Chan Teck Loo Sdn Bhd was established in 2003. It supplies various types of medical lab equipment and tools for hospitals in Malaysia. On 01 March 2015, the company obtained the following financing package from Elite Bank to finance its business operations: - FACILITY AMOUNT TENURE CONTRACT Revolving Working Capital Fixed asset financing (a) (b) (c) (d) (c) RM400,000 RM1,000,000 3 years 10 years Murabahah Tawarruq PURPOSE To finance working capital requirement To finance purchase factory building For fixed asset financing, the factory building is taken as a collateral to secure the financing. Explain what is the security document required and its main content. Explain the importance of conducting a Credit Review after the disbursement of the above financing. On 31 March 2016, for the first time, the company failed to pay the monthly instalment of the fixed asset financing. The payment was overdue for 31 days. Explain the status of the fixed asset financing in accordance with the Guidelines for Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of Malaysia, dated 16 April 2015. On 30 April 2016, the bank conducted a site visit and found that the business was still in operation. However, the company suffered a reduction in its net profit due to the increase in the imported raw materials cost. This had impacted its ability to pay the full installment amount. Suggest what action can be taken by Elite Bank to assist the customer. Support your recommendation with TWO (2) justifications. Assume that based on your recommendation in part (d) above, the company had improved its repayment record and paid the monthly installment promptly. However, 2 years later, on 11 May 2018, a local newspaper reported that Dato' Chan, who was the main shareholder and key person of the business was arrested due to his alleged involvement in money laundering activities. Explain the status of the fixed asset financing in accordance with the Guidelines for Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of Malaysia, dated 16 April 2015. Chan Teck Loo Sdn Bhd was established in 2003. It supplies various types of medical lab equipment and tools for hospitals in Malaysia. On 01 March 2015, the company obtained the following financing package from Elite Bank to finance its business operations: - FACILITY AMOUNT TENURE CONTRACT Revolving Working Capital Fixed asset financing (a) (b) (c) (d) (c) RM400,000 RM1,000,000 3 years 10 years Murabahah Tawarruq PURPOSE To finance working capital requirement To finance purchase factory building For fixed asset financing, the factory building is taken as a collateral to secure the financing. Explain what is the security document required and its main content. Explain the importance of conducting a Credit Review after the disbursement of the above financing. On 31 March 2016, for the first time, the company failed to pay the monthly instalment of the fixed asset financing. The payment was overdue for 31 days. Explain the status of the fixed asset financing in accordance with the Guidelines for Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of Malaysia, dated 16 April 2015. On 30 April 2016, the bank conducted a site visit and found that the business was still in operation. However, the company suffered a reduction in its net profit due to the increase in the imported raw materials cost. This had impacted its ability to pay the full installment amount. Suggest what action can be taken by Elite Bank to assist the customer. Support your recommendation with TWO (2) justifications. Assume that based on your recommendation in part (d) above, the company had improved its repayment record and paid the monthly installment promptly. However, 2 years later, on 11 May 2018, a local newspaper reported that Dato' Chan, who was the main shareholder and key person of the business was arrested due to his alleged involvement in money laundering activities. Explain the status of the fixed asset financing in accordance with the Guidelines for Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of Malaysia, dated 16 April 2015