myfinb™ sharisk scorecard summary report · company name: market listing origin: date of report:...

MyFinB™ ShaRISK Scorecard

COMPLIANT STATUS SUMMARY

EFFECTS OF RECEIVABLE ON BUSINESS PERFORMANCE

EFFECTS OF LIQUIDITY ON RISK APPETITE

EFFECTS OF GEARING ON SHAREHOLDER RETURNS

⦁ The firm experienced sharp decline in sales growth. This signified highly challenging and competitive environment . Structural

changes may have also occurred within the firm and/or industry which affected topline.

⦁ Strong surge in costs experienced by the firm. There could be structural changes in their operating model that resulted in this

trend.

⦁ It was significantly much costlier to service revenue operations compared to the previous year - and may signify fundamental

challenges in its business model and cost structure.

⦁ Severe net losses were experienced- highly inadequate revenue levels and overall inefficient cost structure.

⦁ Profit margins have severely declined - major structural challenges in the operating environment and business model may be

experienced by the firm during the period.

⦁ Very high exposure to short-term creditors/financing to support asset base - extremely high frequency dealings to manage

creditors to meet working capital orders.

⦁ The firm's total liability exposure was somewhat high relative to its shareholder equity level during the period. Shareholder's

funds could be inadequate to cover all of the firm's obligations.

⦁ The firm's liability growth has been fairly aggressive as compared with its sales during the period. Some degree of reliance on

gearing.

⦁ The firm experienced significant reduction in sales growth. This indicated very demanding environment with strong rivalry.

Business structure may have also changed within the organisation and/or industry, which affected overall sales.

Very poor profitability and revenue levels - may be experiencing structural challenges in operations.

Very high levels of risk appetite were adopted by the firm.

⦁ Severe losses to shareholders were attained during the period. There were substantially negative returns attributable to

shareholders. The overall valuation of the firm could be severely suppressed during the period.

⦁ The shareholder equity level of the firm was somewhat low compared to it's total liability exposure during the period. If the

firm's shareholder funds are overwhelmed by its liability levels, it could be faced with valuation risk.

⦁ There was a severe decline in profit growth rate compared with the previous period.

⦁ Severe net losses were experienced- highly inadequate revenue levels and overall inefficient cost structure. The firm's pricing

strategies and its ability to control costs were ineffective. Valuation for the firm based on earnings would be severely affected.

Highly limited value to shareholders in terms of profitability, margins and liability exposure.

SUMMARY REPORT

Company InformationMarket Listing Origin:

Oman

Latest Financial Year: Currency:

10 February 2015

Date of Report:

COMPLIANT

Company Name:

Silver Bird Group Berhad

Industry:

Food Manufacturing 2012 MYR

Receivable Exposure

Level (REL)

(Cash + Net Receivables) /

Total Assets


Total Assets

(Cash + Net Receivables) / Total

Assets

(Cash + Net Receivables)

/Average Market Value

COMPLIANT COMPLIANT COMPLIANT NON-COMPLIANT

COMPLIANT COMPLIANT



15.04% 15.04% 15.04% 38.97% 38.97%

COMPLIANT COMPLIANT COMPLIANT NON-COMPLIANT NON-COMPLIANT

Total Debt /Average Market

Value


Value

18.52% 18.52% 18.52% 47.97% 47.97%

S&P

Solvency Risk Exposures

(SRE)

Total Debt / Total Assets

Rating

Agencies

FTSE MSCI AAOIFI DJ

Total Debt / Total Assets Total Debt / Total Assets

(Cash + Short Term Investment

+ Other Investment) /Average

Market Value

1.30% 1.30% 1.30%

Liquidity Status Indicator

(LSI)

(Cash + Short Term

Investment + Other

Investment) / Total Assets

(Cash + Short Term

Investment + Other


(Cash + Short Term Investment +

Other Investment) / Total Assets

(Cash + Short Term

Investment + Other

Investment) /Average Market

Value

3.38% 3.38%

COMPLIANT COMPLIANT COMPLIANT

Copyright ©2016, MyFinB Holdings Pte Ltd. All rights reserved.


Company Name: Market Listing Origin: Date of Report: MYR 2012 2011 %Chg

Silver Bird Group Berhad Oman 10 February 2015 Total Sales 130 232 -44.00%

Industry: Latest Financial Year: Currency: Profit Before Tax (338) 5 -6300.73%

Food Manufacturing 2012 MYR Profit After Tax (338) 5 -7416.67%

COMPLIANT STATUS BASED ON RECEIVABLES ..

EFFECTS OF RECEIVABLE ON BUSINESS PERFORMANCE ..

Very poor profitability and revenue levels - may be experiencing structural challenges in operations.

RECEIVABLE CHARTS ..

RECEIVABLE METRICS ..

2012

15.04% 18

-44.00% 130Cost

106.47% 468

262.38% -

-260.10% (338)

-262.09% -

HOW TO USE THIS REPORT ..

•

•

-

Sales

140

232

227

-

5

RECEIVABLES EXPOSURES LEVELS (REL) REPORT

(Cash + Net Receivables)/

Total Assets

Rate of Sales Growth

Rate of Cost Growth

Cost/Sales Growth

PercentageMYR

2011

If you are an investor or thinking of partnering with this company, the factors listed here could assist you in the decision whether to invest in a company or consider

partnering with them via joint ventures. For creditors and debt financiers, you would want to have a good understanding of whether this company’s business

performance is sustainable to generate future inflows to pay existing and/or future obligations.

This report is best used with other reports such as: Solvency Risk Exposures and Liquidity Status Indicator.

Profit Margin (after tax)

Profit Margin Growth

Cash + Net Receivables

Profit after tax

⦁ The firm experienced sharp decline in sales growth. This signified highly challenging and competitive environment . Structural

changes may have also occurred within the firm and/or industry which affected topline.

⦁ Strong surge in costs experienced by the firm. There could be structural changes in their operating model that resulted in this trend.

⦁ It was significantly much costlier to service revenue operations compared to the previous year - and may signify fundamental

challenges in its business model and cost structure.

⦁ Severe net losses were experienced- highly inadequate revenue levels and overall inefficient cost structure.

⦁ Profit margins have severely declined - major structural challenges in the operating environment and business model may be

experienced by the firm during the period.


Total Assets

(Cash + Net Receivables) / Total

Assets


Total Assets

(Cash + Net Receivables) /Average

Market Value



15.04% 15.04% 15.04% 38.97% 38.97%

COMPLIANT COMPLIANT COMPLIANT NON-COMPLIANT COMPLIANT

Company's Receivable Position and COMPLIANT with Global Standards

Company Information Key Financial Highlights

FTSE MSCI AAOIFI DJ S&P

-260.10

%

1.99%

-300.00%

-250.00%

-200.00%

-150.00%

-100.00%

-50.00%

0.00%

50.00%

2012 2011

Figure 3:Profit Margin

106.47%

-44.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Cost Growth Sales Growth

Figure 2: Cost Growth vs Sales Growth

0

2

4

6

8

10

12Rate of Sales Growth

Rate of Cost Growth

Cost/Sales GrowthProfit Margin Growth


Rating is based on 12 being "highest rating" and 1 being "lowest rating"

Figure 6: Risk Return Profile

-338

5

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

-

50

2012 2011

Figure 4:Profit Before Tax ($)

Figure 5:

15.04% 35.36%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2012 2011

Figure 1: (Cash + Net Receivables)/ Total

Assets




Silver Bird Group Berhad Oman 10 February 2015 Sales 130 232 -44.00%

Industry: Latest Financial Year: Currency: Total Asset 117 397 -70.44%

Food Manufacturing 2012 MYR Total Liabilities 240 184 30.44%

Current Liabilities 238 161 47.94%

Shareholder Fund (123) 213 -157.48%

COMPLIANT STATUS BASED ON LIQUIDITY ..

EFFECTS OF LIQUIDITY ON RISK APPETITE ..

Very high levels of risk appetite were adopted by the firm.

LIQUIDITY CHARTS ..

LIQUIDITY METRICS ..

2012

1.30% 2

203.10% 238Total Liabilities

195.80% 240

74.44% 130

-44.00% -


•

• This report is best used with other reports such as: Receivable Exposure indicator and Solvency Risk Exposures.

232

Total liabilities growth vs

sales growth

Profit after taxRate of Sales Growth -

Financiers such as bank and private lenders should use this report under two circumstances: 1. At the point of lending 2. Upon lending, they can get a sense of how

the balance sheet risks may evolve based on ascertaining their risk appetite at the onset. The effects of ascertaining risk appetite usually come at a later stage; and

it is a powerful indicator to determine where the firm is heading and how it is going to finance its plans.

Current LiabilitiesCurrent Liabilities Ratio 161

Total Liabilities-to-Equity 184

PercentageMYR

2011

(Cash + Short Term

Investment + Other

Investment)/Total Assets

Cash + Short Term Investment +

Other Investment

11

⦁ Very high exposure to short-term creditors/financing to support asset base - extremely high frequency dealings to manage creditors

to meet working capital orders.

⦁ The firm's total liability exposure was somewhat high relative to its shareholder equity level during the period. Shareholder's funds

could be inadequate to cover all of the firm's obligations.

⦁ The firm's liability growth has been fairly aggressive as compared with its sales during the period. Some degree of reliance on

gearing.

⦁ The firm experienced significant reduction in sales growth. This indicated very demanding environment with strong rivalry .

Business structure may have also changed within the organisation and/or industry, which affected overall sales.


+ Other Investment) / Total

Assets


Other Investment) / Total Assets

(Cash + Short Term

Investment + Other



Other Investment) /Average Market

Value


+ Other Investment) /Average

Market Value

1.30% 1.30% 1.30% 3.38% 3.38%

COMPLIANT COMPLIANT COMPLIANT COMPLIANT COMPLIANT

Company's Receivable Position and COMPLIANT with Global Standards

LIQUIDITY STATUS INDICATOR (LSI) REPORT



Figure 5:

203.10% 40.59%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2012 2011

Figure 2:Current Liabilities Ratio

195.80% 86.28%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2012 2011

Figure 3:Total Liabilities-to-Equity Ratio

30.44%

-44.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

Total liabilitiesgrowth

Sales growth

Figure 4:Total liabilities growth vs sales growth

1.30% 2.84%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2012 2011

Figure 1:(Cash + Short Term Investment + Other Investment)/Total Assets

0

2

4

6

8

10

12Current Liabilities Ratio

Total Liabilities-to-EquityRatio

Total liabilities growth vssales growth

Rate of Sales Growth

Figure 6:Risk Return Profile





Silver Bird Group Berhad Oman 10 February 2015 Sales 130 232 -44.00%

Industry: Latest Financial Year: Currency: Profit Before Tax (338) 5 -6300.73%

Food Manufacturing 2012 MYR Profit After Tax (338) 5 -7416.67%

Shareholder Fund (123) 213 -157.48%

Total Liabilities 240 184 30.44%

COMPLIANT STATUS BASED ON GEARING ..

EFFECTS OF GEARING ON SHAREHOLDER RETURNS ..

Highly limited value to shareholders in terms of profitability, margins and liability exposure.

SOLVENCY CHARTS ..

SOLVENCY METRICS ..

2012

18.52% 22

-275.80% (123)

Total Liabilities

195.80% 240

Profit Before Tax

-6300.7% (338)

-260.10% (338)


•

• This report is best used with other reports such as: Receivable Exposure indicator and Liquidity Status Indicator.

Return on Equity (pre tax)

Total Liabilities-to-Equity

Ratio

Profit Margin (after tax)Profit after tax

5

Existing and even potential new shareholders should use this report to find out how much the profits are being generated and how these are being achieved. It is

also to gauge the adequacy of returns to shareholders who may come into the firm at different period of time. Users could have a closer look at how internal reserves

are used for expansion, new funds being raised to secure new markets/clients and how much dividends could be paid out to manage its ROE levels.

Shareholder's Fund

213

184

Profit before tax growth 5

PercentageMYR

2011

Debt to Asset

Total Debt

22

⦁ Severe losses to shareholders were attained during the period. There were substantially negative returns attributable to

shareholders. The overall valuation of the firm could be severely suppressed during the period.

⦁ The shareholder equity level of the firm was somewhat low compared to it's total liability exposure during the period. If the firm's

shareholder funds are overwhelmed by its liability levels, it could be faced with valuation risk.

⦁ There was a severe decline in profit growth rate compared with the previous period.

⦁ Severe net losses were experienced- highly inadequate revenue levels and overall inefficient cost structure. The firm's pricing

strategies and its ability to control costs were ineffective. Valuation for the firm based on earnings would be severely affected.

Total Debt / Total Assets Total Debt / Total Assets Total Debt / Total Assets Total Debt /Average Market ValueTotal Debt /Average Market

Value

18.52% 18.52% 18.52% 47.97% 47.97%

NON-COMPLIANT NON-COMPLIANT NON-COMPLIANT NON-COMPLIANT NON-COMPLIANT

Company's Gearing Position and COMPLIANT with Global Standards

SOLVENCY RISK EXPOSURE (SRE) REPORT



Figure 5:

-275.80

%

2.56%

-300.00%

-250.00%

-200.00%

-150.00%

-100.00%

-50.00%

0.00%

50.00%

2012 2011

Figure 2: Return On Equity

195.80% 86.28%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2012 2011

Figure 3:Total Liabilities-to-Equity Ratio

(338)

5

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

-

50

2012 2011

Figure 4:Profit Before Tax ($)

18.52% 5.47%

0.00%

5.00%

10.00%

15.00%

20.00%

2012 2011

Figure 1:Debt to Asset

0

2

4

6

8

10

12Return on Equity (pre tax)

Total Liabilities-to-Equity Ratio

Profit before tax growth



Figure 6:Risk Return Profile



PERFORMANCE STRESS SCENARIO (PSS) REPORT

%

6.2%

50.6%

30.9%

12.3%

COMPLIANT STATUS SUMMARY ..

STRESS TESTING RESULTS: IMPACT ON GEARING ..

-40.0% -30.0% -20.0% 0.0% 20.0% 30.0% 40.0%

-40.0% 18.52% 21.61% 24.69% 30.87% 37.04% 40.13% 43.21%

-30.0% 15.87% 18.52% 21.17% 26.46% 31.75% 34.39% 37.04%

-20.0% 13.89% 16.20% 18.52% 23.15% 27.78% 30.09% 32.41%

-10.0% 12.35% 14.40% 16.46% 20.58% 24.69% 26.75% 28.81%

0.0% 11.11% 12.96% 14.82% 18.52% 22.22% 24.08% 25.93%

10.0% 10.10% 11.79% 13.47% 16.84% 20.20% 21.89% 23.57%

20.0% 9.26% 10.80% 12.35% 15.43% 18.52% 20.06% 21.61%

30.0% 8.55% 9.97% 11.40% 14.25% 17.09% 18.52% 19.94%

40.0% 7.94% 9.26% 10.58% 13.23% 15.87% 17.20% 18.52%

RISK DRIVERS ..

Percentage Percentage

18.5% 15.0%

-275.8% -44.0%

195.8% 106.5%

-6300.7% 262.4%

-260.1% -262.1%

-260.1%


•

•

In every company, it is difficult to forecast the performance as it is being affected by various internal and external factors which are inherently subjective. What is critical is that

stakeholders should know the downside by adjusting the sales (downwards) and cost variables (upwards) at varying levels. From here, we have to note to what extent the firm is

able to weather balance sheet stresses, and assess the impact on performance. A firm that is able to handle balance sheet stresses are likely to be more sustainable than those

who can't.

This report is best used with other reports such as: Solvency Risk Exposures, Receivable Exposure indicator and Liquidity Status Indicator.

Profit Margin Rate of Sales Growth -44.0% Profit Margin Growth


Total Liabilities-to-Equity Total Liabilities-to-Equity 195.8% Rate of Cost Growth

Profit before tax growth Total liabilities growth vs sales growth 74.4% Cost/Sales Growth

Debt to Asset(Cash + Short Term Investment +

Other Investment)/Total Assets1.3%

(Cash + Net Receivables)/ Total

Assets

Return on Equity Current Liabilities Ratio 203.1% Rate of Sales Growth

Solvency Risk Exposures (SRE) Liquidity Status Indicator (LSI) Receivable Exposure Level (REL)

Ratio Ratio Percentage Ratio

13.89% 16.98%

12.82% 15.67%

11.91% 14.55%

25.46%

18.52% 22.63%

16.67% 20.37%

15.15% 18.52%

IMPACT ON

GEARING

Total Debts Changed By

-10.0% 10.0%

To

tal A

ss

et

Ch

an

ged

By

27.78% 33.95%

23.81% 29.10%

20.83%

38.97%

COMPLIANT COMPLIANT COMPLIANT NON-COMPLIANT COMPLIANT

Receivable

Exposure Level

(REL)


Total Assets


Total Assets


Total Assets





15.04% 15.04% 15.04% 38.97%

3.38%

COMPLIANT COMPLIANT COMPLIANT COMPLIANT COMPLIANT

Liquidity Status

Indicator (LSI)

(Cash + Short Term

Investment + Other


(Cash + Short Term

Investment + Other


(Cash + Short Term

Investment + Other


(Cash + Short Term

Investment + Other


Value

(Cash + Short Term

Investment + Other


Value

1.30% 1.30% 1.30% 3.38%

47.97%

COMPLIANT COMPLIANT COMPLIANT NON-COMPLIANT NON-COMPLIANT

Solvency Risk

Exposures (SRE)

Total Debt / Total Assets Total Debt / Total Assets Total Debt / Total AssetsTotal Debt /Average Market

Value


Value

18.52% 18.52% 18.52% 47.97%

S&P

Retail 2014 RM % of scenarios - Amber

% of scenarios - Red

Rating

Agencies

FTSE MSCI AAOIFI DJ

SAMPLE COMPANY Malaysia 5/11/2014 % of scenarios - Black

Industry: Latest Financial Year: Currency: % of scenarios - Emerald

Company Information Frequency of StressorsCompany Name: Market Listing Origin: Date of Report: Scenario Distribution



Industry:

Food Manufacturing

ACTION PLANCHECK

LIST

TARGETED

DATE

1Examine possibilities of structural drivers within the industry

and company that impact the revenue-cost structure of firm.

2Determine the cost of marketing and sales operations over

the years relative to sales growth.

3Obtain the supplier listings and analyse the relationships

and credit costs associated with each transaction.

4Evaluate across the value chain of processing and

delivering goods/services within the firm.

5

1Determine whether economic conditions or business

structure was responsible for the major reduction in sales.

2Examine whether there was still a demand for the firm's

products in their existing markets.

3

Assess whether the reduction was prompted by the

withdrawal of any significant client from their existing client

database.

4Assess whether there have been structural downward

changes in pricing expectations from customers.

5

Develop a database of historic and projected performance;

adjust for potential new sales anticipated and prepare an

indication of the likely trends emerging.

1 Assess the cost structure between the two periods.

2Evaluate major sources of revenue and detect for any

significant withdrawal of major clients during the period.

3Examine the primary and secondary inputs utilised to

generate profits for the firms.

4 Conduct price margin analysis between the two periods.

5Detect for any concentration risk of clients that resulted in

severe decline in profitability rate.

1Perform an analysis of the costs in the business, over the

two most recent financial years.

2

Perform an assessment of clients contribution to revenues

and determine whether any single or singinificant clients,

have materially affected the reduced level of sales.

3Inspect in detail the main and supporting contributors to

profits of the firm.

4

Evaluate the profit margins by prices of the various

products and/or services over the two most recent financial

years.

5Determine whether the severe decline in sales was as a

result of over reliance on a single client.

LIQUIDITY

STATUS

INDICATOR (LSI)

REPORT

SOLVENCY RISK

EXPOSURE (SRE)

REPORT

PERFORMANCE

STRESS

SCENARIO (PSS)

REPORT

DUE DILIGENCE REVIEW

There was a severe

decline in profit growth

rate compared with the

previous period.

In comparison with the

previous period for the

firm, profit growth for

the firm experienced a

severe decline.

It was significantly

much costlier to

service revenue

operations compared

to the previous year -

and may signify

fundamental

challenges in its

business model and

cost structure.

The firm experienced

significant reduction in

sales growth. This

indicated very

demanding

environment with

strong rivalry .

Business structure

may have also

changed within the

organisation and/or

industry, which

affected overall sales.

ROADMAP STATEMENT

Company Name:


Date of Report:

10 February 2015

RECEIVABLES

EXPOSURES

LEVELS (REL)

REPORT

IMPLEMENTATION PHASE ONE (I)



Industry:

Food Manufacturing

ACTION PLANCHECK

LIST

TARGETED

DATE

1Need to review the firm's product/service mix and their

contribution to profitability by product/service line.

2Assess the quality of clientele/customers and pricing

effectiveness.

3Seek information on the strategic direction of the firm and

assess its viability to turn around the profit trends.

4To check if there are any structural or one-off expenditures

that materially affect the firm's bottomline.

5Evaluate the quality of management running the firm's

revenue generating activities.

1Urgency to spread out the duration and lengthen the degree

of short-term financing.

2Check creditor listings and negotiate for longer-term

financing.

3Check for any occurrence of default payments or

delinquency in making payments to creditors.

4 Check the size and validate its asset base and its functions.

5

Evaluate existing relationships with creditors and check for

existence of supplier concentration or related-party

suppliers.

1Ascertain whether any one-time write-off of expenditures or

events occurred that impacted the income levels.

2Examine the breakdown of costs and assess how these

originated and trended over time.

3Go through detailed breakdown of pdts/services

contribution to the bottomline.

4Find out if any restructuring plans have taken place or

planning to take place for the firm.

5

Check if there is an exodus of shareholders and key

management team and/or divestment of assets taking

place.

1 Examine the state and quality of its fixed assets.

2Check for any signs of major absolescence for its current

assets.

3Evaluate historical trends of asset levels - both for fixed and

current levels.

4Query management on expansion plans or any

restructuring plans facing the company.

5Analyse the use of cash following the sale / reduction of

assets for the company ie. use to repay debts or expand.


Date of Report:

10 February 2015

IMPLEMENTATION PHASE TWO (II)

PERFORMANCE

STRESS

SCENARIO (PSS)

REPORT

Firm could have gone

through a restructuring

process or scaled

down its operations in

order to preserve its

profitability or maintain

going concern status.

Company Name:


ROADMAP STATEMENT

RECEIVABLES

EXPOSURES

LEVELS (REL)

REPORT

Profit margins have

severely declined -

major structural

challenges in the

operating environment

and business model

may be experienced

by the firm during the

period.

LIQUIDITY

STATUS

INDICATOR (LSI)

REPORT

Very high exposure to

short-term

creditors/financing to

support asset base -

extremely high

frequency dealings to

manage creditors to

meet working capital

orders.

SOLVENCY RISK

EXPOSURE (SRE)

REPORT

Severe net losses

were experienced-

highly inadequate

revenue levels and

overall inefficient cost

structure. The firm's

pricing strategies and

its ability to control

costs were ineffective.

Valuation for the firm

based on earnings

would be severely

affected.



Industry:

Food Manufacturing

ACTION PLANCHECK

LIST

TARGETED

DATE

1Ascertain whether the major decline is due to structural or

cyclical (seasonal) effects.

2Further examine the relevance and demand of the firm's

products in the marketplace.

3Obtain listings of key clients and ascertain whether any

pullout from any of its customers that caused the decline.



5Gather past performance data and future estimates on

pipelines and orders for a longer trend analysis.

1 Seek more information on sources of revenue from the firm.

2Establish causes-and-effects for potential sales volatility in

the past few years.

3Evaluate payment trends to its creditors - both short and

long-term.

4Examine the firm's access to trade finance and long-term

financing facilities.

5 Obtain insights on the firm's liability management process.

1Ascertain whether the losses are due to structural or

cyclical (seasonal) effects.

2Further examine the relevance and demand of the firm's

products in the marketplace.

3Obtain listings of key clients and ascertain whether any

pullout from any of its customers that caused the decline.



5Gather past performance data and future estimates on

pipelines and orders for a longer trend analysis.

1Examine how the fixed and variable costs have trended

over the years - relative to assets.


contribution to the bottomline in the last 5 years.


planning to take place for the firm during the period.

4Determine the extent of how they manage their working

capital to generate profits in past years.

5Ascertain the current condition and quality of the firm's

assets.


Date of Report:

10 February 2015

IMPLEMENTATION PHASE THREE (III)

PERFORMANCE

STRESS

SCENARIO (PSS)

REPORT

The ability of the firm

to generate more

profits from its assets

compared to the

previous year had

significantly declined.

Company Name:


ROADMAP STATEMENT

RECEIVABLES

EXPOSURES

LEVELS (REL)

REPORT

The firm experienced

sharp decline in sales

growth. This signified

highly challenging and

competitive

environment .

Structural changes

may have also

occurred within the

firm and/or industry

which affected topline.

LIQUIDITY

STATUS

INDICATOR (LSI)

REPORT

The firm's liability

growth has been fairly

aggressive as

compared with its

sales during the

period. Some degree

of reliance on gearing.

SOLVENCY RISK

EXPOSURE (SRE)

REPORT

Severe losses to

shareholders were

attained during the

period. There were

substantially negative

returns attributable to

shareholders. The

overall valuation of the

firm could be severely

suppressed during the

period.



Industry:

Food Manufacturing

ACTION PLANCHECK

LIST

TARGETED

DATE

1List down the variable and fixed costs in the last 24 months

and evaluate the trends.

2 Distinguish between one-off and ongoing costs.

3Obtain more information on the cost of materials / labour

and compare against previous levels.

4Identify any capital and revenue expenditure of the firm -

that is linked to reearch and development costs.

5

Compare and measure marketing and business

development costs against the sales performance during

the period.

1Discuss with management on liability restructuring plans, if

any.

2Gain more insights into the liability duration structure and

cost of financing for firm.

3Assess going concern of firm and establish if the firm can

improve its asset-liability management.

4Discuss with management on liability restructuring plans, if

any.

5Evaluate any existing plans to boost equity position into the

firm.

1Discuss with management on the potential for leveraged

recapitalisation or debt restructuring in the business.

2

Determine whether the liability in the firm is short-term or

long-term and what it is costing the firm to maintain this

level of debt in the business.

3

Perform an analysis to determine whether the existing level

of debt is threatening the on-going nature of the firm and

assess to what extent its asset-liability management can

4

Determine whether the liability in the firm is short-term or

long-term and what it is the cost to the firm, to maintain this

level of debt in the business.

5Examine the potential to restructure the firm in order to

increase the equity level in the business.

1Examine how the fixed and variable costs have trended

over the years - relative to assets.


contribution to the bottomline in the last 5 years.


planning to take place for the firm during the period.

4Determine the extent of how they manage their working

capital to generate profits in past years.

5Ascertain the current condition and quality of the firm's

assets.


Date of Report:

10 February 2015

IMPLEMENTATION PHASE TWO (II)

PERFORMANCE

STRESS

SCENARIO (PSS)

REPORT

The capacity of the

firm's assets to

generate profits was

highly limited. It

appeared unable to

utilise its assets to

generate basic

minimum of

profitability.

Company Name:


ROADMAP STATEMENT

RECEIVABLES

EXPOSURES

LEVELS (REL)

REPORT

Strong surge in costs

experienced by the

firm. There could be

structural changes in

their operating model

that resulted in this

trend.

LIQUIDITY

STATUS

INDICATOR (LSI)

REPORT

The firm's total liability

exposure was

somewhat high relative

to its shareholder

equity level during the

period. Shareholder's

funds could be

inadequate to cover all

of the firm's

obligations.

SOLVENCY RISK

EXPOSURE (SRE)

REPORT

The shareholder equity

level of the firm was

somewhat low

compared to it's total

liability exposure

during the period. If

the firm's shareholder

funds are

overwhelmed by its

liability levels, it could

be faced with valuation

risk.



PROJECT ANALYSIS: RISK-RETURN REPORT

PROJECT: SAMPLE CUSTOMER COUNTRY: MALAYSIA

REMARKS: N/A CURRENCY: RM

PROJECT FINANCIAL ..

RM

Project 35,240 Investment 6 MONTHS

Gross Profit 60.0% of PA 21,144 Investment 825

Investable 60.0% of GP 12,686 Total 13,511

Maximum 11.5% of IA 2,432 Total 6.50%

Annualised 13.00%

RELATIONSHIP

MANAGER

PORTFOLIO

MANAGERINVESTOR TOTAL

2,432

1.5% of Gross Profit 317 (317)

1.5% of Gross Profit 317 (317)

1.0% of Gross Profit 211 211 (423)

1,374

20.0% 20.0% 60.0% 100.0%

275 275 825 1,374

803 803 825 2,432

3.90%

6.50%

13.00%

1 DAY 7 DAYS 14 DAYS 21 DAYS

5.0% of Gross Profit 50 352 705 1,057

PROJECT

OWNER (PO)

RELATIONSH

IP MANAGER

PORTFOLIO

MANAGERINVESTOR TOTAL

12,686

60.0% 7,612 275 275 4,525 12,686

93.5% 11,862 275 275 275 12,686

50.0% 6,343 275 275 5,793 12,686

Client Default

Deliverable Failure

Force Majeure

Net Investment Profit

Profit Sharing Ratio (% of Net Investment Profit)

Profit Sharing Amount

Total Amount Payable to Related Parties

Total Investment Return (% of Investable Amount)

Annualised Investment Return (% p.a.)

Late Charges (Variable)

Exposure at Default (EAD)

ADDITIONAL ON LATE CHARGES (BY NO. OF DAYS):

DELAY SCHEDULE

LOSS-SHARING SCHEDULE

Penalty Factor for PO shared with Investor

Total Amount Payable

Less: Advisory Fees

Less: Investment Management

Fees

Less: Administration Fees II

Profit Sharing (Net of Professional Fees)



SHARIAH ANALYSIS: 360° EVALUTION REPORT

SAMPLE COMPANY Score: 68.01%

Retail Rating: 4.40

COMPANY'S OVERALL BUSINESS POSITIONING 5.74

1 No more than 5% (turnover and PBT) - riba, gambling, liquor and pork. 4.00

2 No more than 10% (turnover and PBT) - "umum balwa"; fixed deposits, tobacco. 8.00

3No more than 25% (turnover and PBT) - "maslahah" - hotel and resort operations, share trading,

stockbroking.5.00

4 The risks levels via the selected strategies are not excessive. 5.00

5 Public perception or image of the company is good. 4.00

6Core activities - elements of maslahah to the ummah, country and ensuring rights to non-Muslims are

not impeded.6.00

5.50

1 Extent of exposures to alcohol, gambling and/or with speculative nature. 4.00

2 Competency/productivity to meet customer needs. 6.00

3 Availability of sources of manpower to meet operation needs. 1.00

4 Formation of committee/project team to execute plans/campaigns. 4.00

5 Diversified sources of revenue streams (more than 2). 5.00

6 Enterprise structure is well defined and in place to achieve the goals. 9.00

PROJECTS UNDERTAKEN 3.75

1 Borrowings free from riba-based? (no more than 10% of balance sheet size?). 4.00

2Operations: risk management – uncertainty: spot/futures / hedging, insurance/takaful, employees,

inventories.2.00

3 Revenue generation - not tainted with illegal, unlawful or unIslamic processes. 3.00

4 Financials: zakat, accounting standards (AAOIFI), Bank account. 6.00

COMMUNITY / SOCIAL FOCUS 3.70

1 Proportion of marginalised personnel employed. 1.00

2 Proportion of qualified, able Muslim/non-Muslim employees in key functions. 4.00

3 Proportion of qualified, able Muslim/non-Muslim employees in non-key functions. 4.00

4 Degree of skillset portability of personnel within/across same industry. 5.00

5 Network and relationships available for channel employment. 2.00

6 Average duration of marginalised employees within the organisation. 3.00

7 Welfare, compensation and benefits plans in existence. 4.00

8Development of clear career progression plan, including equal employment opportunities plan for non-

Muslims.6.00

BALANCE SHEET STRUCTURE, MIX AND STRATEGIES (FINANCIAL RISKS) 3.90

1 Adequacy of cash balance in reducing uncertainty and risks. 4.00

2 Proportion of debtors relative to total assets. 1.00

3 No proportion of short-term liabilities relative to balance sheet. 5.00

4 No interest-bearing loans forming a significant portion of balance sheet. 2.00

5 No interest-bearing assets forming a significant portion of balance sheet. 5.00

6 Elements of hedging and currency mechanisms are done within permissible Shariah guidelines. 2.00

7 Company does not engage in forward / spot contracts or derivatives excessively. 6.00

8 Debt-financing contracts in line with Shariah principles. 6.00

9 Equity-financing contracts in line with Shariah principles. 3.00

10 Policies, procedures and oversight are in place to mitigate financial risks. 5.00

PRODUCTS, SERVICES AND ACTIVITIES (OPERATIONAL RISKS)





Retail Rating: 4.40

REVIEW OF CLIENTS / CUSTOMERS 4.00

1 No unfair advantage given to any single party for the purpose of transacting and dealing with the

company i.e. there is a proper tendering and bidding process.4.00

2 No uncertainty in the way goods are being ordered, delivered to the company/client (documentation is

adequate, complete and accurate).6.00

3The profile of the customer is within permissible activities – public perception and image of the

company is good.1.00

4Materials used/goods ordered from suppliers (supplied to customers) must not be of substandard

quality that is detrimental to the company’s customers.3.00

5Freedom to contract – there is no conflict of interest with any members of the organization that it is

transacting with.4.00

6 No concentration of customers in the company's business (no more than 20% per client). 6.00

7 Timely delivery is made to the customers. 2.00

8Compensation (ta’widh) for late payment is in accordance within Shariah guidelines (no elements of

interest-on-interest/cumulative effects on amount outstanding i.e. capitalization of interest).6.00

9 Diversified client/project portfolio by types managed by the organisation. 5.00

10 Penalties imposed for delinquent clients in line with Shariah principles. 3.00

SUPPLIER / CREDITOR MIX 4.40

1No unfair advantage given to any single party for the purpose of transacting and dealing with the

company i.e. there is a proper tendering and bidding process.3.00

2No uncertainty in the way goods are being ordered, delivered to the company/client (documentation is

adequate, complete and accurate).4.00

3The profile of the supplier (customer) is within permissible activities – public perception and image of

the company is good.2.00

4Materials used/goods ordered from suppliers (supplied to customers) must not be of substandard

quality that is detrimental to the company’s customers.5.00

5Freedom to contract – there is no conflict of interest with any members of the organization that it is

transacting with.6.00

6 No concentration of suppliers in the company's business (no more than 20% per client). 3.00

7 Timely payment is made to the suppliers (timely delivery is made to the customers). 6.00

8Compensation (ta’widh) for late payment is in accordance within Shariah guidelines (no elements of

interest-on-interest/cumulative effects on amount outstanding i.e. capitalization of interest).6.00

9 Diversified client/project portfolio by types managed by the organisation. 6.00

10 Penalties imposed for delinquent clients in line with Shariah principles. 3.00





Retail Rating: 4.40

STAKEHOLDER MANAGEMENT AND RELATIONS 3.80

1 Regular board meetings are conducted to review issues raised by stakeholders. 6.00

2 Existence of an independent panel/counsel to ensure timely and accurate reporting. 4.00

3 Strategies undertaken by management are not saddled with uncertainty. 3.00

4 Projections set by management can be reasonably achieved (not misleading shareholders). 1.00

5 Issuance and distribution of ordinary shares - are allocated, issued and managed well. 3.00

6Succession planning – distribution and allocation of shares to relevant, assigned parties are done in

accordance with the fara’id guidelines.2.00

7

Redeemable Preference Shares: fixed dividend element removed, but priority over ordinary

shareholders in dividend distribution and liquidation retained (unless proportion is based on profits

earned during the period – proportion needs to be predetermined, but not the figure at the onset).

6.00

8Structure in place to communicate updates and developments to stakeholders in an accurate, timely

manner.6.00

9 Issues arising from grievances from stakeholders are adequately addressed and documented. 4.00

10 The company is involved in community/CSR activities - benefiting the community. 3.00

SPV AND COMPANY STRUCTURE 3.80

1Transparency of relationships between stakeholders especially between the company and the

shareholders and/or directors.1.00

2All material related party transactions are properly disclosed, conducted in an arms length transaction –

that has been approved and authorised by the Board.3.00

3 Occurrences of conflicts of interest are identified, minimized and resolved. 4.00

4 Segregation of duties amongst key officers is observed and procedures/policies are clearly formulated. 5.00

5

Core activities of the company are within permissible activities, and the public perception or image of

the company is good – core activities of the company are important and considered maslahah to the

Muslim and the country.

3.00

6JV, management or shareholders agreement must be able to fulfill the musyarakah, embodying the fair

and equitable principles in the agreement.2.00

7

Activities of shareholders comprise of permissible activities, and the public perception or image of the

shareholders’ companies must be good – core activities of the company are important and considered

maslahah to the Muslim and the country.

5.00

8

Management team is appropriately incentivised via Profit-Loss Sharing (PLS) mechanism

(mudharabah) to carry out the core activities of the company to prevent agency costs and improve

productivity.

4.00

9Minority shareholders – treatment and policies on Minority Interest (MI) are fair and just (not

oppressive).5.00

10 Regular board meetings are conducted to review issues raised by stakeholders. 6.00





Retail Rating: 4.40

PLANS / POLICIES FOR SHARIAH INFRASTRUCTURE 4.30

1 Treatment of shareholders, rights resulting from interest income. 6.00

2 Treatment of loans and advances with interest. 1.00

3 Treatment of deposits with interest. 4.00

4 Training programmes for senior management and all employees. 3.00

5 Modification/revision of computer systems to facilitate Islamic transactions. 6.00

6 Implementation of a strategy to deal with mismatch in sources and uses of funds. 4.00

7 Selective recruitment of personnel with Islamic banking and finance experience. 5.00

8 Restructuring plan of firm - facilitate new activities and assign employees to new structure. 6.00

9 Adoption of Islamic products and various modes of Islamic financing. 2.00

10 Re-assignment of employees to function in the revised stucture, with training needs. 6.00


MyFinB™ Scorecard



Retail Rating: 4.40

OVERALL SHARIAH ANALYSIS (SA) SCORE

CHARTS FOR INDIVIDUAL SA SUB-SCORE

PROJECTS UNDERTAKEN

COMPANY'S OVERALL BUSINESS POSITIONING PRODUCTS, SERVICES AND ACTIVITIES (OPERATIONAL

RISKS)

COMMUNITY / SOCIAL FOCUS

BALANCE SHEET STRUCTURE, MIX AND STRATEGIES

(FINANCIAL RISKS)

REVIEW OF CLIENTS / CUSTOMERS

5.74

5.5

3.75

3.7

3.9

4

4.4

3.8

3.8

4.3

0 1 2 3 4 5 6

COMPANY'S OVERALL BUSINESS POSITIONING

PRODUCTS, SERVICES AND ACTIVITIES (OPERATIONAL RISKS)

PROJECTS UNDERTAKEN


BALANCE SHEET STRUCTURE, MIX AND STRATEGIES (FINANCIAL RISKS)


SUPPLIER / CREDITOR MIX

STAKEHOLDER MANAGEMENT AND RELATIONS

SPV AND COMPANY STRUCTURE

PLANS / POLICIES FOR SHARIAH INFRASTRUCTURE

4

6

1

4

5

0 1 2 3 4 5 6

Extent of exposures to alcohol, gamblingand/or with speculative nature.

Competency/productivity to meet customerneeds.

Availability of sources of manpower to meetoperation needs.

Formation of committee/project team toexecute plans/campaigns.

Diversified sources of revenue streams (morethan 2).

Enterprise structure is well defined and inplace to achieve the goals.

4

2

3

6

0 1 2 3 4 5 6

Borrowings free from riba-based? (no morethan 10% of balance sheet size?).

Operations: risk management – uncertainty: spot/futures / hedging, insurance/takaful,

employees, inventories.

Revenue generation - not tainted with illegal,unlawful or unIslamic processes.

Financials: zakat, accounting standards(AAOIFI), Bank account.

1

4

4

5

2

3

4

6

0 1 2 3 4 5 6

Proportion of marginalised personnel employed.

Proportion of qualified, able Muslim/non-Muslimemployees in key functions.

Proportion of qualified, able Muslim/non-Muslimemployees in non-key functions.

Degree of skillset portability of personnel within/acrosssame industry.

Network and relationships available for channelemployment.

Average duration of marginalised employees within theorganisation.

Welfare, compensation and benefits plans in existence.

Development of clear career progression plan,including equal employment opportunities plan for…

4

1

5

2

5

2

6

6

3

5

0 1 2 3 4 5 6

Adequacy of cash balance in reducing…

Proportion of debtors relative to total assets.

No proportion of short-term liabilities relative…

No interest-bearing loans forming a…

No interest-bearing assets forming a…

Elements of hedging and currency…

Company does not engage in forward / spot…

Debt-financing contracts in line with Shariah…

Equity-financing contracts in line with…

Policies, procedures and oversight are in…

4

6

1

3

4

6

2

6

5

3

0 1 2 3 4 5 6

No unfair advantage given to any single party for the…

No uncertainty in the way goods are being ordered,…

The profile of the customer is within permissible …

Materials used/goods ordered from suppliers …

Freedom to contract – there is no conflict of interest …

No concentration of customers in the company's…

Timely delivery is made to the customers.

Compensation (ta’widh) for late payment is in …

Diversified client/project portfolio by types managed…

Penalties imposed for delinquent clients in line with…

4

5

5

4

6

0 1 2 3 4 5 6

No more than 5% (turnover and PBT) - riba, gambling,liquor and pork.

No more than 10% (turnover and PBT) - "umum balwa";fixed deposits, tobacco.

No more than 25% (turnover and PBT) - "maslahah" -hotel and resort operations, share trading, stockbroking.

The risks levels via the selected strategies are notexcessive.

Public perception or image of the company is good.

Core activities - elements of maslahah to the ummah,country and ensuring rights to non-Muslims are not

impeded.


MyFinB™ Scorecard



Retail Rating: 4.40

CHARTS FOR INDIVIDUAL SBV SUB-SCORE

SPV AND COMPANY STRUCTURE PLANS / POLICIES FOR SHARIAH INFRASTRUCTURE

SUPPLIER / CREDITOR MIX STAKEHOLDER MANAGEMENT AND RELATIONS

5.74

5.5

3.75

3.7

3.9

4

4.4

3.8

3.8

4.3

COMPANY'S OVERALL BUSINESSPOSITIONING

PRODUCTS, SERVICES AND ACTIVITIES(OPERATIONAL RISKS)

PROJECTS UNDERTAKEN


BALANCE SHEET STRUCTURE, MIX ANDSTRATEGIES (FINANCIAL RISKS)


SUPPLIER / CREDITOR MIX

STAKEHOLDER MANAGEMENT ANDRELATIONS

SPV AND COMPANY STRUCTURE

PLANS / POLICIES FOR SHARIAHINFRASTRUCTURE

3

4

2

5

6

3

6

6

6

3

0 1 2 3 4 5 6

No unfair advantage given to any single…

No uncertainty in the way goods are being…

The profile of the supplier (customer) is …

Materials used/goods ordered from suppliers …

Freedom to contract – there is no conflict of …

No concentration of suppliers in the…

Timely payment is made to the suppliers…

Compensation (ta’widh) for late payment is …

Diversified client/project portfolio by types…

Penalties imposed for delinquent clients in…

6

4

3

1

3

2

6

6

4

3

0 1 2 3 4 5 6

Regular board meetings are conducted to…

Existence of an independent panel/counsel…

Strategies undertaken by management are…

Projections set by management can be…

Issuance and distribution of ordinary shares…

Succession planning – distribution and …

Redeemable Preference Shares: fixed …

Structure in place to communicate updates…

Issues arising from grievances from…

The company is involved in…

1

3

4

5

3

2

5

4

5

6

0 1 2 3 4 5 6

Transparency of relationships between…

All material related party transactions are …

Occurrences of conflicts of interest are…

Segregation of duties amongst key officers is…

Core activities of the company are within …

JV, management or shareholders agreement…

Activities of shareholders comprise of …

Management team is appropriately…

Minority shareholders – treatment and …

Regular board meetings are conducted to…

6

1

4

3

6

4

5

6

2

6

0 1 2 3 4 5 6

Treatment of shareholders, rights resulting…

Treatment of loans and advances with…

Treatment of deposits with interest.

Training programmes for senior…

Modification/revision of computer systems…

Implementation of a strategy to deal with…

Selective recruitment of personnel with…

Restructuring plan of firm - facilitate new…

Adoption of Islamic products and various…

Re-assignment of employees to function in…


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