*Credit Evaluation
conduct your credit assesment. For this purpose, you are required to conduct the Cash and Capital assesment for Eco world Development Group Berhad under the companies Act 2016
Youre the Head of Bus ns Financing (Team 1)of_ Bank Berhad (please refer to be Figure 1) Facing the beach to the Semi D You are the Head of Business Financing (Team 1) of.... Bank Berhad (please refer to the "Instruction" at page 2. Your team has been assigned to evaluate the viability and propose a suitable financing structure for new tourism area development, namely, Eco Paradise at Lumut and Pangkor Island, Perak. The project is owned by Eco World Development Group Berhad. Eco World is well known on their Greenish Initiatives which had received many awards (Note: We use Eco World Development Group Berhad as an example for the evaluation exercise only. This case of area development is an example only and not the real case of project undertaken by Eco World Development Group Berhad). The whole development involves 65 acres of land which located located at two places i.e. 35 acres of mainland (Lumut) and 30 acres of the Pangkor Island (refer to the map below). The project is estimated to be completed within 3 years, from February 2019. Currently, the are at Pangkor Island is a small jungle. Site clearance needs to be done and the process is expected to be completed in 2 months. The total cost of the site clearance is RM900, ooo.o0. After the site is cleared, then only the proposed development which consists of the development of four- star hotel, jetty and access road from the jetty to the resort can be proceeded. At the same time, there are several commercial and residential projects will be developed at Pangkor Island. The whole development is as follows (refer to Table 1 and Figure 1): Table 1: List of projects under Eco Paradise No Types of Development Project CostDevelopment 1. Resort (4 star) which consist200,000,000 24 months (RM) Period Pangkor Island of 230 rooms, exclusive dining restaurant, spa, gym, swimming pool. (a) Construction cost (60% | 97,000,000 of the construction materials will be imported from Japan, China and Indonesia) Interior and furniture (70% of the materials will be imported from Korea and China) (b) 55,000,000 2. Construction of New Modern 2,400,000 12 months Pangkor Island Jetty 3. Upgrading of existing jetty 4.500,00015 months Jetty Note: This project obtained via contract award of RM4.8 million from the Tourism Ministry. The project is to upgrade the existing jetty and also to expand the jetty size to cater bigger operations capacity. 4. New Ferry 1,800,00o 6. Residential area -30-unit 44,000,000 18 months Mainland - Lumut double storey Semi D houses Facing the beach Residential area 2 blocks of170,000,000 36 months Mainland-Lumut 15-storey condominium next to the Semi D Mainland- Lumut 8. Commercial area-1 block of 2- 10,000,000 24months storey building which consist of 20-unit shop/office lot 9. Commercial area-SME Halal Mainland Lumut 30,000,000 24 months Hub, which is divided into 2 sections (i) Sea Collection, Processing and Packaging Center 20 lots (Pusat Pengumpulan, pemprosesan pembungkusan hasil laut Note: This project is awarded by the Ministry of Agriculture and Industry Malaysia with a contract value of RM35 million Agro-Based dan (ii) Sales Centre mainly to market products from (i) above- 20 shop lots. 10 Beautification of Pangkor 20,000,0 12 months Mainland- Lumut Island Beach for tourism purposes Note: This project is awarded by the State government with a contract value of RM25 million Total 2,075,200
