23	2.53	3.71
Net Profit Margin	1.17	2.47	2.24	1.93	2.82
Return On Net Assets	10.40	20.26	15.10	13.23	21.94
Return On Capital Employed	9.62	19.39	15.10	13.23	21.29
Return On Shareholders' Funds/Equity	8.47	19.35	17.26	17.66	28.70
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.60.82
UK Pound	1	Rs.98.14
Euro	1	Rs.78.65

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%)

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