Issuer ID : 1070150

Financing ID : MBBT-19110014
Date Started : 3 December 2019
Closing Date : TBC

Business Term Financing Fact Sheet

Financing Details Investors' Repayment Schedule (RM)
Financing Recommended Amount RM500,000 Month Principal Interest Fee Total
Tenure (No. Of Months) 12 1 41,666.67 6,666.67 966.67 47,366.67
Simple Interest Rate P.A. 16.00% 2 41,666.67 6,666.67 966.67 47,366.67
Effective Interest Rate P.A. 28.33% 3 41,666.67 6,666.67 966.67 47,366.67
Industry Construction 4 41,666.67 6,666.67 966.67 47,366.67
5 41,666.67 6,666.67 966.67 47,366.67
Security Directors' Personal Guarantee 6 41,666.67 6,666.67 966.67 47,366.67
Purpose Working Capital 7 41,666.67 6,666.67 966.67 47,366.67
8 41,666.67 6,666.67 966.67 47,366.67
Investors' Net Return 9 41,666.67 6,666.67 966.67 47,366.67
Monthly Net Return Amount RM47,366.67 10 41,666.67 6,666.67 966.67 47,366.67
Financing Net Total Return Amount RM568,400.00 11 41,666.67 6,666.67 966.67 47,366.67
Financing Net Total Return % 13.68% 12 41,666.63 6,666.63 966.63 47,366.63
Financing Net Simple Interest Rate % P.A. 13.68%
Net Effective Interest Rate % P.A. 24.36%
Late Interest Fee 0.1% per day on payment in arrears
Prepayment Fee 1% on prepaid principal amount
Service Fee on repayment (P+I) 2.00%
Sales and Service Tax (SST) As per standard rate set by the Government
Witholding Tax* 15% on gross interest income
*applicable to non-Malaysian tax residence
Existing Exposure (if any)
Investment Note ID Outstanding Balance (RM) Conduct
- - N/A

Documents Received √/ x/ N/A SME Rating Probability of Default (PD)*

SSM Registration Forms √
Total Outstanding - Latest Bank Statements √ CCC 5.60%
Total Approved Limit - Audited Financials √
Management Accounts √ Updated as at: Nov-19

Past Exposure Nil AR and AP Aging List √ The rating displayed is based on the PD value extracted from a
registered credit reporting agency, regulated by Registrar of
Bureau Report √
Credit Reporting Agencies and is strictly for investor's own
reference only. The PD value indicates the calculated probability
that a SME may default sometime in the next 12 months period
based on information received from a range of business
information databases.(Please refer full disclaimer below)

Company's Summary
Incorporation: 27 October 2014 Paid Up Capital: RM750,002
Business Type Private Limited Company No of Employees: 4
Business Nature: Issuer (company) is principally involved in the business of property development. They are the smallish boutique developer with minimal number of projects
on hand. They have completed few projects in the past since inception.

Litigation: No litigation record noted.

Negative / Black List: Nil
Payment Behaviour and Type of Facility Total O/s Balance (RM) Total Limit (RM) No.* Overall Conduct
financing record: Housing & Term Loan - - 0 N/A
Credit / Charge Card 82,903 100,000 1 Prompt
Hire Purchase 664,212 748,000 4 Prompt
Overdraft / Trade 539,838 550,000 3 Prompt
Others (if any) - - 0 N/A
TOTAL 1,286,953 1,398,000 8 Prompt
No. of applications in the past 12 mths : 5 (5 approved) *of facilities

Directors' & PGs' Summary

PG 1 Position in Company: Director & Shareholder Shareholding (%) 50 Age 54
She is the key person of the company. She has been in the industry for more than 15 years . Prior setting up this company,
she was the marketing director for a property developer.
Negative / Black List: Nil. No history of litigation record noted
Nationality Malaysian If Others, please state:
PG 2 Position in Company: Director & Shareholder Shareholding (%) 50 Age 51
She is the key person of the company. She has vast experience in the business management. She is responsible in strategic
planning of the company.
Negative / Black List: Nil. No history of litigation record noted
Nationality Malaysian If Others, please state:
PG 3 Position in Company: Director Shareholding (%) n/a Age 49
He is the key person of the company. He has been in the industry for more than 10 years. He is responsible in sales and
marketing.
Negative / Black List: Nil. No history of litigation record noted
Nationality Malaysian If Others, please state:

Payment Behaviour and Housing & Term Credit / Charge Others Total O/s Overall
Hire Purchase Total no. of facilities Total Limit (RM)
financing record for all PGs Loan Card (if any) Balance (RM) Conduct
above: PG 1 1 2 1 - 4 389,264 388,450 Prompt
PG 2 2 2 1 1 6 573,759 724,082 Good
PG 3 - - - - 0 - - N/A
GRAND TOTAL 963,023 1,112,532
 For the year ended 31 Dec Financial Ratios

2016 2017 2018 2019 2017 2018 2019

Malaysia Ringgit (RM) AUDITED AUDITED AUDITED MANAGEMENT AUDITED AUDITED MANAGEMENT
Revenue - 2,383,700 3,997,500 2,080,100 Revenue Growth #DIV/0! 67.70% 4.07%
Cost of sales - 1,930,279 3,993,268 272,208 Gross Margin 19.02% 0.11% 86.91%
Gross profit - 453,421 4,232 1,807,892 Net Margin 3.25% 5.62% 9.73%
Depreciation - 18,597 29,501 - Current Ratio 0.89 0.94 1.06
Staff Cost 84,000 131,526 471,542 186,483 Quick Ratio 0.72 0.54 0.81
Other operating expenses 283,591 277,373 606,098 1,613,858 Leverage Ratio (14.52) 2.51 2.50
Operating profit (367,591) 25,925 (1,102,909) 7,551 Gearing ratio (1.59) 1.32 1.32
Add: other income - 41,716 1,369,979 210,408 Pre-tax Interest Coverage 9.69 11.69 13.98
EBIT (367,591) 67,641 267,070 217,959 Return On Net Worth -74.50% 37.98% 47.87%
Interest and Taxes - (9,728) 42,554 15,590 Receivables Turnover 25.60 12.08 9.14
Net Profit (Loss) for the year (367,591) 77,369 224,516 202,369 Payables Turnover 12.68 14.08 2.18
Inventory turnover #DIV/0! #DIV/0! #DIV/0!
Fixed Asset - 145,099 1,146,572 1,146,573 Total asset turnover 3.64 2.38 1.60
Current Asset 207,219 955,902 1,107,595 1,811,536
Total Asset 207,219 1,101,001 2,254,167 2,958,109
Fixed Liabilities - 108,952 437,516 404,035
Current Liabilities 366,008 1,073,469 1,173,555 1,708,609
Total Liabilities 366,008 1,182,421 1,611,071 2,112,644
Equity (158,789) (81,420) 643,096 845,465
Total Liabilities and Equity 207,219 1,101,001 2,254,167 2,958,109
Bank Statement Summary (RM)
Latest available
Time Period Overdraft Limit Avg Available Bal as at
From To Avg Deposits Avg Withdrawals Avg Bal (if any) Bal Oct-19
Bank Account 1 Apr-19 Oct-19 393,099 399,936 32,089 0 32,089 14,531
Total 393,099 399,936 32,089 - 32,089 14,531
Risk Snapshot
Industry Neutral outlook given that the demand for residential housing remained stable with moderate growth despite the difficulty for purchaser in obtaining
financing. Demand is highly dependant on location and pricing of properties.

Strength Directors and management team have vast experience in the industry. Proven track records since inception.

Weakness Small scale of business with relatively lower margin as compare to other players due to high operating cost. Liquidity risk arises given capital intensive nature
in the industry. Limited capacity to handle multiple project at a time due to high capital requirement.

Comments
Profitability: The Issuer company has been in operation for 5 years and has been profitable over the past 3 years.
Based on Management account @ (6 months), revenue is at RM2.08M (annualized RM4.16M). Gross profit of RM1.8M (86% margin) with net profit before tax
of RM202K (9.73%). Gross Profit FYE July 2017 & 2018 is at RM453K (margin 19%) & RM4,232 (margin 0.11%) while Net Profit after tax stood at RM77K(3.25%) &
RM224K (5.62%).

Business Risk: Liquidity risk arises given capital intensive nature in the industry.

Financials: From management account @ Jun'19, noted the issuer's net worth is about RM845K with the retained profit stands at RM95K. Total paid up capital as of now
at RM750K. Escalating borrowing over the years with gearing for FY19 stands at 1.32x. Total fixed commitment as of now stands at RM66K. Prompt repayment
so far for all accounts.

General Overview:
Purpose of this financing is to support the ongoing project on hand.
Credit check reveals that the company and its directors do not have any history of litigation record. Checks also reveals that the directors have good
repayment record on its borrowings.
The financials and bank statement shows the company is profitable with healthy business growth and volume. Flight risk is also low given that the directors
are Malaysian and have own properties in Malaysia.
 General Risk Statement

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SME Rating & Probability of Default (PD)

The rating displayed is based on the PD value extracted from a registered credit reporting agency, regulated by Registrar of Credit Reporting Agencies and is strictly for investor's own
reference only. The PD value indicates the calculated probability that a SME may default sometime in the next 12 months period based on information received from a range of
business information databases. Therefore, a PD of 8% means the particular note has a 8% likelihood of defaulting within the next 12 months. In other words, this means, the lower the PD,
the lower the risk and the better the grade.

The above information is compiled from external data sources which FS does not control and which may not have been independently verified. FS therefore cannot accept
responsibility for the accuracy and timeliness of the information above.
The above rating also does not reflect our assessment on the Note Issuer and the pricing (interest rate) we set for each Note. The riskiness of each Note is reflected through the pricing
we set for each Note.

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 Formula / Definitions
Formula Description Example
Growth in revenue from previous year. 0.64
Revenue Growth E.g: The revenue growth is 64% from previous
year.
Indication of company’s profitability by revealing the proportion of 0.48
Gross Margin money left over from revenue after accounting for cost of goods sold. E.g: The gross margin is 48% against the revenue
for the financial year.
Indication of company’s profitability by revealing the proportion of 0.19
Net Margin money left over from revenue after accounting for cost of goods sold E.g: The net margin is 19% against the revenue
and all business cost for the reporting period. for the financial year.
Measure for liquidity of current assets to meet its short-term obligations. 2.00
Current Ratio E.g: Every RM1 of current liabilities, the current
assets is RM2.
Indicate ability of business to meet its short-term obligations with its most 1.5 : 1
Quick Ratio liquid assets (excluding stocks). E.g: Every RM1 of current liabilities, the current
assets minus stock is RM1.50.
Measure ability to utilise company's equity to meet all its future 1.82 : 1
Leverage Ratio obligations registered under total liabiliies. E.g: Every RM1 of total equity, the total liabilities
is RM1.82.
Measure extend of company’s operation are funded by borrowing 0.5 : 1
Gearing ratio capital. E.g: Every RM1 of total equity, the total debt is
RM0.50.
Indicate the capability to service interest on its outstanding debts. 71 times
Pre-tax Interest Coverage E.g: Earnings before interest & tax is 71 times of
the interest expenses.
Measure returns in using shareholders’ funds. 0.67
Return (before tax) On Net
E.g: The return is 67% against total equity
Worth
(shareholders’ funds) for the financial year.
Indicate rapidity of collections from customers. 4 times
Receivables Turnover E.g: The issuer collected its average receivables
approximately 4 times over the financial year.
Indicate rapidity of payable to suppliers. 5 times
Payables Turnover E.g: The issuer paid its average payables
approximately 5 times over the financial year.
Indicate rapidity of stock being sold and efficiency of stock 8 times
Inventory turnover management. E.g: The issuer sold its average inventory
approximately 8 times over the financial year.
Indicate efficiency of assets to generate revenue. 0.95 times
Total asset turnover E.g: Every RM1 of total assets on average, the
sales generated is RM0.95.
Prompt No MIA in any of the accounts
Conduct of Accounts based on Central Credit Reference
Good MIA of not more than 1 in any of the accounts
Information System (CCRIS);
Satisfactory MIA 2 < 5X or MIA 3 < 3X for any account
Months in Arrears (MIA)
Adverse MIA 2 >=5X or MIA 3 >=3X) for any account
Audited Prepared according to generally accepted accounting principles by an auditor including related notes
Financial Statements Draft Audited Draft version of audited accounts which has not been finalised by the auditor and may not include any notes
Management Prepared by company's management in summary form for internal use (may not include items such as depreciation)
CRA Credit Reporting Agencies in Malaysia
SME Rating and PD value
Lower bound Upper bound Rating
0.00% 0.67% AAA
0.68% 1.24% AA
1.25% 2.40% A
2.41% 3.24% BBB
3.25% 3.98% BB
3.99% 5.42% B
5.43% 6.73% CCC
6.74% 8.88% CC
8.89% 10.81% C
10.82% 13.81% DDD
13.82% 16.46% DD
16.47% 22.96% EEE
22.97% 28.97% EE
28.98% 37.81% E
37.82% 100.00% F
PD not available in CRA report N/A