MIRA INFORM REPORT

Report Date :

15.12.2011

IDENTIFICATION DETAILS

Name :	LIP GEE SDN. BHD.

Registered Office :	JL 13/1, Block B, Parit Bakar Tengah Jalan Lantapuri Muar Johor Darul Takzim 84010

Country :	Malaysia

Financials (as on) :	31.12.2010

Date of Incorporation :	10.02.2001

Com. Reg. No.:	538893-H

Legal Form :	Private Company Limited By Shares

Line of Business :	Manufacturer of furniture.

No. of Employees :	_{50 employees}

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 : LIP GEE SDN. BHD.

Business address : JL 13/1, Block B, Parit Bakar Tengah

Jalan Lantapuri

Town : Muar

Province : Johor Darul Takzim

Zip/postal code : 84010

Country : Malaysia

Tel : +60 6 9811128

Fax : +60 6 9811128

Website : www.lipgee.com

Registered address : C/o KOH & SIOW MANAGEMENT SERVICE SDN BHD

123B, Jalan 25

Taman Melaka Raya

Town : Melaka Raya

Province : Melaka

Zip/postal code : 75000

_{Country : Malaysia}

SUMMARY DETAILS

Executive Summary

Date founded or registered : 10/02/2001

Legal form : Private Company Limited By Shares

Chief executive : Lim Siew Lian

Issued & paid up capital : MYR 100,000

Sales turnover : MYR 1,524,553 (Non-consolidated 12 months, 31/12/2010)

Net income : MYR -63,025 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets : MYR 873,967 (Non-consolidated 12 months, 31/12/2010)

Line of business : Manufacturer of furniture.

_{Staff employed : 50 employees}

CREDIT RISK OPINION

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is declining

Management experience : Management is modestly experienced

Financial performance : Financial performance is poor

Organization structure : Organizational structure is acceptable

Detrimental : No detrimental records found

Payment history : No payment delays noted

Credit amount suggestion : Fully secured terms.

Credit amount asked : Not described.

STATUTORY DETAILS

Registry Data

Registration date : 10/02/2001

Legal form : Private Company Limited By Shares

Registration no 538893-H

Registered authority : Companies Commission of Malaysia

Registry status : Live/Active

Previous name : None reported.

Change of legal form : None reported.

MANAGEMENT / DIRECTORS

Key Management

Name : So Lip Gee

Designation : Managing Director

Name : Lim Siew Lian

Designation : Director

Name : Ong Ah Poo

_{Designation : Marketing Manager}

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : So Lip Gee

Designation : Director

Identification no : 690613-01-5389

Appointment date : 10/02/01

Address : C/o LIP GEE SDN. BHD.

JL 13/1, Block B Parit Bakar Tengah

Jalan Lantapuri

84010 Muar

Johor Darul Takzim

Malaysia

Name : Lim Siew Lian

Designation : Director

Identification no : 800612-01-5648

Appointment date : 02/11/09

Address : C/o LIP GEE SDN. BHD.

JL 13/1, Block B Parit Bakar Tengah

Jalan Lantapuri

84010 Muar

Johor Darul Takzim

Malaysia

Name : Koh Chin Koon

Designation : Company Secretary

Identification no : 700717-04-5263

Appointment date : 31/12/10

Address : 60E Jalan Pengkalan Rama Pantai

Melaka Raya 75100

Melaka

Malaysia

_{Staff employed : 50 employees}

Key Advisors

Auditors : KY SIOW & CO.

123B, Jalan 25

Taman Melaka Raya

Melaka Raya 75000

Melaka

_Malaysia

SHARE CAPITAL

Composition

Authorized Capital : MYR 100,000

No of shares : 100,000 Ordinary Shares

Share par value : MYR 1

Issued capital : MYR 100,000

_{Paid up capital : MYR 100,000}

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : So Lip Gee

Address : C/o LIP GEE SDN. BHD.

JL 13/1, Block B Parit Bakar Tengah

Jalan Lantapuri

84010 Muar

Johor Darul Takzim

Malaysia

No. of shares : 50,000 Ordinary Shares

% of shares : 50%

Shareholder name : Lim Siew Lian

Address : C/o LIP GEE SDN. BHD.

JL 13/1, Block B Parit Bakar Tengah

Jalan Lantapuri

84010 Muar

Johor Darul Takzim

Malaysia

No. of shares : 50,000 Ordinary Shares

_{% of shares : 50%}

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Related companies and corporate affiliations comments: None reported.

BANK & MORTGAGES

Bank Details

Name of bank : HSBC Bank Malaysia 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: None reported.

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 3.19 as of 14-12-2011

Summarized Financial Information

^{Consolidation
type :}Non Consolidated Non 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 :}1,524,553 0

^{Profit before tax :}-58,756 -1,679

^{Net income :}-63,025 -1,679

^{Non current assets :}265,725 0

^{Current assets :}608,242 2

^{Total assets :}873,967 2

Current liabilities : _{854,543 20,330}

^{Non current liabilities :}2,779 0

^{Total liabilities :}857,322 20,330

^{Share equity :}16,645 -20,328

^{Retained earning :}-83,355 -20,330

Comments : The Subject did not record any turnover for previous years as the Subject was a dormant company.

OPERATION DETAILS

Main activities : The Subject engages in designing, manufacturing, assembly and wholesaling of furnitures.

Product & services : Dinning sets Bedroom sets Dinning chair Buffect & Hutch TV Stand

Coffee Table Wardrobe Entertainment set

Purchases

Local : Yes

Sales

International : Canada, United States, Germany, France

Property & Assets

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

_{Branches : None reported.}

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic Overview

Central bank : Central Bank of Malaysia

Reserve of foreign exchange & gold : US$ 134.8 billion as of 30 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 Ringgits (MYR)}

Internet users as % of total population: 57.61%

PAYMENT HISTORY

Purchase Term

Local : Prepayment, Credit 30-60 days

Sales Term

Local : Prepayment, Credit 30-60 days

International : L/C, Credit 30-60 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.53.58
UK Pound	1	Rs.82.97
Euro	1	Rs.69.89

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.