MIRA INFORM REPORT

Report No. :	351703
Report Date :	30.11.2015

IDENTIFICATION DETAILS

Name :	20 MICRONS SDN. BHD.
Registered Office :	6, Jalan Chew Sin On, 31650 Ipoh, Perak
Country :	Malaysia
Financials (as on) :	31.03.2015
Date of Incorporation :	25.02.2008
Com. Reg. No.:	807569-H
Legal Form :	Private Limited
Line of Business :	Manufacturing of Calcium Carbonate
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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	807569-H
COMPANY NAME	:	20 MICRONS SDN. BHD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	25/02/2008
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	6, JALAN CHEW SIN ON, 31650 IPOH, PERAK, MALAYSIA.
BUSINESS ADDRESS	:	26, PERSIARAN SEPAKAT 4, TAMAN INDAH JAYA, 31350 IPOH, PERAK, MALAYSIA.
TEL.NO.	:	N/A
FAX.NO.	:	N/A
HP.NO.	:	0195702786
CONTACT PERSON	:	KRISHNAJI RAO VENGOBA RAO ( DIRECTOR )
INDUSTRY CODE	:	329
PRINCIPAL ACTIVITY	:	MANUFACTURING OF CALCIUM CARBONATE
AUTHORISED CAPITAL	:	MYR 5,000,000.00 DIVIDED INTO ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 360,002.00 DIVIDED INTO ORDINARY SHARES 360,002 CASH OF MYR 1.00 EACH.
SALES	:	MYR 2,290,001 [2015]
NET WORTH	:	MYR 891,229 [2015]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

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

The Subject is principally engaged in the (as a / as an) manufacturing of calcium carbonate.

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

Former Address(es)

Address	As At Date
NO. 116167, MJUKIM SUNGAI RAIA,, BATU 1 1/2, JALAN LAHAT,, SIMPANG PULAI,, 31300, PERAK, MALAYSIA	15/02/2013

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
28/07/2015	MYR 5,000,000.00	MYR 360,002.00
25/02/2009	MYR 5,000,000.00	MYR 154,926.00
25/02/2008	MYR 100,000.00	MYR 2.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
RAJESH CHANDRESHBHAI PARIKH +	26, PERSIARAN SEPAKAT 4, TAMAN INDAH JAYA, 31350 IPOH, PERAK, MALAYSIA.	Z108376	1.00	0.00
KRISHNAJI RAO VENGOBA RAO +	26, PERSIARAN SEPAKAT 4, TAMAN INDAH, 31350 IPOH, PERAK, MALAYSIA.	Z1763607	1.00	0.00
20 MICRONS LIMITED	9/10, GIDC INDUSTRIAL ESTATE, WAGHODIA, VADODARA, GUJARAT	9768	360,000.00	100.00
			---------------	------
			360,002.00	100.00
			============	=====

+ Also Director

Former Shareholder(s) :

Name	Country	IC/PP/Loc No	Shareholding	Last Updated
KASHIF IQBAL	MALAYSIA	G3129158	N/A	N/A
SHAH MEHULKUMAR DILIPBHAI	MALAYSIA	F5241757	N/A	N/A

DIRECTORS

DIRECTOR 1

Name Of Subject	:	ATIL CHANDRESH PARIKH
Address	:	ARIC HOUSE, 66, ATMAJYOTI NAGAR, ELLORA PARK, VADODARA, GUJARAT, 390007, INDIA.
IC / PP No	:	E0455899
Date of Birth	:	04/09/1977
Nationality	:	INDIAN
Date of Appointment	:	23/12/2008

DIRECTOR 2

Name Of Subject	:	RAJESH CHANDRESHBHAI PARIKH
Address	:	26, PERSIARAN SEPAKAT 4, TAMAN INDAH JAYA, 31350 IPOH, PERAK, MALAYSIA.
IC / PP No	:	Z108376
Date of Birth	:	28/12/1971
Nationality	:	INDIAN
Date of Appointment	:	21/12/2008

DIRECTOR 3

Name Of Subject	:	KRISHNAJI RAO VENGOBA RAO
Address	:	26, PERSIARAN SEPAKAT 4, TAMAN INDAH, 31350 IPOH, PERAK, MALAYSIA.
IC / PP No	:	Z1763607
Date of Birth	:	20/09/1971
Nationality	:	INDIAN
Date of Appointment	:	02/07/2008

MANAGEMENT

1)	Name of Subject	:	KRISHNAJI RAO VENGOBA RAO
	Position	:	DIRECTOR

AUDITOR

Auditor	:	K.S.HO & CO.
Auditor' Address	:	15A, PERSIARAN PINGGIR RAPAT 3, TAMAN SAIKAT, 31350 IPOH, PERAK, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. NG SOO KUAN
	IC / PP No	:	A0036185
	New IC No	:	641220-10-6158
	Address	:	26, HALUAN TASEK TIMUR 4, ANJUNG BERCHAM MEGAH, 31400 IPOH, PERAK, MALAYSIA.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

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

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

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 AFRICA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

CALCIUM CARBONATE

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of calcium carbonate.

The Subject refused to disclose its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	0195702786
Match	:	N/A
Address Provided by Client	:	LOT NO:-116167, MUKIM SUNGEI RAIA,BATU 1 1/2 ,JALAN LAHAT SIMPANG PULAI, 31300 SIMPANG PULAI, MALAYSIA
Current Address	:	26, PERSIARAN SEPAKAT 4, TAMAN INDAH JAYA, 31350 IPOH, PERAK, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

On 25th November 2015 we contacted one of the Subject's Director Mr Krish on his mobile at 0195702786 and he provided some information.

He refused to disclose its fax number, number of employees and bankers.

The Subject had shifted from the address provided.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2011 - 2015	]
Profit/(Loss) Before Tax	:	Decreased	[	2011 - 2015	]
Return on Shareholder Funds	:	Favourable	[	40.96%	]
Return on Net Assets	:	Favourable	[	49.18%	]
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. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Unfavourable	[	86 Days	]
Creditors Ratio	:	Favourable	[	20 Days	]
As the Subject is a service oriented company, the Subject does not need to keep stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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	[	5.24 Times	]
Current Ratio	:	Favourable	[	5.24 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	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
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. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : STRONG

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	3.2	4.0
Unemployment Rate	3.3	3.2	3.0	2.9	3.0
Net International Reserves ( MYR Billion )	415	427	-	417	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.50	2.20	-	4.00	-
Average 3 Months of Non-performing Loans ( % )	14.80	14.70	-	-	-
Average Base Lending Rate ( % )	6.60	6.53	6.53	6.85	-
Business Loans Disbursed( % )	15.3	32.2	-	56.0	-
Foreign Investment ( MYR Million )	23,546.1	26,230.4	38,238.0	43,486.6	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	45,455	45,441	46,321	49,144	-
Registration of New Companies ( % )	3.0	(0.0)	1.9	6.1	-
Liquidation of Companies ( No. )	132,485	17,092	26,430	21,753	-
Liquidation of Companies ( % )	417.8	(87.1)	54.6	(17.7)	-
Registration of New Business ( No. )	284,598	324,761	329,895	332,723	-
Registration of New Business ( % )	5.0	14.0	2.0	1.0	-
Business Dissolved ( No. )	20,121	20,380	18,161	21,436	-
Business Dissolved ( % )	1.9	1.3	(10.9)	18.0	-
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	63.2	-
Credit Cards Spending ( % )	15.6	12.6	-	13.5	-
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)	-	-	3.0	-
Other Mining	-	-	-	46.6	-
Industry Non-performing Loans ( MYR Million )	46.5	-	-	-	-
% of Industry Non-performing Loans	0.1	-	-	-	-
Manufacturing #	4.7	4.8	3.4	6.4	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	1.4	-
Plastic Products	3.8	-	-	2.7	-
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	-	-	13.0	-
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
329 : Other manufacturing n.e.c.
INDUSTRY :	MANUFACTURING
The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.
The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.
The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.
In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.
Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.
Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.
Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2008, the Subject is a Private Limited company, focusing on manufacturing of calcium carbonate. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. Presently, the issued and paid up capital of the Subject stands at MYR 360,002. With a strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Overall, we regard that the Subject's management capability is average. 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. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. 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 zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business.

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.

In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

PROFIT AND LOSS ACCOUNT

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

20 MICRONS SDN. BHD.

Financial Year End	2015-03-31	2014-03-31	2013-03-31	2012-03-31	2011-03-01
Months	12	12	12	13	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	2,290,001	2,878,705	1,442,897	1,356,139	2,037,076
	----------------	----------------	----------------	----------------	----------------
Total Turnover	2,290,001	2,878,705	1,442,897	1,356,139	2,037,076
Costs of Goods Sold	(1,732,867)	(2,189,823)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	557,134	688,882	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	438,465	565,323	(4,160)	268,490	191,575
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	438,465	565,323	(4,160)	268,490	191,575
Taxation	(73,421)	(143,345)	(3,818)	(78,379)	(46,717)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	365,044	421,978	(7,978)	190,111	144,858
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	166,183	(7,395)	184,184	(5,927)	(150,785)
	----------------	----------------	----------------	----------------	----------------
As restated	166,183	(7,395)	184,184	(5,927)	(150,785)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	531,227	414,583	176,206	184,184	(5,927)
DIVIDENDS - Ordinary (paid & proposed)	-	(248,400)	(183,601)	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	531,227	166,183	(7,395)	184,184	(5,927)
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
DEPRECIATION (as per notes to P&L)	523	523	-	-	-
	----------------	----------------	----------------	----------------	----------------
	523	523	-	-	-
	=============	=============

BALANCE SHEET

20 MICRONS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	1,802	2,325	2,075	5,292	8,465
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,802	2,325	2,075	5,292	8,465
Trade debtors	538,943	438,084	-	-	-
Other debtors, deposits & prepayments	378,340	2,250	-	-	-
Amount due from director	-	3,958	-	-	-
Cash & bank balances	182,498	464,902	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	1,099,781	909,194	616,098	615,880	743,530
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	1,101,583	911,519	618,173	621,172	751,995
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	95,979	165,281	-	-	-
Other creditors & accruals	113,993	145,822	-	-	-
Provision for taxation	61	73,831	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	210,033	384,934	265,266	76,186	397,120
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	889,748	524,260	350,832	539,694	346,410
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	891,550	526,585	352,907	544,986	354,875
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	360,002	360,002	360,002	360,002	360,002
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	360,002	360,002	360,002	360,002	360,002
Retained profit/(loss) carried forward	531,227	166,183	(7,395)	184,184	(5,927)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	531,227	166,183	(7,395)	184,184	(5,927)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	891,229	526,185	352,607	544,186	354,075
Deferred taxation	321	400	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	321	400	300	800	800
	----------------	----------------	----------------	----------------	----------------
	891,550	526,585	352,907	544,986	354,875
	=============	=============	=============	=============	=============

FINANCIAL RATIO

20 MICRONS SDN. BHD.

TYPES OF FUNDS
Cash	182,498	464,902	-	-	-
Net Liquid Funds	182,498	464,902	-	-	-
Net Liquid Assets	889,748	524,260	350,832	539,694	346,410
Net Current Assets/(Liabilities)	889,748	524,260	350,832	539,694	346,410
Net Tangible Assets	891,550	526,585	352,907	544,986	354,875
Net Monetary Assets	889,427	523,860	350,532	538,894	345,610
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	438,465	565,323	-	-	-
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	438,988	565,846	-	-	-
BALANCE SHEET ITEMS
Total Liabilities	210,354	385,334	265,566	76,986	397,920
Total Assets	1,101,583	911,519	618,173	621,172	751,995
Net Assets	891,550	526,585	352,907	544,986	354,875
Net Assets Backing	891,229	526,185	352,607	544,186	354,075
Shareholders' Funds	891,229	526,185	352,607	544,186	354,075
Total Share Capital	360,002	360,002	360,002	360,002	360,002
Total Reserves	531,227	166,183	(7,395)	184,184	(5,927)
LIQUIDITY (Times)
Cash Ratio	0.87	1.21	-	-	-
Liquid Ratio	5.24	2.36	-	-	-
Current Ratio	5.24	2.36	2.32	8.08	1.87
WORKING CAPITAL CONTROL (Days)
Debtors Ratio	86	56	-	-	-
Creditors Ratio	20	28	-	-	-
SOLVENCY RATIOS (Times)
Liabilities Ratio	0.24	0.73	0.75	0.14	1.12
Assets Backing Ratio	2.48	1.46	0.98	1.51	0.99
PERFORMANCE RATIO (%)
Operating Profit Margin	19.15	19.64	(0.29)	19.80	9.40
Net Profit Margin	15.94	14.66	(0.55)	14.02	7.11
Return On Net Assets	49.18	107.36	(1.18)	49.27	53.98
Return On Capital Employed	49.18	107.36	(1.18)	49.27	53.98
Return On Shareholders' Funds/Equity	40.96	80.20	(2.26)	34.93	40.91
Dividend Pay Out Ratio (Times)	-	0.59	23.01	-	-

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.75
UK Pound	1	Rs.100.68
Euro	1	Rs.70.88
Myr	1	Rs.15.65

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SDA

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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