MIRA INFORM REPORT

Report No. :	484417
Report Date :	11.01.2018

IDENTIFICATION DETAILS

Name :	CHIN HERR INDUSTRIES (M) SDN. BHD.
Registered Office :	51-21-A, Menara Bhl Bank, Jalan Sultan Ahmad Shah, 10050 Pulau Pinang, Pulau Pinang,.
Country :	Malaysia
Financials (as on) :	30.06.2016
Date of Incorporation :	27.07.1993
Com. Reg. No.:	271497-X
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is engaged in the manufacturer of precision galvanised wire, bright wire, hard drawn wire, bent round bar & brc wire.
No. of Employees :	120 [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+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List

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.

:

271497-X

COMPANY NAME

:

CHIN HERR INDUSTRIES (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/07/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

51-21-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

1500, MUKIM 11, LORONG PERUSAHAAN UTAMA, BUKIT TENGAH INDUSTRIAL ESTATE, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5076888

FAX.NO.

:

04-5078868

WEB SITE

:

WWW.CHINHERR.COM

CONTACT PERSON

:

TSAI CHIA LING ( DIRECTOR )

INDUSTRY CODE

:

25992

PRINCIPAL ACTIVITY

:

MANUFACTURER OF PRECISION GALVANISED WIRE, BRIGHT WIRE, HARD DRAWN WIRE, BENT ROUND BAR & BRC WIRE

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 18,000,000.00 DIVIDED INTO
ORDINARY SHARES 18,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 92,138,814 [2016]

NET WORTH

:

MYR 70,453,952 [2016]

STAFF STRENGTH

:

120 [2018]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

REGULAR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) manufacturer of precision galvanised wire, bright wire, hard drawn wire, bent round bar & brc wire.

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

The immediate holding company of the Subject is CHIN WELL HOLDINGS BERHAD, a company incorporated in MALAYSIA.

Former Address(es)

Address	As At Date
ROOM 2, SUITE K, 2ND FLOOR, WISMA LISTER GARDEN, 123, MACALISTER ROAD, 10400, PULAU PINANG, MALAYSIA	18/12/1994
3RD FLOOR, WISMA WANG, 251-A, JALAN BURMA, 10350, PULAU PINANG, MALAYSIA	21/02/2008

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
24/10/2002	MYR 25,000,000.00	MYR 18,000,000.00
22/09/1994	MYR 25,000,000.00	MYR 12,000,000.00
30/06/1994	MYR 10,000,000.00	MYR 10,000,000.00
30/12/1993	MYR 10,000,000.00	MYR 6,000,000.00
24/12/1993	MYR 10,000,000.00	MYR 4,000,000.00
14/09/1993	MYR 1,000,000.00	MYR 100,000.00
23/08/1993	MYR 1,000,000.00	MYR 2.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHIN WELL HOLDINGS BERHAD	1586, MK 11, LORONG PERUSAHAAN UTAMA 1, BUKIT TENGAH INDUSTRIAL PARK, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.	371551T	18,000,000.00	100.00
			---------------	------
			18,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. TSAI YUNG CHUAN
Address	:	20, LORONG TAMBUN INDAH 6, TAMAN TAMBUN INDAH, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.
Other Address(es)	:	16 LEBUH KURAU 11, CHAI LENG PARK, PRAI, 13700 PERAI, PULAU PINANG, MALAYSIA.
IC / PP No	:	M4263951
New IC No	:	571116-71-5323
Date of Birth	:	16/11/1957
Nationality	:	MALAYSIAN
Date of Appointment	:	23/08/1993

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	332092U	AMAL PINTAS SDN. BHD.	Director	07/04/1997	95,000.00	38.00	MYR1,763,670.00	2013	-	26/12/2017
2	970896P	BENUA HANDAL SDN. BHD.	Director	02/04/2012	125,454.00	50.18	MYR(77,060,361.00)	2016	-	26/12/2017
3	271497X	CHIN HERR INDUSTRIES (M) SDN. BHD.	Director	23/08/1993	0.00	-	MYR6,492,487.00	2016	-	26/12/2017
4	170752X	CHIN WELL FASTENERS CO SDN. BHD.	Director	27/05/1988	0.00	-	MYR19,633,095.00	2016	-	26/12/2017
5	371551T	CHIN WELL HOLDINGS BERHAD	Director	02/03/1999	0.00	-	MYR63,369,117.00	2016	-	26/12/2017
6	422559H	CHIN WELL SERVICE CENTRE SDN. BHD.	Director	12/03/1997	0.00	-	MYR766,720.00	2016	-	26/12/2017
7	202562P	JIUH YANG METAL INDUSTRY SDN. BHD.	Director	15/08/1990	675,002.00	15.00	MYR754,413.00	2016	-	26/12/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	590502U	BEJAY TIMBER SDN. BHD.	Shareholder	-	-	-	-
2	590004A	EPILAND PROPERTIES SDN. BHD.	Director	07/10/2002	13/01/2011	-	-
3	8812M	HIL INDUSTRIES BERHAD	Shareholder	-	-	-	-
4	318724W	MEMORI JAYA SDN. BHD.	Director	12/10/1994	26/12/2017	-	-
5	513132D	MODERN SOLUTION SDN. BHD.	Shareholder	-	-	-	-
6	342062P	PERQUEST SDN. BHD.	Director	18/07/1995	13/01/2011	-	-
7	614370M	PRIDAMAN SDN. BHD.	Director	09/05/2003	26/08/2011	-	-
8	456062P	PUSAT PAKAR WANITA LOW SDN. BHD.	Shareholder	-	-	-	-
9	810446U	TAMBUN INDAH LAND BERHAD	Director	23/11/2010	19/06/2013	-	-
10	810446U	TAMBUN INDAH LAND BERHAD	Shareholder	-	-	500000.00	-
11	283502M	TAMBUN INDAH SDN. BHD.	Director	10/01/1994	13/01/2011	-	-

DIRECTOR 2

Name Of Subject	:	MS. TSAI CHIA LING
Address	:	20, LORONG TAMBUN INDAH 6, TAMAN TAMBUN INDAH, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.
New IC No	:	790921-74-5058
Date of Birth	:	21/09/1979
Nationality	:	MALAYSIAN
Date of Appointment	:	24/08/2011

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	332092U	AMAL PINTAS SDN. BHD.	Director	27/05/2008	62,500.00	25.00	MYR1,763,670.00	2013	-	26/12/2017
2	892460P	ASAS HANDAL SDN. BHD.	Director	02/06/2010	1.00	50.00	MYR(109,095.00)	2016	-	26/12/2017
3	970896P	BENUA HANDAL SDN. BHD.	Director	02/04/2012	34,627.00	13.85	MYR(77,060,361.00)	2016	-	26/12/2017
4	271497X	CHIN HERR INDUSTRIES (M) SDN. BHD.	Director	24/08/2011	0.00	-	MYR6,492,487.00	2016	-	26/12/2017
5	170752X	CHIN WELL FASTENERS CO SDN. BHD.	Director	01/07/2008	0.00	-	MYR19,633,095.00	2016	-	26/12/2017
6	371551T	CHIN WELL HOLDINGS BERHAD	Director	07/03/2005	0.00	-	MYR63,369,117.00	2016	-	26/12/2017
7	422559H	CHIN WELL SERVICE CENTRE SDN. BHD.	Director	24/08/2011	0.00	-	MYR766,720.00	2016	-	26/12/2017
8	865211A	HONOUR SYMBOL SDN. BHD.	Director	16/03/2015	0.00	-	MYR(40,217.00)	2016	-	26/12/2017
9	1060338H	JADI RAYA DEVELOPMENT SDN. BHD.	Director	15/11/2013	0.00	-	MYR(20,779.00)	2016	-	26/12/2017
10	951720P	NBH REALTY SDN. BHD.	Director	15/11/2013	0.00	-	MYR(742,016.00)	2016	-	26/12/2017
11	810446U	TAMBUN INDAH LAND BERHAD	Director	19/06/2013	0.00	-	MYR112,203,066.00	2016	-	26/12/2017
12	957339M	UEE GLOBAL TRADE SDN. BHD.	Director	16/08/2011	0.00	-	MYR(118,390.00)	2016	-	26/12/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	871467X	DENMAS DEVELOPMENT SDN. BHD.	Director	02/10/2009	13/01/2011	-	-
2	590004A	EPILAND PROPERTIES SDN. BHD.	Director	27/12/2004	13/01/2011	-	-
3	688440H	JURU HEIGHTS SDN. BHD.	Director	14/04/2005	13/01/2011	-	-
4	342062P	PERQUEST SDN. BHD.	Director	24/06/2005	13/01/2011	-	-
5	614370M	PRIDAMAN SDN. BHD.	Director	27/12/2004	26/08/2011	-	-
6	818100D	TAMBUN INDAH DEVELOPMENT SDN. BHD.	Director	16/05/2008	31/12/2010	-	-
7	818100D	TAMBUN INDAH DEVELOPMENT SDN. BHD.	Shareholder	-	-	-	-
8	283502M	TAMBUN INDAH SDN. BHD.	Director	24/06/2005	13/01/2011	-	-
9	720514H	TOKOH EDARAN SDN. BHD.	Director	08/02/2006	13/01/2011	-	-

DIRECTOR 3

Name Of Subject	:	MS. TSAI CHANG HSIU-HSIANG
Address	:	20, LORONG TAMBUN INDAH 6, TAMAN TAMBUN INDAH, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.
IC / PP No	:	M10853597
New IC No	:	570215-71-5308
Date of Birth	:	15/02/1957
Nationality	:	MALAYSIAN
Date of Appointment	:	29/09/2003

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	332092U	AMAL PINTAS SDN. BHD.	Director	07/04/1997	92,500.00	37.00	MYR1,763,670.00	2013	-	26/12/2017
2	970896P	BENUA HANDAL SDN. BHD.	Director	02/04/2012	21,660.00	8.66	MYR(77,060,361.00)	2016	-	26/12/2017
3	271497X	CHIN HERR INDUSTRIES (M) SDN. BHD.	Director	29/09/2003	0.00	-	MYR6,492,487.00	2016	-	26/12/2017
4	170752X	CHIN WELL FASTENERS CO SDN. BHD.	Director	17/05/1993	0.00	-	MYR19,633,095.00	2016	-	26/12/2017
5	371551T	CHIN WELL HOLDINGS BERHAD	Director	02/03/1999	0.00	-	MYR63,369,117.00	2016	-	26/12/2017
6	422559H	CHIN WELL SERVICE CENTRE SDN. BHD.	Director	12/03/1997	0.00	-	MYR766,720.00	2016	-	26/12/2017

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
WU SHUN TE	1044 MK. 6, LORONG PERUSAHAN MAJU 2, KAW. P'HAAN PERAI 4,PERAI.	570301-89-5069	28/08/2000	29/09/2003
TEH KIAK SENG	509-12-02 CONDO SRI GOLDEN BAY, TANJUNG BUNGAH, PENANG, TANJUNG BUNGAH, PULAU PINANG, MALAYSIA	500302-07-5165	22/12/1993	28/08/2000
LIM CHIEN CH'ENG	89-10-3,TAMAN FESTIVAL, KELEWAI ROAD, PENANG, PULAU PINANG, PULAU PINANG, MALAYSIA	530418-07-5033	23/08/1993	29/09/2003

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	TSAI CHIA LING
	Position	:	DIRECTOR

AUDITOR

Auditor	:	GRANT THORNTON
Auditor' Address	:	51-8-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. P'NG CHIEW KEEM
	IC / PP No	:	A2095490
	New IC No	:	720225-07-5130
	Address	:	19, TINGKAT BUKIT KECIL 2, TAMAN SRI NIBONG, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

2)	Company Secretary	:	MR. LEE PENG LOON
	IC / PP No	:	4092111
	New IC No	:	501110-07-5149
	Address	:	53, JALAN DEVA PADA, 10400 GEORGETOWN, PULAU PINANG, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
2	08/01/1994	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 12,000,000.00	Satisfied
3	08/01/1994	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 12,000,000.00	Satisfied
4	08/01/1994	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 12,000,000.00	Satisfied
5	08/01/1994	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 12,000,000.00	Satisfied
6	08/01/1994	N/A	THE HONGKONG SHANGHAI BANKING CORPORATION LIMITED	-	Satisfied
1	25/01/1994	N/A	THE HONGKONG SHANGHAI BANKING CORPORATION LIMITED	-	Satisfied
7	10/08/1998	N/A	HONGKONG BANK MALAYSIA BERHAD	MYR 12,000,000.00	Satisfied
8	18/08/1998	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
Overseas	:	YES

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

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

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA MIDDLE EAST INDIA AUSTRALIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured	:	GALVANISED IRON WIRE, HARD DRAWN WIRE, PVC COATED WIRE
Product Brand Name	:	CHIN HERR
Award	:	1 ) MS ISO 9001 : 2000 Year :1998
Competitor(s)	:	FE MAGNET WIRE (MALAYSIA) SDN.BHD. PERFECT WIREMAKERS SDN. BHD. SOUTHERN PC STEEL SDN. BHD. TA WIN INDUSTRIES (M) SDN. BHD. TANAKA ELECTRONICS (MALAYSIA) SDN. BHD.
Member(s) / Affiliate(s)	:	MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)
Ownership of premises	:	OWNED
Production Capacity	:	APPROX 5,000 METRIC TONNES PER MONTH

Total Number of Employees:
YEAR	2018	2016	2015	2014
GROUP	N/A	N/A	N/A	N/A
COMPANY	120	100	100	100

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturer of precision galvanised wire, bright wire, hard drawn wire, bent round bar & brc wire.

The Subject is principally involved in the manufacturing of galvanised wires and related products.

The Subject also produces steel and galvanised wires mainly for the construction and engineering industries in the productions of fences and cables.

The Subject's product range includes, from galvanised wires, annealing wire to BRC wire mesh.

Chin Herr paves the way forwards the proliferation of iron wire manufacturing products and services, meeting the standards to maintain a competitive edge in the local and global iron wire manufacturing markets today.

RECENT DEVELOPMENT

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

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	04-5076888
Match	:	N/A
Address Provided by Client	:	1500 MK 11 LORONG PERUSAHAAN UTAMA SATU BUKIT TENGAH INDUSTRIAL ESTATE 14000 BUKIT MERTAJAM PULAU PINANG
Current Address	:	1500, MUKIM 11, LORONG PERUSAHAAN UTAMA, BUKIT TENGAH INDUSTRIAL ESTATE, 14000 BUKIT MERTAJAM, PULAU PINANG, 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	:	Increased	[	2012 - 2016	]
Profit/(Loss) Before Tax	:	Increased	[	2012 - 2016	]
Return on Shareholder Funds	:	Unfavourable	[	9.22%	]
Return on Net Assets	:	Acceptable	[	11.69%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.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	[	124 Days	]
Debtor Ratio	:	Favourable	[	47 Days	]
Creditors Ratio	:	Favourable	[	3 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	:	Favourable	[	1.91 Times	]
Current Ratio	:	Favourable	[	3.59 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	81.83 Times	]
Gearing Ratio	:	Favourable	[	0.22 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :
Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

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
25992 : Manufacture of metal cable, plaited bands and similar articles
INDUSTRY :	MANUFACTURING
The manufacturing sector is forecast to increase 5.3% in year 2018 (2017: 5.5%). Output of export-oriented industries is projected to expand on account of sustained demand for E&E, refined petroleum and woods products. Growth in the domestic-oriented industries is anticipated to remain resilient supported by ongoing construction of infrastructure projects as well as strong demand for consumer products, especially food and transport equipment.
Value added of the manufacturing sector expanded further by 5.8% during the first half of 2017 (January – June 2016: 4.4%) with expansion across a wide range of outputs in both the export- and domestic-oriented industries. During the first eight months, production increased 6.4%, while sales rebounded significantly by 15.6% to RM500.2 billion (January – August 2016: 4%; -0.7%; RM432.8 billion). Output of export-oriented industries rose 6.5% (January – August 2016: 4.3%) led by an upturn in global electronics cycle and further enhanced by strong demand for resource-based products. Meanwhile, domestic-oriented industries expanded 6.2% (January – August 2016: 3.4%) benefiting from vibrant consumption and construction activities.
Within the export-oriented industries, E&E output expanded 9.3% while sales surged 16.3% to RM169.5 billion (January – August 2016: 6.8%; 9%; RM145.8 billion). Growth emanated mainly from the expansion in output of printed circuit boards, semiconductor devices and electronic integrated circuits which strengthened further by 24.4%, 11.9% and 16.9% (January – August 2016: 11.9%; 5.9%; 15%), respectively. This is in line with the trend in global semiconductor sales which is expected to expand 11.5% in 2017, the highest level since 2010. On the contrary, the output of computers and peripheral equipment contracted 7.7% (January – August 2016: 3.1%) as a result of lower demand for notebooks and personal computers following rising preferences for smartphones and tablets. Meanwhile, consumer electronics grew at a moderate pace of 2.6% (January – August 2016: 5.3%) partly due to lower demand for in-car entertainment, portable media players and digital cameras.
Output of wood and wood products grew 7.3% (January – August 2016: 7.8%). The growth was primarily supported by output of sawmilling and planning of wood which expanded 14.7% (January – August 2016: 16.8%) in response to strong demand from Australia, Japan and the US. Meanwhile, production of wooden and cane furniture remained steady at 10.9% (January – August 2016: 10.9%), benefiting from greater adoption of technology and diversification of export markets.
Manufacture of food products rose 11.2%, largely attributed to a significant increase in refined palm oil at 26.1% (January – August 2016: 6.3%; -3.3%), following higher production of CPO. Meanwhile, output of other food products grew 7% supported by production of bread, cakes and other bakery (15.6%) as well as biscuits and cookies (12%) to meet the rising demand from households (January – August 2016: 11.1%; 19.2%; 19.1%).
For the year, the manufacturing sector is projected to expand further by 5.5% (2016: 4.4%) mainly attributed to an upturn in global semiconductor sales as well as higher demand for consumer products and construction materials.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1993, the Subject is a Private Limited company, focusing on manufacturer of precision galvanised wire, bright wire, hard drawn wire, bent round bar & brc wire. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 18,000,000. We are confident with the Subject's business and its future growth prospect. The Subject is well backed by a listed holding company which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive.

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. The Subject is a fairly large and rapidly growing company with over 120 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 70,453,952, 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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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

Based on the above condition, we recommend credit be granted to the Subject promptly.

FINANCIALs

PROFIT AND LOSS ACCOUNT

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

CHIN HERR INDUSTRIES (M) 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	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	92,138,814	82,381,512	76,162,385	110,274,057	123,179,150
Other Income	1,481,293	1,278,181	833,707	2,529,709	2,280,713
	----------------	----------------	----------------	----------------	----------------
Total Turnover	93,620,107	83,659,693	76,996,092	112,803,766	125,459,863
Costs of Goods Sold	(77,886,674)	(74,695,807)	(70,315,932)	(104,383,369)	(116,135,717)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	15,733,433	8,963,886	6,680,160	8,420,397	9,324,146
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	8,594,141	2,935,857	1,955,880	1,951,426	1,909,066
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	8,594,141	2,935,857	1,955,880	1,951,426	1,909,066
Taxation	(2,101,654)	(997,729)	(285,282)	(652,507)	(110,156)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	6,492,487	1,938,128	1,670,598	1,298,919	1,798,910
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	45,961,465	44,023,337	42,352,739	41,053,820	34,530,587
Prior year adjustment	-	-	-	-	4,724,323
	----------------	----------------	----------------	----------------	----------------
As restated	45,961,465	44,023,337	42,352,739	41,053,820	39,254,910
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	52,453,952	45,961,465	44,023,337	42,352,739	41,053,820
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	52,453,952	45,961,465	44,023,337	42,352,739	41,053,820
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	39,368	41,004	40,488	41,570	52,842
Bankers' acceptance	-	-	-	1,209	136,087
Revolving loans	43,408	76,297	-	-	-
Term loan / Borrowing	-	-	3,668	-	-
Trust receipts	-	-	121,329	266,214	240,423
Others	23,546	23,844	33,052	119,210	121,773
	----------------	----------------	----------------	----------------	----------------
	106,322	141,145	198,537	428,203	551,125
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	2,335,548	2,396,017	2,235,896	2,237,302	2,156,675
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	2,335,548	2,396,017	2,235,896	2,237,302	2,156,675
	=============	=============	=============	=============	=============

BALANCE SHEET

CHIN HERR INDUSTRIES (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	26,112,427	26,190,496	26,419,392	25,787,122	27,547,347
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	26,112,427	26,190,496	26,419,392	25,787,122	27,547,347
Stocks	31,367,479	25,340,001	32,481,247	37,154,556	52,601,151
Trade debtors	11,852,985	12,148,365	12,092,664	15,268,815	19,380,202
Other debtors, deposits & prepayments	4,299,520	7,208,067	201,973	6,277,684	5,323,815
Short term deposits	9,672,237	3,609,577	4,653,803	7,432,093	-
Amount due from related companies	-	334	315	-	50,204
Cash & bank balances	8,900,081	11,116,703	9,903,369	1,961,836	9,605,041
Others	855,000	-	-	-	1,691,634
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	66,947,302	59,423,047	59,333,371	68,094,984	88,652,047
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	93,059,729	85,613,543	85,752,763	93,882,106	116,199,394
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	630,241	565,438	411,632	468,549	913,682
Other creditors & accruals	2,345,564	1,561,202	1,465,128	1,539,611	2,492,811
Other borrowings	15,662,080	15,365,300	17,807,272	27,462,765	48,094,447
Bill & acceptances payable	-	-	-	-	1,582,000
Amounts owing to related companies	-	-	7,044	-	-
Provision for taxation	-	123,500	52,880	74,640	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	18,637,885	17,615,440	19,743,956	29,545,565	53,082,940
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	48,309,417	41,807,607	39,589,415	38,549,419	35,569,107
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	74,421,844	67,998,103	66,008,807	64,336,541	63,116,454
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	18,000,000	18,000,000	18,000,000	18,000,000	18,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	18,000,000	18,000,000	18,000,000	18,000,000	18,000,000
Retained profit/(loss) carried forward	52,453,952	45,961,465	44,023,337	42,352,739	41,053,820
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	52,453,952	45,961,465	44,023,337	42,352,739	41,053,820
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	70,453,952	63,961,465	62,023,337	60,352,739	59,053,820
Deferred taxation	3,967,892	4,036,638	3,985,470	3,983,802	4,062,634
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	3,967,892	4,036,638	3,985,470	3,983,802	4,062,634
	----------------	----------------	----------------	----------------	----------------
	74,421,844	67,998,103	66,008,807	64,336,541	63,116,454
	=============	=============	=============	=============	=============

FINANCIAL RATIO

CHIN HERR INDUSTRIES (M) SDN. BHD.

TYPES OF FUNDS
Cash	18,572,318	14,726,280	14,557,172	9,393,929	9,605,041
Net Liquid Funds	18,572,318	14,726,280	14,557,172	9,393,929	8,023,041
Net Liquid Assets	16,941,938	16,467,606	7,108,168	1,394,863	(17,032,044)
Net Current Assets/(Liabilities)	48,309,417	41,807,607	39,589,415	38,549,419	35,569,107
Net Tangible Assets	74,421,844	67,998,103	66,008,807	64,336,541	63,116,454
Net Monetary Assets	12,974,046	12,430,968	3,122,698	(2,588,939)	(21,094,678)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	8,700,463	3,077,002	2,154,417	2,379,629	2,460,191
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	11,036,011	5,473,019	4,390,313	4,616,931	4,616,866
BALANCE SHEET ITEMS
Total Borrowings	15,705,488	15,441,597	17,807,272	27,462,765	49,676,447
Total Liabilities	22,605,777	21,652,078	23,729,426	33,529,367	57,145,574
Total Assets	93,059,729	85,613,543	85,752,763	93,882,106	116,199,394
Net Assets	74,421,844	67,998,103	66,008,807	64,336,541	63,116,454
Net Assets Backing	70,453,952	63,961,465	62,023,337	60,352,739	59,053,820
Shareholders' Funds	70,453,952	63,961,465	62,023,337	60,352,739	59,053,820
Total Share Capital	18,000,000	18,000,000	18,000,000	18,000,000	18,000,000
Total Reserves	52,453,952	45,961,465	44,023,337	42,352,739	41,053,820
GROWTH RATIOS (Year on Year)
Revenue	11.84	8.17	(30.93)	(10.48)	(0.02)
Proft/(Loss) Before Tax	192.73	50.10	0.23	2.22	96.39
Proft/(Loss) After Tax	234.99	16.01	28.61	(27.79)	18.69
Total Assets	8.70	(0.16)	(8.66)	(19.21)	23.86
Total Liabilities	4.40	(8.75)	(29.23)	(41.33)	56.29
LIQUIDITY (Times)
Cash Ratio	1.00	0.84	0.74	0.32	0.18
Liquid Ratio	1.91	1.93	1.36	1.05	0.68
Current Ratio	3.59	3.37	3.01	2.30	1.67
WORKING CAPITAL CONTROL (Days)
Stock Ratio	124	112	156	123	156
Debtors Ratio	47	54	58	51	57
Creditors Ratio	3	3	2	2	3
SOLVENCY RATIOS (Times)
Gearing Ratio	0.22	0.24	0.29	0.46	0.84
Liabilities Ratio	0.32	0.34	0.38	0.56	0.97
Times Interest Earned Ratio	81.83	21.80	10.85	5.56	4.46
Assets Backing Ratio	4.13	3.78	3.67	3.57	3.51
PERFORMANCE RATIO (%)
Operating Profit Margin	9.33	3.56	2.57	1.77	1.55
Net Profit Margin	7.05	2.35	2.19	1.18	1.46
Return On Net Assets	11.69	4.53	3.26	3.70	3.90
Return On Capital Employed	11.68	4.52	3.26	3.70	3.90
Return On Shareholders' Funds/Equity	9.22	3.03	2.69	2.15	3.05
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 63.83
UK Pound	1	INR 86.28
Euro	1	INR 76.13
MYR	1	INR 15.88

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

INFORMATION DETAILS

Analysis Done by :	DIV
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.