MIRA INFORM REPORT

Report Date :

20.10.2011

IDENTIFICATION DETAILS

Name :	MIECO MANUFACTURING SDN. BHD
Registered Office :	Lot 74, Kawasan Perindustrian Gebeng Kuantan Pahang Darul Makmur 26080
Country :	Malaysia
Financials (as on) :	31.12.2010
Date of Incorporation :	04.07.2003
Com. Reg. No.:	620690-T
Legal Form :	Private Limited Company Limited By Shares
Line of Business :	Manufacturing and marketing of chipboards and other related products

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 400,000
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^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 : MIECO MANUFACTURING SDN. BHD.

Business address : Lot 74, Kawasan Perindustrian Gebeng

Town : Kuantan

Province : Pahang Darul Makmur

Zip/postal code : 26080

Country : Malaysia

Tel : +60 9 5835120

Fax : +60 9 5833408

Website : www.mieco.com.my

Registered address: C/o BANDAR RAYA DEVELOPMENTS BERHAD Level 10, Menara BRDB

285 Jalan Maarof

Bukit Bandaraya

Town : Kuala Lumpur

Province : Wilayah Persekutuan

Zip/postal code : 59000

_{Country Malaysia}

SUMMARY DETAILS

Executive Summary

Date founded or registered : 04/07/2003

Legal form : Private Limited Company Limited By Shares

Chief executive : Dato’ Yong Seng Yeow

Issued & paid up capita l : MYR 50,000,000

Sales turnover : MYR 172,037,051 (Non-consolidated 12 months, 31/12/2010)

Net income : MYR 1,749,375 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets : MYR 562,779,952 (Non-consolidated 12 months, 31/12/2010)

Line of business : Manufacturing and marketing of chipboards and other related products.

Staff employed : 1,000 (Mieco Group)

CREDIT RISK OPINION

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is declining

Management experience : Management is reasonably experienced

Financial performance : Financial performance is fair

Organization structure : Organizational structure is acceptable

Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 400,000}

Credit amount asked Not described.

Comments : The Subject’s financial shows financial stress and declined on equity balance

therefore would be beneficial to obtain guaranteed by the Parent Company for larger credit transactions than suggested

STATUTORY DETAILS

Registry Data

Registration date : 04/07/2003

Legal form : Private Limited Company Limited By Shares

Registration no 620690-T

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 : Dato’ Yong Seng Yeow

Designation : Managing Director

Name : Low Kim Seng

Designation : Director

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Dato’ Yong Seng Yeow

Designation : Director

Identification no : 530409-04-5123

Appointment date : 04/07/03

Address : No. 21, Jalan Pengaturcara U1/5C Saujana O-Lot

40150 Shah Alam Selangor Darul Ehsan Malaysia

Biography : Dato Yong Seng Yeow, a Malaysian,aged 58. Dato’ Yong has over

25 years of experience in sales and marketing in building materials and furniture industries. Currently, Dato Yong also sits on the boards of Century Logistics Holdings Berhad and several subsidiaries in the Mieco Chipboard Berhad Group. He is a member of the Executive Committee of the Company.

Name : Low Kim Seng Designation : Director Identification no : 550423-10-5231

Appointment date : 15/03/05

Address : No.32, Jalan BU 2/4

Bandar Utama

47800 Petaling Jaya Selangor Darul Ehsan Malaysia

Biography : Mr Low Kim Seng, a Malaysian, aged 56. He is a member of the Malaysian Institute of Accountants. Mr Low qualified as a Management Accountant in 1978 and has working experience in accounting, corporate finance and general management. He worked with two Malaysian public listed companies prior to joining Bandar Raya Developments Berhad in 1989 and is currently the Chief Financial Officer of Bandar Raya Developments Berhad.

_{Name : Dato’ Jaganath Derek Steven Sabapathy}

Designation : Director

Identification no : 570415-10-6419

Appointment date : 15/03/05

Address : No.98 Lorong Setiabistari Satu

Bukit Damansara

50490 Kuala Lumpur Wilayah Persekutuan Malaysia

Biography : Dato Jagan Sabapathy, a Malaysian, aged 54. He attended Edinburgh University in the United Kingdom and holds a Master of Arts majoring in Corporate Finance and International Trade. Upon graduation in 1981, he joined a leading London firm of Chartered Accountants, Price Waterhouse, where he articled and qualified as a Chartered Accountant. Dato Jagan returned to Malaysia in 1984 and joined KPMG Peat Marwick. He was admitted a Partner of KPMG Malaysia and a Director of Peat Marwick Consultants in 1990. Whilst at KPMG Peat Marwick, he was involved in a wide range of assignments covering audit, investigations, management consultancy and corporate finance, in Malaysia, the ASEAn countries, north America and Europe. He sat on a variety of KPMG International Committees including committees for Mergers and Acquisitions, Privatisation and Management Consultancy. He was also an

examiner for the professional examinations of the Malaysian Association of Certified Public Accountants. He left the partnership in late 1994 and took up a senior appointment with a Malaysian public listed plantation company. At the end of 1995, he left and led a group of Australian and British investors to successfully privatise the overseas operations of Tasmania’s Hydro Electric Commission. He joined the boards of Prime Utilities Berhad and Indah Water Konsortium Sdn Bhd, Malaysia’s privatised national wastewater

utility in September 1997 as Managing Director, a position he held to August 1999. Currently, Dato’ Jagan also sits on the boards of Bandar Raya Developments Berhad (Chief Executive Officer) and several subsidiaries in the Bandar Raya Developments Berhad Group.

Name : Dato’ Mohamed Moiz Bin J M Ali Moiz

Designation : Director

Identification no : 600808-71-5383

Appointment date : 04/07/03

Address : 38-1 The Capsquare Residences

2 Persiaran Capsquare

50100 Kuala Lumpur Wilayah Persekutuan Malaysia

Biography : Dato’ Mohamed Moiz Bin J M Ali Moiz, a Malaysian, aged 50. He graduated with a Bachelor of Science Degree in Business Administration and International Finance in 1985. He joined Timbco Sdn Bhd, a company involved in timber trading, processing and forestry management, as Project Manager from 1985 to 1986. In

_{1987, he was appointed as Chief Executive Officer of the Tradium}

group of companies, which has interests in property development, fashion retailing, manufacturing, F & B and equity investments. In

1999, he was appointed as Chief Executive Officer of Effective Capital Sdn Bhd, a company which successfully undertook the migration of the CLOB securities from the Central Depository (Pte) Limited in June 2000. Currently, Dato’ Mohamed Moiz also sits on the boards of Bandar Raya Developments Berhad (Chairman) and several other private limited companies.

Name : Ho Swee Ling

Designation : Company Secretary

Identification no : 590808-10-5992

Appointment date : 04/07/03

Address : 60 Jalan Bunga Kemboja 1

Taman Muda

Cheras 56100

Kuala Lumpur Wilayah Persekutuan Malaysia

Staff employed : 1,000 (Mieco Group)

Key Advisors

Auditors : PRICEWATERHOUSECOOPERS Level 15, 1 Sentral

Jalan Travers

Kuala Lumpur Sentral

50470 Kuala Lumpur

_Malaysia

SHARE CAPITAL

Composition

Authorized Capital : MYR 100,000,000

No of shares : 100,000,000 Ordinary Shares

Share par value : MYR 1

Issued capital : MYR 50,000,000

Paid up capital : MYR 50,000,000

Changed in capital : The Subject increased its share capital from MYR 100,000 to MYR 100,000,000 on 30-04-2005

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : MIECO CHIPBOARD BERHAD

Address : Level 9, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur Wilayah Persekutuan Malaysia

No. of shares : 50,000,000 Ordinary Shares

_{% of shares : 100%}

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Name : BANDAR RAYA DEVELOPMENTS BERHAD

Affiliation type : Ultimate Holding Company

Address : Level 10, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur Wilayah Persekutuan Malaysia

Comments : Bandar Raya Developments Berhad engages in the property development and investment, as well as in the manufacturing arena, through its subsidiary, Mieco

Chipboard Berhad (MIECO) in Malaysia. The company is organized into two main business segments that include property and manufacturing. Segments Property segment includes property development, property investment and property management, which includes management and operation of bowling centers, a golf course and sports complex. It develops residential suburbs and townships. Manufacturing segment includes manufacturing and sales of wood based products. Other operations of the company comprise investment holding and investment trading. Bandar Raya Developments Berhad is listed on the Main Board of the Kuala Lumpur Stock Exchange and owns 56.76% of Mieco Chipboard Berhad.

Name : MIECO CHIPBOARD BERHAD

Affiliation type : Parent Company

Address : Level 9, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur Wilayah Persekutuan Malaysia

Comments : Mieco Chipboard Berhad ('MIECO'), the manufacturing division of the Bandar Raya Developments Berhad Group of Companies, was incorporated in 1972. The Company was listed on the Main Board of Bursa Malaysia Securities Berhad in

1998.

Name : MIECO MARKETING SDN. BHD.

Affiliation type : Sister Company

Address : Malaysia

Comments : Selling and marketing of chipboards and related products.

Name : MIECO WOOD PRODUCTS SDN. BHD.

Affiliation type : Sister Company

Address : Malaysia

Comments : Reforestation.

Name : TUDOR CAPITAL SDN. BHD.

Affiliation type : Sister Company

Address : Malaysia

Comments : Investment trading.

Name : MIECO REFORESTATION SDN. BHD.

Affiliation type : Sister Company

Address : Malaysia

Comments : Reforestation, harvesting, extraction and supply of rubber wood.

_{Name : MIECO REFORESTATION SDN. BHD.}

Affiliation type : Sister Company

Address : Malaysia

Comments : Investment holding and procurement of rubber wood.

Name : ASPIRE BENCHMARK SDN. BHD.

Affiliation type : Sister Company

Address : Malaysia

Comments : Property investment.

Name : MIECO MARKETING (S) PTE. LTD.

Affiliation type : Sister Company

Address : Singapore

Comments : Dormant.

Name : MIECO INTERNATIONAL (HK) LIMITED

Affiliation type : Sister Company

Address : Hong Kong

_{Comments : Dormant.}

Related companies and corporate affiliations comments

The above mentioned companies are directly owned by the Mieco Chipboard Berhad.

Other companies of the Bandar Raya Developments Berhad Group should be considered affiliates of the Subject.

BANK & MORTGAGES

Bank Details

Name of bank : Malayan Banking Berhad

Address : Malaysia

Account details : Current Account

Name of bank : Alliance Bank Malaysia Berhad

Address : Malaysia

Account details : Current Account

Name of bank : OCBC Bank (Malaysia) Berhad

Address : Malaysia

Account details : Current Account

Name of bank : AmBank (M) Berhad

Address : Malaysia

Account details : Current Account

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 2.98 as of 30-08-2011

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 :} 31/12/10 31/12/09 31/12/10

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

^{Sale turnover / Income :} 172,037,051 184,806,534 627,385,000

^{Operating profit :} 187,129,000

^{Profit before tax :} 1,751,625 -13,617,139 151,147,000

^{Net income :} 1,749,375 -11,781,799 127,088,000

^{Non current assets :} 488,823,664 502,389,448 1,803,927,000

^{Current assets :} 73,956,288 68,841,318 1,277,827,000

^{Inventories :} 44,770,243 40,578,295 112,177,000

^{Total assets :} 562,779,952 571,230,766 3,081,754,000

^{Current liabilities :} 72,493,775 68,066,637 804,377,000

^{Non current liabilities :} 478,197,841 492,800,798 398,193,000

^{Total liabilities :} 550,691,616 560,867,435 1,202,570,000

^{Share equity :} 12,088,336 10,363,331 1,879,184,000

^{Retained earning :} -37,911,664 -39,636,669 994,901,000

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 Bandar Raya Developments Berhad and all its subsidiaries which include the Subject.

OPERATION DETAILS

Main activities : The Subject is engaged in manufacturing and marketing of chipboards and other related products.

The Subject is 100% owned by Mieco Chipboard Berhad (MIECO) which is a Malaysia-based company engaged in investment holding and provision of management services. Through its subsidiaries, MIECO is engaged in the manufacturing and sales of wood-based products. Its other operations include investment trading, investment holding and property investment. Its products include plain boards, decorative melamine faced chipboards (MFCs), high pressure laminates (HPLs), decorative electron bean foil chipboards (EBFC), decorative polymer faced chipboards (PFCs),

worktops, direct post formed (DPF) boards and other products designed for urban living. As if December 31, 2009, MIECO’s subsidiaries were Mieco Manufacturing Sdn. Bhd., Mieco Marketing Sdn. Bhd., Mieco Marketing (S) Pte. Ltd., Mieco Chemicals Sdn. Bhd., Mieco Wood Products Sdn. Bhd., Mieco Reforestation Sdn. Bhd., Mieco Wood Resources Sdn. Bhd., Mieco International (HK) Limited, Tudor Capital Sdn. Bhd. and Aspire Benchmark Sdn. Bhd.

Mieco Chipboard Berhad is owned 56.76% by Bandar Raya Developments Berhad (BRDB) which is engaged in investment holding, property development, property investment and provision of management services. The Company, through its subsidiaries, operates in three segments: property, which includes property development, property investment and property management, such as management and operation of shopping complexes, a golf course and sports complex; manufacturing, which includes manufacturing and sales of wood based products, and construction, which includes the construction of residential and commercial properties. The Company’s subsidiaries include Aliran D anau Sdn. Bhd., Ambangan Assets Sdn. Bhd., Ardent Heights Sdn. Bhd. and BRDB (International) Limited. On January 7, 2011, the Company acquired Nexus Flame Sdn Bhd (Nexus Flame) making it a wholly owned subsidiary of the Company. On February 21, 2011, the Company incorporated a wholly owned subsidiary, BRDB (S) Pte. Ltd. (BRDBS).

Product & services : Plain Board

Decorative Melamine Faced Chipboard

High Pressure Laminates

High Pressure Laminates Chipboards

Worktop

Direct Post Formed Board

Livin Style

Decorative Polymer Faced Chipboard

Decorative Electron Beam Foil Chipboard

Brand : MIECO

Purchases

Local : Yes

_{International : Mainly from South East Asia}

Sales

Local : Yes

International : China, Taiwan, Japan, Korea, Hong Kong, South East Asia, the Indian subcontinents, the Middle East, Africa, and the Australasian countries

Property & Assets

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

Branches : In addition, the Subject operates from other production facilities and group headquarters located at:

Production facilities:

Lot No. 77-83, Kawasan Perindustrian Semambu

Kuantan 25350

Pahang

Malaysia

Production facilities:

Lot 3, Kawasan Perindustrian Kechau Tui

27100 Padang Tengku

Pahang

Malaysia

Group Headquarters: Level 9, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur

Malaysia

Tel: +60 3 22823223

Fax: +60 3 22873229

Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR _488,823,664.

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$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%,

HongKong 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 up to 90 days

International : L/C, Credit up to 90 days

Sales Term

Local : Cash against document, Credit up to 90 days

International : L/C, Prepayment, 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

: Official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.18
UK Pound	1	Rs.77.49
Euro	1	Rs.67.96

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.