MIRA INFORM REPORT

Report No. :	498418
Report Date :	22.03.2018

IDENTIFICATION DETAILS

Name :	COSMO SCIENTEX (M) SDN. BHD.
Registered Office :	No. 9, Persiaran Selangor, Seksyen 15, 40200 Shah Alam, Selangor
Country :	Malaysia
Financials (as on) :	31.12.2016
Date of Incorporation :	19.04.2002
Com. Reg. No.:	577797-V
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The subject is principally engaged in the manufacturing of polyurethane adhesives.
No. of Employees :	70 [2018]

RATING & COMMENTS

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

MIRA’s Rating :

A

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

Status :	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 (30.09.2017)	Current Rating (31.12.2017)
Malaysia	A2	A2

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

MALAYSIA - ECONOMIC OVERVIEW

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

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

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

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

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

577797-V

GST NO.

:

000841449472

COMPANY NAME

:

COSMO SCIENTEX (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

19/04/2002

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

NO. 9, PERSIARAN SELANGOR, SEKSYEN 15, 40200 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

S11-06, FIRST SUBANG, JALAN SS15/4G, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-56217798

FAX.NO.

:

03-56217796

CONTACT PERSON

:

LIM PENG JIN ( DIRECTOR )

INDUSTRY CODE

:

20131

PRINCIPAL ACTIVITY

:

MANUFACTURING OF POLYURETHANE ADHESIVES

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 10,000,000.00 DIVIDED INTO 
ORDINARY SHARES 10,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 196,369,249 [2016]

NET WORTH

:

MYR 98,865,313 [2016]

STAFF STRENGTH

:

70 [2018]

BANKER (S)

:

MALAYAN BANKING 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) manufacturing of polyurethane adhesives.

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

Former Address(es)

Address	As At Date
LOT 3A,SEC.5,PHASE 2B, PULAU INDAH IND.PARK, PORT KLANG,SELANGOR, SELANGOR, MALAYSIA	15/02/2013
LOT 3A, SECTION 5, PHASE 2B, PULAU INDAH INDUSTRIAL PARK, 42920, SELANGOR, MALAYSIA	25/01/2018
CORPORATE OFFICE, SCIENTEX INCORPORATED BHD, JALAN UTAS 15/7, 40000, SELANGOR, MALAYSIA	31/10/2016

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/07/2002	MYR 25,000,000.00	MYR 10,000,000.00
19/04/2002	MYR 25,000,000.00	MYR 2.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MITSUI CHEMICALS POLYURETHANES,INC	3-2-5, KASUMIGASEKI CHIYODA-KU, TOKYO 100-6009 ,JAPAN	000018369	7,000,000.00	70.00
SCIENTEX BERHAD	NO. 9, PERSIARAN SELANGOR, SEKSYEN 15, 40200 SHAH ALAM, SELANGOR, MALAYSIA.	7867P	3,000,000.00	30.00
			---------------	------
			10,000,000.00	100.00
			============	=====

+ Also Director

Former Shareholder(s) :

Name	Country	IC/PP/Loc No	Shareholding	Last Updated
MITSUI TAKEDA CHEMICALS,INC	N/A	XLZ000018369	7,000,000.00	N/A

DIRECTORS

DIRECTOR 1

Name Of Subject	:	AKIHIRO TAKAHASHI
Address	:	UNIT 20-3, DAMAI CONDOMINIUM, JALAN KIARA 2, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	TZ1004953
Nationality	:	JAPANESE
Date of Appointment	:	16/04/2010

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	577797V	COSMO SCIENTEX (M) SDN. BHD.	Director	16/04/2010	0.00	-	MYR29,123,793.00	2016	-	23/02/2018

DIRECTOR 2

Name Of Subject	:	MITSUHIRO MAEHAMA
Address	:	26-19, MISAWA 5 CYOME, HINO CITY, TOKYO, 191-0032, JAPAN
IC / PP No	:	TH8248497
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2014

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	577797V	COSMO SCIENTEX (M) SDN. BHD.	Director	01/04/2014	0.00	-	MYR29,123,793.00	2016	-	23/02/2018

DIRECTOR 3

Name Of Subject	:	MR. LIM PENG JIN
Address	:	T1L25A BOULEVARD, JALAN SS12/1, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
Other Address(es)	:	559, JALAN TRANQUERAH, 75200 MELAKA, MELAKA, MALAYSIA.
IC / PP No	:	A0809720
New IC No	:	671009-04-5107
Nationality	:	MALAYSIAN
Date of Appointment	:	19/04/2002

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	10450H	AMBER LAND BERHAD	Director	08/01/2013	0.00	-	MYR(140,711.00)	2016	-	23/02/2018
2	22414V	ASIA BRANDS BERHAD	Shareholder	-	324,100.00	0.41	MYR(39,292,906.00)	2017	-	23/02/2018
3	25655A	BESTEX HOLDING SDN. BHD.	Director	08/05/2014	0.00	-	MYR(42.00)	2016	Winding-Up by Member Voluntary	23/02/2018
4	124182V	CATRA MANAGEMENT SDN BHD	Shareholder	-	1,000.00	16.67	MYR(316.00)	2017	-	23/02/2018
5	577797V	COSMO SCIENTEX (M) SDN. BHD.	Director	19/04/2002	0.00	-	MYR29,123,793.00	2016	-	23/02/2018
6	16121H	MALACCA SECURITIES SDN. BHD.	Shareholder	-	3,423,000.00	10.00	MYR(782,895.00)	2017	-	23/02/2018
7	5200P	MALAYAN ELECTRO-CHEMICAL INDUSTRY CO. SDN. BHD.	Director	01/12/1999	0.00	-	MYR(6,036,933.00)	2016	-	23/02/2018
8	938524K	MCTI SCIENTEX SOLAR SDN. BHD.	Director	31/03/2011	0.00	-	MYR(6,394,858.00)	2016	-	23/02/2018
9	912056D	MDM SIM SWEE TIN LEGACY SDN. BHD.	Director	20/08/2010	0.00	-	MYR(6,283.00)	2016	-	23/02/2018
10	419759X	PAN PACIFIC STRAPTEX SDN. BHD.	Director	01/10/2004	0.00	-	MYR3,749,711.00	2016	-	23/02/2018
11	210172V	PROGRESS INNOVATIONS SDN. BHD.	Director	17/08/1992	49,999.00	100.00	MYR22,785,543.00	2016	-	23/02/2018
12	633892T	SCIENTEX (SENAI) SDN. BHD.	Director	22/03/2012	0.00	-	MYR(294,909.00)	2016	Winding-Up by Member Voluntary	23/02/2018
13	216001X	SCIENTEX (SKUDAI) SDN. BHD.	Director	15/01/2010	0.00	-	MYR18,321,374.00	2016	-	23/02/2018
14	7867P	SCIENTEX BERHAD	Director	20/01/1995	2,356,940.00	0.49	MYR259,941,000.00	2017	-	23/02/2018
15	938232W	SCIENTEX DISTRIBUTION SDN. BHD.	Director	08/01/2013	0.00	-	MYR(2,000.00)	2016	-	23/02/2018
16	823106P	SCIENTEX FOUNDATION	Director	26/06/2008	0.00	-	N/A	2017	-	23/02/2018
17	16357P	SCIENTEX GREAT WALL (IPOH) SDN. BHD.	Director	11/08/2015	0.00	-	MYR7,826,361.00	2016	-	23/02/2018
18	715472P	SCIENTEX GREAT WALL SDN. BHD.	Director	08/01/2013	0.00	-	MYR18,517,947.00	2016	-	23/02/2018
19	170255V	SCIENTEX HEIGHTS SDN. BHD.	Director	04/05/2009	0.00	-	MYR11,537,752.00	2016	-	23/02/2018
20	64981X	SCIENTEX HOLDINGS SDN. BHD.	Director	19/11/1992	0.00	-	MYR51,599,513.00	2015	-	23/02/2018
21	214896K	SCIENTEX INDUSTRIES GROUP SDN. BHD.	Director	20/04/2005	0.00	-	MYR7,201,245.00	2016	-	23/02/2018
22	292082D	SCIENTEX INFINITY SDN. BHD.	Director	18/04/2014	6,700,000.00	67.00	MYR96,726,552.00	2016	-	23/02/2018
23	93586H	SCIENTEX LEASING SDN. BHD.	Director	08/05/2014	0.00	-	MYR5,116,325.00	2016	-	23/02/2018
24	288794P	SCIENTEX MANAGEMENT SDN. BHD.	Director	01/10/2004	0.00	-	MYR2,259,843.00	2016	-	23/02/2018
25	255035P	SCIENTEX PACKAGING FILM SDN. BHD.	Director	30/11/1993	0.00	-	MYR87,138,025.00	2016	-	23/02/2018
26	265710D	SCIENTEX PARK (M) SDN. BHD.	Director	29/05/1996	0.00	-	MYR32,582,659.00	2016	-	23/02/2018
27	330068D	SCIENTEX POLYMER SDN. BHD.	Director	09/01/1995	0.00	-	MYR532,546.00	2016	-	23/02/2018
28	28008M	SCIENTEX QUATARI SDN. BHD.	Director	17/11/1992	0.00	-	MYR140,100,046.00	2016	-	23/02/2018
29	47370H	SCIENTEX REALTY SDN BHD	Director	08/05/2014	0.00	-	MYR(32.00)	2016	Winding-Up by Member Voluntary	23/02/2018
30	463405T	SCIENTEX SOLAR SDN. BHD.	Director	11/08/2010	0.00	-	MYR(2,774.00)	2014	Disolved by Registrar	23/02/2018
31	421635P	SIM SWEE TIN SDN. BHD.	Director	06/07/2010	2,000.00	20.00	MYR6,447,830.00	2016	-	23/02/2018
32	18466H	TECK REALTY SDN. BHD.	Director	08/05/2014	0.00	-	MYR(5,662,973.00)	2016	Winding-Up by Member Voluntary	23/02/2018
33	264971X	TEXLAND SDN. BERHAD	Director	15/12/2004	0.00	-	MYR1,483,532.00	2016	-	23/02/2018
34	15615M	TM LIM SDN. BHD.	Director	08/05/2014	350,000.00	17.50	MYR2,675,318.00	2016	-	23/02/2018

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	644800X	AT SYSTEMATIZATION BERHAD	Shareholder	-	-	-	-
2	124182V	CATRA MANAGEMENT SDN BHD	Director	21/05/1991	27/08/1999	-	-
3	72010P	FAZMO HOLDING SDN. BHD.	Director	20/10/1994	28/08/1999	-	-
4	330067V	J.V. TRADE VENTURES SDN. BHD.	Director	09/01/1995	27/08/1999	-	-
5	245327D	KC CONTRACT SDN. BHD.	Director	08/10/1997	10/08/2002	-	-
6	345484X	LIU YOO ENTERPRISE SDN. BHD.	Director	28/01/1997	28/08/1999	-	-
7	734262D	MY GREEN HOMETOWN SDN. BHD.	Director	13/02/2014	25/07/2014	-	-
8	258263T	STR VENTURES SDN. BHD.	Director	16/03/1993	27/08/1999	-	-
9	64189U	TECK MANAGEMENT SDN. BHD.	Shareholder	-	-	93750.00	-
10	276397D	TEXLAND DEVELOPMENT SDN. BHD.	Director	26/09/1994	28/08/1999	-	-

DIRECTOR 4

Name Of Subject	:	MR. GAN KOK KHYE
Address	:	NO. 22A, JALAN M17, TAMAN MERBOK, BUKIT BARU, 75450 AIR KEROH, MELAKA, MALAYSIA.
IC / PP No	:	6830538
New IC No	:	620816-04-5031
Date of Birth	:	16/08/1962
Nationality	:	MALAYSIAN
Date of Appointment	:	04/02/2015

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	4058D	CHIN MOH PLANTATIONS S/B	Shareholder	-	2,000.00	0.07	MYR11,198,606.00	2016	-	23/02/2018
2	577797V	COSMO SCIENTEX (M) SDN. BHD.	Director	04/02/2015	0.00	-	MYR29,123,793.00	2016	-	23/02/2018
3	93779H	GAN ENG HENG SENDIRIAN BERHAD	Director	16/04/2015	32,466.00	22.59	MYR1,292,788.00	2016	-	23/02/2018
4	12111U	GAN SENG LIAN SENDIRIAN BERHAD	Shareholder	-	25,951.00	3.50	MYR7,111,317.00	2016	-	23/02/2018
5	51261X	HOCK TECK PLANTATIONS SDN. BHD.	Shareholder	-	801.00	0.20	MYR1,484,392.00	2017	-	23/02/2018
6	938524K	MCTI SCIENTEX SOLAR SDN. BHD.	Director	04/06/2013	0.00	-	MYR(6,394,858.00)	2016	-	23/02/2018
7	419759X	PAN PACIFIC STRAPTEX SDN. BHD.	Director	31/03/1999	0.00	-	MYR3,749,711.00	2016	-	23/02/2018
8	170255V	SCIENTEX HEIGHTS SDN. BHD.	Director	03/11/2009	0.00	-	MYR11,537,752.00	2016	-	23/02/2018
9	214896K	SCIENTEX INDUSTRIES GROUP SDN. BHD.	Director	09/09/2009	0.00	-	MYR7,201,245.00	2016	-	23/02/2018
10	255035P	SCIENTEX PACKAGING FILM SDN. BHD.	Director	03/04/2002	0.00	-	MYR87,138,025.00	2016	-	23/02/2018
11	28008M	SCIENTEX QUATARI SDN. BHD.	Director	10/08/2010	0.00	-	MYR140,100,046.00	2016	-	23/02/2018
12	463405T	SCIENTEX SOLAR SDN. BHD.	Director	11/08/2010	0.00	-	MYR(2,774.00)	2014	Disolved by Registrar	23/02/2018
13	264971X	TEXLAND SDN. BERHAD	Director	04/02/2015	0.00	-	MYR1,483,532.00	2016	-	23/02/2018
14	141888A	WOVENTEX SDN BHD	Director	27/02/1992	0.00	-	N/A	2014	Disolved by Registrar	23/02/2018

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	245356U	DEUTSCHE ASSET MANAGEMENT SDN. BHD.	Director	14/03/1994	28/08/1999	-	-
2	412046M	ESTEEM VALLEY SDN. BHD.	Director	09/12/1996	28/08/1999	-	-
3	265614P	GLAMOUR ASSETS SDN. BHD.	Director	03/07/1993	27/08/1999	-	-

DIRECTOR 5

Name Of Subject	:	KAZUO HASHIMURA
Address	:	UNIT B-17-1, MK AMAN, JALAN KIARA 2, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	TR4334026
Nationality	:	JAPANESE
Date of Appointment	:	07/04/2016

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	577797V	COSMO SCIENTEX (M) SDN. BHD.	Director	07/04/2016	0.00	-	MYR29,123,793.00	2016	-	23/02/2018

DIRECTOR 6

Name Of Subject	:	SHIGEHARU MATSUZAKA
Address	:	3-15-3 OIZUMI GAKUEN CHOU, NERIMA-KU, 178-0061, TOKYO
IC / PP No	:	TZ1150311
Date of Appointment	:	01/05/2017

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	577797V	COSMO SCIENTEX (M) SDN. BHD.	Director	01/05/2017	0.00	-	MYR29,123,793.00	2016	-	23/02/2018

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
YOSHIHIKO TAIRAKA	1-29-3.SHIROYAMA-DAI, SAKAI,OSAKA, 590-0137,JAPAN	TE4334488	03/08/2004	01/09/2006
YOICHI KAI	937-81,TOKIWA KAMAKURA-CITY, KANAGAWA 248-0022, JAPAN.	TF2344695	31/05/2002	13/06/2007
TOSHIYUKI IKUSAKA	1-15,MITSUI CHEMICAL AP, 1541,YABE TOTSUKAKU, YOKOHAMA,JAPAN	TG0954738	29/05/2009	02/04/2010
TOSHIO HIRANO	2-16-1-403,NIHOMBASHIHAMA-CHO, CHUO-KU, TOKYO 103-0007,JAPAN.	TF3743797	31/05/2002	30/06/2006
TAN BENG CHAI	22,JALAN MATAHARI, OFF JALAN RAYA BARAT, KLANG,SELANGOR., KLANG, SELANGOR, MALAYSIA	510623-07-5149	20/12/2005	23/06/2009
SHINJI ANDO	8-25-12, ARIMA MIYAMR-KU, KAWASAKI KANAGAWA 216-0003, JAPAN	TE7952159	01/09/2006	13/06/2007
TAKASHI ABE	NO. 3-08-2 SAUJANA VILLA, SAUJANA RESORT SEKSYEN U2, SHAH ALAM, SELANGOR, MALAYSIA	TH7924379	10/06/2010	01/05/2013
SEIJI KAWAMOTO	1-13-17-406 HIGASHI MACHI,, NISHINOMIYA CITY, 662-0922,, HYOUGO PREFECTURE, JAPAN	TG6777850	16/04/2010	31/03/2014
MASAAKI HASEBE	2203, SUMMER VILLA CONDOMINIUM, NO. 11, JALAN SS 12/1, SUBANG JAYA, SELANGOR, MALAYSIA	MZ0273463	05/02/2008	01/04/2013
LIM PENG CHEONG	101C, JALAN SENTOSA 14, TAMAN SENTOSA, BUKIT BARU, MELAKA, MELAKA, MALAYSIA	620422-04-5389	28/10/2004	20/12/2005
KOJI YOSHIDA	3-3-5,CHUO YAMATO-CITY, KANAGAWA 242-0021, JAPAN.	TG3397824	10/10/2003	03/08/2004
KIYOHIRO YUGE	2203 SUMMER VILLA CONDOMINIUM, NO.11, JALAN SS 12/1, SUBANG JAYA, SELANGOR, MALAYSIA	TF6736089	01/07/2006	05/02/2008
KENICHI NISHINO	3-13-67 SHIMOHOZUMI IBARAGI-CITY, OSAKA 567-0041, JAPAN	TE4034675	31/05/2002	10/10/2003
HIKARU HIRABARA	2-21-22, SIMIZU, SUGINAMI-KU, TOKYO, 167-0033	TG7919762	05/09/2007	29/05/2009
HIDEHIKO ENDO	2-8-39 KOMAGOENAKA SHIMIZU-CITY, SHIZUOKA 424-0904, JAPAN.	TF7302905	31/05/2002	10/06/2010
HIROYASU ISHIMARU	17-1-305, HATUNEGAOKA HOPOGAYA-KU, YOKOHAMA CITY, KANAGAWA PREFECTURE, 240-0016 JAPAN	TG7497910	07/09/2007	02/04/2010
SHIGETOSHI SASANO	2-805 KOUEN NISHINOMACHI, 2-1-2 UTASE MIHAMA-KU, CHIBA CITY, CHIBA PREF. 261-0013, JAPAN	TK0590962	12/04/2013	15/07/2016
JUNICHI KOJIMA	1766-1-502, KAMIKURATA-CHO, TOTSUKA-KU, YOKOHAMA-CITY, KANAGAWA, 244-0816, JAPAN	TH7363625	01/05/2013	07/04/2016
LIM TECK MENG		370515-04-5119	19/04/2002	04/02/2015
RYOJI KATO	2-3-19-311, KICHIJYOJI KITAMACHI, MUSASHINO-CITY, TOKYO 180-0001 JAPAN	TH9472424	15/07/2016	01/05/2017

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	LIM PENG JIN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG
Auditor' Address	:	LEVEL 23A, MENARA MILENIUM, JALAN DAMANLELA,, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. NG BOON NGEE
	IC / PP No	:	A3537006
	New IC No	:	761114-14-5344
	Address	:	5, JALAN PUTERI 6/21, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation. 

CIVIL 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.

CRIMINAL RECORDS 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 criminal record was found in our databank.

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A PLAINTIFF

* 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 plaintiff record was found in our databank.

CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A PLAINTIFF

* 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 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. 

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES
Import Countries	:	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	Percentage	:	60%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	40%
Export Market	:	ASIA
Credit Term	:	30 - 90 DAYS
Payment Mode	:	CHEQUES LETTER OF CREDIT (LC) TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	INDUSTRIAL SECTOR

OPERATIONS

Products manufactured

:

POLYURETHANE ADHESIVES

Member(s) / Affiliate(s)

:

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

Ownership of premises

:

OWNED

Production Capacity

:

APPROXIMATELY 15,000 TONNES OF URETHANE PREPOLYMER PRODUCT PER YEAR

Total Number of Employees:
YEAR	2018	2017	2016	2015	2014
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	70	70	70	50	50

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of polyurethane adhesives. 

The Subject produces the urethane prepolymers for flexible packaging applications and related technical services.

The Subject's urethane prepolymers are used for plastics films, paper and foils lamination. In terms of packaging features, it can be single and two components lamination.

Besides that the Subject has a warehouse located at the same premises to keep stocks and materials.

The Subject utilizes advanced computer-controlled distribution system integrating the latest processing technology, electronic circuit technology and information system technology to produce high quality urethane polymerase in stringent quality control manner.

The products are for the food, electronic, consumer and general industry.

The Subject also manufacture synthetic resins, plastics materials, and nonvulcanizable elastomes. 

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	:	03-56217798
Match	:	N/A
Address Provided by Client	:	S11-06, FIRST SUBANG,JALAN SS15/4G,47500 SUBANG JAYA SELANGOR DARUL EHSAN MALAYSIA
Current Address	:	S11-06, FIRST SUBANG, JALAN SS15/4G, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

We have 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	:	Acceptable	[	29.46%	]
Return on Net Assets	:	Favourable	[	39.13%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	47 Days	]
Debtor Ratio	:	Favourable	[	22 Days	]
Creditors Ratio	:	Favourable	[	53 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	[	1.78 Times	]
Current Ratio	:	Favourable	[	2.36 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	[	165.04 Times	]
Gearing Ratio	:	Favourable	[	0.02 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	5.3	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 )	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	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	-	-
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	(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
20131 : Manufacture of plastic in primary forms
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 2002, the Subject is a Private Limited company, focusing on manufacturing of polyurethane adhesives. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a good reputation in the market. It should have received supports from its regular customers. With a large issued and paid up capital of MYR 10,000,000 and strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players. 

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a moderate size company, the Subject has a total workforce of 70 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

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. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. 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 98,865,313, 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 promptly.

PROFIT AND LOSS ACCOUNT

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

COSMO SCIENTEX (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	196,369,249	174,299,058	134,913,754	132,762,563	122,543,464
Other Income	1,596,537	5,767,146	1,133,458	985,961	12,594,057
	----------------	----------------	----------------	----------------	----------------
Total Turnover	197,965,786	180,066,204	136,047,212	133,748,524	135,137,521
Costs of Goods Sold	(148,241,117)	(129,531,032)	(116,797,469)	(118,627,775)	(109,949,407)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	49,724,669	50,535,172	19,249,743	15,120,749	25,188,114
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	38,447,640	35,934,189	8,039,608	5,811,392	3,008,567
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	38,447,640	35,934,189	8,039,608	5,811,392	3,008,567
Taxation	(9,323,847)	(9,157,308)	(1,933,158)	(1,276,770)	(492,668)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	29,123,793	26,776,881	6,106,450	4,534,622	2,515,899
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	60,741,520	34,564,639	28,758,189	24,523,567	22,157,668
	----------------	----------------	----------------	----------------	----------------
As restated	60,741,520	34,564,639	28,758,189	24,523,567	22,157,668
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	89,865,313	61,341,520	34,864,639	29,058,189	24,673,567
DIVIDENDS - Ordinary (paid & proposed)	(1,000,000)	(600,000)	(300,000)	(300,000)	(150,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	88,865,313	60,741,520	34,564,639	28,758,189	24,523,567
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	2,319	668	1,574	137	110
Revolving loans	69,312	267,282	430,307	502,114	473,557
Term loan / Borrowing	162,753	307,689	212,724	50,837	133,237
	----------------	----------------	----------------	----------------	----------------
	234,384	575,639	644,605	553,088	606,904
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	2,250,293	2,546,781	2,354,891	3,175,369	3,611,260
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	2,250,293	2,546,781	2,354,891	3,175,369	3,611,260
	=============	=============	=============	=============	=============

BALANCE SHEET

COSMO SCIENTEX (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	41,431,381	19,148,909	21,248,735	17,740,602	18,091,584
LONG TERM INVESTMENTS/OTHER ASSETS
Investments	35,000	35,000	35,000	35,000	35,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	35,000	35,000	35,000	35,000	35,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	41,466,381	19,183,909	21,283,735	17,775,602	18,126,584
CURRENT ASSETS
Stocks	25,545,236	16,041,915	23,369,192	17,895,104	19,182,174
Trade debtors	11,711,405	9,943,197	7,609,450	24,224,653	21,265,927
Other debtors, deposits & prepayments	4,507,974	1,531,609	136,724	671,990	110,323
Short term deposits	-	17,183,999	-	-	-
Amount due from holding company	160,570	288,413	243,157	-	-
Amount due from related companies	25,960,017	29,091,788	21,222,940	-	-
Cash & bank balances	36,762,871	13,098,030	4,778,661	9,564,605	5,613,213
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	104,648,073	87,178,951	57,360,124	52,356,352	46,171,637
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	146,114,454	106,362,860	78,643,859	70,131,954	64,298,221
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	21,696,757	12,278,290	9,646,509	14,845,718	11,137,595
Other creditors & accruals	12,628,878	4,730,929	2,271,493	2,773,710	3,501,868
Bank overdraft	-	-	-	-	221,352
Short term borrowings/Term loans	1,666,667	1,666,667	3,333,332	468,750	1,875,000
Other borrowings	-	2,000,000	7,500,000	11,000,000	11,000,000
Amounts owing to holding company	3,886,620	2,457,027	3,837,894	1,163	1,163
Amounts owing to related companies	158,428	67,416	157,510	142,136	-
Provision for taxation	4,281,233	6,463,248	723,160	832,550	622,799
Other liabilities	-	-	-	40	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	44,318,583	29,663,577	27,469,898	30,064,067	28,359,777
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	60,329,490	57,515,374	29,890,226	22,292,285	17,811,860
	----------------	----------------	----------------	----------------	----------------
LONG TERM LIABILITIES
Long term loans	-	3,333,333	5,000,001	-	468,750
Deferred taxation	2,930,558	2,624,430	1,609,321	1,309,698	946,127
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	2,930,558	5,957,763	6,609,322	1,309,698	1,414,877
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	98,865,313	70,741,520	44,564,639	38,758,189	34,523,567
	=============	=============	=============	=============	=============
FINANCED BY:
SHARE CAPITAL
Ordinary share capital	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
RESERVES
Retained profit/(loss) carried forward	88,865,313	60,741,520	34,564,639	28,758,189	24,523,567
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	88,865,313	60,741,520	34,564,639	28,758,189	24,523,567
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	98,865,313	70,741,520	44,564,639	38,758,189	34,523,567
	=============	=============	=============	=============	=============

FINANCIAL RATIO

COSMO SCIENTEX (M) SDN. BHD.

TYPES OF FUNDS
Cash	36,762,871	30,282,029	4,778,661	9,564,605	5,613,213
Net Liquid Funds	36,762,871	30,282,029	4,778,661	9,564,605	5,391,861
Net Liquid Assets	34,784,254	41,473,459	6,521,034	4,397,181	(1,370,314)
Net Current Assets/(Liabilities)	60,329,490	57,515,374	29,890,226	22,292,285	17,811,860
Net Tangible Assets	98,865,313	70,741,520	44,564,639	38,758,189	34,523,567
Net Monetary Assets	31,853,696	35,515,696	(88,288)	3,087,483	(2,785,191)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	38,682,024	36,509,828	8,684,213	6,364,480	3,615,471
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	40,932,317	39,056,609	11,039,104	9,539,849	7,226,731
BALANCE SHEET ITEMS
Total Borrowings	1,735,979	7,267,282	16,263,640	11,970,864	14,038,659
Total Liabilities	47,249,141	35,621,340	34,079,220	31,373,765	29,774,654
Total Assets	146,114,454	106,362,860	78,643,859	70,131,954	64,298,221
Net Assets	98,865,313	70,741,520	44,564,639	38,758,189	34,523,567
Net Assets Backing	98,865,313	70,741,520	44,564,639	38,758,189	34,523,567
Shareholders' Funds	98,865,313	70,741,520	44,564,639	38,758,189	34,523,567
Total Share Capital	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Total Reserves	88,865,313	60,741,520	34,564,639	28,758,189	24,523,567
GROWTH RATIOS (Year on Year) (%)
Revenue	12.66	29.19	1.62	8.34	11.41
Proft/(Loss) Before Tax	6.99	346.96	38.34	93.16	159.21
Proft/(Loss) After Tax	8.76	338.50	34.66	80.24	210.92
Total Assets	37.37	35.25	12.14	9.07	0.97
Total Liabilities	32.64	4.53	8.62	5.37	(5.54)
LIQUIDITY (Times)
Cash Ratio	0.83	1.02	0.17	0.32	0.20
Liquid Ratio	1.78	2.40	1.24	1.15	0.95
Current Ratio	2.36	2.94	2.09	1.74	1.63
WORKING CAPITAL CONTROL (Days)
Stock Ratio	47	34	63	49	57
Debtors Ratio	22	21	21	67	63
Creditors Ratio	53	35	30	46	37
SOLVENCY RATIOS (Times)
Gearing Ratio	0.02	0.10	0.36	0.31	0.41
Liabilities Ratio	0.48	0.50	0.76	0.81	0.86
Times Interest Earned Ratio	165.04	63.42	13.47	11.51	5.96
Assets Backing Ratio	9.89	7.07	4.46	3.88	3.45
PERFORMANCE RATIO (%)
Operating Profit Margin	19.58	20.62	5.96	4.38	2.46
Net Profit Margin	14.83	15.36	4.53	3.42	2.05
Return On Net Assets	39.13	51.61	19.49	16.42	10.47
Return On Capital Employed	37.97	47.44	16.83	15.69	9.87
Return On Shareholders' Funds/Equity	29.46	37.85	13.70	11.70	7.29
Dividend Pay Out Ratio (Times)	0.03	0.02	0.05	0.07	0.06
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.22
UK Pound	1	INR 91.33
Euro	1	INR 79.96
MYR	1	INR 16.64

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TPT

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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