MIRA INFORM REPORT

Report Date :

15.09.2014

IDENTIFICATION DETAILS

Name :	FORESIGHT INDUSTRIES SDN. BHD.
Registered Office :	40-1A &1B, Blok 8, Jalan Pahat H 15/H, Kompleks Otomobil, Seksyen 15,Tingkat 1, 40200 Shah Alam, Selangor,
Country :	Malaysia
Financials (as on) :	31.12.2012
Date of Incorporation :	30.10.1996
Com. Reg. No.:	408247-U
Legal Form :	Private Limited
Line of Business :	Manufacturer of medical and surgical disposal products
No. of Employees	100 [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 :	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	A2	A2

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.

:

408247-U

COMPANY NAME

:

FORESIGHT INDUSTRIES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/10/1996

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

40-1A &1B, BLOK 8, JALAN PAHAT H 15/H, KOMPLEKS OTOMOBIL, SEKSYEN 15,TINGKAT 1, 40200 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

6, JALAN TIAJ 2/6, TAMAN INDUSTRI ALAM JAYA, 42300 BANDAR PUNCAK ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-60388808

FAX.NO.

:

03-60388908

WEB SITE

:

WWW.FORESIGHT.COM.MY

CONTACT PERSON

:

AIDI ROSLAN BIN ABU BAKAR ( DIRECTOR )

INDUSTRY CODE

:

21005

PRINCIPAL ACTIVITY

:

MANUFACTURER OF MEDICAL AND SURGICAL DISPOSAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 4,932,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 68,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 991,688.00 DIVIDED INTO
ORDINARY SHARES 513,688 CASH AND 410,000 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 68,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 16,101,531 [2012]

NET WORTH

:

MYR 5,586,018 [2012]

STAFF STRENGTH

:

100 [2014]

BANKER (S)

:

AMBANK (M) BHD MALAYAN BANKING BHD UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacturer of medical and surgical disposal products.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
22/01/2014	MYR 5,000,000.00	MYR 991,688.00
15/02/2013	MYR 5,000,000.00	MYR 938,000.00
02/09/2008	MYR 1,000,000.00	MYR 938,000.00
11/10/2006	MYR 1,000,000.00	MYR 900,000.00
26/05/2000	MYR 500,000.00	MYR 360,000.00
23/05/2000	MYR 500,000.00	MYR 270,000.00
20/04/1998	MYR 500,000.00	MYR 190,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. ZAINOL AZHWA BIN ZULKIFLI +	LOT 364, JALAN BAKAWALI, BATU 14, KAMPUNG PASIR, 47100 PUCHONG, SELANGOR, MALAYSIA.	860319-43-5883	559,344.00	56.40
MR. AIDI ROSLAN BIN ABU BAKAR +	23, LORONG 3B, TAMAN SRI UKAY, HULU KELANG, 68000 AMPANG, SELANGOR, MALAYSIA.	630612-04-5469 7085732	287,370.00	28.98
DATO' DR IR MUHAMAD ZOHADIE BIN BARDAIE +	26, JALAN USJ 5/4, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.	501229-10-5499 4185050	76,974.00	7.76
MALAYSIAN TECHNOLOGY DEVELOPMENT CORPORATION SDN. BHD.	MENARA YAYASAN TUN RAZAK, JALAN BUKIT BINTANG, LEVEL 8 & 9, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	235796U	68,000.00	6.86
			---------------	------
			991,688.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. ROZITA BINTI MANSOR
Address	:	13-12, PERSANDA APARTMENT, JALAN BOLING PADANG 13/64, SEKSYEN 13, 40100 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	750812-08-5082
Date of Birth	:	12/08/1975
Nationality	:	MALAYSIAN
Date of Appointment	:	30/08/2013

DIRECTOR 2

Name Of Subject	:	DATO' DR IR MUHAMAD ZOHADIE BIN BARDAIE
Address	:	26, JALAN USJ 5/4, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	4185050
New IC No	:	501229-10-5499
Date of Birth	:	29/12/1950
Nationality	:	MALAYSIAN
Date of Appointment	:	18/12/2008

DIRECTOR 3

Name Of Subject	:	MR. AIDI ROSLAN BIN ABU BAKAR
Address	:	23, LORONG 3B, TAMAN SRI UKAY, HULU KELANG, 68000 AMPANG, SELANGOR, MALAYSIA.
IC / PP No	:	7085732
New IC No	:	630612-04-5469
Date of Birth	:	12/06/1963
Nationality	:	MALAYSIAN
Date of Appointment	:	30/11/2005

DIRECTOR 4

Name Of Subject	:	MR. ZAINOL AZHWA BIN ZULKIFLI
Address	:	LOT 364, JALAN BAKAWALI, BATU 14, KAMPUNG PASIR, 47100 PUCHONG, SELANGOR, MALAYSIA.
New IC No	:	860319-43-5883
Date of Birth	:	19/03/1986
Nationality	:	MALAYSIAN
Date of Appointment	:	03/05/2007

MANAGEMENT

1)	Name of Subject	:	AIDI ROSLAN BIN ABU BAKAR
	Position	:	DIRECTOR

AUDITOR

Auditor	:	SAIDY ISMAIL
Auditor' Address	:	5-B, WISMA PAHLAWAN, JALAN SULTAN SULAIMAN, TINGKAT 5, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. MOHD NORHAFIDZ BIN BUYONG
	IC / PP No	:	A3444063
	New IC No	:	761009-14-5959
	Address	:	NO.25,LORONG JAYA SATU, BANDAR TUN RAZAK, CHERAS, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

2)	Company Secretary	:	MS. FADHILAH BINTI HJ.AHMAD
	IC / PP No	:	A2469287
	New IC No	:	730716-09-5098
	Address	:	NO.29,JALAN KELANG GATE 27/45, TAMAN BUNGA NEGARA, SEKSYEN 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

2)

Name

:

MALAYAN BANKING BHD

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	08/10/1998	N/A	MALAYAN BANKING BERHAD	-	Satisfied
2	18/10/1999	N/A	EONCAP ISLAMIC BANK BERHAD	MYR 61,521.00	Satisfied
3	10/11/1999	N/A	MALAYAN BANKING BERHAD	MYR 280,000.00	Satisfied
4	10/11/1999	N/A	MALAYAN BANKING BERHAD	-	Satisfied
5	25/10/2002	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 300,000.00	Satisfied
6	11/07/2008	N/A	MALAYAN BANKING BHD	MYR 400,000.00	Satisfied
7	11/07/2008	N/A	CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD	MYR 400,000.00	Satisfied
8	03/09/2009	ALL MONIES LOAN AGREEMENT CUM DEED OF ASSIGNMENT	UNITED OVERSEAS BANK (MALAYSIA) BHD	-	Unsatisfied
9	23/12/2010	INSTRUMENT CREATING OR EVIDENCING	UNITED OVERSEAS BANK (MALAYSIA) BHD	MYR 3,900,000.00	Unsatisfied
10	09/06/2011	MEMORANDUM OF DEPOSIT & LETTER OF SET-OFF (FIRST PARTY)	AMBANK (M) BHD	MYR 500,000.00	Unsatisfied
11	23/09/2011	MEMORANDUM OF LEGAL CHARGE	UNITED OVERSEAS BANK (MALAYSIA) BHD	-	Unsatisfied
12	24/02/2012	LEGAL CHARGE UNDER THE NATIONAL LAND CODE	UNITED OVERSEAS BANK (MALAYSIA) BHD	-	Unsatisfied
13	02/10/2013	FIRST PARTY FIRST FIXED LEGAL CHARGE	SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD	-	Unsatisfied
14	05/06/2014	LEGAL CHARGE UNDER THE NATIONAL LAND	UNITED OVERSEAS BANK (MALAYSIA) BHD	-	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	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

MEDICAL AND SURGICAL DISPOSAL PRODUCTS

Competitor(s)

:

BIOTECH MEDICAL CORPORATION SDN BHD
BORNEO PHARMACY SUPPLIES SDN BHD
DELFI MARKETING SDN. BHD.
PRIMABUMI SDN BHD
RX PHARMA SDN BHD

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

Total Number of Employees:
YEAR	2014	2012	2011
GROUP	N/A	N/A	N/A
COMPANY	100	100	100

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturer of medical and surgical disposal products.

The Subject is an established manufacturer of surgical and medical disposable products in Malaysia.

The Subject's range of products are being used in a large number of hospitals and clinics throughout Malaysia.

The range of products include catheters & tubes, basic respiratory, infusion & transfusion, procedural kits and other disposable medical and surgical products.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-60388808
Match	:	N/A
Address Provided by Client	:	6, JALAN TIAJ 2/6, TAMAN INDUSTRI ALAM JAYA,42300,BANDAR PUNCAK ALAM,SELANGOR.
Current Address	:	6, JALAN TIAJ 2/6, TAMAN INDUSTRI ALAM JAYA, 42300 BANDAR PUNCAK 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	[	2.85%	]
Return on Net Assets	:	Acceptable	[	10.79%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	68 Days	]
Debtor Ratio	:	Favourable	[	20 Days	]
Creditors Ratio	:	Favourable	[	20 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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	:	Favourable	[	1.62 Times	]
Current Ratio	:	Favourable	[	2.67 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	:	Unfavourable	[	1.99 Times	]
Gearing Ratio	:	Acceptable	[	0.94 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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 :
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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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 : POOR

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
21005 : Manufacture of medical diagnostic preparation
INDUSTRY :	MANUFACTURING
The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.
Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.
According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.
Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.
Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.
The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.
Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1996, the Subject is a Private Limited company, focusing on manufacturer of medical and surgical disposal products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals.

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. Being a moderate size company, the Subject has a total workforce of 100 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.

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 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. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 5,586,018, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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

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

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

PROFIT AND LOSS ACCOUNT

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

FORESIGHT INDUSTRIES 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	FULL	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	16,101,531	18,017,759	12,113,381	9,044,376	7,290,584
	----------------	----------------	----------------	----------------	----------------
Total Turnover	16,101,531	18,017,759	12,113,381	9,044,376	7,290,584
Costs of Goods Sold	(10,351,644)	(12,127,293)	(8,022,637)	(5,592,605)	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	5,749,887	5,890,466	4,090,744	3,451,771	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	642,154	796,143	61,088	288,184	845,643
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	642,154	796,143	61,088	288,184	845,643
Taxation	(483,070)	(426,600)	73,300	(139,700)	(174,500)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	159,084	369,543	134,388	148,484	671,143
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	726,934	402,391	268,003	119,519	(419,324)
	----------------	----------------	----------------	----------------	----------------
As restated	726,934	402,391	268,003	119,519	(419,324)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	886,018	771,934	402,391	268,003	251,819
DIVIDENDS - Ordinary (paid & proposed)	-	(45,000)	-	-	(132,300)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	886,018	726,934	402,391	268,003	119,519
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	14,576	10,134	5,598	2,041	-
Hire purchase	20,460	21,175	22,192	16,280	-
Lease interest	-	-	190,000	191,041	-
Letter of credit	-	-	40,437	3,213	-
Term loan / Borrowing	98,428	102,057	116,452	28,915	-
Trust receipts	126,997	128,022	-	-	-
Others	388,736	403,354	89,462	56,805	-
	----------------	----------------	----------------	----------------	----------------
	649,197	664,742	464,141	298,295	-
	=============	=============	=============	=============

BALANCE SHEET

FORESIGHT INDUSTRIES SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	7,190,969	8,161,800	5,588,526	5,540,126	188,262
Development properties/expenditure	-	-	3,261,966	824,917	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	-	-	3,261,966	824,917	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	7,190,969	8,161,800	8,850,492	6,365,043	188,262
Stocks	2,997,124	3,864,218	2,944,275	1,433,776	-
Trade debtors	885,453	1,199,941	1,337,135	677,616	-
Other debtors, deposits & prepayments	1,002,479	347,515	525,476	552,679	-
Short term deposits	624,454	250,000	60,000	60,000	-
Cash & bank balances	2,139,288	1,013,900	245,964	438,549	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	7,648,798	6,675,574	5,112,850	3,162,620	6,053,452
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	14,839,767	14,837,374	13,963,342	9,527,663	6,241,714
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	571,965	830,007	1,105,532	231,353	-
Other creditors & accruals	1,042,345	1,230,639	871,559	382,247	-
Hire purchase & lease creditors	72,967	72,863	58,914	46,241	-
Short term borrowings/Term loans	-	-	1,276,927	242,161	-
Bill & acceptances payable	1,054,181	2,160,353	-	-	-
Amounts owing to related companies	-	470	-	-	-
Amounts owing to director	8,743	40,816	18,200	6,499	-
Provision for taxation	72,500	88,000	-	-	-
Dividends payable/proposed	45,000	45,000	-	-	-
Other liabilities	-	-	26,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	2,867,701	4,468,148	3,357,132	908,501	5,122,025
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	4,781,097	2,207,426	1,755,718	2,254,119	931,427
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	11,972,066	10,369,226	10,606,210	8,619,162	1,119,689
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	938,000	938,000	938,000	938,000	938,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	938,000	938,000	938,000	938,000	938,000
RESERVES
Share premium	3,762,000	3,762,000	-	-	-
Retained profit/(loss) carried forward	886,018	726,934	402,391	268,003	119,519
Others	-	-	3,762,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	4,648,018	4,488,934	4,164,391	268,003	119,519
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	5,586,018	5,426,934	5,102,391	1,206,003	1,057,519
Long term loans	3,837,403	1,997,331	-	-	-
Other long term borrowings	-	-	2,172,892	2,354,337	-
Hire purchase creditors	269,722	342,691	336,340	297,522	-
Deferred taxation	482,170	206,600	-	99,300	-
Deferred commissions & rebates	-	-	2,994,587	900,000	-
Others	1,796,753	2,395,670	-	3,762,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	6,386,048	4,942,292	5,503,819	7,413,159	62,170
	----------------	----------------	----------------	----------------	----------------
	11,972,066	10,369,226	10,606,210	8,619,162	1,119,689
	=============	=============	=============	=============	=============

FINANCIAL RATIO

FORESIGHT INDUSTRIES SDN. BHD.

TYPES OF FUNDS
Cash	2,763,742	1,263,900	305,964	498,549	-
Net Liquid Funds	1,709,561	(896,453)	305,964	498,549	-
Net Liquid Assets	1,783,973	(1,656,792)	(1,188,557)	820,343	931,427
Net Current Assets/(Liabilities)	4,781,097	2,207,426	1,755,718	2,254,119	931,427
Net Tangible Assets	11,972,066	10,369,226	10,606,210	8,619,162	1,119,689
Net Monetary Assets	(4,602,075)	(6,599,084)	(6,692,376)	(6,592,816)	869,257
BALANCE SHEET ITEMS
Total Borrowings	5,234,273	4,573,238	3,845,073	2,940,261	-
Total Liabilities	9,253,749	9,410,440	8,860,951	8,321,660	5,184,195
Total Assets	14,839,767	14,837,374	13,963,342	9,527,663	6,241,714
Net Assets	11,972,066	10,369,226	10,606,210	8,619,162	1,119,689
Net Assets Backing	5,586,018	5,426,934	5,102,391	1,206,003	1,057,519
Shareholders' Funds	5,586,018	5,426,934	5,102,391	1,206,003	1,057,519
Total Share Capital	938,000	938,000	938,000	938,000	938,000
Total Reserves	4,648,018	4,488,934	4,164,391	268,003	119,519
LIQUIDITY (Times)
Cash Ratio	0.96	0.28	0.09	0.55	-
Liquid Ratio	1.62	0.63	0.65	1.90	-
Current Ratio	2.67	1.49	1.52	3.48	1.18
WORKING CAPITAL CONTROL (Days)
Stock Ratio	68	78	187	91	-
Debtors Ratio	20	24	40	27	-
Creditors Ratio	20	25	50	15	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.94	0.84	0.75	2.44	-
Liabilities Ratio	1.66	1.73	1.74	6.90	4.90
Times Interest Earned Ratio	1.99	2.20	1.13	1.97	-
Assets Backing Ratio	12.76	11.05	11.31	9.19	1.19
PERFORMANCE RATIO (%)
Operating Profit Margin	3.99	4.42	0.50	3.19	11.60
Net Profit Margin	0.99	2.05	1.11	1.64	9.21
Return On Net Assets	10.79	14.09	4.95	6.80	75.52
Return On Capital Employed	10.72	13.99	4.92	6.77	75.52
Return On Shareholders' Funds/Equity	2.85	6.81	2.63	12.31	63.46
Dividend Pay Out Ratio (Times)	0.00	0.12	0.00	0.00	0.20
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.84
UK Pound	1	Rs.98.72
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	RAS
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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