MIRA INFORM REPORT

Report Date :

29.08.2011

IDENTIFICATION DETAILS

Name :	PAN-CENTURY OLEOCHEMICALS SDN. BHD.
Registered Office :	Lot 231, Jalan Pekeliling Pasir Gudang Industrial Estate Pasir Johor 81700
Country :	Malaysia
Financials (as on) :	30.06.2010
Date of Incorporation :	29.01.1988
Com. Reg. No.:	168193-W
Legal Form :	Private Limited Company Limited By Shares
Line of Business :	Manufacturing of oleochemical products.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 4,000,000
Status :	Good
Payment Behaviour :	Usually Correct
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

IDENTIFICATION DETAILS

Verified Address

Subject name : PAN-CENTURY OLEOCHEMICALS SDN. BHD.

Business address : Lot 231, Jalan Pekeliling

Pasir Gudang IndustrialEstate

Town : Pasir Gudang Province : Johor Zip/postal code : 81700

Country : Malaysia

Tel : +60 7 2512298

Fax : +60 7 2512634

Email : sales@ioioleo.com

Website : www.ioioleo.com

Registered address : Two IOI Square, IOI Resort

Town : Putrajaya

Province : Wilayah Persekutuan

Zip/postal code : 62502

_{Country : Malaysia}

SUMMARY DETAILS

Executive Summary

Date founded or registered : 29/01/1988

Legal form : Private Limited Company Limited By Shares

Chief executive : Dato Lee Yeow Chor

Issued & paid up capital : MYR 22,000,000

Sales turnover : MYR 496,845,696 (Non-Consolidated 12 months, 30/06/2010) Net income : MYR 4,792,226 (Non-Consolidated 12 months, 30/06/2010) Total fixed assets : MYR 172,948,251 (Non-Consolidated 12 months, 30/06/2010) Line of business : Manufacturing of oleochemical products.

_{Staff employed : 30,000 (IOI Group)}

CREDIT RISK OPINION

Credit Risk Interpretation

Credit risk rating : GOOD

Credit risk theory : Sound financial and operational base. Small to medium credits may be considered with confidence that the commitment will be sustained in almost all cases. This is based on criterions such as years of establishment, number of employees, sales turnover, profit after tax, total assets, reserve, and others. Normal credit control policy applies.

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is progressing Management experience : Management is adequately experienced Financial performance : Financial performance is very good Organisation structure : Organisational structure is stable Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 4,000,000}

Credit amount asked : Not described.

Comments : Larger credit can still be considered. The Subject is well positioned in the market and the financial stability of the group is positive.

STATUTORY DETAILS

Registry Data

Registration date : 29/01/1988

Legal form : Private Limited Company Limited By Shares

Registration no 168193-W

Registered authority : Companies Commission of Malaysia

Registry status : Live/Active

Previous name : The Subject was established under the name USAHA JERNIH SDN. BHD. on

29-01-1988 and changed to current style on 09-03-1989.

_{Change of legal form : None reported.}

MANAGEMENT / DRECTORS

Key Management

Name : Dato Lee Yeow Chor Designation : Chief Executive Officer Name : Lee Sing Hin Designation : Executive Director

Name : Gurdev Singh A/L Darshan Singh

Designation : Operations Director Name : Tan Kean Hua Designation : Chief Operating Officer

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Tan Sri Dato Lee Shin Cheng @ Lee Leong

Designation : Director

Identification no : 390603-10-5263

Appointment date : 26/01/07

Address : No 8, Lingkungan 3

Diamond Hill

IOI Resort, 62502 Putrajaya Wilayah Persekutuan Malaysia

Biography : Tan Sri Dato’ Lee Shin Cheng is an entrepreneur with considerable experience in the plantation and property development industries. In February 2002, he was conferred the Honorary Doctorate Degree in Agriculture by Universiti Putra Malaysia in recognition of his contributions to the palm oil industry. In 2006, Tan Sri was conferred the Fellowship of the Incorporated Society of Planters (“FISP”) by Malaysia’s ISP. In October 2008, Tan Sri was conferred Honorary Fellowship of the Malaysian Oil Scientists’ and Technologists’ Association (“MOSTA”) for his outstanding contributions to agriculture, in particular the oleochemical and specialty oils and fats. Tan Sri is currently a Council Member of the East Coast Economic Region Development Council (“ECERDC”).

Tan Sri Dato Lee Shin Cheng is the father of Dato’ Lee Yeow Chor and Lee Yeow Seng, both Directors of the Company.

Name : Dato Lee Yeow Chor

Designation : Director

Identification no : 661129-10-5443

_{Appointment date : 26/01/07}

Address : 6,Jalan Baverly Utama

IOI Resort, 62502 Putrajaya Wilayah Persekutuan Malaysia

Biography : Dato’ Lee is a barrister from Gray’s Inn, London and holds a LLB (Honours) from King’s College London and a Postgraduate Diploma in Finance and Accounting from London School of Economics.

Name : Lee Yeow Seng

Designation : Director

Identification no : 781223-14-5501

Appointment date : 26/01/07

Address : No 8, Lingkungan 3

Diamond Hill

IOI Resort, 62502 Putrajaya Wilayah Persekutuan Malaysia

Biography : Lee Yeow Seng holds a LLB (Honours) from King’s College London and was admitted to the Bar of England & Wales by Inner Temple. Lee Yeow Seng is the youngest son of Tan Sri Dato’ Lee Shin Cheng and the brother of Dato’ Lee Yeow Chor.

Name : Gurdev Singh A/L Darshan Singh

Designation : Director

Identification no : 580323-01-6079

Appointment date : 18/04/11

Address : No 7,Jalan Kuel

80300 Johor Bahru

Johor

Malaysia

Name : Tan Kean Hua

Designation : Director

Identification no : 640202-10-5499

Appointment date : 15/01/11

Address : No.14, Jalan 31/74B Kota Kemuning

40460 Shah Alam Selangor Darul Ehsan Malaysia

Name : Yap Chon Yoke

Designation : Company Secretary

Identification no : 580106-10-5550

Appointment date : 26/01/07

Address : 40,Jalan SS 2/100

47300 Petaling Jaya Selangor Darul Ehsan Malaysia

Name : Lee Ai Leng

Designation : Company Secretary

Identification no : 651116-05-5038

Appointment date : 26/01/07

Address : No 3,Jalan BK 6B/13

Bandar Kinrara

47180 Puchong Selangor Darul Ehsan Malaysia

Staff employed : 30,000 (IOI Group)

Key Advisors

Auditors : BDO

Chartered Accountants

12th Floor, Menara Uni.Asia

1008, Jalan Sultan Ismail

50250 Kuala Lumpur

_Malaysia

SHARE CAPITAL

Composition

Authorized Capital : MYR 40,000,000

No of shares : 30,000,000 Ordinary Shares / 10,000,000 8% Redeemable Cumulative

Preference Shares

Share par value : MYR 1

Issued capital : MYR 22,000,000

_{Paid up capital : MYR 22,000,000}

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : IOI CORPORATION BERHAD Address : Two IOI Square

IOI Resort

62502, Putrajaya Wilayah Persekutuan Malaysia

_{% of shares : 100%}

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Name : IOI CORPORATION BERHAD Affiliation type : Parent Company

Address : Two IOI Square

IOI Resort

62502, Putrajaya Wilayah Persekutuan Malaysia

Comments : The company is listed on the Kuala Lumpur Stock Exchange.

IOI Corporation Berhad, an investment holding company, engages in the cultivation of oil palm and rubber, as well as processing of palm oil in Malaysia and internationally. The company involves in manufacturing, refining, and processing of fatty acids, glycerine, soap noodles, and fatty esters; processing, producing, and trading of oil palm related by-products, as well as palm-based renewable energy generation using biomass; operating a palm oil refinery and kernel crushing plant; and processing and selling of palm kernel oil derived specialty fats and related products. It also manufactures oleochemical products, metallic stearates, fatty alcohol, methyl esters, plasticizer, and other chemical products; and sells ornamental plants and turfing grass. In addition, the company develops, manages, and operates hotels and resorts; and provides building, engineering, construction, golf and recreational club, building maintenance, landscape, tolling, and management services. Further, it issues exchangeable bonds and guaranteed notes; cultivates soft wood timber; manufactures and trades specialty oils and fats; develops, produces, and commercializes nutritional lipid ingredients for the dietary supplement and food industry; manages the collection of service charges; and produces emulsified raw materials and semi finished goods on oils and fats. Additionally, IOI Corporation procures and develops raw material for specialty fats application; invests in shopping malls, office complexes, and other properties; trades and markets food-based products; engages in bulk cargo warehousing and rental of storage tanks; develops residential and commercial properties; and trades in commodities. The company was formerly known as Industrial Oxygen Incorporated Sdn Bhd and changed its name to IOI Corporation Berhad in March 1995. IOI Corporation Berhad was incorporated in 1969 and is based in Putrajaya, Malaysia.

Name : IOI SPECIALITY FATS SDN BHD Affiliation type : Sister Company

Address : Malaysia

Comments : Commodities trading and palm oil refinery and palm kernel fractionation.

Name : IOI COMMODITY TRADING SDN BHD Affiliation type : Sister Company

Address : Malaysia

Comments : Trading in commodities.

Name : IOI EDIBLE OILS SDN BHD Affiliation type : Sister Company

Address : Malaysia

Comments : Commodities trading, palm oil refinery/kernel crushing plant.

Name :LODERS CROKLAAN B. V. Affiliation type : Sister Company

Address : Netherlands

Comments : Manufacturing of specialty oils and fats.

Name : PAN-CENTURY EDIBLE OILS SDN BHD Affiliation type : Sister Company

Address : Malaysia

_{Comments : Refining and processing of crude palm oil, soap noodles and glycerine.}

Name : IOI OLEOCHEMICAL INDUSTRIES BERHAD

Affiliation type : Sister Company

Address : Malaysia

Comments : Investment holding.

Name : IOI BIO-ENERGYSDN BHD

Affiliation type : Sister Company

Address : Malaysia

Comments : Produce and supply palm-based renewable energy generation using biomass.

Name : IOI LODERS CROKLAAN PROCUREMENT COMPANY SDN. BHD.

Affiliation type : Sister Company

Address : Malaysia

Comments : Commodities trading and international procurement of palm oil.

Name : SYARIMO SDN BHD

Affiliation type : Sister Company Address : Malaysia

_{Comments : Cultivation of oil palm, processing of palm oil and investment holding.}

Related companies and corporate affiliations comments : Other companies of IOI Group should be considered affiliates of the Subject. We are unable to list all the associated companies within the group therefore we have enclosed an attachment to this report.

BANK & MORTGAGES

Bank Details

Name of bank : CIMB Bank Berhad

Address : Malaysia

Account details : Current Account

Comments : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

_Mortgages

Total of Charge: 50,000,000.00

Date of Creation:26-07-1990

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 15,000,000.00

Date of Creation: 26-07-1990

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 27,500,000.00

Date of Creation: 08-10-1992

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 27,500,000.00

Date of Creation: 01-06-1994

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 50,000,000.00

Date of Creation: 01-06-1994

Name of Chargee: BUMIPUTRACOMMERCE BANK BHD

Charge Status: FULLY SATISFIED

Total of Charge: 15,000,000.00

Date of Creation: 01-06-1994

Name of Chargee: BUMIPUTRA COMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 55,500,000.00

Date of Creation: 20-07-1995

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 7,000,000.00

Date of Creation: 30-12-1997

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 7,000,000.00

Date of Creation: 24-01-1998

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Legal Fillings

Bankruptcy fillings : None reported. Court judgements : None reported. Tax liens : None reported. Others : None reported.

FINANCIAL DATA

Description

Source of financial statement : Commercial Registry Filings

Financial statement date : 30/06/10

Type of accounts : Full audited

Currency : Malaysia, Ringgit (MYR)

Exchange rate : 1 USD = MYR 2.99 as of 25-08-2011

Summarized Financial Information

^{Consolidation type :} Non Consolidated Non Consolidated Group Consolidated ^{Currency :} Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) ^{Denomination :} (x1) One (x1) One (x1) One

^{Date of financial year end :} 30/06/10 30/06/09 30/06/10

^{Length of accounts :} 12 months 12 months 12 months

^{Sale turnover / Income :} 496,845,696 442,354,818 12,542,962,000

^{Gross profit :} 26,585,103 14,372,148 3,207,236,000

^{Operating profit :} 2,636,343,000

^{Profit before tax :} 5,459,226 -10,813,533 2,550,633,000

^{Net income :} 4,792,226 -7,965,138 2,065,116,000

^{Non current assets :} 75,120,339 76,795,365 10,183,307,000

^{Current assets :} 97,827,912 85,328,817 7,160,110,000

^{Inventories :} 41,277,621 43,011,745 1,575,320,000

^{Total assets :} 172,948,251 162,124,182 17,343,417,000

^{Current liabilities :} 65,684,712 60,557,523 1,432,634,000

^{Non current liabilities :} 14,649,329 13,744,675 4,841,310,000

^{Total liabilities :} 80,334,041 74,302,198 6,273,944,000

^{Share equity :} 92,614,210 87,821,984 11,069,473,000

^{Reserve :} 70,614,210 65,821,984 1,697,343,000

_{Comments : The non-consolidated financial information above relates to the Subject only.}

The group’s consolidated financial information above relates to the Subject’s Ultimate Holding Company IOI Corporation Berhad and all its subsidiaries which include the Subject.

OPERATION DETAILS

Main activities : The Subject manufactures refined palm oil and palm oil products. Its products include lauric acid, distilled top fatty acid, stearic acid, split fatty acid, and distilled coconut fatty acid. Pan-Century Oleochemicals Sdn Bhd also offers by products, such as capric-caprylic acid, myristic acid, palmitic acid, glycerin, and residue. Pan-Century Oleochemicals Sdn Bhd formerly operated as a subsidiary of Aditya Birla Management Corporation, Ltd. As of January 29, 2007, Pan-Century Oleochemicals Sdn Bhd is a subsidiary of IOI Corp. Bhd.

Product & services : Lauric acid

Distilled top fatty acid

Stearic acid

Split fatty acid

Distilled coconut fatty acid Capric-caprylic acid Myristic acid

Palmitic acid Glycerin Rresidue

Purchases

Local : Yes

International : Asian countries

Sales

Local : Yes

International : Europe, United States, South America, Asia, Ocenia, Middle East, Africa

Property & Assets

Premises : The Subject operates from group headquarters located at the verified heading address consisting of administrative office, production facilities, warehouse.

Branches : In addition the group headquarters is located at:

Two IOI Square

IOI Resort

62502, Putrajaya Wilayah Persekutuan Malaysia

Phone: 6 03 89478888

Fax: +6 03 89432266

Intellectual property : SA 8000, MS ISO 9001:2000, ISO 14001, OHSAS 18001 and HACCP Certification.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic Overview

Central bank : Central Bank of Malaysia

Reserve of foreign exchange & gold : US$ 136.1 billion as of 15 August 2011

Gross domestic product - GDP : US$ 247.781 billion

GPP (Purchasing power parity) : 442.01 billion of International dollars

GDP per capita - current prices : US$ 8,624

GDP - composition by sector : agriculture: 9.4% industry: 40.9% services: 49.7%

Inflation : 2008: 5.4%

2009: 0.6%

2010: 1.7%

Unemployment rate : 2008: 3.3%

2009: 3.6%

_{2010: 3.3%}

Public debt

(General Government

gross debt as a % GDP) : 2008: 42.8%

2009: 55.4%

_{2010: 54.2%}

Government bond ratings : Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

_{Moody's outlook: STA}

Market value of publicly traded shares : US$430 billion

Largest companies in the country : CIMB Group Holdings (Banking), Sime Darby (Conglomerates), PublicBank (Banking), Maybank (Banking), Tenaga Nasional (Utilities), Petronas Chemicals, Maxis Berhad

Trade & Competitiveness Overview

Total exports : US$210.3 billion

Exports commodities : electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals

Total imports : US$156.2 billion

Imports commodities : electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

Export - major partners : US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand

5%,HongKong 4.6%

Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan5.7%,Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia

4.2%

FDI Inflows : 2007: US$8,538 million

2008: US$7,318 million

_{2009: US$1,381 million}

FDI Outflows : 2007: US$11,280 million

2008: US$14,988million

2009: US$8,038 million

Best countries for doing business : 21 out of 183 countries

Global competitiveness ranking : 26 (ranking by country on a basis of 133, the first is the best)

Country and Population Overview

Total population : 28.23 million

Total area : 329,847 km2

Capital : Kuala Lumpur

_{Currency : Malaysia Ringgits (MYR)}

Internet users as % of total population: 57.61%

PAYMENT HISTORY

Purchase Term

Local : Cash against document, Prepayment, Cheque, Credit up to 120 days

International : L/C, Prepayment, Telegraphic transfer,, Credit up to 120 days

Sales Term

Local : Cash against document, Prepayment, Cheque, Credit up to 120 days

International : L/C, Prepayment, Telegraphic transfer, Credit up to 120 days

Trade Reference/ Payment

Behaviour

Comments : As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources : Interviews and material provided by the Subject

: Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.05
UK Pound	1	Rs.75.19
Euro	1	Rs.66.47

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.