MIRA INFORM REPORT

Report No. :	515879
Report Date :	22.06.2018

IDENTIFICATION DETAILS

Name :	TAN LAN HOLDINGS (M) SDN. BHD.
Formerly Known As :	TAN LAN HOLDINGS SDN BHD (26/05/2004) TAN LAN INDUSTRIES SDN BHD (28/03/2002)
Registered Office :	19-3, Jalan Tasik Selatan 3, Bandar Tasik Selatan, 57000 Kuala Lumpur, Wilayah Persekutuan,
Country :	Malaysia
Financials (as on) :	31.12.2016
Date of Incorporation :	17.06.1982
Com. Reg. No.:	86277-P
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Subject is principally engaged in the manufacturing of bicycle and motorcycle parts and accessories.
No. of Employees :	80 [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 (31.12.2017)	Current Rating (01.04.2018)
Malaysia	A2	A2

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

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays.

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

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

86277-P

GST NO.

:

002022703104

COMPANY NAME

:

TAN LAN HOLDINGS (M) SDN. BHD.

FORMER NAME

:

TAN LAN HOLDINGS SDN BHD (26/05/2004)
TAN LAN INDUSTRIES SDN BHD (28/03/2002)

INCORPORATION DATE

:

17/06/1982

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

19-3, JALAN TASIK SELATAN 3, BANDAR TASIK SELATAN, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 80, JALAN DEGONG, 31900 KAMPAR, PERAK, MALAYSIA.

TEL.NO.

:

05-4661560

FAX.NO.

:

05-4663450

WEB SITE

:

WWW.TANLAN.COM

CONTACT PERSON

:

TAN KEONG ENG ( DIRECTOR )

INDUSTRY CODE

:

29300

PRINCIPAL ACTIVITY

:

MANUFACTURING OF BICYCLE AND MOTORCYCLE PARTS AND ACCESSORIES

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARES 60,005 CASH AND 4,939,995 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 49,836,393 [2016]

NET WORTH

:

MYR 25,772,008 [2016]

STAFF STRENGTH

:

80 [2018]

BANKER (S)

:

CIMB BANK BHD MALAYAN BANKING BHD PUBLIC BANK BHD RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

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) manufacturing of bicycle and motorcycle parts and accessories.

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

Former Address(es)

Address	As At Date
209, JALAN ISKANDAR, 31900, PERAK, MALAYSIA	04/07/1999
ROOM A, 14A, JALAN UTARA, OFF JALAN IMBI, 55100, WILAYAH PERSEKUTUAN, MALAYSIA	07/02/2005

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
31/12/2011	MYR 5,000,000.00	MYR 5,000,000.00
09/05/2003	MYR 5,000,000.00	MYR 2,540,015.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. TAN KEONG ENG +	209, JALAN ISKANDAR, 31900 KAMPAR, PERAK, MALAYSIA.	520518-08-5125 4260256	4,976,378.00	99.53
MS. YONG LAI CHAN +	LOT 80, JALAN DEGONG, 31900 KAMPAR, PERAK, MALAYSIA.	540121-08-5176 8373641	23,622.00	0.47
			---------------	------
			5,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. TAN MEE YEOW
Address	:	LOT 80,JALAN DEGONG, 31900 KAMPAR, PERAK, MALAYSIA.
New IC No	:	800401-08-5750
Date of Birth	:	01/04/1980
Nationality	:	MALAYSIAN
Date of Appointment	:	01/02/2013

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	961364W	MCM CYCLES SDN. BHD.	Director	15/03/2012	1.00	50.00	MYR(3,196.00)	2016	-	28/05/2018
2	711737K	PROCYCLE SDN. BHD.	Director	04/10/2005	1.00	50.00	MYR(4,164.00)	2016	-	28/05/2018
3	86277P	TAN LAN HOLDINGS (M) SDN. BHD.	Director	01/02/2013	0.00	-	MYR440,706.00	2016	-	28/05/2018
4	521229D	TAN LAN MARKETING (M) SDN. BHD.	Director	21/07/2000	500,000.00	83.33	MYR(4,552.00)	2016	-	28/05/2018

DIRECTOR 2

Name Of Subject	:	MS. TAN MEE YEE
Address	:	SUITE 1.9, LEVEL 1, BLOCK C, PLAZA DAMANSARA, 45-17, JALAN MEDAN SETIA 1, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
New IC No	:	810507-08-5520
Date of Birth	:	07/05/1981
Nationality	:	MALAYSIAN
Date of Appointment	:	01/02/2013

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	961364W	MCM CYCLES SDN. BHD.	Director	01/10/2015	1.00	50.00	MYR(3,196.00)	2016	-	28/05/2018
2	86277P	TAN LAN HOLDINGS (M) SDN. BHD.	Director	01/02/2013	0.00	-	MYR440,706.00	2016	-	28/05/2018
3	521229D	TAN LAN MARKETING (M) SDN. BHD.	Director	14/01/2008	0.00	-	MYR(4,552.00)	2016	-	28/05/2018

DIRECTOR 3

Name Of Subject	:	MS. YONG LAI CHAN
Address	:	LOT 80, JALAN DEGONG, 31900 KAMPAR, PERAK, MALAYSIA.
IC / PP No	:	8373641
New IC No	:	540121-08-5176
Date of Birth	:	21/01/1954
Nationality	:	MALAYSIAN
Date of Appointment	:	27/04/1999

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	86277P	TAN LAN HOLDINGS (M) SDN. BHD.	Director	27/04/1999	23,622.00	0.47	MYR440,706.00	2016	-	28/05/2018
2	711740K	TAN LAN VENTURE CORPORATION SDN. BHD.	Director	04/10/2005	200,000.00	40.00	MYR13,775.00	2016	-	28/05/2018

DIRECTOR 4

Name Of Subject	:	MR. TAN KEONG ENG
Address	:	209, JALAN ISKANDAR, 31900 KAMPAR, PERAK, MALAYSIA.
IC / PP No	:	4260256
New IC No	:	520518-08-5125
Nationality	:	MALAYSIAN
Date of Appointment	:	17/06/1982

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	34534A	ASIA MACHINERY TRADING SDN. BHD.	Shareholder	-	50,000.00	7.69	MYR(83,853.00)	2016	-	28/05/2018
2	329859P	KAMPAR HOI FOONG CHAN SDN. BHD.	Shareholder	-	40,001.00	16.00	-	-	Disolved by Registrar	28/05/2018
3	711737K	PROCYCLE SDN. BHD.	Director	04/10/2005	1.00	50.00	MYR(4,164.00)	2016	-	28/05/2018
4	86277P	TAN LAN HOLDINGS (M) SDN. BHD.	Director	17/06/1982	4,976,378.00	99.53	MYR440,706.00	2016	-	28/05/2018
5	711740K	TAN LAN VENTURE CORPORATION SDN. BHD.	Director	04/10/2005	300,000.00	60.00	MYR13,775.00	2016	-	28/05/2018

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	961364W	MCM CYCLES SDN. BHD.	Director	15/03/2012	01/10/2015	-	-
2	961364W	MCM CYCLES SDN. BHD.	Shareholder	-	-	1.00	-

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
TAN KOON CHING	11A,TASEK AVENUE, TASEK INDUSTRIAL ESTATE, IPOH,PERAK', IPOH, PERAK, MALAYSIA	490815-08-5151	17/06/1982	27/04/1999
TAN KEONG HAI	209,JALAN ISKANDAR, KAMPAR, PERAK., KAMPAR, PERAK, MALAYSIA	501230-08-5058	17/06/1982	27/04/1999
TAN LAN	209,JALAN ISKANDAR, KAMPAR,PERAK., KAMPAR, PERAK, MALAYSIA	210212-71-5151	17/06/1982	27/04/1999
GOH CHENG SIUM	209,JALAN ISKANDAR, KAMPAR,PERAK., KAMPAR, PERAK, MALAYSIA	281103-08-5224	17/06/1982	27/04/1999

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	TAN KEONG ENG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	POH & CO.
Auditor' Address	:	19-1, JALAN 3/146, BANDAR TASIK SELATAN, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. LIM KOON LIE
	IC / PP No	:	7470806
	New IC No	:	641122-06-5356
	Address	:	27, JALAN INDAH 9, TAMAN CHERAS INDAH, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
	Date of Appointment	:	05/07/1999

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

2)

Name

:

MALAYAN BANKING BHD

3)

Name

:

PUBLIC BANK BHD

4)

Name

:

RHB BANK BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	03/05/1990	N/A	UNITED MALAYAN BANKING CORPORATION BERHAD	MYR 700,000.00	Satisfied
2	03/05/1990	N/A	UNITED MALAYAN BANKING CORPORATION BERHAD	MYR 700,000.00	Satisfied
3	23/12/1999	N/A	CIMB BANK BERHAD	MYR 1,800,000.00	Satisfied
4	23/12/1999	N/A	CIMB BANK BERHAD	MYR 1,800,000.00	Satisfied
5	12/07/2000	N/A	CIMB BANK BERHAD	MYR 500,000.00	Satisfied
6	12/07/2000	N/A	CIMB BANK BERHAD	MYR 500,000.00	Satisfied
7	22/03/2001	N/A	MALAYAN BANKING BERHAD	MYR 1,000,000.00	Satisfied
8	18/12/2004	OPEN CHARGE	MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD	MYR 189,000.00	Satisfied
9	06/07/2005	OPEN CHARGE	MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD	MYR 189,000.00	Satisfied
10	23/11/2005	OPEN CHARGE	MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD	MYR 297,560.40	Satisfied
11	31/12/2005	N/A	CIMB BANK BERHAD	MYR 300,000.00	Satisfied
12	31/12/2005	N/A	CIMB BANK BERHAD	MYR 300,000.00	Satisfied
13	31/05/2006	N/A	CIMB BANK BERHAD	MYR 500,000.00	Satisfied
14	31/05/2006	N/A	CIMB BANK BERHAD	MYR 500,000.00	Satisfied
15	14/08/2006	N/A	MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD	MYR 1,664,484.48	Satisfied
16	05/11/2007	FACILITIES AGREEMENT & OPEN CHARGE	PUBLIC BANK BERHAD	-	Unsatisfied
17	05/11/2007	FACILITIES AGREEMENT & OPEN CHARGE	PUBLIC BANK BERHAD	-	Unsatisfied
18	05/11/2007	FACILITIES AGREEMENT & OPEN CHARGE	PUBLIC BANK BERHAD	-	Unsatisfied
19	26/03/2008	FORM 16A AND LAND CHARGE ANNEXURE	HSBC BANK MALAYSIA BERHAD AS SECURITY AGENT FOR HSBC AMANAH MALAYSIA BERHAD AND ITSELF	-	Satisfied
20	09/01/2012	FLOATING CHARGE	MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD	MYR 500,000.00	Satisfied
21	18/05/2012	LOAN AGREEMENT AND MEMORANDUM OF DEPOSIT AND LETTER OF SET-OFF	AMBANK (M) BERHAD	MYR 500,000.00	Unsatisfied
22	26/07/2012	FIRST LEGAL CHARGE	MALAYAN BANKING BERHAD	-	Satisfied
23	26/07/2012	SECOND LEGAL CHARGE	MALAYAN BANKING BERHAD	-	Satisfied
24	06/12/2012	DEED OF ASSIGNMENT	RHB BANK BERHAD	-	Unsatisfied
25	27/12/2012	FLOATING CHARGE	MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD	MYR 350,000.00	Unsatisfied
26	26/06/2013	FORM 16A AND LAND CHARGE ANNEXURE	RHB BANK BERHAD	-	Unsatisfied
27	20/04/2015	LEGAL CHARGE	RHB BANK BERHAD	-	Unsatisfied

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

* A check has been conducted in our databank against 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.

CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A DEFENDANT

* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No criminal record was found in our databank.

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A PLAINTIFF

* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No plaintiff record was found in our databank.

CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A PLAINTIFF

* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No plaintiff record 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 listed by our customers and debtors that have been placed or assigned to us for collection.

No defaulter record & debt collection case was found in our defaulters' databank. 

RED ALERT FROM CENTRAL BANK OF MALAYSIA

* A check has been conducted with the Central Bank of Malaysia whether the Subject has carried out any illegal or suspicious financial activities.

The Subject has not been carried out any illegal money services business without licence under the Money Services Business Act 2011.

The Subject has not been placed under the Financial Consumer Alert list by the Central Bank of Malaysia.

INVESTOR ALERT BY SECURITIES COMMISSION MALAYSIA & BURSA MALAYSIA

* A check has been conducted with the Securities Commission Malaysia whether the Subject has involved in any unlicensed capital market activities under the Securities Laws and Bursa Malaysia should the Subject is listed as Practice Note (PN) 17 or Guidance Note (GN) 3.

The Subject has not been carried out any unlicensed capital market activities.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES
Import Countries	:	EUROPE,ASIA

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 EUROPE MIDDLE EAST
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT) LETTER OF CREDIT (LC)

OPERATIONS

Products manufactured

:

BICYCLE AND MOTORCYCLE PARTS AND ACCESSORIES

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

Ownership of premises

:

LEASED/RENTED

Total Number of Employees:
YEAR	2018	2017	2016	2015	2014
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	80	80	70	70	70

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of bicycle and motorcycle parts and accessories. 

The Subject's products are includes motorcycle and bicycle steel wheel rim, high carbon steel spoke & free cutting steel nipple.

Using advanced equipment, Subject produces a range of wheel rims. They are made from steel rolls imported from Japan, and are precision- manufactured to ensure that the highest levels of quality are maintained. 

The manufacturing of motorcycle wheel rims is a meticulous process that is closely monitored to yield the highest quality. This level of consistency is maintained at all times, whether for a large production run or a medium-sized one.

The Subject is one of the leading Manufacturer of Motorcycle's parts , bicycle's parts, motorcycle's wheel rims. 

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA) database, but no recent development was noted during the time of inspection.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	05-4661560
Match	:	N/A
Address Provided by Client	:	LOT 80 JALAN DEGONG 31900 KAMPUR PERAK DARUL RIDZUAN MALAYSIA
Current Address	:	LOT 80, JALAN DEGONG, 31900 KAMPAR, PERAK, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

On 22nd June 2018, we have contacted one of the staff from the Subject and she provided some information.

The address is as per stated in the report.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2012 - 2016	]
Profit/(Loss) Before Tax	:	Increased	[	2012 - 2016	]
Return on Shareholder Funds	:	Unfavourable	[	1.71%	]
Return on Net Assets	:	Unfavourable	[	4.24%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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	[	83 Days	]
Debtor Ratio	:	Unfavourable	[	129 Days	]
Creditors Ratio	:	Unfavourable	[	68 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 unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Favourable	[	1.06 Times	]
Current Ratio	:	Unfavourable	[	1.33 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	:	Unfavourable	[	1.68 Times	]
Gearing Ratio	:	Favourable	[	0.45 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 lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the Subject's losses. 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. 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 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 : LIMITED

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	5.3	5.4
Domestic Demand ( % )	6.4	6.2	4.3	6.3	6.4
Private Expenditure ( % )	7.9	6.9	7.8	7.4	7.3
Consumption ( % )	6.5	6.1	5.1	6.9	6.8
Investment ( % )	12.0	8.1	10.0	9.3	8.9
Public Expenditure ( % )	2.3	4.2	3.3	5.3	5.5
Consumption ( % )	2.1	4.3	2.0	2.7	1.3
Investment ( % )	2.6	(1.0)	1.1	3.4	3.8
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 )	428	441	451	450	423
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	6.73	-
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	47,871	-
Registration of New Companies ( % )	6.1	(7.2)	(5.3)	10.7	-
Liquidation of Companies ( No. )	33,226	34,667	36,778	38,632	-
Liquidation of Companies ( % )	0.5	4.3	6.1	5.0	-
Registration of New Business ( No. )	332,723	364,230	376,720	484,029	-
Registration of New Business ( % )	1.0	9.0	3.0	29.0	-
Business Dissolved ( No. )	26,966	-	-	-	-
Business Dissolved ( % )	48.5	-	-	-	-
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	19,588	18,227	-
Individual Bankruptcy ( % )	1.7	(17.4)	6.1	(7.0)	-

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	(12.7)	11.8	-
Rubber	(10.4)	(11.0)	(6.3)	10.8	-
Forestry & Logging	(4.2)	(7.2)	(3.0)	(15.0)	-
Fishing	2.7	2.1	2.2	0.2	-
Other Agriculture	6.2	6.0	5.1	2.4	-
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	4.3	6.5	-
Electrical & Electronics	11.8	9.2	6.8	9.3	-
Rubber Products	(1.3)	5.1	5.0	6.9	-
Wood Products	7.8	7.0	7.8	7.3	-
Textiles & Apparel	10.8	7.5	7.5	7.4	-
Domestic-oriented Industries	7.7	4.7	3.4	6.2	-
Food, Beverages & Tobacco	6.1	8.9	7.5	11.0	-
Chemical & Chemical Products	1.4	3.5	4.5	3.5	-
Plastic Products	2.7	3.9	5.1	-	-
Iron & Steel	2.8	1.6	2.2	-	-
Fabricated Metal Products	2.8	4.6	5.6	4.6	-
Non-metallic Mineral	6.9	6.8	6.3	5.4	-
Transport Equipment	14.4	5.2	(3.1)	4.7	-
Paper & Paper Products	4.7	3.2	5.4	5.8	-
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
29300 : Manufacture of parts and accessories for motor vehicles
INDUSTRY :	MOTOR VECHICLE
The year 2018 is shaping up to be an exciting one for the car industry as global manufacturers rev up their operations in Malaysia to capture bigger slices of a growing market. The automotive industry executives are expecting further consolidation in the industry. The Malaysian Automotive Association is projecting new car sales in 2018 to grow to 619,000. Malaysia is the third largest automotive market in the region, behind leaders Indonesia and Thailand.
The total industry volume (TIV) for the automotive industry is expected to grow 2.3% to 590,000 units in 2018 from 576,635 last year, in line with the nation’s higher projected economic growth of five to 5.5%. According to Malaysian Automotive Association (MAA), the growth was supported by global growth, which is expected to increase from 3.6% in 2017 to 3.7% in 2018 based on the International Monetary Fund’s forecast. However, the continuation of strict lending guidelines for hire purchase loans by financial institutions will remain one of the biggest challenges for the industry moving forward.
Passenger vehicles TIV is expected to grow 2.3% from 514,679 units last year to 526,500 in 2018, while commercial vehicles would see a rise of 2.5% to 63,500 this year from 61,956 units in 2017. The local automotive market remained subdued in 2017 despite the economy’s recovery and aggressive promotional campaigns undertaken by MAA members. TIV contracted for the second consecutive year, down 0.6% from 580,085 units in 2016, reflecting a down-cycle of the market which started in 2016.
Sales remained flat in 2017, contributing to inflationary pressures affecting disposable income resulting in cautious consumer spending. The ringgit’s improved performance would help industry players obtain higher margins, especially for transactions in the US dollar and Japanese yen.
Steady economic growth is expected to sustain strong demand for new cars across the region in 2018.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1982, the Subject is a Private Limited company, focusing on manufacturing of bicycle and motorcycle parts and accessories. 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. A paid up capital of MYR 5,000,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors. 

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 80 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. 

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 25,772,008, 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)

TAN LAN HOLDINGS (M) SDN. BHD.

Financial Year End	2016-12-31	2015-12-31	2014-12-31	2013-12-31	2012-12-31
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	49,836,393	45,760,128	42,389,609	45,580,819	29,743,149
	----------------	----------------	----------------	----------------	----------------
Total Turnover	49,836,393	45,760,128	42,389,609	45,580,819	29,743,149
Costs of Goods Sold	(45,483,456)	(42,521,667)	(38,362,814)	(39,686,489)	(25,812,625)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	4,352,937	3,238,461	4,026,795	5,894,330	3,930,524
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	440,706	(1,788,307)	1,019,337	1,382,901	960,353
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	440,706	(1,788,307)	1,019,337	1,382,901	960,353
Taxation	-	(144)	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	440,706	(1,788,451)	1,019,337	1,382,901	960,353
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,589,678	4,378,129	3,358,792	1,975,891	1,015,538
	----------------	----------------	----------------	----------------	----------------
As restated	2,589,678	4,378,129	3,358,792	1,975,891	1,015,538
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,030,384	2,589,678	4,378,129	3,358,792	1,975,891
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,030,384	2,589,678	4,378,129	3,358,792	1,975,891
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	318,363	257,710	316,240	309,366	282,709
Hire purchase	17,600	27,124	39,565	54,076	25,597
Term loan / Borrowing	43,827	78,638	72,485	109,123	82,427
Trust receipts	272,235	251,443	106,344	90,006	121,905
Others	-	-	-	25,347	45,285
	----------------	----------------	----------------	----------------	----------------
	652,025	614,915	534,634	587,918	557,923
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	789,078	773,423	763,844	786,553	734,553
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	789,078	773,423	763,844	786,553	734,553
	=============	=============	=============	=============	=============

BALANCE SHEET

TAN LAN HOLDINGS (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	18,895,992	19,181,920	19,864,226	20,423,329	20,436,907
	----------------	----------------	----------------	----------------	----------------
INTANGIBLE ASSETS
Trademarks	6,422	7,136	7,136	7,136	7,136
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	6,422	7,136	7,136	7,136	7,136
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	18,902,414	19,189,056	19,871,362	20,430,465	20,444,043
CURRENT ASSETS
Stocks	6,262,473	5,433,910	4,943,031	6,861,831	7,166,886
Contract work-in-progress	5,012,798	4,617,590	4,118,800	-	-
Trade debtors	17,678,631	11,510,637	10,277,795	11,565,583	10,229,472
Other debtors, deposits & prepayments	839,731	766,348	3,621,100	2,289,975	1,468,667
Short term deposits	143,636	139,511	135,386	125,000	125,000
Amount due from director	262,240	504,104	-	-	-
Cash & bank balances	159,170	380,822	347,720	892,083	482,416
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	30,358,679	23,352,922	23,443,832	21,734,472	19,472,441
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	49,261,093	42,541,978	43,315,194	42,164,937	39,916,484
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	8,456,274	6,769,517	5,671,752	5,191,520	6,232,138
Other creditors & accruals	3,277,096	212,712	214,712	794,651	697,895
Hire purchase & lease creditors	187,195	282,095	269,865	268,031	208,110
Bank overdraft	3,719,972	3,819,782	3,444,325	3,647,562	2,740,639
Short term borrowings/Term loans	173,086	229,078	176,905	170,034	116,963
Other borrowings	364,499	-	-	-	-
Bill & acceptances payable	6,457,863	4,535,000	4,398,265	3,377,109	2,501,818
Amounts owing to director	144,662	410,926	380,106	516,496	274,686
Provision for taxation	55,645	55,645	55,501	55,501	55,396
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	22,836,292	16,314,755	14,611,431	14,020,904	12,827,645
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	7,522,387	7,038,167	8,832,401	7,713,568	6,644,796
	----------------	----------------	----------------	----------------	----------------
LONG TERM LIABILITIES
Long term loans	555,464	735,461	1,135,902	1,320,362	1,506,744
Hire purchase creditors	97,329	160,460	448,108	723,255	864,580
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	652,793	895,921	1,584,010	2,043,617	2,371,324
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	25,772,008	25,331,302	27,119,753	26,100,416	24,717,515
	=============	=============	=============	=============	=============
FINANCED BY:
SHARE CAPITAL
Ordinary share capital	5,000,000	5,000,000	5,000,000	5,000,000	5,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	5,000,000	5,000,000	5,000,000	5,000,000	5,000,000
RESERVES
Share premium	15,810,015	15,810,015	15,810,015	15,810,015	15,810,015
Revaluation reserve	1,931,609	1,931,609	1,931,609	1,931,609	1,931,609
Retained profit/(loss) carried forward	3,030,384	2,589,678	4,378,129	3,358,792	1,975,891
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	20,772,008	20,331,302	22,119,753	21,100,416	19,717,515
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	25,772,008	25,331,302	27,119,753	26,100,416	24,717,515
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TAN LAN HOLDINGS (M) SDN. BHD.

TYPES OF FUNDS
Cash	302,806	520,333	483,106	1,017,083	607,416
Net Liquid Funds	(9,875,029)	(7,834,449)	(7,359,484)	(6,007,588)	(4,635,041)
Net Liquid Assets	1,259,914	1,604,257	3,889,370	851,737	(522,090)
Net Current Assets/(Liabilities)	7,522,387	7,038,167	8,832,401	7,713,568	6,644,796
Net Tangible Assets	25,765,586	25,324,166	27,112,617	26,093,280	24,710,379
Net Monetary Assets	607,121	708,336	2,305,360	(1,191,880)	(2,893,414)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	1,092,731	(1,173,392)	1,553,971	1,970,819	1,518,276
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	1,881,809	(399,969)	2,317,815	2,757,372	2,252,829
BALANCE SHEET ITEMS
Total Borrowings	11,555,408	9,761,876	9,873,370	9,506,353	7,938,854
Total Liabilities	23,489,085	17,210,676	16,195,441	16,064,521	15,198,969
Total Assets	49,261,093	42,541,978	43,315,194	42,164,937	39,916,484
Net Assets	25,772,008	25,331,302	27,119,753	26,100,416	24,717,515
Net Assets Backing	25,772,008	25,331,302	27,119,753	26,100,416	24,717,515
Shareholders' Funds	25,772,008	25,331,302	27,119,753	26,100,416	24,717,515
Total Share Capital	5,000,000	5,000,000	5,000,000	5,000,000	5,000,000
Total Reserves	20,772,008	20,331,302	22,119,753	21,100,416	19,717,515
GROWTH RATIOS (Year on Year) (%)
Revenue	8.91	7.95	(7.00)	53.25	45.85
Proft/(Loss) Before Tax	124.64	(275.44)	(26.29)	44.00	45.38
Proft/(Loss) After Tax	124.64	(275.45)	(26.29)	44.00	45.38
Total Assets	15.79	(1.79)	2.73	5.63	10.65
Total Liabilities	36.48	6.27	0.81	5.69	23.39
LIQUIDITY (Times)
Cash Ratio	0.01	0.03	0.03	0.07	0.05
Liquid Ratio	1.06	1.10	1.27	1.06	0.96
Current Ratio	1.33	1.43	1.60	1.55	1.52
WORKING CAPITAL CONTROL (Days)
Stock Ratio	83	80	78	55	88
Debtors Ratio	129	92	88	93	126
Creditors Ratio	68	58	54	48	88
SOLVENCY RATIOS (Times)
Gearing Ratio	0.45	0.39	0.36	0.36	0.32
Liabilities Ratio	0.91	0.68	0.60	0.62	0.61
Times Interest Earned Ratio	1.68	(1.91)	2.91	3.35	2.72
Assets Backing Ratio	5.15	5.06	5.42	5.22	4.94
PERFORMANCE RATIO (%)
Operating Profit Margin	0.88	(3.91)	2.40	3.03	3.23
Net Profit Margin	0.88	(3.91)	2.40	3.03	3.23
Return On Net Assets	4.24	(4.63)	5.73	7.55	6.14
Return On Capital Employed	3.60	(3.87)	4.79	6.15	5.05
Return On Shareholders' Funds/Equity	1.71	(7.06)	3.76	5.30	3.89
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 68.20
UK Pound	1	INR 89.58
Euro	1	INR 78.79
MYR	1	INR 16.94

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	POJ

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.