MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	CIMB FUTURES SDN. BHD.
Registered Office :	Menara Cimb, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Level 13, 50470 Kuala Lumpur, Wilayah Persekutuan,
Country :	Malaysia
Financials (as on) :	31.12.2013
Date of Incorporation :	05.02.1993
Com. Reg. No.:	257674-P
Legal Form :	Private Limited
Line of Business :	Trading & investment in options, financial futures & derivative products
No. of Employees :	Not Available

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.

:

257674-P

COMPANY NAME

:

CIMB FUTURES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

05/02/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MENARA CIMB, JALAN STESEN SENTRAL 2, KUALA LUMPUR SENTRAL, LEVEL 13, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

MENARA CIMB, JALAN STESEN SENTRAL 2, KUALA LUMPUR SENTRAL, LEVEL 13,, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22618888

FAX.NO.

:

N/A

WEB SITE

:

WWW.CIMB.COM

CONTACT PERSON

:

DAVID TAN CHOON BENG ( DIRECTOR )

INDUSTRY CODE

:

66129

PRINCIPAL ACTIVITY

:

TRADING & INVESTMENT IN OPTIONS, FINANCIAL FUTURES & DERIVATIVE PRODUCTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARES 9,000,000 CASH AND 1,000,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 9,723,125 [2013]

NET WORTH

:

MYR 21,959,304 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

COMMERCE INTERNATIONAL MERCHANT BANKERS BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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) trading & investment in options, financial futures & derivative products.

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

The immediate holding company of the Subject is CIMB INVESTMENT BANK BERHAD, a company incorporated in MALAYSIA.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
20/05/2013	MYR 10,000,000.00	MYR 10,000,000.00
15/02/2013	MYR 10,000,000.00	MYR 9,000,000.00
17/06/1998	MYR 10,000,000.00	MYR 9,000,000.00
05/05/1998	MYR 10,000,000.00	MYR 8,000,000.00
27/02/1998	MYR 10,000,000.00	MYR 7,000,000.00
08/12/1995	MYR 10,000,000.00	MYR 6,000,000.00
15/06/1994	MYR 25,000.00	MYR 10,000.00
10/02/1993	MYR 25,000.00	MYR 2.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CIMB INVESTMENT BANK BERHAD	MENARA CIMB, JALAN STESEN SENTRAL 2, KUALA LUMPUR SENTRAL, LEVEL 13, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	18417M	10,000,000.00	100.00
			---------------	------
			10,000,000.00	100.00
			============	=====

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. DAVID TAN CHOON BENG
Address	:	A-5-1, BLOCK A, KEN DAMANSARA 1, JALAN SS2/72, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
New IC No	:	700529-01-5657
Date of Birth	:	29/05/1970
Nationality	:	MALAYSIAN
Date of Appointment	:	02/08/2012

DIRECTOR 2

Name Of Subject	:	MR. CHEW KER CHEE
Address	:	9, JALAN PJU 3/12C, DAMANSARA INDAH RESORT HOMES, 47410 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	4950818
New IC No	:	560330-10-5979
Date of Birth	:	30/03/1956
Nationality	:	MALAYSIAN
Date of Appointment	:	22/09/2004

DIRECTOR 3

Name Of Subject	:	MS. JULIA BINTI HASHIM
Address	:	12, JALAN SETIA KASIH ENAM, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	A0004000
New IC No	:	660125-10-5038
Date of Birth	:	25/01/1966
Nationality	:	MALAYSIAN
Date of Appointment	:	02/08/2012

DIRECTOR 4

Name Of Subject	:	MR. ONG WAI BOON
Address	:	36, JALAN PERLAK 5, SRI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	A0888847
New IC No	:	680322-10-6679
Date of Birth	:	22/03/1968
Nationality	:	MALAYSIAN
Date of Appointment	:	10/05/2010

DIRECTOR 5

Name Of Subject	:	RAMLIE BIN MOHAMAT KAMSARI
Address	:	73, JALAN CAMAR 4/22, VILLA DAMANSARA PJU5, 47810 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	E4366172F
Nationality	:	SINGAPOREAN
Date of Appointment	:	22/11/2004

MANAGEMENT

1)	Name of Subject	:	DAVID TAN CHOON BENG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSE-COOPERS
Auditor' Address	:	1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. ROSSAYA BINTI MOHD NASHIR
	IC / PP No	:	A1019235
	New IC No	:	680530-03-5844
	Address	:	21, JALAN SETIABAKTI, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

COMMERCE INTERNATIONAL MERCHANT BANKERS BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	09/11/1998	A FIXED AND FLOATING CHARGE	COMMERCE INTERNATIONAL MERCHANT BANKERS BHD	MYR 12,000,000.00	Unsatisfied

LEGAL CHECK AGAINST SUBJECT

* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT

* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The Subject is a service provider and it does not deal with trade 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	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

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

OPERATIONS

Services

:

INVESTMENT IN OPTIONS, FINANCIAL FUTURES & DERIVATIVE PRODUCTS

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading & investment in options, financial futures & derivative products.

The Subject offers execution and clearing services for futures and option products (FKLI,FCPO) traded on Bursa Malaysia Derivatives Berhad.

It serves both retail and institutional clients and is ranked among the top 3 trading participants on Bursa Malaysia Derivatives.

The Subject's services are as follows:

* Brokerage, Intermediary Service
* Financial Services

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-22618888
Match	:	N/A
Address Provided by Client	:	10TH FLOOR, BANGUNAN CIMB JALAN SEMANTAN DAMANSARA HEIGHTS,50490,KUALA LUMPUR,WILAYAH PERSEKUTUAN.
Current Address	:	MENARA CIMB, JALAN STESEN SENTRAL 2, KUALA LUMPUR SENTRAL, LEVEL 13,, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

we contacted one of the staff from the Subject and she provided some information.

The Subject refused to disclose its number of employees and fax number.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	11.10%	]
Return on Net Assets	:	Acceptable	[	12.38%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	0 Days	]
Creditors Ratio	:	Favourable	[	0 Days	]
As the Subject is a service oriented company, the Subject does not need to keep 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	:	Favourable	[	11.96 Times	]
Current Ratio	:	Favourable	[	11.96 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	6.72 Times	]
Gearing Ratio	:	Favourable	[	0.68 Times	]
The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the Subject : STABLE

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
66129 : Other financial and commodity futures brokers and dealers
INDUSTRY :	FINANCIAL SERVICES
The outlook for the financial services industry, particularly in the insurance sector, is positive as Malaysia's increasing population and rising disposable income will result in more people requiring financial services.
According to Ministry of Finance, Malaysia's financial services sector forcasted to grow 5.2% to the country's real gross domestic product at the year 2013. This sector targeted to raise Malaysia's total gross national income (GNI) from RM121.5 billion to RM180.2 billion and create 275,400 jobs by 2020. The domestic private banking industry is expected to continue its double-digit growth rates over the 2012-2015.
The insurance sector is forecast to see substantial growth in the next 2013-2016 as continued diversification, consolidation and international activity spur rising premiums and uptake of new services. Moderate GDP growth for the rest of the year, however, could pose a challenge to growth as the effects of a weakening global economy trickle down to private consumers. Gross direct premiums are expected to reach RM17.5billion in 2015.
At the end of July 2012, total loans outstanding increased 13% to RM1,073.1 billion largely for the purchase of residential properties and working capital, accounting for 27% and 24.7% respectively. The growth in net interest income of the banking system is expected to be complemented by higher fee-based income. The subsector is also anticipated to benefit from the growing Islamic banking market. As at end-July 2012, Islamic financing grew 19.3% to RM294.2 billion and accounted for 26.6% of total loans by the banking system. Meanwhile, stockbroking activity increased with a higher volume of share transactions at 18.4% to 222.2 billion units. In the insurance segment, life and general insurance are anticipated to further contribute to the growth of the subsector supported by an increase in new life insurance, and motor insurance policies.
The Government and Bank Negara would be assisting banks to establish meaningful presence in priority markets and expand beyond Asean through the acquisition of banking assets. With the insurance market in the process of dynamic change, due to rising demand and regulatory changes that aim both to increase solidity and allow greater international participation, consolidation, diversification and the rise of the takaful segment.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1993, the Subject is a Private Limited company, focusing on trading & investment in options, financial futures & derivative products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. Having a strong shareholders' backing , the Subject has the advantage to compete with its rivals and it is expected to enjoy timely financial assistance should the needs arise.

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. 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.

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. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 21,959,304, 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 payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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

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

PROFIT AND LOSS ACCOUNT

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

CIMB FUTURES SDN. BHD.

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
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	9,723,125	7,319,559	4,777,432	3,504,934	3,951,157
	----------------	----------------	----------------	----------------	----------------
Total Turnover	9,723,125	7,319,559	4,777,432	3,504,934	3,951,157
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	3,894,240	2,600,608	1,312,751	1,186,755	1,394,161
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	3,894,240	2,600,608	1,312,751	1,186,755	1,394,161
Taxation	(1,455,931)	(707,784)	(339,664)	(351,232)	(365,321)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	2,438,309	1,892,824	973,087	835,523	1,028,840
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	10,520,995	8,628,171	7,655,084	6,819,561	5,749,414
	----------------	----------------	----------------	----------------	----------------
As restated	10,520,995	8,628,171	7,655,084	6,819,561	5,749,414
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	12,959,304	10,520,995	8,628,171	7,655,084	6,778,254
TRANSFER TO RESERVES - General	(1,000,000)	-	-	-	41,307
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	11,959,304	10,520,995	8,628,171	7,655,084	6,819,561
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	680,473	500,540	-	-	-
	----------------	----------------	----------------	----------------	----------------
	680,473	500,540	-	-	-
	=============	=============

BALANCE SHEET

CIMB FUTURES SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	559,681	143,366	39,699	89,584	159,665
Investments	1,082,800	2,200,000	-	-	-
Deferred assets	132,305	161,017	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,215,105	2,361,017	-	-	2,200,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,774,786	2,504,383	39,699	89,584	2,359,665
Other debtors, deposits & prepayments	1,153,066	1,367,222	-	-	-
Short term deposits	35,421,287	-	-	-	-
Deposits with financial institutions	-	26,752,429	-	-	-
Cash & bank balances	783,101	77,868	-	-	-
Others	1,036,554	1,082,133	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	38,394,008	29,279,652	127,318,236	102,485,883	71,646,280
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	40,168,794	31,784,035	127,357,935	102,575,467	74,005,945
	=============	=============	=============	=============	=============
Other creditors & accruals	533,486	335,893	-	-	-
Amounts owing to holding company	130,572	25	-	-	-
Amounts owing to related companies	579	-	-	-	-
Provision for taxation	192,163	252,206	-	-	-
Other liabilities	2,352,690	1,674,916	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	3,209,490	2,263,040	109,729,764	85,920,383	58,186,384
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	35,184,518	27,016,612	17,588,472	16,565,500	13,459,896
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	36,959,304	29,520,995	17,628,171	16,655,084	15,819,561
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	10,000,000	9,000,000	9,000,000	9,000,000	9,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	10,000,000	9,000,000	9,000,000	9,000,000	9,000,000
Retained profit/(loss) carried forward	11,959,304	10,520,995	8,628,171	7,655,084	6,819,561
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	11,959,304	10,520,995	8,628,171	7,655,084	6,819,561
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	21,959,304	19,520,995	17,628,171	16,655,084	15,819,561
Long term loans	15,000,000	10,000,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	15,000,000	10,000,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
	36,959,304	29,520,995	17,628,171	16,655,084	15,819,561
	=============	=============	=============	=============	=============

FINANCIAL RATIO

CIMB FUTURES SDN. BHD.

TYPES OF FUNDS
Cash	36,204,388	77,868	-	-	-
Net Liquid Funds	36,204,388	77,868	-	-	-
Net Liquid Assets	35,184,518	27,016,612	17,588,472	16,565,500	13,459,896
Net Current Assets/(Liabilities)	35,184,518	27,016,612	17,588,472	16,565,500	13,459,896
Net Tangible Assets	36,959,304	29,520,995	17,628,171	16,655,084	15,819,561
Net Monetary Assets	20,184,518	17,016,612	17,588,472	16,565,500	13,459,896
BALANCE SHEET ITEMS
Total Borrowings	15,000,000	10,000,000	-	-	-
Total Liabilities	18,209,490	12,263,040	109,729,764	85,920,383	58,186,384
Total Assets	40,168,794	31,784,035	127,357,935	102,575,467	74,005,945
Net Assets	36,959,304	29,520,995	17,628,171	16,655,084	15,819,561
Net Assets Backing	21,959,304	19,520,995	17,628,171	16,655,084	15,819,561
Shareholders' Funds	21,959,304	19,520,995	17,628,171	16,655,084	15,819,561
Total Share Capital	10,000,000	9,000,000	9,000,000	9,000,000	9,000,000
Total Reserves	11,959,304	10,520,995	8,628,171	7,655,084	6,819,561
LIQUIDITY (Times)
Cash Ratio	11.28	0.03	-	-	-
Liquid Ratio	11.96	12.94	-	-	-
Current Ratio	11.96	12.94	1.16	1.19	1.23
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	-	-	-
Debtors Ratio	0	0	-	-	-
Creditors Ratio	0	0	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.68	0.51	-	-	-
Liabilities Ratio	0.83	0.63	6.22	5.16	3.68
Times Interest Earned Ratio	6.72	6.20	-	-	-
Assets Backing Ratio	3.70	3.28	1.96	1.85	1.76
PERFORMANCE RATIO (%)
Operating Profit Margin	40.05	35.53	27.48	33.86	35.28
Net Profit Margin	25.08	25.86	20.37	23.84	26.04
Return On Net Assets	12.38	10.50	7.45	7.13	8.81
Return On Capital Employed	12.38	10.50	7.45	7.13	8.81
Return On Shareholders' Funds/Equity	11.10	9.70	5.52	5.02	6.50
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.61.02
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

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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