MIRA INFORM REPORT

Report No. :	491056
Report Date :	08.02.2016

IDENTIFICATION DETAILS

Name :	TOR MINERALS (M) SDN. BHD.
Formerly Known As :	MALAYSIAN TITANIUM CORPORATION SENDIRIAN BERHAD
Registered Office :	72, Jalan Market, 30000 Ipoh, Perak
Country :	Malaysia
Financials (as on) :	31.12.2015
Date of Incorporation :	01.05.1973
Com. Reg. No.:	14387-W
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Subject is engaged in manufacturing of synthetic rutile, titanium dioxide pigments.
No. of Employees :	100

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program 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. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister 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, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

14387-W

COMPANY NAME

:

TOR MINERALS (M) SDN. BHD.

FORMER NAME

:

MALAYSIAN TITANIUM CORPORATION SENDIRIAN BERHAD (06/07/2000)

INCORPORATION DATE

:

01/05/1973

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

72, JALAN MARKET, 30000 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

4 1/2 MILES, LAHAT ROAD, 30200 IPOH, PERAK, MALAYSIA.

TEL.NO.

:

05-3223536

FAX.NO.

:

05-3222535

WEB SITE

:

WWW.TORMINERALS.COM

CONTACT PERSON

:

TAN CHIN YONG ( DIRECTOR )

INDUSTRY CODE

:

20

PRINCIPAL ACTIVITY

:

MANUFACTURING OF SYNTHETIC RUTILE, TITANIUM DIOXIDE PIGMENTS

AUTHORISED CAPITAL

:

MYR 60,000,000.00 DIVIDED INTO
ORDINARY SHARE 60,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 24,130,000.00 DIVIDED INTO
ORDINARY SHARES 24,130,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 32,843,059 [2015]

NET WORTH

:

MYR 21,840,733 [2015]

STAFF STRENGTH

:

100 [2017]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

SLOW

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 shall have a minimum one director. 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 synthetic rutile, titanium dioxide pigments.

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

The immediate holding company of the Subject is TOR MINERALS INTERNATIONAL INC., a company incorporated in UNITED STATES.

Former Address(es)

Address	As At Date
16TH FLOOR, MENARA TUN RAZAK, JALAN RAJA LAUT, 50350, WILAYAH PERSEKUTUAN, MALAYSIA	03/08/1990
90M, JALAN SS21/39, DAMANSARA UTAMA, 47400, SELANGOR, MALAYSIA	13/04/1994
90M, JALAN SS 21/39, DAMANSARA UTAMA, 47400, SELANGOR, MALAYSIA	14/12/1994
4 1/2 MILES,JALAN LAHAT, IPOH,PERAK DARUL RIDZUAN, 30200, PERAK, MALAYSIA	15/02/2013
4 1/2 MILES, LAHAT ROAD, 30200, PERAK, MALAYSIA	15/08/2004
4 1/2 MILES, JALAN LAHAT, 30200, PERAK, MALAYSIA	19/04/1994
18TH FLOOR, WISMA SIME DARBY, JALAN RAJA LAUT, 50350, WILAYAH PERSEKUTUAN, MALAYSIA	20/09/1990
A-3-6, 1, PERSIARAN GREENTOWN 2, GREENTOWN BUSINESS CENTRE, 30450, PERAK, MALAYSIA	25/04/2011
41 MILES, JALAN LANAT, 30200, PERAK, MALAYSIA	28/02/1991
18TH FLOOR, WISMA SIME DARBY, JALAN RAJA LAUT, 50350, WILAYAH PERSEKUTUAN, MALAYSIA	31/12/1993

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
16/07/1997	MYR 60,000,000.00	MYR 24,130,000.00
01/11/1996	MYR 60,000,000.00	MYR 22,000,000.00
27/06/1992	MYR 60,000,000.00	MYR 57,227,650.00
31/12/1990	MYR 50,000,000.00	MYR 46,965,000.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
TOR MINERALS INTERNATIONAL INC.	722, BURLESON STREET, CORPUS CHRISTI, TEXAS 78402 ,UNITED STATES	XLZ000017618	24,130,000.00	100.00
			---------------	------
			24,130,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
343402U	MALAYSIA	CA CHEMICALS SDN. BHD.	-	100.00	22/08/2016

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. TAN CHIN YONG
Address	:	21 JALAN KELAB GOLF, 30350 IPOH, PERAK, MALAYSIA.
IC / PP No	:	C0073918
New IC No	:	640801-60-5049
Date of Birth	:	01/08/1964
Nationality	:	MALAYSIAN
Date of Appointment	:	24/07/2001

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	see below

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding (Number of Share)	Profit/(loss) After Tax	Financial Year	Status	As At
1	351013W	ASIA CLUB CORPORATION SDN. BHD.	Director	29/04/2002	0.00	MYR(1,853.00)	2016	-	22/08/2017
2	818047D	BONANZA AYCEL MINING (KELANTAN) SDN BHD	Director	16/05/2008	0.00	MYR(2,115.00)	2016	-	22/08/2017
3	66082T	BONANZA AYCEL MINING SDN. BHD.	Director	19/01/2005	0.00	MYR(22,098.00)	2016	-	22/08/2017
4	582274A	DERAU EMAS (M) SDN. BHD.	Director	14/03/2005	0.00	MYR507,925.00	2016	-	22/08/2017
5	220032T	DIAMET KLANG (MALAYSIA) SDN. BHD.	Director	19/08/1999	0.00	MYR529.00	2016	-	22/08/2017
6	1148367M	KAIZEN CPSH SDN. BHD.	Director	15/06/2015	1.00	MYR(49,784.00)	2016	-	22/08/2017
7	813462V	KAIZEN DEVELOPMENT SDN. BHD.	Director	11/04/2008	122,500.00	MYR871,572.00	2016	-	22/08/2017
8	399610H	KAIZEN HOLDINGS SDN. BHD.	Director	11/09/2000	50.00	MYR442,707.00	2016	-	22/08/2017
9	835765K	KAIZEN LAND SDN. BHD.	Director	17/10/2008	87,500.00	MYR2,450,501.00	2016	-	22/08/2017
10	1060174P	KAIZEN MERCU SDN BHD	Director	29/08/2013	250,000.00	MYR(2,977.00)	2016	-	22/08/2017
11	823307W	KAIZEN PROPERTIES SDN. BHD.	Director	27/06/2008	125,000.00	MYR35,440.00	2016	-	22/08/2017
12	397442W	KAIZEN REAL ESTATE SDN. BHD.	Director	28/05/2004	0.00	MYR520,128.00	2016	-	22/08/2017
13	811967U	PWP PROPERTIES (N) SDN. BHD.	Director	18/10/2013	29,000.00	MYR(56,324.00)	2015	-	22/08/2017
14	14387W	TOR MINERALS (M) SDN. BHD.	Director	24/07/2001	0.00	MYR(22,393,082.00)	2015	-	22/08/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	351013W	ASIA CLUB CORPORATION SDN. BHD.	Director	29/04/2002	18/02/2009	-	-
2	818047D	BONANZA AYCEL MINING (KELANTAN) SDN BHD	Shareholder	-	-	-	-
3	26315K	BONANZA VENTURE HOLDINGS SDN. BHD.	Director	20/11/2003	18/02/2009	-	-
4	345254M	EXOTIC BIOMED RESOURCES SDN. BHD.	Director	01/08/2006	18/02/2009	-	-
5	175509M	FLORAWORLD SDN. BHD.	Director	23/07/2004	18/02/2009	-	-
6	82357P	HENKEL (MALAYSIA) SDN. BHD.	Director	24/03/1999	12/09/2000	-	-
7	119709V	IPOH PROPERTIES (MM2H) SDN. BHD.	Director	20/07/2006	06/11/2009	-	-
8	186589H	KAY DEVELOPMENT SDN. BHD.	Director	30/03/2004	18/02/2009	-	-
9	58562M	KINTA ECOCITY SDN. BHD.	Director	01/07/2002	03/03/2009	-	-
10	333676K	KINTA PROPERTIES DEVELOPMENT SDN. BHD.	Director	16/08/2004	18/02/2009	-	-
11	15677M	KINTA PROPERTIES HOLDINGS SDN. BHD.	Director	01/09/2003	09/11/2009	-	-
12	8856P	KINTA PROPERTIES SDN.BERHAD.	Director	15/12/2003	03/03/2009	-	-
13	334077T	KINTA SRI HARTANAH SDN BHD	Director	23/01/2003	18/02/2009	-	-
14	20827A	MEGAMIN VENTURES SDN. BHD.	Director	15/08/2001	18/02/2009	-	Disolved by Registrar
15	483323V	MERU MANAGEMENT CORPORATION SDN. BHD.	Director	29/09/1999	18/02/2009	-	-
16	301511D	MERU PARK SDN. BHD.	Director	29/04/2002	18/02/2009	-	-
17	396571V	MERU VALLEY GOLF & COUNTRY CLUB SDN. BHD.	Director	30/09/1999	18/02/2009	-	-
18	379765W	MERU VALLEY HOLDINGS SDN. BHD.	Director	15/04/2003	03/03/2009	-	Winding-Up by Member Voluntary
19	137970D	MERU VALLEY RESORT BERHAD	Director	11/04/2005	05/03/2009	-	-
20	565493M	MERU VALLEY RESORT HOMES SDN. BHD.	Director	01/10/2003	18/02/2009	-	-
21	397437T	MERU VISTA SDN. BHD.	Director	27/03/2002	18/02/2009	-	Disolved by Member Voluntary
22	366097D	PALMSHINE MANAGEMENT SERVICES SDN. BHD.	Director	16/07/2003	18/02/2009	-	-
23	322497K	PALMSHINE PROPERTY SDN. BHD.	Director	19/08/2002	18/02/2009	-	Disolved by Registrar
24	150148U	PENINSULA HOUSING DEVELOPMENT SDN. BHD.	Director	30/03/2004	18/02/2009	-	-
25	178556H	REVOX ELECTRONICS SDN. BHD.	Director	17/08/1999	18/02/2009	-	-
26	311339V	WANGSA SALJU SDN. BHD.	Director	01/04/2004	18/02/2009	-	Disolved by Member Voluntary
27	396548W	WISER ACCESS SDN. BHD.	Director	01/03/2006	18/02/2009	-	-

DIRECTOR 2

Name Of Subject	:	DR OLAF KARASCH
Address	:	STRAUSBERG 2, FRIESENHAGEN, 51598, GERMANY.
IC / PP No	:	204915068
Date of Appointment	:	15/04/2008

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding (Number of Share)	Profit/(loss) After Tax	Financial Year	Status	As At
1	14387W	TOR MINERALS (M) SDN. BHD.	Director	15/04/2008	0.00	MYR(22,393,082.00)	2015	-	22/08/2017

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
YEI HONG CHANG	NO:5,JALAN CHONG AH MOY, CHATEAU GARDENS, IPOH,PERAK, IPOH, PERAK, MALAYSIA	M2822989	18/10/1990	15/01/1998
TEOH LAY HOCK	160, SS2/16, PETALING JAYA, SELANGOR, MALAYSIA	500113-07-5297	06/04/1998	24/03/2000
THOMAS MICHAEL MACKEY.	1210, SUNSET LANE, TEXAS CITY, TEXAS ., MALAYSIA	H527233	19/04/1994	24/03/2000
RYAN HONG	3 CLIFTON VALE, SINGAPORE 359665	H90049504	28/07/1998	24/03/2000
LIM SI BOON	29, LORONG TUN DR.ISMAIL, IPOH, PERAK, MALAYSIA	670106-08-5261	01/12/1999	15/04/2008
DATO'LIM KENG KAY	17,GOLF CLUB ROAD, IPOH, PERAK, IPOH, PERAK, MALAYSIA	360707-08-5271	30/04/2001	24/07/2001
HO YEAN	10,JALAN SS 1/25, KAMPONG TUNKU, PETALING JAYA,SELANGOR, PETALING JAYA, SELANGOR, MALAYSIA	591002-01-5992	05/11/1998	24/03/2000
LIM CHEE SENG.	UNIT NO. TB-16-P3, STRAUSS TOWER, MONT'KIARA SOPHIA, NO. 2, JALAN KIARA 1, MONT'KIARA, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA	00067531	15/12/1994	24/03/2000
LEE HEE CHEW	NO.27, SRI KLEBANG A/5, BANDAR BARU SRI KLEBANG, CHEMOR, PERAK, MALAYSIA	560105-08-5983	15/12/1994	01/03/2011
ABDULLAH BIN AYUB(DR)	46,JALAN SETIA BISTARI, BUKIT DAMANSARA, KUALA LUMPUR, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA	260103-08-5221	20/07/1990	17/03/1998
CHRISTOPHER JOHN MCGOUGAN	638,EAGLE POINT ROAD, VAN ALSTYNE, TEXAS, USA., MALAYSIA	702638461	30/04/2001	04/10/2002
ABDULLAH HASBI BIN .HASSAN DATO' DR	29,JALAN TELAWI 9, BANGSAR BARU, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA	430408-02-5069	08/06/2000	20/08/2012

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	TAN CHIN YONG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	BDO
Auditor' Address	:	51-21-F, MENARA BHL, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. LEONG SAU GUEEN
	IC / PP No	:	4221684
	New IC No	:	520208-08-5170
	Address	:	5,LINTASAN PERAJURIT 5, TAMAN PERAK, 31400 IPOH, PERAK, MALAYSIA.

2)	Company Secretary	:	MR. CHAK KONG YEW
	IC / PP No	:	A1041037
	New IC No	:	680523-08-5819
	Address	:	NO. 5, JALAN TEH LAY SENG, MALAYSIA, 31650 IPOH, PERAK, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

2)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	04/03/1976	N/A	OCBC BANK (MALAYSIA) BERHAD	MYR 15,000,000.00	Satisfied
2	27/11/1976	N/A	OVERSEACHINESE BANKING CORPORATION LTD	MYR 20,000,000.00	Satisfied
3	27/12/1976	N/A	OVERSEACHINESE BANKING CORPORATION LTD	MYR 20,000,000.00	Satisfied
6	23/02/1991	DEBENTURE	DEVELOPMENT COMMERCIAL BANK BERHAD	MYR 15,000,000.00	Unsatisfied
4	02/03/1991	CHARGE	HONGKONG BANK MALAYSIA BERHAD	-	Unsatisfied
5	02/03/1991	CHARGE	HONGKONG BANK MALAYSIA BERHAD	-	Unsatisfied
7	02/03/1991	CHARGE	DEVELOPMENT COMMERCIAL BANK BERHAD	MYR 15,000,000.00	Unsatisfied
8	07/12/1998	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 2,400,000.00	Satisfied
9	16/02/2001	N/A	RHB BANK L LTD	-	Satisfied
10	16/02/2001	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI	-	Satisfied

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

* 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	Percentage	:	60%
Overseas	:	YES	Percentage	:	40%

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	60%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	40%
Export Market	:	ASIA EUROPE CANADA UNITED STATES
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

SYNTHETIC RUTILE, TITANIUM DIOXIDE PIGMENTS

Award

:

1 ) MS ISO 9001 : 2000 Year :2000

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2017	2015	2014	2013	2012
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	100	100	100	100	95

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of synthetic rutile, titanium dioxide pigments.

The Subject produces products based on the customers' requirements.

The Subject utilizes advanced machineries to ensure production of high quality products.

The Subject refused to disclose further information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	05-3223536
Match	:	N/A
Address Provided by Client	:	4 1/2 MILES., JALAN LAHAT 30200 IPOH PERAK
Current Address	:	4 1/2 MILES, LAHAT ROAD, 30200 IPOH, PERAK, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2011 - 2015	]
Profit/(Loss) Before Tax	:	Increased	[	2011 - 2015	]
Return on Shareholder Funds	:	Unfavourable	[	(102.53%)	]
Return on Net Assets	:	Unfavourable	[	(81.04%)	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	281 Days	]
Debtor Ratio	:	Favourable	[	16 Days	]
Creditors Ratio	:	Favourable	[	0 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.44 Times	]
Current Ratio	:	Favourable	[	3.15 Times	]
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Unfavourable	[	(30.09 Times)	]
Gearing Ratio	:	Favourable	[	0.42 Times	]
The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. 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 :
The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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 : POOR

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2013	2014	2015	2016*	2017**
Population ( Million)	29.8	30.0	31.0	31.7	32.0
Gross Domestic Products ( % )	5.3	6.0	4.6	4.9	4.2
Domestic Demand ( % )	5.6	6.4	6.2	6.3	-
Private Expenditure ( % )	8.6	7.9	6.9	7.4	-
Consumption ( % )	5.7	6.5	6.1	5.1	-
Investment ( % )	13.3	12.0	8.1	10.0	12.0
Public Expenditure ( % )	4.4	2.3	4.2	3.3	-
Consumption ( % )	(1.2)	2.1	4.3	2.0	-
Investment ( % )	4.2	2.6	(1.0)	1.1	-
Balance of Trade ( MYR Million )	71,298	82,480	85,258	-	-
Government Finance ( MYR Million )	(39,993)	(37,291)	(37,249)	-	-
Government Finance to GDP / Fiscal Deficit ( % )	(4.0)	(3.5)	(3.0)	-	-
Inflation ( % Change in Composite CPI)	2.5	3.2	4.0	-	-
Unemployment Rate	3.0	2.9	3.1	3.7	3.8
Net International Reserves ( MYR Billion )	422	417	390	391	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.10	4.00	3.50	-	-
Average 3 Months of Non-performing Loans ( % )	2.00	2.10	2.00	1.90	-
Average Base Lending Rate ( % )	6.53	6.85	6.79	6.81	-
Business Loans Disbursed( % )	(1.0)	18.6	2.2	-	-
Foreign Investment ( MYR Million )	38,238.0	43,486.6	43,435.0	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	46,321	49,203	45,658	-	-
Registration of New Companies ( % )	1.9	6.1	(7.2)	-	-
Liquidation of Companies ( No. )	13,788	11,099	7,066	-	-
Liquidation of Companies ( % )	(15.4)	(19.5)	(36.3)	-	-
Registration of New Business ( No. )	329,895	332,723	364,230	-	-
Registration of New Business ( % )	2.0	1.0	9.0	-	-
Business Dissolved ( No. )	18,161	21,436	-	-	-
Business Dissolved ( % )	(10.9)	18.0	-	-	-
Sales of New Passenger Cars (' 000 Unit )	576.7	598.4	591.3	464.4	527.8
Cellular Phone Subscribers ( Million )	43.0	44.0	44.2	44.0	-
Tourist Arrival ( Million Persons )	25.72	27.40	25.70	30.20	30.10
Hotel Occupancy Rate ( % )	62.6	63.6	58.8	61.2	-
Credit Cards Spending ( % )	6.0	5.8	6.8	6.3	-
Bad Cheque Offenders (No.)	28,876	-	-	-	-
Individual Bankruptcy ( No.)	21,984	22,351	18,457	-	-
Individual Bankruptcy ( % )	12.3	1.7	(17.4)	-	-

INDUSTRIES ( % of Growth ):	2013	2014	2015	2016*	2017**
Agriculture	2.0	2.1	1.2	1.6	-
Palm Oil	2.6	6.7	7.0	8.2	-
Rubber	(10.1)	(10.4)	(11.0)	(12.3)	-
Forestry & Logging	(7.8)	(4.2)	(7.2)	(4.8)	-
Fishing	1.6	2.7	2.1	2.9	-
Other Agriculture	8.2	6.2	6.0	6.8	-
Industry Non-Performing Loans ( MYR Million )	314.9	303.8	343.7	420.3	-
% of Industry Non-Performing Loans	1.4	1.4	1.5	1.8	-
Mining	1.2	3.5	4.7	3.6	-
Oil & Gas	2.0	3.0	3.5	4.5	-
Other Mining	47.6	46.6	47.1	42.6	-
Industry Non-performing Loans ( MYR Million )	152.7	63.5	180.1	190.0	-
% of Industry Non-performing Loans	0.7	0.3	0.8	0.8	-
Manufacturing #	3.4	6.2	4.9	7.6	-
Exported-oriented Industries	3.3	5.6	4.8	5.0	-
Electrical & Electronics	6.9	13.3	7.9	10.5	-
Rubber Products	11.7	(0.3)	3.4	5.1	-
Wood Products	(2.7)	5.1	7.1	9.6	-
Textiles & Apparel	(2.6)	11.5	7.2	9.4	-
Domestic-oriented Industries	5.9	7.7	4.7	6.3	-
Food, Beverages & Tobacco	3.6	6.1	8.9	7.5	-
Chemical & Chemical Products	5.6	1.4	3.5	5.1	-
Plastic Products	3.4	2.7	3.9	5.1	-
Iron & Steel	5.0	3.4	2.8	1.6	-
Fabricated Metal Products	9.9	2.9	3.6	5.8	-
Non-metallic Mineral	(2.0)	5.4	7.2	5.8	-
Transport Equipment	13.8	22.9	7.6	11.9	-
Paper & Paper Products	1.8	4.7	3.2	3.9	-
Crude Oil Refineries	11.8	13.0	14.3	13.7	-
Industry Non-Performing Loans ( MYR Million )	6,165.3	5,730.8	4,243.7	4,214.1	-
% of Industry Non-Performing Loans	27.2	25.6	19.0	18.5	-
Construction	10.6	11.7	8.2	11.1	-
Industry Non-Performing Loans ( MYR Million )	1,658.2	1,666.4	1,638.0	1,793.9	-
% of Industry Non-Performing Loans	7.3	7.5	7.3	7.9	-
Services	5.9	6.6	5.1	5.8	-
Electric, Gas & Water	4.2	3.6	3.9	3.7	-
Transport, Storage & Communication	7.3	7.5	7.2	7.0	-
Wholesale, Retail, Hotel & Restaurant	6.3	8.9	6.9	8.0	-
Finance, Insurance & Real Estate	3.7	4.7	4.3	6.6	-
Government Services	7.6	6.1	4.0	5.0	-
Other Services	5.6	4.8	4.7	5.8	-
Industry Non-Performing Loans ( MYR Million )	5,084.6	5,373.5	6,806.6	7,190.6	-
% of Industry Non-Performing Loans	22.5	24.1	30.5	31.5	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
20 : MANUFACTURE OF CHEMICALS AND CHEMICAL PRODUCTS
INDUSTRY :	MANUFACTURING
The manufacturing sector is expected to grow by 4.3% in 2015. Export-oriented industries are expected to benefit from higher demand as a result of improving growth in advanced economies, while domestic-oriented industries will be boosted by resilient domestic economic activities. The resource-based industry is envisaged to grow steadily attributed to improved demand for chemical, petroleum, rubber, wood and plastic products. In addition, strong construction activities following the implementation of infrastructure projects under the 11MP will augur well for growth in iron and steel as well as cement segments.
In first six months of 2015, the sector expanded at a slower pace of 4.9%. Output of the sector moderated to 4.8% while the sales value of manufactured products grew marginally by 0.1% to RM379.9 billion during the first seven months of 2015. Output from export-oriented industries also increased at a slower pace of 5.3% due to weaker global demand. The manufacturing sector continued to attract domestic and foreign investments, with projects approved by the Malaysian Investment Development Authority (MIDA) valued at RM49.5 billion for the first six months of 2015.
Besides that, production of wood and wood products rose by 7.1% largely supported by higher demand for wooden and cane furniture as well as particleboard and fibreboard with output up by 6.5% and 35.4%, respectively. The overall positive performance of the wood products sub-sector was attributed to higher demand from the US, Singapore and Australia. Output of rubber products rebounded to 3.4%, mainly due to higher output of rubber gloves and rubber tires for vehicles. The rubber-based industry stands to benefit from the strengthening US dollar, as most of the input costs are in ringgit while sales are in US dollar.
Exports of manufactured goods decreased by 3% due to the high base effect during the corresponding period in year 2014. Although, a weak ringgit should have bolstered exports, however, softened by weak external demand coupled with the depreciation in regional currencies during the period. During the first eight months of 2015, the slower expansion in E&E exports and weaker earnings from the non-E&E segment weighed down the overall exports of manufactured goods. Receipts from chemicals and chemical products continued to grow, albeit at a slower pace of 5.7%, mainly due to a slack in the demand for organic chemical products (-3.5%) as major markets. However, the overall growth in the sub-sector was supported by higher exports of plastics in primary form.
In addition, export earnings of wood products remained high at RM9.8 billion during the first eight months of 2015, it supported by strong demand for wooden furniture. demand for veneer and plywood, contracted by 7.4% following lower demand mainly from Japan. Exports of textile, clothing and footwear grew at a slower pace of 6.8% mainly due to a contraction in the exports of the textile segment, particularly textile yarns and woven fabrics. During the first eight months of 2015, the total registered foreign workers in the country increased to 2.2 million. The employment of foreign workers was largely concentrated in the manufacturing sectors. Under the 11MP, the Government will improve the management of foreign workers through the establishment of an improved framework to take into consideration the relevant laws, rules, regulations, national policies and directives relating to recruitment, employment and repatriation of workers.
Under budget 2015, the Government will provide a new incentive that is, Special Reinvestment Allowance to promote reinvestment among existing companies in the manufacturing sectors. The rate of claim is at 60% of the qualifying capital expenditure and is allowed to be set off against 70% of statutory income from year of assessment 2016 to 2018.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1973, the Subject is a Private Limited company, focusing on manufacturing of synthetic rutile, titanium dioxide pigments. 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 a large issued and paid up capital of MYR 24,130,000 and strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players.

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 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 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.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 21,840,733, the Subject should be able to maintain its business in the near terms.

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 Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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 normally.

PROFIT AND LOSS ACCOUNT

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

TOR MINERALS (M) SDN. BHD.

Financial Year End	2015-12-31	2014-12-31	2013-12-31	2012-12-31	2011-12-31
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	32,843,059	39,732,797	48,267,626	76,909,619	44,649,225
Other Income	-	-	538,751	622,883	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	32,843,059	39,732,797	48,806,377	77,532,502	44,649,225
Costs of Goods Sold	(33,850,145)	(35,096,149)	(45,255,119)	(61,316,390)	(35,687,585)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	(1,007,086)	4,636,648	3,551,258	16,216,112	8,961,640
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(20,197,086)	(10,386,784)	(6,220,653)	9,153,489	2,764,908
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(20,197,086)	(10,386,784)	(6,220,653)	9,153,489	2,764,908
Taxation	(2,195,996)	2,550,176	1,731,241	(591,395)	(45,004)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(22,393,082)	(7,836,608)	(4,489,412)	8,562,094	2,719,904
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	20,103,815	27,940,423	32,429,835	23,867,741	21,147,837
	----------------	----------------	----------------	----------------	----------------
As restated	20,103,815	27,940,423	32,429,835	23,867,741	21,147,837
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(2,289,267)	20,103,815	27,940,423	32,429,835	23,867,741
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(2,289,267)	20,103,815	27,940,423	32,429,835	23,867,741
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	-	-	-	-	809
Bankers' acceptance	297,945	456,565	447,978	393,933	26,939
Term loan / Borrowing	351,703	410,016	232,673	145,340	-
Others	-	-	-	6,228	118,266
	----------------	----------------	----------------	----------------	----------------
	649,648	866,581	680,651	545,501	146,014
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	2,645,106	3,777,243	3,219,468	2,619,697	2,348,648
	----------------	----------------	----------------	----------------	----------------
	2,645,106	3,777,243	3,219,468	2,619,697	2,348,648
	=============	=============	=============	=============	=============

BALANCE SHEET

TOR MINERALS (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	4,084,608	18,779,065	29,596,524	25,164,340	23,591,603
Deferred assets	-	2,195,996	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	-	2,195,996	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	4,084,608	20,975,061	29,596,524	25,164,340	23,591,603
Stocks	25,261,511	23,786,753	39,406,925	35,983,821	37,695,783
Contract work-in-progress	-	14,974,212	1,790,020	3,328,988	-
Trade debtors	1,466,744	1,841,212	3,972,072	1,925,966	2,275,812
Other debtors, deposits & prepayments	508,022	868,704	994,521	3,410,203	1,608,542
Amount due from holding company	-	4,455,840	352,143	2,163,109	1,630,436
Amount due from related companies	1,098,157	842,182	1,423,154	1,744,317	1,235,788
Cash & bank balances	1,019,162	1,000,677	1,782,540	590,712	1,007,916
Others	-	-	2,137	2,137	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	29,353,596	47,769,580	49,723,512	49,149,253	45,454,277
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	33,438,204	68,744,641	79,320,036	74,313,593	69,045,880
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	-	3,638,970	2,254,410	3,266,829	3,854,766
Other creditors & accruals	2,103,776	4,328,800	3,711,069	5,075,955	2,864,545
Short term borrowings/Term loans	1,291,662	2,166,996	1,916,997	1,166,667	-
Other borrowings	768,737	1,036,955	1,311,120	3,400,159	6,911,589
Bill & acceptances payable	4,761,000	9,717,000	12,672,000	1,205,000	3,974,648
Amounts owing to holding company	391,020	-	-	3,924	1,845,709
Amounts owing to related companies	-	-	-	-	38,028
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	9,316,195	20,888,721	21,865,596	14,118,534	19,489,285
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	20,037,401	26,880,859	27,857,916	35,030,719	25,964,992
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	24,122,009	47,855,920	57,454,440	60,195,059	49,556,595
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	24,130,000	24,130,000	24,130,000	24,130,000	24,130,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	24,130,000	24,130,000	24,130,000	24,130,000	24,130,000
Retained profit/(loss) carried forward	(2,289,267)	20,103,815	27,940,423	32,429,835	23,867,741
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	(2,289,267)	20,103,815	27,940,423	32,429,835	23,867,741
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	21,840,733	44,233,815	52,070,423	56,559,835	47,997,741
Long term loans	2,249,776	3,541,105	4,936,937	1,480,003	-
Deferred taxation	-	-	356,580	2,090,221	1,494,854
Retirement benefits provision	31,500	81,000	90,500	65,000	64,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	2,281,276	3,622,105	5,384,017	3,635,224	1,558,854
	----------------	----------------	----------------	----------------	----------------
	24,122,009	47,855,920	57,454,440	60,195,059	49,556,595
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TOR MINERALS (M) SDN. BHD.

TYPES OF FUNDS
Cash	1,019,162	1,000,677	1,782,540	590,712	1,007,916
Net Liquid Funds	(3,741,838)	(8,716,323)	(10,889,460)	(614,288)	(2,966,732)
Net Liquid Assets	(5,224,110)	3,094,106	(11,549,009)	(953,102)	(11,730,791)
Net Current Assets/(Liabilities)	20,037,401	26,880,859	27,857,916	35,030,719	25,964,992
Net Tangible Assets	24,122,009	47,855,920	57,454,440	60,195,059	49,556,595
Net Monetary Assets	(7,505,386)	(527,999)	(16,933,026)	(4,588,326)	(13,289,645)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	(19,547,438)	(9,520,203)	(5,540,002)	9,698,990	2,910,922
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	(16,902,332)	(5,742,960)	(2,320,534)	12,318,687	5,259,570
BALANCE SHEET ITEMS
Total Borrowings	9,071,175	16,462,056	20,837,054	7,251,829	10,886,237
Total Liabilities	11,597,471	24,510,826	27,249,613	17,753,758	21,048,139
Total Assets	33,438,204	68,744,641	79,320,036	74,313,593	69,045,880
Net Assets	24,122,009	47,855,920	57,454,440	60,195,059	49,556,595
Net Assets Backing	21,840,733	44,233,815	52,070,423	56,559,835	47,997,741
Shareholders' Funds	21,840,733	44,233,815	52,070,423	56,559,835	47,997,741
Total Share Capital	24,130,000	24,130,000	24,130,000	24,130,000	24,130,000
Total Reserves	(2,289,267)	20,103,815	27,940,423	32,429,835	23,867,741
GROWTH RATIOS (Year on Year)
Revenue	(17.34)	(17.68)	(37.24)	72.25	59.99
Proft/(Loss) Before Tax	(94.45)	(66.97)	(167.96)	231.06	1,583.34
Proft/(Loss) After Tax	(185.75)	(74.56)	(152.43)	214.79	3,368.45
Total Assets	(51.36)	(13.33)	6.74	7.63	30.96
Total Liabilities	(52.68)	(10.05)	53.49	(15.65)	182.73
LIQUIDITY (Times)
Cash Ratio	0.11	0.05	0.08	0.04	0.05
Liquid Ratio	0.44	1.15	0.47	0.93	0.40
Current Ratio	3.15	2.29	2.27	3.48	2.33
WORKING CAPITAL CONTROL (Days)
Stock Ratio	281	356	312	187	308
Debtors Ratio	16	17	30	9	19
Creditors Ratio	0	38	18	19	39
SOLVENCY RATIOS (Times)
Gearing Ratio	0.42	0.37	0.40	0.13	0.23
Liabilities Ratio	0.53	0.55	0.52	0.31	0.44
Times Interest Earned Ratio	(30.09)	(10.99)	(8.14)	17.78	19.94
Assets Backing Ratio	1.00	1.98	2.38	2.49	2.05
PERFORMANCE RATIO (%)
Operating Profit Margin	(61.50)	(26.14)	(12.89)	11.90	6.19
Net Profit Margin	(68.18)	(19.72)	(9.30)	11.13	6.09
Return On Net Assets	(81.04)	(19.89)	(9.64)	16.11	5.87
Return On Capital Employed	(81.04)	(19.89)	(9.64)	16.11	5.87
Return On Shareholders' Funds/Equity	(102.53)	(17.72)	(8.62)	15.14	5.67
Dividend Pay Out Ratio (Times)	0	0	0	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.14
UK Pound	1	INR 89.50
Euro	1	INR 79.43
MYR	1	INR 16.34

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

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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