MIRA INFORM REPORT

Report Date :

10.12.2011

IDENTIFICATION DETAILS

Name :	MACGLOTECH STEEL SERVICE CENTRE SDN. BHD.

Registered Office :	Lot 37901, Batu 6 1/4, Jalan Klinik Bukit Kemuning, Seksyen 32 Shah Alam Selangor Darul Ehsan 40460

Country :	Malaysia

Financials (as on) :	31.12.2010

Date of Incorporation :	20.12.1994

Com. Reg. No.:	327930-U

Legal Form :	Private Company Limited By Shares

Line of Business :	Manufacturers of transformer components.

No. of Employees :	_{84 employees (Subject); 198 (Consolidated employees)}

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	_{USD 750,000}
Status :	Satisfactory
Payment Behaviour :	No Complaints
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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Malaysia

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 : MACGLOTECH STEEL SERVICE CENTRE SDN. BHD.

Business address : Lot 37901, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

Town : Shah Alam

Province : Selangor Darul Ehsan

Zip/postal code : 40460

Country : Malaysia

Tel : +60 3 51611833

Fax : +60 3 51614330

Website : www.vantageco.com

Registered address : C/o VANTAGE MANAGEMENT CONSULTANTS B607, 6th Floor

Block B, Kelana Square

17, Jalan SS7/26

Kelana Jaya

Town : Petaling Jaya

Province : Selangor Darul Ehsan

Zip/postal code : 47301

_{Country : Malaysia}

SUMMARY DETAILS

Executive Summary

Date founded or registered : 20/12/1994

Legal form : Private Company Limited By Shares

Chief executive : Tham Hok Han @ Tham Fook Lin

Issued & paid up capital : MYR 4,350,000

Sales turnover : MYR 172,740,623 (Consolidated 12 months, 31/12/2010)

Net income : MYR 4,345,092 (Consolidated 12 months, 31/12/2010)

Total fixed assets : MYR 152,099,132 (Consolidated 12 months, 31/12/2010)

Line of business : Manufacturers of transformer components.

_{Staff employed : 84 employees (Subject); 198
(Consolidated employees)}

CREDIT RISK OPINION

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is progressing

Management experience : Management is reasonably experienced

Financial performance : Financial performance is recovering

Organization structure : Organizational structure is stable

Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 750,000}

Credit amount asked : Not described.

_{Comments : Larger credit can still be considered.}

STATUTORY DETAILS

Registry Data

Registration date : 20/12/1994

Legal form : Private Company Limited By Shares

Registration no 327930-U

Registered authority : Companies Commission of Malaysia

Registry status : Live/Active

Previous name : The Subject was previously known as MACGLOTECH STEEL (M) SDN. BHD. and changed its name to the current style on 02-10-2000.

_{Change of legal form : None reported.}

MANAGEMENT / DIRECTORS

Key Management

Name : Tham Hok Han @ Tham Fook Lin

Designation : Director

Name : Tam Yong Shing

Designation : Director

Name : Then Kim Chin

Designation : Director

Name : Aileen Tham Su Chin

_{Designation : Director}

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Tham Hok Han @ Tham Fook Lin

Designation : Director

Identification no : 430921-10-5043

Appointment date : 20/12/94

Address : B-24-4, Block B, Abadi Villa

No. 4, Jalan 2/109C, Taman Abadi Indah

Off Jalan Klang Lama 58100

Kuala Lumpur Wilayah Persekutuan Malaysia

Name : Then Kim Chin

Designation : Director

Identification no : 670118-13-5713

Appointment date : 13/01/11

Address : Lot 21793, 6 1/4 Miles

Jalan Kepong, West Industrial Area

52000 Kepong Wilayah Persekutuan Malaysia

Name : Aileen Tham Su Chin

Designation : Director

Identification no : 690111-14-5116

Appointment date : 23/09/05

Address : B13-01, Cameron Tower

Jalan 5/58B, Bukit Gasing

46000 Petaling Jaya Selangor Darul Ehsan Malaysia

Name : Tam Yong Shing

Designation : Director

Identification no : 691105-10-5593

Appointment date : 21/08/00

Address : 28, Jalan Bidalan U2/12

Taman TTDI Jaya

40150 Shah Alam Selangor Darul Ehsan Malaysia

Name : Ting Bee Chuan

Designation : Company Secretary

Identification no : 550704-71-5300

Appointment date : 01/01/04

Address : HR 2-1301, Riana Green

Jalan Tropicana Utara, PJU 3

Petaling Jaya 47810

Selangor Darul Ehsan

Malaysia

Name : Chua Chooi Hoon @ Betty

Designation : Company Secretary

Identification no : 610328-10-5630

Appointment date : 01/01/04

Address : 32, Jalan SS2/41

Kelana Jaya

47300 Petaling Jaya Selangor Darul Ehsan Malaysia

Staff employed : 84 employees (Subject); 198 (Consolidated employees)

Key Advisors

Auditors : BATTCHOO & THO B608, 6th Floor

Block B, Kelana Square

17, Jalan SS7/26

Kelana Jaya

Petaling Jaya 47301

Selangor Darul Ehsan

_Malaysia

SHARE CAPITAL

Composition

Authorized Capital : MYR 5,000,000

No of shares : 5,000,000 Ordinary Shares

Share par value : MYR 1

Issued capital : MYR 4,350,000

Paid up capital : MYR 4,350,000

Changed in capital : The Subject increased its share capital from MYR 100,000 to MYR 5,000,000 on

_21-03-1995.

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : TFL & SONS SDN. BHD.

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

No. of shares : 1,749,750 Ordinary Shares Shareholder

name : VANTAGE HOLDINGS SDN. BHD.

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

No. of shares : 2,115,000 Ordinary Shares

Shareholder name : Er Shea Chean

Address : Malaysia

No. of shares : 79,500 Ordinary Shares

Shareholder name : Then Kim Chin

Address : Lot 21793, 6 1/4 Miles

Jalan Kepong, West Industrial Area

52000 Kepong Wilayah Persekutuan Malaysia

No. of shares : 296,250 Ordinary Shares

Shareholder name : Tam Yong Shing

Address : 28, Jalan Bidalan U2/12

_{Taman TTDI
Jaya}

40150 Shah Alam Selangor Darul Ehsan Malaysia

_{No. of shares : 109,500 Ordinary Shares}

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Name : MACGLO STEEL SERVICE CENTRE SDN. BHD.

Affiliation type : Wholly-owned Subsidiary

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

Comments : Production of sheared and slitted steel coils and provision of related services.

Name : MACGLOTECH SDN. BHD.

Affiliation type : Wholly-owned Subsidiary

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

Comments : Dormant.

Name : TEN PRECISION SDN. BHD.

Affiliation type : Wholly-owned Subsidiary

Address : No. 9198-3 Jalan TPP 1/36

Taman Perindustrian Puchong

Puchong 47100

Selangor Darul Ehsan

Malaysia

Comments : Production and trading of high speed stamping products, precision stamping tools, die making and maintenance of such products.

Name : GOLD GAIN INTERNATIONAL INVESTMENT HOLDINGS LIMITED

Affiliation type : Wholly-owned Subsidiary

Address : Hong Kong

Name : PT. MACGLO STEEL INDONESIA

Affiliation type : Wholly-owned Subsidiary

Address : Indonesia

Name : HUIZHOU MACGLOTECH PRECISION INDUSTRIES LTD.

Affiliation type : Wholly-owned Subsidiary

Address : China

Name : KEMUNING STRUCTURES SDN BHD

Affiliation type : Associate

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

Name : VANTAGE STEEL WORKS SDN BHD

Affiliation type : Associate

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

Name : VANTAGE CRANE HIRE & TRADING SDN BHD

Affiliation type : Associate

Address : Lot 3801, Batu 6 1/4, Jalan Klinik

Bukit Kemuning, Seksyen 32

40460 Shah Alam Selangor Darul Ehsan Malaysia

Name : VANTAGE MARKETING SDN. BHD.

Affiliation type : Associate

Address : No. 38, Jalan Tsb 3

Taman Industri Sungai Buloh

Sungai Buloh 47000

Selangor Darul Ehsan

_Malaysia

Related companies and corporate affiliations comments: Other companies of the Vantage Group should be considered affiliates of the _Subject.

BANK & MORTGAGES

Bank Details

Name of bank : United Overseas Bank (Malaysia) Bhd

Address : Malaysia

Account details : Current Account

Name of bank : Malayan Banking Berhad

Address : Malaysia

Account details : Current Account

Name of bank : AmBank (M) 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: OPEN CHARGE Date of Creation: 17-12-1996

Name of Chargee: UNITED OVERSEAS BANK MALAYSIA BHD Charge Status: UNSATISFIED

Total of Charge: 1,100,000.00

Date of Creation: 05-09-2001

Name of Chargee: MALAYAN BANKING BERHAD Charge Status: UNSATISFIED

Total of Charge: 6,750,000.00

Date of Creation: 18-08-2005

Name of Chargee: MALAYAN BANKING BERHAD Charge Status: UNSATISFIED

Total of Charge: 1,550,000.00

Date of Creation: 30-08-2005

Name of Chargee: CITIBANK BERHAD Charge Status: FULLY SATISFIED

Total of Charge: OPEN CHARGE Date of Creation: 20-11-2007

Name of Chargee: UNITED OVERSEAS BANK (MALAYSIA) BHD. Charge Status: UNSATISFIED

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 : 31/12/10

Type of accounts : Full audited

Currency : Malaysia, Ringgit (MYR)

Exchange rate : 1 USD = MYR 3.15 as of 10-12-2011

Summarized Financial Information

^{Consolidation type :}Consolidated Consolidated

^{Currency :}Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) ^{Denomination :}(x1) One (x1) One

^{Date of financial year end :}31/12/10 31/12/09

^{Length of accounts :}12 months 12 months

^{Sale turnover / Income :}172,740,623 130,183,090

^{Gross profit :}17,729,379 1,185,746

^{Operating profit :}8,834,330 -4,474,871

^{Profit before tax :}3,718,485 -8,794,607

^{Net income :}4,345,092 -8,764,026

^{Non current assets :}42,625,716 23,522,781

^{Current assets :}109,473,416 96,482,113

^{Inventories :}21,881,841 27,241,968

^{Total assets :}152,099,132 120,004,894

^{Current liabilities :}114,512,323 110,152,365

^{Non current liabilities :}14,894,292 2,275,423

^{Total liabilities :}129,406,615 112,427,788

^{Share equity :}22,692,517 7,577,106

^{Retained earning :}8,690,350 4,345,258

Comments : The consolidated financial information above relates to the Subject and its subsidiaries.

OPERATION DETAILS

Main activities : Manufacturer of products of slitted coils of grain oriented electrical steel or silicon electrical steel, sheared sheets, high precision punching cores, cut cores, ring cores and motor cores.

Product & services : Slitting - Electrical Steel, Cold Rolled Steel, Galvanized Iron Steel, Electro

Galvanized Steel, Tin Plate, Aluminium, Etc.

Punching & Annealing - El Cores, Ut Cores, Motor Cores.

Shearing - Electrical Steel, Cold Rolled Steel, Galvanized Iron Steel, Electro Galvanized Steel, Etc.

Purchases

Local : Yes

International : Mainly from South East Asia

Sales

Local : Yes

International : Mainly to South East Asia

Property & Assets

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

Branches : None reported.

Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR

_41,385,608.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic Overview

Central bank : Central Bank of Malaysia

Reserve of foreign exchange & gold : US$ 135.0 billion as of 15 November 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$420 billion

Largest companies in the country : CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank (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%, Hong

Kong 4.6%

Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, 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$14,988 million

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 Ringgit (MYR)}

Internet users as % of total population: 57.61%

PAYMENT HISTORY

Purchase Term

Local : Prepayment, D/P, Credit up to 90 days

International : L/C, D/P, Credit up to 90 days

Sales Term

Local : Prepayment, D/P, Credit up to 90 days

International : L/C, D/P, Credit up to 90 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.52.28
UK Pound	1	Rs.81.55
Euro	1	Rs.69.60

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.