MIRA INFORM REPORT

Report No. :	516056
Report Date :	23.06.2018

IDENTIFICATION DETAILS

Name :	PROMACOL STEEL INDUSTRY SDN. BHD.
Registered Office :	Unit 621, 6th Floor, Block A, Kelana Centre Point, 3, Jalan Ss7/19, Kelana Jaya, 47301 Petaling Jaya, Selangor
Country :	Malaysia
Financials (as on) :	31.12.2016
Date of Incorporation :	26.10.2004
Com. Reg. No.:	670636-X
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is principally engaged in the manufacturing and trading of stainless steel products.
No. of Employees :	Not Available

RATING & COMMENTS

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

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Slow 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.	:	670636-X
GST NO.	:	000851787776
COMPANY NAME	:	PROMACOL STEEL INDUSTRY SDN. BHD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	26/10/2004
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED (LIMITED BY SHARE)
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	UNIT 621, 6TH FLOOR, BLOCK A, KELANA CENTRE POINT, 3, JALAN SS7/19, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.
BUSINESS ADDRESS	:	7-2, 2ND FLOOR, JALAN KASUARINA 7/KS 7, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.
TEL.NO.	:	03-33252889
FAX.NO.	:	03-33252890
CONTACT PERSON	:	LOW HOCK LAI ( DIRECTOR )
INDUSTRY CODE	:	24109
PRINCIPAL ACTIVITY	:	MANUFACTURING AND TRADING OF STAINLESS STEEL PRODUCTS
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 5,000,000 CASH OF MYR 1.00 EACH.
SALES	:	MYR 72,889,695 [2016]
NET WORTH	:	MYR 7,990,920 [2016]
STAFF STRENGTH	:	N/A
BANKER (S)		RHB BANK BHD AMBANK (M) BHD UNITED OVERSEAS BANK (MALAYSIA) BHD
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	POOR
PAYMENT	:	SLOW BUT CORRECT
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	MODERATE
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 and trading of stainless steel products.

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

Former Address(es)

Address	As At Date
29-M, JALAN TEMOH, OFF JALAN GOH HOCK HUAT, 41400, SELANGOR, MALAYSIA	14/01/2008
10A, LEBUH GOPENG, 41400, SELANGOR, MALAYSIA	14/04/2005
NO. 1, JALAN PANDAMARAN, KAWASAN PERUSAHAAN PENDAMARAN, 42000, SELANGOR, MALAYSIA	15/02/2013
58-02-1, LORONG BATU NILAM 4A, BANDAR BUKIT TINGGI, 41200, SELANGOR, MALAYSIA	20/01/2015
45B, JALAN ANGGERIK VANILLA N/31N, SECTION 31, KOTA KEMUNING, 40460, SELANGOR, MALAYSIA	24/06/2013
28-1, LORONG BATU NILAM 3A, BANDAR BUKIT TINGGI, 41200, SELANGOR, MALAYSIA	31/05/2007

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
13/08/2007	MYR 5,000,000.00	MYR 5,000,000.00
12/06/2007	MYR 2,000,000.00	MYR 1,500,000.00
13/09/2006	MYR 100,000.00	MYR 100,000.00
26/10/2004	MYR 100,000.00	MYR 2.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. LOW HOCK LAI +	55, JALAN SERUNAI 4, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.	800620-10-5651	3,250,000.00	65.00
MR. WONG TAI KHENG +	33, JALAN TEKOMA KS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.	800727-10-5627	1,750,000.00	35.00
			---------------	------
			5,000,000.00	100.00
			============	=====

+ Also Director

Former Shareholder(s) :

Name	Country	IC/PP/Loc No	Shareholding	Last Updated
CHIA HONG WOO	MALAYSIA	610128-10-6049	N/A	N/A
HOU, CHING-PIN	MALAYSIA	302630553	2,000,000.00	N/A
LEE AI LAN	MALAYSIA	620701-10-5006	N/A	N/A
LOW HOCK WEI	MALAYSIA	760709-10-5021	1,500,000.00	N/A

DIRECTORS

DIRECTOR 1

Name of Subject	:	MR. KHOO KENN NEE
Address	:	6, SOLOK RENGAS SATU, TAMAN SELATAN, 41200 KLANG, SELANGOR, MALAYSIA.
Other Address(es)	:	BLOCK B-9-12, VISTA PERDANA, JALAN KAMPUNG GAJAH, 12200 BUTTERWORTH, PULAU PINANG, MALAYSIA.
New IC No	:	801225-10-5541
Date of Birth	:	25/12/1980
Nationality	:	MALAYSIAN
Date of Appointment	:	27/07/2012

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	1062800A	AUGMENTOR INNOVATIONS (M) SDN. BHD.	Director	19/09/2013	15.00	15.00	-	-	Disolved by Registrar	28/05/2018
2	985351P	PACIFIC FRASE SDN. BHD.	Director	04/04/2012	0.00	-	MYR(234,640.00)	2015	-	28/05/2018
3	670636X	PROMACOL STEEL INDUSTRY SDN. BHD.	Director	27/07/2012	0.00	-	MYR(43,244.00)	2016	-	28/05/2018
4	643160H	PROPENCOL STEEL SDN. BHD.	Director	15/06/2005	400,000.00	80.00	MYR3,378.00	2016	Winding-Up by Member Voluntary	28/05/2018
5	952752D	PROPENCOL TOURS SDN. BHD.	Director	14/07/2011	470,000.00	50.00	-	2016	-	28/05/2018
6	749774W	YANKONG STAINLESS (NORTHERN) SDN. BHD.	Director	01/11/2007	290,020.00	20.00	MYR260,467.00	2016	-	28/05/2018

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	721152K	BIMA STAR SDN. BHD.	Director	21/05/2008	15/12/2009	-	-
2	721152K	BIMA STAR SDN. BHD.	Shareholder	-	-	-	-
3	755470A	PLENIFLEX SDN. BHD.	Director	28/09/2007	18/09/2012	-	-
4	1055478T	PROMACOL STEEL INDUSTRIES (NORTHERN) SDN. BHD.	Director	23/07/2013	09/12/2014	-	-

DIRECTOR 2

Name of Subject	:	MR. WONG TAI KHENG
Address	:	33, JALAN TEKOMA KS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.
New IC No	:	800727-10-5627
Date of Birth	:	27/07/1980
Nationality	:	MALAYSIAN
Date of Appointment	:	27/07/2012

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	721152K	BIMA STAR SDN. BHD.	Director	21/05/2008	440,000.00	40.00	MYR(94,938.00)	2016	-	28/05/2018
2	1205152H	DUROGARD (M) SDN. BHD.	Director	14/10/2016	30.00	25.00	-	2016	In the process of striking off	28/05/2018
3	755470A	PLENIFLEX SDN. BHD.	Director	28/09/2007	30,000.00	30.00	MYR(9,690.00)	2016	-	28/05/2018
4	1055478T	PROMACOL STEEL INDUSTRIES (NORTHERN) SDN. BHD.	Director	09/12/2014	75,000.00	30.00	MYR43,026.00	2016	-	28/05/2018
5	670636X	PROMACOL STEEL INDUSTRY SDN. BHD.	Director	27/07/2012	1,750,000.00	35.00	MYR(43,244.00)	2016	-	28/05/2018
6	1141711P	ROYWO NETWORK SDN. BHD.	Director	25/04/2016	1.00	50.00	MYR(8,184.00)	2016	-	28/05/2018
7	929835T	STP INTERNATIONAL SDN. BHD.	Director	26/10/2017	40,000.00	40.00	MYR(311,774.00)	2016	-	28/05/2018

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	917311P	PROSWON SDN. BHD.	Director	07/10/2010	15/07/2015	-	-
2	917311P	PROSWON SDN. BHD.	Shareholder	-	-	1.00	-
3	749774W	YANKONG STAINLESS (NORTHERN) SDN. BHD.	Director	01/11/2007	28/12/2011	-	-

DIRECTOR 3

Name of Subject	:	MR. LOW HOCK LAI
Address	:	55, JALAN SERUNAI 4, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.
Other Address(es)	:	72,JLN SELAMPIT 27, TMN KLANG JAYA, SELANGOR, MALAYSIA.
New IC No	:	800620-10-5651
Nationality	:	MALAYSIAN
Date of Appointment	:	21/03/2006

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	721152K	BIMA STAR SDN. BHD.	Director	15/12/2009	660,000.00	60.00	MYR(94,938.00)	2016	-	28/05/2018
2	824029M	EQUATORIAL ACRES SDN. BHD.	Director	10/07/2008	25,000.00	50.00	MYR8,552.00	2016	-	28/05/2018
3	690978H	FEDERLON SDN. BHD.	Director	13/06/2005	90,000.00	30.00	MYR238,591.00	2012	-	28/05/2018
4	839058D	FI-ZEN STEEL SERVICES SDN. BHD.	Director	19/11/2008	1.00	20.00	-	2016	-	28/05/2018
5	1018043T	JEFRIZAL METAL TRADING SDN. BHD.	Director	10/04/2013	0.00	-	-	-	-	28/05/2018
6	916994V	KM NEXUS GROUP SDN. BHD.	Director	02/10/2013	49,500.00	16.50	MYR(114,709.00)	2014	-	28/05/2018
7	755470A	PLENIFLEX SDN. BHD.	Director	10/10/2013	40,000.00	40.00	MYR(9,690.00)	2016	-	28/05/2018
8	1055478T	PROMACOL STEEL INDUSTRIES (NORTHERN) SDN. BHD.	Director	23/07/2013	100,000.00	40.00	MYR43,026.00	2016	-	28/05/2018
9	670636X	PROMACOL STEEL INDUSTRY SDN. BHD.	Director	21/03/2006	3,250,000.00	65.00	MYR(43,244.00)	2016	-	28/05/2018
10	929835T	STP INTERNATIONAL SDN. BHD.	Director	08/03/2011	60,000.00	60.00	MYR(311,774.00)	2016	-	28/05/2018
11	785069H	SUNGREEN WEALTH SDN. BHD.	Shareholder	-	7,500.00	7.50	MYR(226,376.00)	2016	-	28/05/2018
12	62976V	TIAN HOCK CORPORATION SDN. BHD.	Director	08/04/2009	127,500.00	8.50	MYR360,645.00	2016	-	28/05/2018
13	735327U	YANKONG STAINLESS SDN. BHD.	Director	26/05/2006	4,500,000.00	50.00	MYR5,611,443.00	2016	-	28/05/2018

INTEREST IN BUSINESS

No	Local No	Business	Designation	App Date	Shareholding (%)	Status	As At
1	SA0127946A	MACHOU STEEL	PARTNERSHIP	26/06/2009	50.00	-	28/05/2018

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	779638A	GOLDEN EAGLE STEEL SDN. BHD.	Director	04/07/2007	09/04/2009	-	-
2	779638A	GOLDEN EAGLE STEEL SDN. BHD.	Shareholder	-	-	400000.00	-
3	186190T	SAM EUREKA CORPORATION SDN. BHD.	Shareholder	-	-	150000.00	-
4	736458K	STAR WOOD INDUSTRIES SDN. BHD.	Director	02/05/2012	16/06/2015	-	-
5	736458K	STAR WOOD INDUSTRIES SDN. BHD.	Shareholder	-	-	125000.00	-
6	785069H	SUNGREEN WEALTH SDN. BHD.	Director	20/04/2009	24/06/2009	-	-
7	528128U	SYTM PRODUCT SDN. BHD.	Director	01/08/2008	17/04/2014	-	-
8	528128U	SYTM PRODUCT SDN. BHD.	Shareholder	-	-	5000.00	-
9	749774W	YANKONG STAINLESS (NORTHERN) SDN. BHD.	Director	01/11/2007	08/04/2009	-	-

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
LOW HOCK WEI	55, JALAN SERUNAI 14, TAMAN KLANG JAYA, KLANG, SELANGOR, MALAYSIA	760709-10-5021	21/03/2006	24/08/2013
LEE AI LAN	825 JALAN RAMBAI PANDAMARAN, PELABUHAN KLANG, PELABUHAN KLANG, SELANGOR, MALAYSIA	620701-10-5006	26/10/2004	21/03/2006
CHIA HONG WOO		610128106049	26/10/2004	21/03/2006
HOU, CHING-PIN	NO.7, LORONG REBUNG 1/KS6, BANDAR BOTANIC, KLANG, SELANGOR, MALAYSIA	302630553	17/04/2007	11/07/2014

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	LOW HOCK LAI
	Position	:	DIRECTOR

AUDITOR

Auditor	:	LEE & ASSOCIATES
Auditor' Address	:	55C, JALAN PJS 1/48, PETALING UTAMA, BATU 7, JALAN KELANG LAMA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. CYNTHIA GLORIA LOUIS
	IC / PP No	:	A0003941
	New IC No	:	650127-07-5320
	Address	:	67, JALAN SS12/2C, SUBANG JAYA, PETALING JAYA, SELANGOR, MALAYSIA.
	Date of Appointment	:	21/01/2015

2)	Company Secretary	:	MS. CHEW MEI LING
	New IC No	:	700705-10-5484
	Address	:	7, LORONG JELAI, OFF JALAN KIM CHUAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.
	Date of Appointment	:	21/01/2015

3)	Company Secretary	:	MS. TAN AI PENG
	IC / PP No	:	A1516441
	New IC No	:	700125-01-5212
	Address	:	51, JALAN DAMAI PERDANA 1/4D, BANDAR DAMAI PERDANA, CHERAS, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
	Date of Appointment	:	11/04/2018

BANKING

Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

2)

Name

:

AMBANK (M) BHD

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	19/02/2009	DEBENTURE AND LETTER OF SUBORDINATION	RHB BANK BERHAD	-	Satisfied
2	08/08/2012	DEPOSIT OF FIXED DEPOSIT RECEIPT AND LETTER OF SET-OFF	AMBANK (M) BERHAD	MYR 2,500,000.00	Unsatisfied
3	23/12/2013	MEMORANDUM OF LEGAL CHARGE	UNITED OVERSEAS BANK (MALAYSIA) BERHAD.	-	Unsatisfied
4	29/01/2016	MEMORANDUM OF DEPOSIT AND LETTER OF SET OFF	AMBANK (M) BERHAD	MYR 2,500,000.00	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

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	:	CHEQUES TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	CONSTRUCTION INDUSTRY,DEALERS

OPERATIONS

Products manufactured

:

STAINLESS STEEL PRODUCTS

Ownership of premises

:

LEASED/RENTED

Factory / Premises

:

LOT 14853 & 14854, JALAN UDANG GALAH, KAMPUNG TELOK GONG, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	15

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing and trading of stainless steel products. 

The Subject's stainless steel products such as bars, plates, coils and many more.

The products are used in the construction industry.

The Subject also provides cutting services for the products.

The Subject sells its products according to its customers' orders. 

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	:	03-33252889
Match	:	N/A
Address Provided by Client	:	NO. 07 (2ND FLOOR), JALAN KASU ARINA 7/KS7 BANDAR BOTANIC 41200 KLANG SELANGOR DARUL EHSAN MALAYSIA
Current Address	:	7-2, 2ND FLOOR, JALAN KASUARINA 7/KS 7, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

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

The address is as per stated in the report.

The Subject refused to disclose its number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2012 - 2016	]
Profit/(Loss) Before Tax	:	Decreased	[	2012 - 2016	]
Return on Shareholder Funds	:	Unfavourable	[	(0.54%)	]
Return on Net Assets	:	Acceptable	[	13.59%	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	27 Days	]
Debtor Ratio	:	Favourable	[	53 Days	]
Creditors Ratio	:	Favourable	[	23 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.02 Times	]
Current Ratio	:	Unfavourable	[	1.25 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	[	1.28 Times	]
Gearing Ratio	:	Unfavourable	[	2.26 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 :
The Subject's performance deteriorated over the years with lower 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. 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	5.3	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

INDUSTRY ANALYSIS

MSIC CODE
24109 : Manufacture of other basic iron and steel products n.e.c.
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 2004, the Subject is a Private Limited company, focusing on manufacturing and trading of stainless steel products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Presently, the issued and paid up capital of the Subject stands at MYR 5,000,000. The Subject does not have strong shareholders' backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

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. 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.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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. 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 7,990,920, 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.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

FINANCIALS

PROMACOL STEEL INDUSTRY SDN. BHD.

PROFIT AND LOSS ACCOUNT

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

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	72,889,695	80,647,690	96,589,306	66,684,245	70,272,737
Other Income	-	-	-	-	241,650
	----------------	----------------	----------------	----------------	----------------
Total Turnover	72,889,695	80,647,690	96,589,306	66,684,245	70,514,387
Costs of Goods Sold	(63,283,436)	(71,342,293)	(87,002,636)	(63,624,854)	(68,451,192)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	9,606,259	9,305,397	9,586,670	3,059,391	2,063,195
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	240,727	611,776	1,010,095	156,422	336,188
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	240,727	611,776	1,010,095	156,422	336,188
Taxation	(283,971)	(344,071)	(419,624)	(53,970)	(193,920)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(43,244)	267,705	590,471	102,452	142,268
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	3,034,164	2,766,459	2,175,988	2,073,536	1,931,268
	----------------	----------------	----------------	----------------	----------------
As restated	3,034,164	2,766,459	2,175,988	2,073,536	1,931,268
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,990,920	3,034,164	2,766,459	2,175,988	2,073,536
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,990,920	3,034,164	2,766,459	2,175,988	2,073,536
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	223,330	215,744	217,014	166,140	28,770
Hire purchase	-	-	34,643	8,210	3,297
Lease interest	76,822	43,566	-	-	-
Others	544,718	545,766	528,710	364,776	13,934
	----------------	----------------	----------------	----------------	----------------
	844,870	805,076	780,367	539,126	46,001
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	682,218	589,665	554,916	274,621	231,244
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	682,218	589,665	554,916	274,621	231,244
	=============	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	3,421,648	2,870,895	2,714,604	1,229,284	876,807
LONG TERM INVESTMENTS/OTHER ASSETS
Investments	-	220,602	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	-	220,602	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	3,421,648	3,091,497	2,714,604	1,229,284	876,807
CURRENT ASSETS
Stocks	5,423,486	5,642,997	6,320,409	2,716,596	3,921,385
Trade debtors	10,633,364	8,041,623	8,669,784	11,810,558	9,837,548
Other debtors, deposits & prepayments	9,750,551	8,550,977	9,172,012	7,074,774	2,358,193
Short term deposits	-	-	-	-	1,113,934
Short term loan to financial institutions	2,524,080	2,251,552	2,040,047	2,050,047	-
Amount due from related companies	1,139,352	1,183,496	1,354,836	-	-
Amount due from director	-	45,144	-	310,082	-
Cash & bank balances	400,180	525,746	764,569	257,072	155,934
Others	-	-	-	-	390,790
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	29,871,013	26,241,535	28,321,657	24,219,129	17,777,784
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	33,292,661	29,333,032	31,036,261	25,448,413	18,654,591
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	4,053,057	3,674,240	4,563,200	1,342,187	632,627
Other creditors & accruals	712,788	359,751	557,703	2,050,052	1,740,439
Hire purchase & lease creditors	430,716	347,736	-	-	58,600
Bank overdraft	3,843,814	3,159,567	2,903,002	2,922,077	1,034,238
Other borrowings	12,591,183	12,417,109	13,390,934	11,623,747	-
Bill & acceptances payable	-	-	-	-	6,993,000
Amounts owing to related companies	127,079	-	-	-	-
Amounts owing to director	2,069,866	206,878	855,615	-	797,405
Provision for taxation	43,338	173,029	182,700	10,309	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	23,871,841	20,338,310	22,453,154	17,948,372	11,256,309
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	5,999,172	5,903,225	5,868,503	6,270,757	6,521,475
	----------------	----------------	----------------	----------------	----------------
LONG TERM LIABILITIES
Hire purchase creditors	1,159,000	740,558	675,448	296,967	217,567
Deferred taxation	270,900	220,000	141,200	27,086	107,179
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	1,429,900	960,558	816,648	324,053	324,746
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	7,990,920	8,034,164	7,766,459	7,175,988	7,073,536
	=============	=============	=============	=============	=============
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
Retained profit/(loss) carried forward	2,990,920	3,034,164	2,766,459	2,175,988	2,073,536
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,990,920	3,034,164	2,766,459	2,175,988	2,073,536
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	7,990,920	8,034,164	7,766,459	7,175,988	7,073,536
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	400,180	525,746	764,569	257,072	1,269,868
Net Liquid Funds	(3,443,634)	(2,633,821)	(2,138,433)	(2,665,005)	(6,757,370)
Net Liquid Assets	575,686	260,228	(451,906)	3,554,161	2,600,090
Net Current Assets/(Liabilities)	5,999,172	5,903,225	5,868,503	6,270,757	6,521,475
Net Tangible Assets	7,990,920	8,034,164	7,766,459	7,175,988	7,073,536
Net Monetary Assets	(854,214)	(700,330)	(1,268,554)	3,230,108	2,275,344
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	1,085,597	1,416,852	1,790,462	695,548	382,189
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	1,767,815	2,006,517	2,345,378	970,169	613,433
BALANCE SHEET ITEMS
Total Borrowings	18,024,713	16,664,970	16,969,384	14,842,791	8,303,405
Total Liabilities	25,301,741	21,298,868	23,269,802	18,272,425	11,581,055
Total Assets	33,292,661	29,333,032	31,036,261	25,448,413	18,654,591
Net Assets	7,990,920	8,034,164	7,766,459	7,175,988	7,073,536
Net Assets Backing	7,990,920	8,034,164	7,766,459	7,175,988	7,073,536
Shareholders' Funds	7,990,920	8,034,164	7,766,459	7,175,988	7,073,536
Total Share Capital	5,000,000	5,000,000	5,000,000	5,000,000	5,000,000
Total Reserves	2,990,920	3,034,164	2,766,459	2,175,988	2,073,536
GROWTH RATIOS (Year on Year) (%)
Revenue	(9.62)	(16.50)	44.85	(5.11)	5.29
Proft/(Loss) Before Tax	(60.65)	(39.43)	545.75	(53.47)	(30.74)
Proft/(Loss) After Tax	(116.15)	(54.66)	476.34	(27.99)	(57.53)
Total Assets	13.50	(5.49)	21.96	36.42	20.40
Total Liabilities	18.79	(8.47)	27.35	57.78	35.26
LIQUIDITY (Times)
Cash Ratio	0.02	0.03	0.03	0.01	0.11
Liquid Ratio	1.02	1.01	0.98	1.20	1.23
Current Ratio	1.25	1.29	1.26	1.35	1.58
WORKING CAPITAL CONTROL (Days)
Stock Ratio	27	26	24	15	20
Debtors Ratio	53	36	33	65	51
Creditors Ratio	23	19	19	8	3
SOLVENCY RATIOS (Times)
Gearing Ratio	2.26	2.07	2.18	2.07	1.17
Liabilities Ratio	3.17	2.65	3.00	2.55	1.64
Times Interest Earned Ratio	1.28	1.76	2.29	1.29	8.31
Assets Backing Ratio	1.60	1.61	1.55	1.44	1.41
PERFORMANCE RATIO (%)
Operating Profit Margin	0.33	0.76	1.05	0.23	0.48
Net Profit Margin	(0.06)	0.33	0.61	0.15	0.20
Return On Net Assets	13.59	17.64	23.05	9.69	5.40
Return On Capital Employed	7.93	11.33	15.59	6.67	4.50
Return On Shareholders' Funds/Equity	(0.54)	3.33	7.60	1.43	2.01
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 67.76
UK Pound	1	INR 89.95
Euro	1	INR 78.85
MYR	1	INR 16.96

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	SUJ

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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