MIRA INFORM REPORT

Report No. :	308332
Report Date :	18.02.2015

IDENTIFICATION DETAILS

Name :	AGRO-INDUSTRIAL SUPPLIES (M) SDN. BHD.
Registered Office :	104, Kompleks Alor Setar, Lebuhraya Darulaman, 1st Floor, 05100 Alor Setar, Kedah
Country :	Malaysia
Financials (as on) :	31.12.2007
Date of Incorporation :	05.08.1981
Com. Reg. No.:	73881-V
Legal Form :	Exempt Private (Limited By Share)
Line of Business :	Subject is engaged in the manufacturing, trading and sale of agricultural machinery and industrial equipment.
No. of Employees :	80 [2015]

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

EXECUTIVE SUMMARY

REGISTRATION NO.

:

73881-V

COMPANY NAME

:

AGRO-INDUSTRIAL SUPPLIES (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

05/08/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

104, KOMPLEKS ALOR SETAR, LEBUHRAYA DARULAMAN, 1ST FLOOR, 05100 ALOR SETAR, KEDAH, MALAYSIA.

BUSINESS ADDRESS

:

LOT 25-28 & 32 KAWASAN PRUSAHAAN BANDAR DARUL AMAN, KUBANG PASU, 06000 JITRA, KEDAH, MALAYSIA.

TEL.NO.

:

04-9179591

FAX.NO.

:

04-9179596

WEB SITE

:

WWW.AGRO-INDUS.COM

CONTACT PERSON

:

JIMMY LEE SENG CHONG ( CEO )

INDUSTRY CODE

:

28210

PRINCIPAL ACTIVITY

:

MANUFACTURING, TRADING AND SALE OF AGRICULTURAL MACHINERY AND INDUSTRIAL EQUIPMENT

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 600,000.00 DIVIDED INTO 
ORDINARY SHARES 355,079 CASH AND 244,921 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

80 [2015]

BANKER (S)

:

CIMB BANK BHD CITIBANK BHD HONG LEONG BANK BHD HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

The Subject is principally engaged in the (as a / as an) manufacturing, trading and sale of agricultural machinery and industrial equipment.

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 600,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. LEE SENG CHONG +	33, BUKIT INDAH, BANDAR DARUL AMAN, 06000 JITRA, KEDAH, MALAYSIA.	481021-02-5005 0096013	360,000.00	60.00
MS. GOH CHAI OOH +	33, BUKIT INDAH, BANDAR DARULAMAN, 06000 JITRA, KEDAH, MALAYSIA.	531202-02-5066 8131364	90,000.00	15.00
MR. LEE TZU YUAN +	33, BUKIT INDAH, BANDAR DARULAMAN, 06000 JITRA, KEDAH, MALAYSIA.	820612-02-5975	60,000.00	10.00
MR. LEE TZU-ZHING	33, BUKIT INDAH, BANDAR DARULAMAN, 06000 JITRA, KEDAH, MALAYSIA.	850622-02-5773	60,000.00	10.00
MS. LEE LIN TZE	33, BUKIT INDAH, BANDAR DARULAMAN, 06000 JITRA, KEDAH, MALAYSIA.	790123-07-5176	30,000.00	5.00
			---------------	------
			600,000.00	100.00
			============	=====

+ Also Director

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
70830T	MALAYSIA	AGRO-INDUS TECHNOLOGIES SDN. BHD.	100.00	26/11/2014

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. LEE TZU YUAN
Address	:	33, BUKIT INDAH, BANDAR DARULAMAN, 06000 JITRA, KEDAH, MALAYSIA.
New IC No	:	820612-02-5975
Date of Birth	:	12/06/1982
Nationality	:	MALAYSIAN
Date of Appointment	:	28/02/2006

DIRECTOR 2

Name Of Subject	:	MS. GOH CHAI OOH
Address	:	33, BUKIT INDAH, BANDAR DARULAMAN, 06000 JITRA, KEDAH, MALAYSIA.
IC / PP No	:	8131364
New IC No	:	531202-02-5066
Date of Birth	:	02/12/1953
Nationality	:	MALAYSIAN
Date of Appointment	:	06/04/2001

DIRECTOR 3

Name Of Subject	:	MR. LEE SENG CHONG
Address	:	33, BUKIT INDAH, BANDAR DARUL AMAN, 06000 JITRA, KEDAH, MALAYSIA.
IC / PP No	:	0096013
New IC No	:	481021-02-5005
Date of Birth	:	21/10/1948
Nationality	:	MALAYSIAN
Date of Appointment	:	05/08/1981

MANAGEMENT

1)	Name of Subject	:	JIMMY LEE SENG CHONG
	Position	:	CEO

2)	Name of Subject	:	MICHELLE SOEW MONG SEE
	Position	:	ACCOUNT MANAGER

AUDITOR

Auditor	:	GEE & CO.
Auditor' Address	:	103, KPLK.ALOR SETAR, TINGKAT 2, 05100 ALOR SETAR, KEDAH, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. OOI LAY HONG
	IC / PP No	:	A1130421
	New IC No	:	680916-02-5120
	Address	:	59, TAMAN DELIMA, JALAN GANGSA, 05150 ALOR SETAR, KEDAH, MALAYSIA.

2)	Company Secretary	:	MS. CHUAN PEI LING
	IC / PP No	:	A0028960
	New IC No	:	650108-02-5176
	Address	:	10, JALAN INDRA, TAMAN TERATAI, JALAN LANGGAR, 05460 ALOR SETAR, KEDAH, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

2)

Name

:

CITIBANK BHD

3)

Name

:

HONG LEONG BANK BHD

4)

Name

:

HSBC BANK MALAYSIA BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	05/08/1986	N/A	SOUTHERN BANK BHD	MYR 450,000.00	Satisfied
2	22/04/1989	N/A	SOUTHERN BANK BERHAD	MYR 800,000.00	Satisfied
3	28/06/1990	N/A	SOUTHERN BANK BERHAD	MYR 650,000.00	Satisfied
4	08/01/1994	CHARGE	BANK OF COMMERCE M BHD	MYR 1,950,000.00	Unsatisfied
5	08/01/1994	CHARGE	BANK OF COMMERCE M BHD	MYR 1,950,000.00	Unsatisfied
6	08/01/1994	CHARGE	BANK OF COMMERCE M BHD	MYR 1,950,000.00	Unsatisfied
7	17/01/1995	CHARGE	BANK OF COMMERCE M BHD	MYR 80,000.00	Unsatisfied
8	17/01/1995	CHARGE	BANK OF COMMERCE M BHD	MYR 80,000.00	Unsatisfied
9	26/11/1996	N/A	BANK OF COMMERCE M BERHAD	MYR 830,000.00	Unsatisfied
10	26/11/1996	N/A	BANK OF COMMERCE M BERHAD	MYR 830,000.00	Satisfied
11	26/11/1996	CHARGE	BANK OF COMMERCE M BERHAD	MYR 830,000.00	Unsatisfied
12	26/11/1996	CHARGE	BANK OF COMMERCE M BERHAD	MYR 2,700,000.00	Unsatisfied
13	08/02/2002	N/A	CITIBANK BERHAD	MYR 192,000.00	Unsatisfied
14	08/02/2002	N/A	CITIBANK BERHAD	MYR 688,000.00	Unsatisfied
15	07/11/2002	N/A	HONG LEONG BANK BERHAD	MYR 368,000.00	Satisfied
16	07/11/2002	N/A	HONG LEONG BANK BERHAD	MYR 368,000.00	Satisfied
17	23/06/2004	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 350,000.00	Unsatisfied
18	23/06/2004	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 350,000.00	Unsatisfied
19	30/12/2004	MEMO OF CHARGE	BUMIPUTRACOMMERCE BANK BERHAD	MYR 700,000.00	Unsatisfied
20	06/06/2005	DEED OF ASSIGNMENT	HSBC BANK MALAYSIA BHD	MYR 364,000.00	Unsatisfied
21	25/09/2008	CHARGE	CIMB BANK BERHAD	MYR 400,000.00	Unsatisfied

LITIGATION 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.

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

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

CLIENTELE

Local	:	YES	Percentage	:	70%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	30%
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT) LETTER OF CREDIT (LC)

OPERATIONS

Products manufactured

:

AUTO DRYER, CHAIN BUCKET ELEVATOR, DRYING & STORAGE / RICE PACKING MACHINARY, PADDY SEPARATOR

Product Brand Name

:

AGRO-INDUS, KONGSKILDE, TOYO, TOYO-AGRO

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

Competitor(s)

:

APEX ENGINEERING SDN BHD
BD AGRICULTURE (MALAYSIA) SDN BHD
DAH YUNG STEEL (MALAYSIA) SDN BHD
NAFAS JENTERA SDN BHD
SEMENYIH OIL SDN BHD

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2015	2012	2011	2010
GROUP	N/A	N/A	N/A	N/A
COMPANY	80	80	70	70

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing, trading and sale of agricultural machinery and industrial equipment. 

The Subject produces a wide range of agricultural machinery and industrial equipment from grain handling cleaning, drying & storage plants, rice processing & packaging plants, rice husk furnaces (hot-air, hot-water & thermal-oil) to handglove drying & pneumatic conveying etc.

The Subject has become a specialist in agriculture processing, especially rice processing.

Besides rice processing, the Subject is also experianced in manufacturing automatic rice husk fueled furnace for paddy drying, modern bulk handling system, seed processing plant, internal transport systems in industry, noise and dust pollution control systems, process waste material management systems, heavy-duty central vacuum systems, and so on.

The subject is equipped with both automated and semi-automated machineries at the production site. 

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	04-9179591
Match	:	N/A
Address Provided by Client	:	LOG 25-28 & 32 KAW PERUSAHAAN BANDAR DARULAMAN 06000 BANDAR DARULAMAN KEDAH DARUL AMAN
Current Address	:	LOT 25-28 & 32 KAWASAN PRUSAHAAN BANDAR DARUL AMAN, KUBANG PASU, 06000 JITRA, KEDAH, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	NO
We have contacted the SC's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

Other Investigations

We contacted one of the staff from the Subject and he provided some information.

The address provided is incomplete.

FINANCIAL ANALYSIS

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2011	2012	2013	2014*	2015**
Population ( Million)	28.7	29.3	29.8	30.3	30.5
Gross Domestic Products ( % )	5.1	5.6	5.3	6.0	6.0
Domestic Demand ( % )	8.2	9.4	5.6	6.4	6.2
Private Expenditure ( % )	8.2	8.0	8.6	7.9	6.9
Consumption ( % )	7.1	1.0	5.7	6.5	5.6
Investment ( % )	12.2	11.7	13.3	12.0	10.7
Public Expenditure ( % )	8.4	13.3	4.4	2.3	4.2
Consumption ( % )	16.1	11.3	(1.2)	2.1	3.8
Investment ( % )	(0.3)	15.9	4.2	2.6	4.7
Balance of Trade ( MYR Million )	116,058	106,300	71,298	52,314	-
Government Finance ( MYR Million )	(45,511)	(42,297)	(39,993)	(37,291)	-
Government Finance to GDP / Fiscal Deficit ( % )	(5.4)	(4.5)	(4.0)	(3.5)	(3.0)
Inflation ( % Change in Composite CPI)	3.1	1.6	2.5	3.3	4.0
Unemployment Rate	3.3	3.2	3.0	3.0	3.0
Net International Reserves ( MYR Billion )	415	427	-	417	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.50	2.20	-	-	-
Average 3 Months of Non-performing Loans ( % )	14.80	14.70	-	-	-
Average Base Lending Rate ( % )	6.60	6.53	6.53	-	-
Business Loans Disbursed( % )	15.3	32.2	-	-	-
Foreign Investment ( MYR Million )	23,546.1	26,230.4	38,238.0	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	45,455	45,441	46,321	-	-
Registration of New Companies ( % )	3.0	(0.0)	1.9	-	-
Liquidation of Companies ( No. )	132,485	17,092	26,430	-	-
Liquidation of Companies ( % )	417.8	(87.1)	54.6	-	-
Registration of New Business ( No. )	284,598	324,761	329,895	-	-
Registration of New Business ( % )	5.0	14.0	2.0	-	-
Business Dissolved ( No. )	20,121	20,380	18,161	-	-
Business Dissolved ( % )	1.9	1.3	(10.9)	-	-
Sales of New Passenger Cars (' 000 Unit )	535.1	552.2	576.7	598.4	610.3
Cellular Phone Subscribers ( Million )	35.3	38.5	43.0	43.8	-
Tourist Arrival ( Million Persons )	24.7	25.0	25.7	28.0	-
Hotel Occupancy Rate ( % )	60.6	62.4	62.6	-	-
Credit Cards Spending ( % )	15.6	12.6	-	-	-
Bad Cheque Offenders (No.)	32,627	26,982	28,876	-	-
Individual Bankruptcy ( No.)	19,167	19,575	21,984	-	-
Individual Bankruptcy ( % )	5.8	2.1	12.3	-	-

INDUSTRIES ( % of Growth ):	2011	2012	2013	2014*	2015**
Agriculture	5.8	1.0	2.1	3.8	3.1
Palm Oil	10.8	(0.3)	2.6	6.7	-
Rubber	6.1	(7.9)	(10.1)	(10.4)	-
Forestry & Logging	(7.6)	(4.5)	(7.8)	(4.2)	-
Fishing	2.1	4.3	1.6	2.7	-
Other Agriculture	7.1	6.4	8.2	6.2	-
Industry Non-Performing Loans ( MYR Million )	634.1	-	-	-	-
% of Industry Non-Performing Loans	3.2	-	-	-	-
Mining	(5.4)	1.4	0.9	(0.8)	2.8
Oil & Gas	(1.7)	-	-	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	46.5	-	-	-	-
% of Industry Non-performing Loans	0.1	-	-	-	-
Manufacturing #	4.7	4.8	3.4	6.6	5.5
Exported-oriented Industries	4.1	6.5	3.3	5.6	-
Electrical & Electronics	(4.0)	12.7	6.9	13.3	-
Rubber Products	20.7	3.0	11.7	(0.3)	-
Wood Products	(5.1)	8.7	(2.7)	5.1	-
Textiles & Apparel	13.2	(7.1)	(2.6)	11.5	-
Domestic-oriented Industries	10.7	1.7	6.8	9.4	-
Food, Beverages & Tobacco	4.80	2.70	3.60	6.13	6.13
Chemical & Chemical Products	10.0	10.8	5.6	-	-
Plastic Products	3.8	-	-	-	-
Iron & Steel	2.2	(6.6)	5.0	0.1	-
Fabricated Metal Products	21.8	13.8	9.9	2.9	-
Non-metallic Mineral	12.1	2.9	(2.0)	5.4	-
Transport Equipment	12.0	3.4	13.8	22.9	-
Paper & Paper Products	9.5	3.1	1.8	4.7	-
Crude Oil Refineries	9.3	-	-	-	-
Industry Non-Performing Loans ( MYR Million )	6,537.2	-	-	-	-
% of Industry Non-Performing Loans	25.7	-	-	-	-
Construction	4.7	18.6	10.9	12.7	10.7
Industry Non-Performing Loans ( MYR Million )	3,856.9	-	-	-	-
% of Industry Non-Performing Loans	10.2	-	-	-	-
Services	7.1	6.4	5.9	5.9	5.6
Electric, Gas & Water	3.5	4.4	4.2	3.6	3.9
Transport, Storage & Communication	6.50	7.10	7.30	7.50	7.15
Wholesale, Retail, Hotel & Restaurant	5.2	4.7	5.9	6.9	6.5
Finance, Insurance & Real Estate	6.90	9.70	3.70	4.65	4.25
Government Services	12.4	9.4	8.3	6.1	5.6
Other Services	5.1	3.9	5.1	4.8	4.5
Industry Non-Performing Loans ( MYR Million )	6,825.2	-	-	-	-
% of Industry Non-Performing Loans	23.4	-	-	-	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
28210 : Manufacture of agricultural and forestry machinery
INDUSTRY :	MACHINERY
Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.
Growth of the domestic-oriented industries such as machinery and transportation equipment is expected to remain favourable in 2014, in line with resilient domestic consumption and robust private investment. However, the output of general-purpose machinery decreased 8.8% in the first seven moths of 2014 (January - July 2013: -1.8%) due to the decline in manufacture of air-conditioning machine (-17.9%) as well as lifting and handling equipment (-8.2%).
Besides, shipments of machinery, appliances and parts continued to expand rapidly by 12.5% in the first seven months of 2014 (January - July 2013: 1.4%) with stronger demand from Singapore, the US, China and Australia. Growth was mainly contributed by specialized machinery for specific industries (16.3%), particularly for civil engineering and manufacture of semiconductors as well as general industrial machinery and equipment (9.2%) such as heating and cooling equipment and parts as well as mechanical handling equipment and parts.
According to the World Bank's Doing Business 2014 Report, Malaysia improved to 15th from 25th position in the 2014 Foreign Direct Investment Confidence Index, with highlighted Malaysia's efforts in building its competitive position in electronics, automotive, and machinery manufacturing to move up the value chain into high technology and skill-intensive segments.
The Government has identified the M&E industry to be one of the key areas for growth and development. The growth will focus on the manufacture of high value-added and high technology M&E. For the further development of the M&E industry, six strategic thrusts have been set during the Third Industrial Master Plan (IMP3), 2006 - 2020 period:-
- Promoting Malaysia as a regional production, trading and distribution centre for M&E
- Rising the development and promotion of selected specialized and high technology M&E
- Strengthening the engineering support industries and support services
- Developing Malaysian Standards for machinery and equipment
- Developing sufficient highly skilled workforce
- Strengthening the institutional support for the further development of the industry
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1981, the Subject is an Exempt Private company, focusing on manufacturing, trading and sale of agricultural machinery and industrial equipment. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. With an issued and paid up capital of MYR 600,000 contributed by individual shareholders, the Subject may face difficulties in its attempt to further expand its business in the future. Thus, the Subject should put more efforts on its business to gain higher market share while competing aggressively in the market. 

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a moderate size company, the Subject has a total workforce of 80 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject. 

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health. 

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. 

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

PROFIT AND LOSS ACCOUNT

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

AGRO-INDUSTRIAL SUPPLIES (M) SDN. BHD.

Financial Year End	2007-12-31
Months	12
Consolidated Account	Company
Audited Account	YES
Unqualified Auditor's Report (Clean Opinion)	YES
Financial Type	SUMMARY
Currency	MYR
TURNOVER	8,903,561
	----------------
Total Turnover	8,903,561
	----------------
PROFIT/(LOSS) FROM OPERATIONS	(588,380)
	----------------
PROFIT/(LOSS) BEFORE TAXATION	(588,380)
Taxation	5,516
	----------------
PROFIT/(LOSS) AFTER TAXATION	(582,864)
	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	(582,864)
	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	(582,864)
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	4,552,874
	----------------
As restated	4,552,874
	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,970,010
	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,970,010
	=============

BALANCE SHEET

AGRO-INDUSTRIAL SUPPLIES (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	4,080,192
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	340,002
	----------------
TOTAL LONG TERM ASSETS	4,420,194
TOTAL CURRENT ASSETS	7,725,840
	----------------
TOTAL ASSET	12,146,034
	=============
TOTAL CURRENT LIABILITIES	6,674,799
	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,051,041
	----------------
TOTAL NET ASSETS	5,471,235
	=============
SHARE CAPITAL
Ordinary share capital	600,000
	----------------
TOTAL SHARE CAPITAL	600,000
Retained profit/(loss) carried forward	3,970,010
	----------------
TOTAL RESERVES	3,970,010
	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,570,010
TOTAL LONG TERM LIABILITIES	901,225
	----------------
	5,471,235
	=============

FINANCIAL RATIO

AGRO-INDUSTRIAL SUPPLIES (M) SDN. BHD.

TYPES OF FUNDS
Net Liquid Assets	1,051,041
Net Current Assets/(Liabilities)	1,051,041
Net Tangible Assets	5,471,235
Net Monetary Assets	149,816
BALANCE SHEET ITEMS
Total Liabilities	7,576,024
Total Assets	12,146,034
Net Assets	5,471,235
Net Assets Backing	4,570,010
Shareholders' Funds	4,570,010
Total Share Capital	600,000
Total Reserves	3,970,010
LIQUIDITY (Times)
Current Ratio	1.16
SOLVENCY RATIOS (Times)
Liabilities Ratio	1.66
Assets Backing Ratio	9.12
PERFORMANCE RATIO (%)
Operating Profit Margin	(6.61)
Net Profit Margin	(6.55)
Return On Net Assets	(10.75)
Return On Capital Employed	(10.75)
Return On Shareholders' Funds/Equity	(12.75)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.96.00
Euro	1	Rs.71.00

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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