MIRA INFORM REPORT

Report No. :	343630
Report Date :	07.10.2015

IDENTIFICATION DETAILS

Name :	METROD HOLDINGS BERHAD
Registered Office :	The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2014
Date of Incorporation :	30.09.2010
Com. Reg. No.:	916531-A
Legal Form :	Public
Line of Business :	Company of Investment Holding
No. of Employee :	115 [2015]

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 :	Slow but correct
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.

:

916531-A

COMPANY NAME

:

METROD HOLDINGS BERHAD

FORMER NAME

:

METROD HOLDINGS SDN BHD

INCORPORATION DATE

:

30/09/2010

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC

LISTED STATUS

:

YES

LISTED DATE

:

23/09/2011

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

3, LENGKUK KELULI 2, BUKIT RAJA PRIME, INDUSTRIAL PARK, 41720 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33413422

FAX.NO.

:

03-33415318

WEB SITE

:

WWW.METROD.COM

CONTACT PERSON

:

AZLAN BIN HASHIM ( MANAGING DIRECTOR )

INDUSTRY CODE

:

64200

PRINCIPAL ACTIVITY

:

COMPANY OF INVESTMENT HOLDING

AUTHORISED CAPITAL

:

MYR 300,000,000.00 DIVIDED INTO
ORDINARY SHARE 600,000,000.00 OF MYR 0.50 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 60,000,002.00 DIVIDED INTO
ORDINARY SHARES 4 CASH AND 120,000,000 OTHERWISE OF MYR 0.50 EACH.

SALES

:

MYR 1,655,117,889 [2014]

NET WORTH

:

MYR 383,983,283 [2014]

STAFF STRENGTH

:

115 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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 liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

The Subject is principally engaged in the (as a / as an) company of investment holding.

The Subject was listed on the Main Board of Bursa Malaysia Securities Bhd on 23/09/2011

The ultimate holding company of the Subject is METDIST S.A., a company incorporated in PANAMA.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	MYR 300,000,000.00	MYR 60,000,002.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
METDIST SA	CASE POSTSALE 10, GENEVA 4, 1211, SWITZERLAND.	XLZ00218307	50,562,000.00	42.13
CIMSEC NOMINEES (ASING) SDN. BHD.	BANGUNAN CIMB, JALAN SEMANTAN, DAMANSARA HEIGHTS, 5TH FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	265422M	37,909,920.00	31.59
CRYSTAL COAST SDN. BHD.	THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	740218K	5,800,000.00	4.83
WARNA SENSASI SDN. BHD.	THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	811607T	5,768,800.00	4.81
CIMB GROUP NOMINEES (ASING) SDN. BHD. FOR TAROONA LIMITED FOR TIETON GROUP LTD	MENARA CIMB, JALAN STESEN SENTRAL 2, KUALA LUMPUR SENTRAL, 17TH FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	274737T	5,200,000.00	4.33
NEOH CHOO EE & COMPANY SDN BHD	73, LEBUH PANTAI, 10300 GEORGE TOWN, PULAU PINANG, MALAYSIA.	3077T	2,134,400.00	1.78
HSBC NOMINEES (ASING) SDN. BHD. FOR CACEIS BANK PARIS FOR HMG GLOBETROTTER	2, LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	4381U	1,606,400.00	1.34
MAYBANK NOMINEES (ASING) SDN. BHD. FOR EXEMPT AN FOR DBS BANK LIMITED	MENARA MAYBANK, 100, JALAN TUN PERAK, TINGKAT 14, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	258956H	1,438,000.00	1.20
QUARRY LANE SDN. BHD.	WISMA TAIKO 1, JALAN S.P.SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.	423901V	774,500.00	0.65
MR. LIM KEW SENG @ LIM KEW SENG	KLINIK PAKAR LIM, 2, JALAN SULTAN, 85000 SEGAMAT, JOHOR, MALAYSIA.	480308-01-5053	742,100.00	0.62
MR. RAGHVENDRA MITTAL +	C-11-1, HIJAUAN KIARA CONDOMINIUM, 6, JALAN KIARA 5, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	Z1799505	2,500.00	0.00
REMAINING SHAREHOLDERS	-	-	8,061,384.00	6.72
			---------------	------
			120,000,004.00	100.00
			============	=====

+ Also Director

Former Shareholder(s) :

Name	Country	IC/PP/Loc No	Shareholding	Last Updated
GAU NGOO JIN	MALAYSIA	450710-01-5337	N/A	26/06/2012
INFINITIVE GROWTH SDN. BHD.	MALAYSIA	304147V	N/A	N/A
LAW AH LEONG	MALAYSIA	490206-06-5091	139,900.00	11/07/2014
SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD	MALAYSIA	49572H	17,995,000.00	12/09/2013
TOH KAM CHOY	MALAYSIA	2132334	N/A	26/06/2012
UDAY SINGH SINGHI	MALAYSIA	Z1809472	N/A	N/A

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

Local No	Country	Company	Status	(%)	As At
	MAURITIUS	METROD INTERNATIONAL PVT LTD	-	100.00	01/10/2015
	MAURITIUS	METROD (MAURITIUS) PVT LTD	-	100.00	01/10/2015
200405647H	SINGAPORE	METROD (SINGAPORE) PTE. LTD.	-	100.00	01/10/2015
66954H	MALAYSIA	METROD (MALAYSIA) SDN. BHD.	-	100.00	01/10/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	RAJAN MITTAL
Address	:	C-20-1, HIJAUAN KIARA CONDOMINIUM, 6, JALAN KIARA 5, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	Z2430822
Nationality	:	INDIAN
Date of Appointment	:	30/09/2010

DIRECTOR 2

Name Of Subject	:	DATO' GUMURI BIN HUSSAIN
Address	:	850, KAMPUNG SUNGAI GAHAL, BATU 14, 43100 HULU LANGAT, SELANGOR, MALAYSIA.
IC / PP No	:	2719177
New IC No	:	460104-06-5165
Date of Birth	:	04/01/1946
Nationality	:	MALAYSIAN
Date of Appointment	:	25/08/2011

DIRECTOR 3

Name Of Subject	:	DATO' AZLAN BIN HASHIM
Address	:	35, PERSIARAN DUTA, TAMAN DUTA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	4475109
New IC No	:	410906-10-5119
Date of Birth	:	06/09/1941
Nationality	:	MALAYSIAN
Date of Appointment	:	25/08/2011

DIRECTOR 4

Name Of Subject	:	DHIRUP ROY CHOUDHARY
Address	:	UNIT 10-19-05, KIARAMA CENDANA, 10, JALAN DESA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	Z2109558
Date of Appointment	:	05/03/2012

DIRECTOR 5

Name Of Subject	:	MR. ASH'ARI BIN AYUB
Address	:	22, JALAN CAMAR 4/25, VILLA DAMANSARA, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	3421848
New IC No	:	420526-05-5091
Date of Birth	:	26/05/1942
Nationality	:	MALAYSIAN
Date of Appointment	:	25/08/2011

DIRECTOR 6

Name Of Subject	:	DATUK ABU HASSAN BIN KENDUT
Address	:	23, JALAN BURHANUDDIN HELMI, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	3574587
New IC No	:	420909-04-5093
Date of Birth	:	09/09/1942
Nationality	:	MALAYSIAN
Date of Appointment	:	25/08/2011

DIRECTOR 7

Name Of Subject	:	MR. RAGHVENDRA MITTAL
Address	:	C-11-1, HIJAUAN KIARA CONDOMINIUM, 6, JALAN KIARA 5, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	Z1799505
Nationality	:	INDIAN
Date of Appointment	:	25/08/2011

MANAGEMENT

1)	Name of Subject	:	AZLAN BIN HASHIM
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	RAJEEB
	Position	:	FINANCE & ACCOUNTS MANAGER

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	MR. YEAP KOK LEONG
	IC / PP No	:	6081387
	New IC No	:	601107-10-5771
	Address	:	11, JALAN 2/149G, TAMAN SRI ENDAH, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

2)	Company Secretary	:	MS. WONG WAI FOONG
	IC / PP No	:	A0379022
	New IC No	:	660510-10-6838
	Address	:	1164, JALAN 17/46, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

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	:	N/A
Overseas	:	N/A

The Subject is a investment holding company.

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	:	N/A
Payment Mode	:	N/A

The Subject refused to disclose its credit term and payment mode information.

OPERATIONS

Services

:

INVESTMENT HOLDING

Total Number of Employees:
YEAR	2015	2014
GROUP	N/A	N/A
COMPANY	115	115

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) company of investment holding.

The Subject mainly involved in investment holdings with interest in the manufacturing of electrical conductivity grade.

The Subject also invest in hospitality and others asset or business.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	0333413422
Current Telephone Number	:	03-33413422
Match	:	YES
Address Provided by Client	:	3, LENGKUK KELULI 2, BUKIT RAJA PRIME, INDUSTRIAL PARK,41720,KLANG,SELANGOR.
Current Address	:	3, LENGKUK KELULI 2, BUKIT RAJA PRIME, INDUSTRIAL PARK, 41720 KLANG, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Decreased	[	2010 - 2014	]
Return on Shareholder Funds	:	Unfavourable	[	1.71%	]
Return on Net Assets	:	Unfavourable	[	4.10%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.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	:	Favourable	[	40 Days	]
Debtor Ratio	:	Favourable	[	37 Days	]
Creditors Ratio	:	Favourable	[	7 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.48 Times	]
Current Ratio	:	Favourable	[	2.07 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	[	5.77 Times	]
Gearing Ratio	:	Favourable	[	0.63 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 :
Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. The Subject 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 : FAIR

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
64200 : Activities of investment holding companies
INDUSTRY :	ECONOMY
In 2014, the economy is projected to grow 5.5% - 6% (2013: 4.7%), which is higher than the initial forecast of 4.5% - 5.5% in early 2014. Growth was supported by resilient domestic demand and reinforced by higher exports. The faster pace of recovery, particularly in the US, UK and selected euro area economies as well as moderate growth in the emerging economies provided strong support to the Malaysian export oriented industries and trade-related services. Consequently, gross exports rebounded strongly by 10.7% during the first seven months of 2014 from a contraction of 2.8% in the corresponding period in 2013. Furthermore, the economy growth of Malaysia in 2015 is expected to be 5%-6% driven by improving external demand, resilient domestic economic activity, and government infra- structure projects. The spillover and multiplier effect from government spending is crucial for economic growth in the country. The government also aims to boost the economy by increasing job opportunities and drive supporting industries.
Meanwhile, the Malaysian economy has benefited from several initiatives and reforms taken over the years to enhance its resilience and competitiveness. The nation's strengths include: strong macroeconomic fundamentals such as a diversified economy, low unemployment, strong international reserves, growing role of the private sector, and a healthy financial system to support economic activity.
On the demand side, growth will be reinforced by resilient consumer spending, strong private investment activity and improving global demand. The domestic demand is expected to expand in 2015 at a moderate pace, underpinned by higher investment and sustained consumption spending. Private investment is expected to remain strong supported by increasing domestic activity, a favorable external sector, and ongoing projects under the Economic Transformation Programme (ETP). Private consumption is, however, expected to moderate below its long-term average, but will continue to support growth. Household spending is expected to moderate amid higher inflation following the implementation of GST. Nonetheless, the impact of higher inflation on consumption is expected to be temporary and will eventually taper off after a few months of the GST implementation.
On the supply side, all economic sectors are expected to record positive in 2015, with the services and manufacturing sectors remaining the major contribution to growth. The service sector is projected to grow by 5.6% with all subsectors recording expansion such as wholesale trade, transport and storage, retail trade as well as accommodation and restaurants. The manufacturing sector is expected to grow 5.5% boosted by strong domestic and export-oriented industries. Meanwhile, the export-oriented industries, particularly the E&E subsector will benefit from the improvement in external conditions in line with improving global growth. The agriculture sector is expected to grow 3.1% by recording higher commodity production and increase output of food commodities, while the construction sector is expected to grow 10.7% driven by robust activity in the civil engineering projects in the O&G sector, residential and non-residential buildings. The mining sector is expected to grow 2.8% backed by the increase in production of natural gas and crude oil following capacity enhancement and new production facilities.
Moreover, in 2014, boosted by strong external demand for manufactured products and stable commodity prices, exports are expected to grow 6%. Import growth will remain resilient at 4.3% supported by continued expansion in manufacturing, investment and consumption activities. Meanwhile, higher remittances by foreign workers in Malaysia will see a marginally higher deficit in the secondary income account due to the full implementation of the Minimum Wage Policy effective from January 2014. Furthermore, Malaysia's external position is expected to remain strong in 2015 with improve prospects for external environment, upturn in global semiconductor sales, as well as resilient domestic and regional demand. Gross exports are expected to increase 3.2% spurred by higher demand for manufactured products, in particular E&E, and steady demand for commodities. Gross import are, however, projected to grow at a faster pace of 5.3% boosted by higher demand for intermediate inputs and broad-based capital spending, particularly in the manufacturing and services sectors as well as ongoing implementation of infrastructure projects. Higher investment activity across major sectors by the Non-Financial Public Enterprises (NFPEs) is also expected to contribute to import growth.
In 2015, inflation is expected to increase 4-5%, largely due to the implementation of Goods and Services Tax (GST), spillover effect of fuel subsidy reduction, and electricity tariff hike in January 2014. This inflation expectation further heightens the possibility of more Overnight Policy Rate (OPR) hikes, following the 25 basis points hike in July 2014. Given the subdued external cost pressure, domestic cost remains the major factor that drives inflation in 2015. The implementation of the GST will have a transitory impact on the cost of goods and services. However, the strong capacity expansion over the past years will help to mitigate the cost pressures, while a more cautious stance of consumers would also contribute to moderating demand and hence prevent inflation from becoming more entrenched.
On the other hand, Gross National Income (GNI) in 2015 is expected to expand further by 9.4% (2014: 10.2%) following continued growth in the domestic economy. With total consumption spending in nominal terms expected to increase 9.2%, the Gross National Savings (GNS) is projected to expand 9.8% (2014: 14.5%). Consequently, the share of GNS and GNI is expected to increase to 32.5% (2014: 32.4%). However, in line with the better economic growth, national income as measured by the nominal GNI, is estimated to expand 10.2% to RM1,049.5 billion in 2014, surpassing for the first time, the RM1-trillion mark. Other than that, nominal GNI per capita is expected to increase 8.1% to RM37,486 in 2015 (2014: 8.9%, RM34,682). In terms of Purchasing Power Parity (PPP), per capital income is expected to increase 2.4% to USD 23,512 in 2015 (2014: 2.2%, USD 22,958).
Under budget 2015, the government targets to bring down the budget deficit to -3% of GDP by 2015. The initiations of subsidy rationalization and Goods and Services Tax (GST) in April 2015 are crucial steps towards fiscal consolidation.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2010, the Subject is a Public Listed company, focusing on company of investment holding. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. The Subject is a large entity with strong capital position of MYR 60,000,002. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Investigation revealed, 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. The Subject is a fairly large and rapidly growing company with over 115 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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 383,983,283, the Subject should be able to maintain its business in the near terms.

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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

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)

METROD HOLDINGS BERHAD

Financial Year End	2014-12-31	2013-12-31	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	1,655,117,889	1,299,845,046	1,156,425,153	1,312,951,369	1,254,389,551
	----------------	----------------	----------------	----------------	----------------
Total Turnover	1,655,117,889	1,299,845,046	1,156,425,153	1,312,951,369	1,254,389,551
Costs of Goods Sold	(1,616,788,994)	(1,275,879,652)	(1,137,876,237)	(1,273,228,152)	(1,220,443,723)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	38,328,895	23,965,394	18,548,916	39,723,217	33,945,828
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	13,134,736	18,010,212	1,000,016	13,905,241	19,602,803
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	13,134,736	18,010,212	1,000,016	13,905,241	19,602,803
Taxation	(6,574,912)	(3,124,704)	(1,321,113)	(5,974,927)	(3,452,968)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	6,559,824	14,885,508	(321,097)	7,930,314	16,149,835
Profit/(Loss) from discontinued operation	-	-	49,380,481	556,131	569,383
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	6,559,824	14,885,508	49,059,384	8,486,445	16,719,218
Extraordinary items	-	-	145,691	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	6,559,824	14,885,508	49,205,075	8,486,445	16,719,218
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	329,085,980	321,400,472	271,472,870	270,186,425	250,070,398
Prior year adjustment	-	-	7,922,527	-	10,596,809
	----------------	----------------	----------------	----------------	----------------
As restated	329,085,980	321,400,472	279,395,397	270,186,425	260,667,207
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	335,645,804	336,285,980	328,600,472	278,672,870	277,386,425
DIVIDENDS - Ordinary (paid & proposed)	(7,200,000)	(7,200,000)	(7,200,000)	(7,200,000)	(7,200,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	328,445,804	329,085,980	321,400,472	271,472,870	270,186,425
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	2,752,488	1,778,412	2,084,983	3,944,353	1,614,456
Others	-	-	-	241,468	359,866
	----------------	----------------	----------------	----------------	----------------
	2,752,488	1,778,412	2,084,983	4,185,821	1,974,322
	=============	=============	=============	=============	=============

BALANCE SHEET

METROD HOLDINGS BERHAD

ASSETS EMPLOYED:
FIXED ASSETS	53,415,531	44,412,107	45,234,157	64,999,576	246,272,539
Deferred assets	6,806,109	12,108,819	14,703,558	18,803,920	32,760,343
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	6,806,109	12,108,819	14,703,558	18,803,920	32,760,343
Own goodwill	-	-	-	-	20,410,897
Patents / Copyrights	-	-	-	-	231,710
Computer software	-	-	-	1,616,514	1,616,514
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	-	-	-	1,616,514	22,259,121
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	60,221,640	56,520,926	59,937,715	85,420,010	301,292,003
Stocks	180,005,487	192,414,859	157,840,814	103,430,868	216,713,924
Trade debtors	168,131,459	184,091,442	166,658,075	141,970,330	228,023,591
Other debtors, deposits & prepayments	31,734,134	53,033,465	23,133,340	3,098,602	11,794,475
Short term deposits	228,827,784	197,446,224	173,110,961	43,336,322	104,084,829
Cash & bank balances	23,601,869	20,635,615	42,048,940	9,510,763	36,318,153
Others	726,190	754,993	1,490,986	391,785,706	7,381,928
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	633,026,923	648,376,598	564,283,116	693,132,591	604,316,900
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	693,248,563	704,897,524	624,220,831	778,552,601	905,608,903
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	30,595,485	44,891,467	57,099,040	29,946,903	80,130,310
Other creditors & accruals	10,864,085	15,121,897	17,128,911	13,634,940	48,004,336
Bank overdraft	-	-	-	-	1,468,238
Short term borrowings/Term loans	241,854,000	246,440,650	165,148,200	136,547,460	192,879,730
Other borrowings	-	-	-	-	86,203,633
Bill & acceptances payable	-	-	-	-	7,000,000
Provision for taxation	351,429	147,995	-	85,466	179,181
Other liabilities	22,138,975	9,042,653	6,392,392	241,164,459	2,168,702
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	305,803,974	315,644,662	245,768,543	421,379,228	418,034,130
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	327,222,949	332,731,936	318,514,573	271,753,363	186,282,770
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	387,444,589	389,252,862	378,452,288	357,173,373	487,574,773
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	60,000,002	60,000,002	60,000,002	60,000,002	60,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	60,000,002	60,000,002	60,000,002	60,000,002	60,000,000
RESERVES
Share premium	96,563,066	96,563,066	96,563,066	96,563,066	96,563,066
Exchange equalisation/fluctuation reserve	(4,479,909)	(2,905,070)	(6,532,869)	(7,846,195)	(4,152,832)
Retained profit/(loss) carried forward	328,445,804	329,085,980	321,400,472	271,472,870	270,186,425
Others	(96,545,680)	(96,545,680)	(96,545,680)	(96,545,680)	(96,545,680)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	323,983,281	326,198,296	314,884,989	263,644,061	266,050,979
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	383,983,283	386,198,298	374,884,991	323,644,063	326,050,979
Long term loans	-	-	-	27,798,750	121,123,194
Deferred taxation	-	-	593,113	835,951	13,583,006
Retirement benefits provision	3,461,306	3,054,564	2,974,184	3,814,429	22,219,106
Others	-	-	-	1,080,180	4,598,488
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	3,461,306	3,054,564	3,567,297	33,529,310	161,523,794
	----------------	----------------	----------------	----------------	----------------
	387,444,589	389,252,862	378,452,288	357,173,373	487,574,773
	=============	=============	=============	=============	=============

FINANCIAL RATIO

METROD HOLDINGS BERHAD

TYPES OF FUNDS
Cash	252,429,653	218,081,839	215,159,901	52,847,085	140,402,982
Net Liquid Funds	252,429,653	218,081,839	215,159,901	52,847,085	131,934,744
Net Liquid Assets	147,217,462	140,317,077	160,673,759	168,322,495	(30,431,154)
Net Current Assets/(Liabilities)	327,222,949	332,731,936	318,514,573	271,753,363	186,282,770
Net Tangible Assets	387,444,589	389,252,862	378,452,288	355,556,859	465,315,652
Net Monetary Assets	143,756,156	137,262,513	157,106,462	134,793,185	(191,954,948)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	15,887,224	19,788,624	3,084,999	18,091,062	21,577,125
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	15,887,224	19,788,624	3,084,999	18,091,062	21,577,125
BALANCE SHEET ITEMS
Total Borrowings	241,854,000	246,440,650	165,148,200	164,346,210	408,674,795
Total Liabilities	309,265,280	318,699,226	249,335,840	454,908,538	579,557,924
Total Assets	693,248,563	704,897,524	624,220,831	778,552,601	905,608,903
Net Assets	387,444,589	389,252,862	378,452,288	357,173,373	487,574,773
Net Assets Backing	383,983,283	386,198,298	374,884,991	323,644,063	326,050,979
Shareholders' Funds	383,983,283	386,198,298	374,884,991	323,644,063	326,050,979
Total Share Capital	60,000,002	60,000,002	60,000,002	60,000,002	60,000,000
Total Reserves	323,983,281	326,198,296	314,884,989	263,644,061	266,050,979
LIQUIDITY (Times)
Cash Ratio	0.83	0.69	0.88	0.13	0.34
Liquid Ratio	1.48	1.44	1.65	1.40	0.93
Current Ratio	2.07	2.05	2.30	1.64	1.45
WORKING CAPITAL CONTROL (Days)
Stock Ratio	40	54	50	29	63
Debtors Ratio	37	52	53	39	66
Creditors Ratio	7	13	18	9	24
SOLVENCY RATIOS (Times)
Gearing Ratio	0.63	0.64	0.44	0.51	1.25
Liabilities Ratio	0.81	0.83	0.67	1.41	1.78
Times Interest Earned Ratio	5.77	11.13	1.48	4.32	10.93
Assets Backing Ratio	6.46	6.49	6.31	5.93	7.76
PERFORMANCE RATIO (%)
Operating Profit Margin	0.79	1.39	0.09	1.06	1.56
Net Profit Margin	0.40	1.15	4.24	0.65	1.33
Return On Net Assets	4.10	5.08	0.82	5.07	4.43
Return On Capital Employed	4.10	5.08	0.82	5.04	4.22
Return On Shareholders' Funds/Equity	1.71	3.85	13.09	2.62	5.13
Dividend Pay Out Ratio (Times)	1.10	0.48	0.15	0.85	0.43
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.39
UK Pound	1	Rs.99.05
Euro	1	Rs.73.19

INFORMATION DETAILS

Analysis Done by :	KIN
Report Prepared by :	ASH

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.