MIRA INFORM REPORT

Report No. :	484534
Report Date :	09.01.2018

IDENTIFICATION DETAILS

Name :	LUN HENG SDN. BHD.
Registered Office :	Suite 2-2-12 (Back Portion), Menara Klh, Off 2 1/2 Mile, Jalan Ipoh, 51200 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	30.06.2016
Date of Incorporation :	23.03.1981
Com. Reg. No.:	68686-H
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is principally engaged in distributor of sundry goods and food products.
No. of Employees :	70 [2018]

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

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 2015. The ringgit rebounded in early 2016, but 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.

:

68686-H

COMPANY NAME

:

LUN HENG SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

23/03/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 2-2-12 (BACK PORTION), MENARA KLH, OFF 2 1/2 MILE, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 47, JALAN BRP 9/2, TAMAN PERINDUSTRIAN PUTRA, RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61576868

FAX.NO.

:

03-61578580

EMAIL

:

INFO@LUNHENG.COM.MY

WEB SITE

:

WWW.LUNHENG.COM.MY

CONTACT PERSON

:

CHAN MOON THIAM ( MANAGING DIRECTOR )

INDUSTRY CODE

:

47111 47219

PRINCIPAL ACTIVITY

:

DISTRIBUTOR OF SUNDRY GOODS AND FOOD PRODUCTS

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 58,300,000.00 DIVIDED INTO
ORDINARY SHARES 58,300,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 167,688,161 [2016]

NET WORTH

:

MYR 81,256,472 [2016]

STAFF STRENGTH

:

70 [2018]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD EON BANK BHD HONG LEONG BANK BHD HSBC BANK MALAYSIA BHD OCBC BANK (MALAYSIA) BHD PUBLIC BANK BHD STANDARD CHARTERED BANK MALAYSIA BHD UNITED OVERSEAS BANK (MALAYSIA) BHD SOUTHERN BANK BERHAD AMBANK (M) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

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) distributor of sundry goods and food products.

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

Former Address(es)

Address	As At Date
4.32, 4TH FLOOR, PERTAMA OFFICE TOWER COMPLEX, JALAN TUANKU ABDUL RAHMAN, 50100, WILAYAH PERSEKUTUAN, MALAYSIA	03/04/1992
2ND FLOOR, WISMA TAN YOON, 9B, LORONG MEDAN TUANKU SATU, MEDAN TUANKU, 50300, WILAYAH PERSEKUTUAN, MALAYSIA	10/05/2000
41B, DAMAI COMPLEX, JALAN DATO' HAJI EUSOFF, 50400, WILAYAH PERSEKUTUAN, MALAYSIA	16/11/2004

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
10/05/2016	MYR 100,000,000.00	MYR 58,300,000.00
29/06/2015	MYR 100,000,000.00	MYR 55,000,000.00
31/12/2014	MYR 100,000,000.00	MYR 50,000,000.00
20/05/2013	MYR 50,000,000.00	MYR 50,000,000.00
26/04/2013	MYR 50,000,000.00	MYR 49,997,610.00
30/06/2001	MYR 25,000,000.00	MYR 13,590,000.00
12/06/1997	MYR 25,000,000.00	MYR 12,090,000.00
07/06/1996	MYR 25,000,000.00	MYR 10,000,000.00
25/03/1995	MYR 10,000,000.00	MYR 6,500,000.00
11/01/1994	MYR 10,000,000.00	MYR 5,595,932.00
19/03/1993	MYR 10,000,000.00	MYR 4,731,810.00
22/12/1992	MYR 5,000,000.00	MYR 4,331,810.00
12/06/1992	MYR 5,000,000.00	MYR 4,019,574.00
08/09/1990	MYR 5,000,000.00	MYR 3,109,827.00
20/03/1990	MYR 2,000,000.00	MYR 1,882,270.00
08/06/1988	MYR 1,000,000.00	MYR 595,003.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. CHAN MOON THIAM +	77, JALAN SEMARAK API, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.	541127-10-5443 8152908	29,150,000.00	50.00
CHAN BOON CHENG +	22, JALAN BUKIT IDAMAN 3/1, BUKIT IDAMAN, GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.	601126-10-6307 6126105	6,996,000.00	12.00
MR. CHAN CHEE HIM +	66, JALAN WANGSA SATU, BUKIT ANTARABANGSA, 68000 AMPANG, SELANGOR, MALAYSIA.	571214-10-5393 5294364	5,830,000.00	10.00
MR. CHAN BOON KIEW +	66, JALAN WANGSA SATU, BUKIT ANTRABANGSA, 68000 AMPANG, SELANGOR, MALAYSIA.	521205-10-5169	5,830,000.00	10.00
MR. CHAN WAN CHUAN +	149, JALAN IPOH, TAMAN RAINBOW, BATU 4, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	770508-14-5499 A3747058	4,955,500.00	8.50
MR. CHAN SOON SHEN	16, JALAN INTAN BAIDURI 1B, TAMAN INTAN BAIDURI, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	820105-14-5315	2,332,000.00	4.00
MR. CHAN SOON PENG	16, LORONG INTAN BAIDURI 1B, TAMAN INTAN BAIDURI, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	831020-14-5467	2,332,000.00	4.00
MS. CHAN CHOOI CHENG	22, JALAN BUKIT IDAMAN 3/1, BUKIT IDAMAN GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.	601126-10-6796	874,500.00	1.50
			---------------	------
			58,300,000.00	100.00
			============	=====

+ Also Director

Former Shareholder(s) :

Name	Country	IC/PP/Loc No	Shareholding	Last Updated
CHAN BUN TAT	MALAYSIA	510501-10-5557	951,300.00	N/A
LIM LAM,(DECEASED)	MALAYSIA	000009271	203,850.00	N/A

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

Local No	Country	Company	Status	(%)	As At
278042M	MALAYSIA	LUN HENG HANG SDN. BHD.	Disolved	100.00	27/11/2017
202258X	MALAYSIA	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	-	100.00	27/11/2017
800151P	MALAYSIA	LUN HENG MARKETING SDN. BHD.	-	100.00	27/11/2017
678091W	MALAYSIA	LUN HENG PROPERTIES SDN. BHD.	-	100.00	27/11/2017

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. CHAN WAN KHOON
Address	:	77, JALAN SEMARAK ALI, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Other Address(es)	:	SIERRAMAS RESORT HOMES, SUNGAI BULOH, PAYA JARAS, SUBANG, MALAYSIA.
New IC No	:	780824-14-6003
Date of Birth	:	24/08/1978
Nationality	:	MALAYSIAN
Date of Appointment	:	03/01/2006

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	see below
Former interest	:	see below

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	800151P	LUN HENG MARKETING SDN. BHD.	Director	19/12/2007	0.00	-	MYR(9,993.00)	2017	-	26/12/2017
2	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	06/11/2006	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
3	68686H	LUN HENG SDN. BHD.	Director	03/01/2006	0.00	-	MYR7,843,079.00	2016	-	26/12/2017

INTEREST IN BUSINESS

No	Local No	Business	Designation	App Date	Shareholding (%)	Status	As At
1	001639358D	QUEST MART ENTERPRISE	PARTNERSHIP	13/09/2006	6.00	-	27/11/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	781400X	KAISEN TRADING SDN. BHD.	Director	18/07/2007	23/10/2017	-	-
2	781400X	KAISEN TRADING SDN. BHD.	Shareholder	-	-	50	-

DIRECTOR 2

Name Of Subject	:	MR. CHAN BOON WAN
Address	:	42, JALAN BRP 5/5, BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Other Address(es)	:	6, JALAN BRP 7/3B, BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
IC / PP No	:	7801285
New IC No	:	490820-10-5997
Date of Birth	:	20/08/1949
Nationality	:	MALAYSIAN
Date of Appointment	:	01/07/1983

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		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	202258X	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	Director	09/08/1990	1.00	0.0003	MYR(3,388.00)	2017	-	26/12/2017
2	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	19/09/2005	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
3	68686H	LUN HENG SDN. BHD.	Director	01/07/1983	0.00	-	MYR7,843,079.00	2016	-	26/12/2017

DIRECTOR 3

Name Of Subject	:	MR. CHAN WAN CHUAN
Address	:	149, JALAN IPOH, TAMAN RAINBOW, BATU 4, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	A3747058
New IC No	:	770508-14-5499
Date of Birth	:	08/05/1977
Nationality	:	MALAYSIAN
Date of Appointment	:	03/01/2006

INTEREST CHECK

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

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	202258X	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	Shareholder	-	1.00	0.0003	MYR(3,388.00)	2017	-	26/12/2017
2	800151P	LUN HENG MARKETING SDN. BHD.	Director	19/12/2007	0.00	-	MYR(9,993.00)	2017	-	26/12/2017
3	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	06/11/2006	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
4	68686H	LUN HENG SDN. BHD.	Director	03/01/2006	4,955,500.00	8.50	MYR7,843,079.00	2016	-	26/12/2017

INTEREST IN BUSINESS

No	Local No	Business	Designation	App Date	Shareholding (%)	Status	As At
1	001639358D	QUEST MART ENTERPRISE	PARTNERSHIP	13/09/2006	6.00	-	27/11/2017

DIRECTOR 4

Name Of Subject	:	MR. CHAN CHEE HIM
Address	:	66, JALAN WANGSA SATU, BUKIT ANTARABANGSA, 68000 AMPANG, SELANGOR, MALAYSIA.
IC / PP No	:	5294364
New IC No	:	571214-10-5393
Date of Birth	:	14/12/1957
Nationality	:	MALAYSIAN
Date of Appointment	:	03/06/1982

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		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	1048009M	CAPSOURCE PROPERTIES SDN. BHD.	Director	30/05/2013	40,000.00	40.00	MYR(101,064.00)	2016	-	26/12/2017
2	186108T	DYNAWORLD SDN. BHD.	Director	22/09/1989	25,000.00	5.00	MYR(406,821.00)	2016	-	26/12/2017
3	1106909P	GOLDEN NICHE ASSETS SDN. BHD.	Director	14/10/2014	0.00	-	MYR(125,167.00)	2016	-	26/12/2017
4	195845X	HILLSOURCE CORPORATION SDN. BHD.	Director	30/03/1990	1.00	0.004	MYR(2,548.00)	2016	-	26/12/2017
5	101435U	LONGDATION ENTERPRISE SDN. BHD.	Director	17/05/1983	1.00	0.00010	MYR350,556.00	2016	-	26/12/2017
6	202258X	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	Director	09/08/1990	1.00	0.0003	MYR(3,388.00)	2017	-	26/12/2017
7	800151P	LUN HENG MARKETING SDN. BHD.	Director	19/12/2007	0.00	-	MYR(9,993.00)	2017	-	26/12/2017
8	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	10/01/2005	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
9	198632T	LUN HENG REALTY SDN. BHD.	Director	30/05/1990	1.00	20.00	MYR33,373.00	2016	-	26/12/2017
10	68686H	LUN HENG SDN. BHD.	Director	03/06/1982	5,830,000.00	10.00	MYR7,843,079.00	2016	-	26/12/2017
11	194698V	RESOURCEVALE SDN. BHD.	Director	09/03/1990	1.00	0.0005	MYR314,369.00	2016	-	26/12/2017
12	188896K	RICH ORIENT SDN. BHD.	Director	03/11/1989	0.00	-	MYR11,515.00	2016	-	26/12/2017
13	197892V	SRI UDARAMAS HOLDINGS SDN. BHD.	Director	18/05/1990	1.00	0.0005	MYR27,978.00	2016	-	26/12/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	781400X	KAISEN TRADING SDN. BHD.	Director	02/08/2007	23/10/2017	-	-

DIRECTOR 5

Name Of Subject	:	MR. CHAN BOON KIEW
Address	:	66, JALAN WANGSA SATU, BUKIT ANTRABANGSA, 68000 AMPANG, SELANGOR, MALAYSIA.
New IC No	:	521205-10-5169
Date of Birth	:	05/12/1952
Nationality	:	MALAYSIAN
Date of Appointment	:	03/06/1982

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		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	186108T	DYNAWORLD SDN. BHD.	Director	22/09/1989	230,000.00	46.00	MYR(406,821.00)	2016	-	26/12/2017
2	195845X	HILLSOURCE CORPORATION SDN. BHD.	Director	30/03/1990	7,501.00	30.00	MYR(2,548.00)	2016	-	26/12/2017
3	101435U	LONGDATION ENTERPRISE SDN. BHD.	Director	25/05/1990	0.00	-	MYR350,556.00	2016	-	26/12/2017
4	202258X	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	Director	09/08/1990	1.00	0.0003	MYR(3,388.00)	2017	-	26/12/2017
5	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	19/09/2005	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
6	198632T	LUN HENG REALTY SDN. BHD.	Director	30/05/1990	4.00	80.00	MYR33,373.00	2016	-	26/12/2017
7	68686H	LUN HENG SDN. BHD.	Director	03/06/1982	5,830,000.00	10.00	MYR7,843,079.00	2016	-	26/12/2017
8	194698V	RESOURCEVALE SDN. BHD.	Director	09/03/1990	1.00	0.0005	MYR314,369.00	2016	-	26/12/2017
9	188896K	RICH ORIENT SDN. BHD.	Director	03/11/1989	350,000.00	70.00	MYR11,515.00	2016	-	26/12/2017
10	197892V	SRI UDARAMAS HOLDINGS SDN. BHD.	Director	18/05/1990	1.00	0.0005	MYR27,978.00	2016	-	26/12/2017

DIRECTOR 6

Name Of Subject	:	CHAN BOON CHENG
Address	:	22, JALAN BUKIT IDAMAN 3/1, BUKIT IDAMAN, GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.
IC / PP No	:	6126105
New IC No	:	601126-10-6307
Date of Birth	:	26/11/1960
Nationality	:	MALAYSIAN
Date of Appointment	:	03/06/1982

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		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	202258X	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	Director	09/08/1990	1.00	0.0003	MYR(3,388.00)	2017	-	26/12/2017
2	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	19/09/2005	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
3	68686H	LUN HENG SDN. BHD.	Director	03/06/1982	6,996,000.00	12.00	MYR7,843,079.00	2016	-	26/12/2017

DIRECTOR 7

Name Of Subject	:	MR. CHAN MOON THIAM
Address	:	77, JALAN SEMARAK API, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Other Address(es)	:	- WISMA LUN HENG, LOT 47,, JALAN BRP 9/2, TAMAN PERINDUSTRIAN PUTRA (RAHMAN PUTRA),, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA. - 149,JALAN KRIAN, TMN.RAINBOW,BATU 4 1/2, JALAN IPOH, K.LUMPUR, 51100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	8152908
New IC No	:	541127-10-5443
Date of Birth	:	27/11/1954
Nationality	:	MALAYSIAN
Date of Appointment	:	23/03/1981

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		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	1110755X	BMIC PROPERTIES SDN. BHD.	Director	26/09/2014	1.00	33.33	MYR(4,640.00)	2016	-	26/12/2017
2	877494X	BMIC SECRET OF BEAUTY SDN. BHD.	Director	03/11/2009	1.00	0.0010	MYR(73,534.00)	2016	-	26/12/2017
3	18301V	EIGHT FRONTIERS SDN. BHD.	Director	23/10/2017	88,000.00	20.00	MYR(7,294.00)	2017	-	26/12/2017
4	781400X	KAISEN TRADING SDN. BHD.	Director	18/07/2007	30.00	30.00	MYR(3,399.00)	2017	-	26/12/2017
5	202258X	LUN HENG IMPORT EXPORT & TRADING SDN. BHD.	Director	09/08/1990	1.00	0.0003	MYR(3,388.00)	2017	-	26/12/2017
6	800151P	LUN HENG MARKETING SDN. BHD.	Director	19/12/2007	0.00	-	MYR(9,993.00)	2017	-	26/12/2017
7	678091W	LUN HENG PROPERTIES SDN. BHD.	Director	10/01/2005	0.00	-	MYR1,481,482.00	2016	-	26/12/2017
8	68686H	LUN HENG SDN. BHD.	Director	23/03/1981	29,150,000.00	50.00	MYR7,843,079.00	2016	-	26/12/2017
9	194698V	RESOURCEVALE SDN. BHD.	Shareholder	-	1.00	0.0005	MYR314,369.00	2016	-	26/12/2017
10	282935T	SIERRAMAS HOMEOWNERS BHD.	Director	25/06/2016	0.00	-	N/A	2016	-	26/12/2017
11	197892V	SRI UDARAMAS HOLDINGS SDN. BHD.	Shareholder	-	1.00	0.0005	MYR27,978.00	2016	-	26/12/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	646559T	EURO HOLDINGS BERHAD	Shareholder	-	-	614000.00	-
2	195845X	HILLSOURCE CORPORATION SDN. BHD.	Director	30/03/1990	01/04/1997	-	-
3	198632T	LUN HENG REALTY SDN. BHD.	Director	30/05/1990	31/03/2000	-	-
4	194698V	RESOURCEVALE SDN. BHD.	Director	09/03/1990	30/06/2000	-	-
5	188896K	RICH ORIENT SDN. BHD.	Director	-	15/03/1997	-	-
6	197892V	SRI UDARAMAS HOLDINGS SDN. BHD.	Director	18/05/1990	29/10/2001	-	-

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
LIM LAM	77,JALAN 1-2, TAMAN MELAWATI, HULU KLANG, KUALA LUMPUR, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA	431015-05-5077	03/06/1982	26/10/2001

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	CHAN MOON THIAM
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	C.K. YAP & ASSOCIATES
Auditor' Address	:	SUITE 2-2-12, MENARA KLH, OFF 2 1/2 MILE, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. YAP LEE FONG
	IC / PP No	:	6124185
	New IC No	:	601228-10-6578
	Address	:	8, JALAN 3, DESA JAYA, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

2)

Name

:

EON BANK BHD

3)

Name

:

HONG LEONG BANK BHD

4)

Name

:

HSBC BANK MALAYSIA BHD

5)

Name

:

OCBC BANK (MALAYSIA) BHD

6)

Name

:

PUBLIC BANK BHD

7)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

8)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

9)

Name

:

SOUTHERN BANK BERHAD

10)

Name

:

AMBANK (M) BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	05/10/1983	N/A	EUROPEAN ASIAN BANK AKTIENGESELLSCHAFT	-	Satisfied
2	23/05/1984	N/A	EUROPEAN ASIAN BANK AKTIENGESELLSCHAFT	MYR 500,000.00	Satisfied
3	31/10/1984	N/A	SOUTHERN BANK BERHAD	MYR 1,580,000.00	Satisfied
4	25/09/1985	N/A	EON BANK BERHAD	MYR 880,000.00	Satisfied
5	25/09/1985	N/A	EON BANK BERHAD	MYR 1,800,000.00	Satisfied
6	26/03/1986	N/A	EON BANK BERHAD	MYR 1,200,000.00	Satisfied
7	27/10/1986	N/A	EON BANK BERHAD	MYR 1,000,000.00	Satisfied
8	13/07/1987	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION	MYR 500,000.00	Satisfied
9	22/12/1987	N/A	EON BANK BERHAD	MYR 500,000.00	Satisfied
10	13/12/1988	A CHARGE	ORIENTAL BANK BERHAD	MYR 700,000.00	Unsatisfied
11	13/12/1988	N/A	EON BANK BERHAD	MYR 700,000.00	Satisfied
12	02/02/1989	N/A	PERWIRA HABIB BANK MALAYSIA BERHAD	MYR 750,000.00	Satisfied
13	04/03/1989	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 1,000,000.00	Satisfied
13U	04/03/1989	N/A	HSBC BANK MALAYSIA BERHAD	MYR 250,000.00	Satisfied
14	19/06/1989	LETTER OF SET-OFF	OCBC BANK MALAYSIA BERHAD	MYR 150,000.00	Satisfied
15	24/04/1990	N/A	PERWIRA HABIB BANK MALAYSIA BERHAD	MYR 750,000.00	Satisfied
16	21/06/1990	A CHARGE	ORIENTAL BANK BERHAD	MYR 1,100,000.00	Unsatisfied
17	21/06/1990	N/A	EON BANK BERHAD	MYR 1,100,000.00	Satisfied
18	21/06/1990	A CHARGE	ORIENTAL BANK BERHAD	MYR 1,100,000.00	Unsatisfied
19	12/09/1990	LEGAL CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 650,000.00	Satisfied
20	24/12/1990	A CHARGE	ORIENTAL BANK BERHAD	MYR 1,400,000.00	Unsatisfied
22	28/02/1991	N/A	OCBC BANK MALAYSIA BERHAD	MYR 9,720,000.00	Satisfied
23	28/02/1991	N/A	OCBC BANK MALAYSIA BERHAD	MYR 600,000.00	Satisfied
21	01/03/1991	LEGAL CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 1,100,000.00	Satisfied
24	28/09/1991	LEGAL CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 300,000.00	Satisfied
25	20/10/1991	N/A	OCBC BANK MALAYSIA BERHAD	MYR 300,000.00	Satisfied
26	17/01/1992	N/A	OCBC BANK MALAYSIA BERHAD	MYR 8,720,000.00	Satisfied
27	27/04/1992	N/A	OCBC BANK MALAYSIA BERHAD	MYR 8,720,000.00	Satisfied
28	12/10/1992	N/A	PERWIRA HABIB BANK MALAYSIA BERHAD	MYR 1,000,000.00	Satisfied
29	15/10/1992	OPEN CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 150,000.00	Satisfied
30	24/11/1992	N/A	OCBC BANK MALAYSIA BERHAD	MYR 150,000.00	Satisfied
31	09/03/1993	N/A	PUBLIC BANK BERHAD	MYR 420,000.00	Satisfied
32	09/03/1993	N/A	PUBLIC BANK BERHAD	MYR 920,000.00	Satisfied
33	09/03/1993	N/A	PUBLIC BANK BERHAD	MYR 1,000,000.00	Satisfied
34	30/05/1994	N/A	PUBLIC BANK BERHAD	MYR 1,370,000.00	Satisfied
35	19/09/1994	N/A	PERWIRA AFFIN BANK BERHAD	MYR 500,000.00	Satisfied
36	19/09/1994	N/A	PERWIRA AFFIN BANK BERHAD	MYR 50,000.00	Satisfied
37	07/11/1994	N/A	OCBC BANK MALAYSIA BERHAD	MYR 3,590,000.00	Satisfied
38	07/11/1994	N/A	OCBC BANK MALAYSIA BERHAD	MYR 3,590,000.00	Satisfied
39	29/11/1994	OPEN CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 12,460,000.00	Satisfied
40	09/01/1995	N/A	PUBLIC BANK BERHAD	MYR 500,000.00	Satisfied
41	31/03/1995	OPEN CHARGE	UNITED OVERSEAS BANK MALAYSIA BERHAD	MYR 880,000.00	Unsatisfied
42	31/03/1995	OPEN CHARGE	UNITED OVERSEAS BANK MALAYSIA BERHAD	MYR 880,000.00	Unsatisfied
43	22/05/1995	N/A	PUBLIC BANK BERHAD	MYR 550,000.00	Satisfied
44	23/05/1995	OPEN CHARGE	ORIENTAL BANK BERHAD	MYR 1,100,000.00	Unsatisfied
45	23/05/1995	OPEN CHARGE	HONG LEONG BANK BERHAD	MYR 1,000,000.00	Unsatisfied
46	23/05/1995	OPEN CHARGE	HONG LEONG BANK BERHAD	MYR 1,000,000.00	Unsatisfied
47	23/05/1995	OPEN CHARGE	ORIENTAL BANK BERHAD	MYR 1,100,000.00	Unsatisfied
48	23/05/1995	OPEN CHARGE	HONG LEONG BANK BERHAD	MYR 2,000,000.00	Unsatisfied
49	23/05/1995	OPEN CHARGE	ORIENTAL BANK BERHAD	MYR 2,000,000.00	Unsatisfied
50	28/08/1995	TERM LOAN AGREEMENT	OCBC BANK MALAYSIA BERHAD	MYR 1,200,000.00	Satisfied
51	09/10/1995	N/A	PUBLIC BANK BERHAD	MYR 1,000,000.00	Satisfied
52	18/12/1995	N/A	EON BANK BERHAD	MYR 9,500,000.00	Satisfied
53	16/04/1996	N/A	HONG LEONG FINANCE BERHAD	MYR 2,225,800.00	Satisfied
55	25/04/1996	LETTER OF SET-OFF	HONG LEONG BANK BERHAD	MYR 3,600,000.00	Unsatisfied
54	03/05/1996	N/A	HONGKONG BANK MALAYSIA BERHAD	-	Satisfied
56	16/09/1996	N/A	PUBLIC BANK BERHAD	MYR 1,300,000.00	Satisfied
57	31/10/1996	FACILITIES AGREEMENT	HONG LEONG BANK BERHAD	MYR 240,000.00	Unsatisfied
58	17/12/1996	LEGAL CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 600,000.00	Satisfied
59	27/12/1996	LEGAL CHARGE	OCBC BANK MALAYSIA BERHAD	MYR 600,000.00	Satisfied
60	13/03/1997	N/A	HONG LEONG BANK BERHAD	-	Satisfied
61	16/10/1997	OPEN CHARGE	AMBANK (M) BERHAD	MYR 3,400,000.00	Satisfied
62	28/11/1997	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 1,200,000.00	Satisfied
63	08/05/1998	N/A	PUBLIC BANK BERHAD	MYR 600,000.00	Satisfied
64	08/07/1998	LETTER OF SET-OFF	ORIENTAL BANK BERHAD	MYR 35,207,000.00	Unsatisfied
65	08/07/1998	OPEN CHARGE	ORIENTAL BANK BERHAD	MYR 23,207,000.00	Unsatisfied
66	06/08/1998	N/A	OCBC BANK MALAYSIA BERHAD	MYR 1,200,000.00	Satisfied
67	30/11/1998	MEMORANDUM	ALLIANCE BANK MALAYSIA BERHAD	MYR 2,300,000.00	Unsatisfied
68	03/06/1999	N/A	HSBC BANK MALAYSIA BERHAD	-	Satisfied
69	09/12/1999	MEMORANDUM	SOUTHERN BANK BERHAD	MYR 1,500,000.00	Unsatisfied
70	05/06/2000	MEMORANDUM	CIMB BANK BERHAD	MYR 4,000,000.00	Unsatisfied
71	01/06/2001	OPEN CHARGE	ALLIANCE BANK MALAYSIA BERHAD	MYR 828,000.00	Unsatisfied
72	01/06/2001	LOAN AGREEMENT	ALLIANCE BANK MALAYSIA BERHAD	MYR 714,000.00	Unsatisfied
73	10/01/2002	N/A	EON BANK BERHAD	MYR 9,500,000.00	Satisfied
74	19/10/2006	TRADE FINANCING GENERAL AGREEMENT	HSBC BANK MALAYSIA BERHAD AS SECURITY AGENT FOR HSBC AMANAH MALAYSIA BERHAD AND ITSELF	MYR 6,000,000.00	Unsatisfied
75	06/11/2007	OPEN CHARGE	HONG LEONG BANK BERHAD	MYR 20,700,000.00	Unsatisfied
76	26/11/2007	DEED ASSIGNMENT	ALLIANCE BANK MALAYSIA BERHAD	-	Unsatisfied
77	15/05/2008	OPEN CHARGE	STANDARD CHARTERED BANK MALAYSIA BERHAD	-	Satisfied
78	08/06/2010	LEGAL CHARGE	HONG LEONG BANK BERHAD	-	Unsatisfied
79	18/10/2013	LEGAL CHARGE	ALLIANCE BANK MALAYSIA BERHAD	-	Unsatisfied

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
Overseas	:	YES
Import Countries	:	CHINA,INDIA,AUSTRALIA,TAIWAN

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
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CASH CHEQUES TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	DEALERS,END USERS

OPERATIONS

Goods Traded

:

RICE, SUGAR, SALT, FLOUR, RED ONIONS, GARLIC, POTATOES, CANNED FOOD, DRIED CHILIES ETCN

Competitor(s)

:

BAN CHONG CHAN SDN. BHD.
KIM MONG SDN. BHD.
SONG HENG LEE SDN. BHD.
TOPZELLER (M) SDN. BHD.
VENUS GATEWAY SDN. BHD.

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2018	2017	2016	2015	2014	2013
GROUP	N/A	N/A	N/A	N/A	N/A	N/A
COMPANY	70	70	60	60	60	60

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) distributor of sundry goods and food products.

Besides grocery items, the Subject offers herbal, canned food and health drinks.

The Subject also supplies canned foods includes lychee, pineapple, peach, green & red peas, mushrooms, beans and meat.

The Subject sells its products in standard packagings. However, it is also able pack according to its customers' requirements.

The Subject sells its products both in loose and large quantities.

The Subject's core business being wholesaler of glossaries dealing in other retailers.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-61576868
Match	:	N/A
Address Provided by Client	:	LOT47, TAMAN PEK INDUSTRIES SUNGHAI BULOH,
Current Address	:	LOT 47, JALAN BRP 9/2, TAMAN PERINDUSTRIAN PUTRA, RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

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

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2012 - 2016	]
Profit/(Loss) Before Tax	:	Increased	[	2012 - 2016	]
Return on Shareholder Funds	:	Unfavourable	[	9.65%	]
Return on Net Assets	:	Acceptable	[	13.93%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. 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	:	Unfavourable	[	75 Days	]
Debtor Ratio	:	Unfavourable	[	86 Days	]
Creditors Ratio	:	Favourable	[	15 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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	:	Unfavourable	[	0.55 Times	]
Current Ratio	:	Unfavourable	[	0.90 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	[	2.64 Times	]
Gearing Ratio	:	Unfavourable	[	1.64 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : POOR

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2014	2015	2016	2017*	2018**
Population ( Million)	30.0	31.0	31.6	32.1	32.9
Gross Domestic Products ( % )	6.0	4.6	4.2	5.5	5.3
Domestic Demand ( % )	6.4	6.2	6.3	-	-
Private Expenditure ( % )	7.9	6.9	7.8	10.6	10.0
Consumption ( % )	6.5	6.1	5.1	-	-
Investment ( % )	12.0	8.1	10.0	12.0	-
Public Expenditure ( % )	2.3	4.2	3.3	-	-
Consumption ( % )	2.1	4.3	2.0	-	-
Investment ( % )	2.6	(1.0)	1.1	-	-
Balance of Trade ( MYR Million )	82,480	91,577	88,145	94,593	96,993
Government Finance ( MYR Million )	(37,414)	(37,194)	(38,401)	(39,887)	(39,790)
Government Finance to GDP / Fiscal Deficit ( % )	(3.4)	(3.2)	(3.1)	(3.0)	(2.8)
Inflation ( % Change in Composite CPI)	3.2	4.0	2.1	3.5	3.0
Unemployment Rate	2.9	3.1	3.4	3.4	3.3
Net International Reserves ( MYR Billion )	417	390	391	-	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	4.00	3.50	-	-	-
Average 3 Months of Non-performing Loans ( % )	2.10	2.00	1.90	-	-
Average Base Lending Rate ( % )	6.85	6.79	6.81	-	-
Business Loans Disbursed( % )	18.6	2.2	-	-	-
Foreign Investment ( MYR Million )	43,486.6	43,435.0	-	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	49,203	45,658	43,255	-	-
Registration of New Companies ( % )	6.1	(7.2)	(5.3)	-	-
Liquidation of Companies ( No. )	11,099	7,066	-	-	-
Liquidation of Companies ( % )	(19.5)	(36.3)	-	-	-
Registration of New Business ( No. )	332,723	364,230	376,720	-	-
Registration of New Business ( % )	1.0	9.0	3.0	-	-
Business Dissolved ( No. )	21,436	-	-	-	-
Business Dissolved ( % )	18.0	-	-	-	-
Sales of New Passenger Cars (' 000 Unit )	588.3	591.3	514.6	527.8	-
Cellular Phone Subscribers ( Million )	44.0	44.2	44.0	-	-
Tourist Arrival ( Million Persons )	27.4	25.7	30.2	30.1	-
Hotel Occupancy Rate ( % )	63.6	58.8	61.2	-	-
Credit Cards Spending ( % )	5.8	6.8	6.3	-	-
Bad Cheque Offenders (No.)	-	-	-	-	-
Individual Bankruptcy ( No.)	22,351	18,457	-	-	-
Individual Bankruptcy ( % )	1.7	(17.4)	-	-	-

INDUSTRIES ( % of Growth ):	2014	2015	2016	2017*	2018**
Agriculture	2.0	1.3	(5.1)	5.6	2.4
Palm Oil	6.7	7.0	8.2	-	-
Rubber	(10.4)	(11.0)	(12.3)	-	-
Forestry & Logging	(4.2)	(7.2)	(4.8)	-	-
Fishing	2.7	2.1	2.9	-	-
Other Agriculture	6.2	6.0	6.8	-	-
Industry Non-Performing Loans ( MYR Million )	303.8	343.7	420.3	-	-
% of Industry Non-Performing Loans	1.4	1.5	1.8	-	-
Mining	3.3	5.3	2.2	0.5	0.9
Oil & Gas	3.0	3.5	4.5	-	-
Other Mining	46.6	47.1	42.6	-	-
Industry Non-performing Loans ( MYR Million )	63.5	180.1	190.0	-	-
% of Industry Non-performing Loans	0.3	0.8	0.8	-	-
Manufacturing #	6.1	4.9	4.4	5.5	5.3
Exported-oriented Industries	7.1	6.5	3.3	21.1	-
Electrical & Electronics	11.8	9.2	7.0	-	-
Rubber Products	(1.3)	5.1	3.9	-	-
Wood Products	7.8	7.0	7.0	-	-
Textiles & Apparel	10.8	7.5	6.7	-	-
Domestic-oriented Industries	7.7	4.7	3.0	-	-
Food, Beverages & Tobacco	6.1	8.9	7.5	-	-
Chemical & Chemical Products	1.4	3.5	5.1	-	-
Plastic Products	2.7	3.9	5.1	-	-
Iron & Steel	2.8	1.6	2.2	-	-
Fabricated Metal Products	2.8	4.6	5.1	-	-
Non-metallic Mineral	6.9	6.8	5.5	-	-
Transport Equipment	14.4	5.2	(3.1)	-	-
Paper & Paper Products	4.7	3.2	3.9	-	-
Crude Oil Refineries	13.0	14.3	13.7	-	-
Industry Non-Performing Loans ( MYR Million )	5,730.8	4,243.7	4,214.1	-	-
% of Industry Non-Performing Loans	25.6	19.0	18.5	-	-
Construction	11.7	8.2	7.4	7.6	7.5
Industry Non-Performing Loans ( MYR Million )	1,666.4	1,638.0	1,793.9	-	-
% of Industry Non-Performing Loans	7.5	7.3	7.9	-	-
Services	6.6	5.1	5.6	5.9	5.8
Electric, Gas & Water	3.8	3.6	5.4	2.5	2.6
Transport, Storage & Communication	7.70	7.55	6.85	7.35	7.30
Wholesale, Retail, Hotel & Restaurant	7.70	6.65	6.65	7.05	6.65
Finance, Insurance & Real Estate	5.15	2.90	4.70	5.70	5.90
Government Services	6.3	4.0	4.9	4.4	4.5
Other Services	4.8	4.7	4.8	5.3	5.3
Industry Non-Performing Loans ( MYR Million )	5,373.5	6,806.6	7,190.6	-	-
% of Industry Non-Performing Loans	24.1	30.5	31.5	-	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
47111 : Provision stores
47219 : Retail sale of other food products n.e.c.
INDUSTRY :	TRADING
Malaysia's retail sales will likely grow 3.7% in 2017, slower than previously estimated 3.9%, as consumer sentiment remains weak amid rising cost of living in Southeast Asia's third largest economy.
The cut in forecast was the second of such revision by Retail Group Malaysia, a retail consulting firm, from an initial target of 5% retail sales expansion pace in 2017. The estimate follows a survey of members of Malaysia Retailers Association on their second quarter performance and outlook for the year. Retail sales grew 1.7% in 2016.
According to Retail Group Malaysia (RGM), Malaysian retailers have seen the sales expanded 4.9 % from April to June 2017, reversing a dismal performance in first three months 2017. For the first six months 2016, the retail sale growth rate was 2.5 %. However, the businesses in the next three months are not optimistic, estimating an average growth rate of 2.9 %. The department stores cum supermarket operators are expecting to return to red with a contraction of 2.5 %. Similarly, the department store operators expect their businesses to dip with a negative 1.5 %.
The rise of purchasing power will continue to fall behind the increase in prices of retail goods. More retail goods are expected to raise prices because of higher fuel prices in recent months.
The wholesale trade sub-sector index increased 5.9 % to 165.9 points year-on-year (y-o-y) driven mainly by other specialised wholesale (7.5 %), wholesale of agricultural raw materials and livestock (7.3 %) and wholesale of machinery, equipment and supplies (6.2 %).
Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1981, the Subject is a Private Limited company, focusing on distributor of sundry goods and food products. 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 MYR 58,300,000 in issued and paid up capital, the Subject has the potential of capturing a higher market shares as it is competing aggressively in the market.

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. Being a moderate size company, the Subject has a total workforce of 70 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.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 81,256,472, 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)

LUN HENG SDN. BHD.

Financial Year End	2016-06-30	2015-06-30	2014-06-30	2013-06-30	2012-06-30
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	167,688,161	167,884,513	162,028,698	149,296,628	136,753,333
	----------------	----------------	----------------	----------------	----------------
Total Turnover	167,688,161	167,884,513	162,028,698	149,296,628	136,753,333
Costs of Goods Sold	(144,483,418)	(15,642,632)	(146,382,622)	(136,471,852)	(124,342,448)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	23,204,743	152,241,881	15,646,076	12,824,776	12,410,885
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	10,975,687	4,917,155	4,118,927	2,714,417	2,903,999
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	10,975,687	4,917,155	4,118,927	2,714,417	2,903,999
Taxation	(3,132,608)	(1,732,741)	(1,008,731)	(1,535,268)	(1,919,658)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	7,843,079	3,184,414	3,110,196	1,179,149	984,341
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	10,951,532	12,767,118	9,656,922	6,158,646	7,424,809
Prior year adjustment	-	-	-	4,479,307	-
	----------------	----------------	----------------	----------------	----------------
As restated	10,951,532	12,767,118	9,656,922	10,637,953	7,424,809
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	18,794,611	15,951,532	12,767,118	11,817,102	8,409,150
CAPITALISATION FOR BONUS ISSUES	(3,300,000)	(5,000,000)	-	(2,160,180)	-
DIVIDENDS - Ordinary (paid & proposed)	(1,100,000)	-	-	-	(2,250,504)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	14,394,611	10,951,532	12,767,118	9,656,922	6,158,646
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	530,728	326,893	283,897	240,208	389,851
Hire purchase	188,180	177,477	152,468	152,627	268,060
Term loan / Borrowing	2,256,628	2,353,055	1,987,964	1,920,427	517,343
Others	3,718,457	4,210,037	3,563,139	3,057,965	2,401,804
	----------------	----------------	----------------	----------------	----------------
	6,693,993	7,067,462	5,987,468	5,371,227	3,577,058
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	1,246,736	1,117,705	926,423	960,807	1,899,431
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	1,246,736	1,117,705	926,423	960,807	1,899,431
	=============	=============	=============	=============	=============

BALANCE SHEET

LUN HENG SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	4,082,009	4,418,035	3,545,190	3,057,429	84,842,972
Investment properties	132,351,382	128,523,082	127,024,590	120,678,059	-
Deferred assets	41,368	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	132,392,750	128,523,082	127,024,590	120,678,059	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	136,474,759	132,941,117	130,569,780	123,735,488	84,842,972
Stocks	34,327,954	39,137,911	32,833,478	17,471,275	18,184,026
Trade debtors	39,483,773	37,860,678	34,259,164	32,623,532	28,424,445
Other debtors, deposits & prepayments	3,489,622	2,737,014	3,014,109	2,728,468	2,657,507
Short term deposits	159,327	3,154,335	149,588	145,090	140,727
Amount due from director	4,126,373	126,373	963,390	963,390	3,778,719
Cash & bank balances	6,728,368	8,875,747	9,077,638	4,750,468	3,646,007
Others	-	105,963	-	11,091	11,378
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	88,315,417	91,998,021	80,297,367	58,693,314	56,842,809
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	224,790,176	224,939,138	210,867,147	182,428,802	141,685,781
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	6,081,444	12,881,336	4,559,851	1,572,772	6,133,799
Other creditors & accruals	2,406,338	2,544,013	2,480,811	2,225,870	2,030,282
Hire purchase & lease creditors	1,047,052	957,511	823,494	730,389	690,410
Bank overdraft	9,191,033	5,283,570	5,042,265	4,289,304	5,201,683
Short term borrowings/Term loans	1,594,454	1,521,180	1,528,923	1,286,809	1,835,115
Other borrowings	75,914,273	83,354,858	79,007,032	67,572,845	58,216,307
Amounts owing to director	-	-	1,008,000	2,255,000	-
Provision for taxation	1,739,916	271,976	318,997	428,362	411,226
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	97,974,510	106,814,444	94,769,373	80,361,351	74,518,822
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(9,659,093)	(14,816,423)	(14,472,006)	(21,668,037)	(17,676,013)
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	126,815,666	118,124,694	116,097,774	102,067,451	67,166,959
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	58,300,000	55,000,000	50,000,000	50,000,000	13,590,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	58,300,000	55,000,000	50,000,000	50,000,000	13,590,000
Revaluation reserve	8,561,861	4,911,861	4,911,861	-	9,715,956
Retained profit/(loss) carried forward	14,394,611	10,951,532	12,767,118	9,656,922	6,158,646
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	22,956,472	15,863,393	17,678,979	9,656,922	15,874,602
MINORITY INTEREST	-	-	-	-	1
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	81,256,472	70,863,393	67,678,979	59,656,922	29,464,603
Long term loans	42,955,101	44,356,720	46,067,298	40,222,027	35,300,124
Hire purchase creditors	2,604,093	2,904,581	2,351,497	2,188,502	1,954,091
Deferred taxation	-	-	-	-	448,141
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	45,559,194	47,261,301	48,418,795	42,410,529	37,702,356
	----------------	----------------	----------------	----------------	----------------
	126,815,666	118,124,694	116,097,774	102,067,451	67,166,959
	=============	=============	=============	=============	=============

FINANCIAL RATIO

LUN HENG SDN. BHD.

TYPES OF FUNDS
Cash	6,887,695	12,030,082	9,227,226	4,895,558	3,786,734
Net Liquid Funds	(2,303,338)	6,746,512	4,184,961	606,254	(1,414,949)
Net Liquid Assets	(43,987,047)	(53,954,334)	(47,305,484)	(39,139,312)	(35,860,039)
Net Current Assets/(Liabilities)	(9,659,093)	(14,816,423)	(14,472,006)	(21,668,037)	(17,676,013)
Net Tangible Assets	126,815,666	118,124,694	116,097,774	102,067,451	67,166,959
Net Monetary Assets	(89,546,241)	(101,215,635)	(95,724,279)	(81,549,841)	(73,562,395)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	17,669,680	11,984,617	10,106,395	8,085,644	6,481,057
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	18,916,416	13,102,322	11,032,818	9,046,451	8,380,488
BALANCE SHEET ITEMS
Total Borrowings	133,306,006	138,378,420	134,820,509	116,289,876	103,197,730
Total Liabilities	143,533,704	154,075,745	143,188,168	122,771,880	112,221,178
Total Assets	224,790,176	224,939,138	210,867,147	182,428,802	141,685,781
Net Assets	126,815,666	118,124,694	116,097,774	102,067,451	67,166,959
Net Assets Backing	81,256,472	70,863,393	67,678,979	59,656,922	29,464,603
Shareholders' Funds	81,256,472	70,863,393	67,678,979	59,656,922	29,464,603
Total Share Capital	58,300,000	55,000,000	50,000,000	50,000,000	13,590,000
Total Reserves	22,956,472	15,863,393	17,678,979	9,656,922	15,874,602
GROWTH RATIOS (Year on Year)
Revenue	(0.12)	3.61	8.53	9.17	(2.61)
Proft/(Loss) Before Tax	123.21	19.38	51.74	(6.53)	2.86
Proft/(Loss) After Tax	146.30	2.39	163.77	19.79	(31.09)
Total Assets	(0.07)	6.67	15.59	28.76	11.99
Total Liabilities	(6.84)	7.60	16.63	9.40	17.16
LIQUIDITY (Times)
Cash Ratio	0.07	0.11	0.10	0.06	0.05
Liquid Ratio	0.55	0.49	0.50	0.51	0.52
Current Ratio	0.90	0.86	0.85	0.73	0.76
WORKING CAPITAL CONTROL (Days)
Stock Ratio	75	85	74	43	49
Debtors Ratio	86	82	77	80	76
Creditors Ratio	15	301	11	4	18
SOLVENCY RATIOS (Times)
Gearing Ratio	1.64	1.95	1.99	1.95	3.50
Liabilities Ratio	1.77	2.17	2.12	2.06	3.81
Times Interest Earned Ratio	2.64	1.70	1.69	1.51	1.81
Assets Backing Ratio	2.18	2.15	2.32	2.04	4.94
PERFORMANCE RATIO (%)
Operating Profit Margin	6.55	2.93	2.54	1.82	2.12
Net Profit Margin	4.68	1.90	1.92	0.79	0.72
Return On Net Assets	13.93	10.15	8.71	7.92	9.65
Return On Capital Employed	12.89	9.64	8.29	7.55	8.87
Return On Shareholders' Funds/Equity	9.65	4.49	4.60	1.98	3.34
Dividend Pay Out Ratio (Times)	0.14	0	0	0	2.29
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.34
UK Pound	1	INR 85.89
Euro	1	INR 76.15
MYR	1	INR 15.84

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

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	SYL

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)

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