MIRA INFORM REPORT

Report Date :

12.09.2011

IDENTIFICATION DETAILS

Name :	ACERINOX MALAYSIA SDN. BHD.

Registered Office :	C/o SSA PROFESSIONAL SERVICES SDN. BHD., Suite 3.6, Level 3, Menara Pelangi, No. 2 Jalan Kuning, Taman Pelangi, Town Johor Bahru, Johor Darul Takzim, Zip/postal code 80400

Country :	Malaysia

Financials (as on) :	31.12.2010

Date of Incorporation :	03.09.2004

Com. Reg. No.:	664822-X

Legal Form :	Private Limited Company Limited By Shares

Line of Business :	Trading of stainless steel products.

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 1,500,000}

Status :	Satisfactory

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

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

Bottom of Form

Identification details Bottom of Form

Verified Address

Subject name : ACERINOX MALAYSIA SDN. BHD.

Business address PTD 175189, 11 1/2 Miles

Jalan Johor Bahru

Koti Tinggi

Town Ulu Tiram

Province : Johor Darul Takzim

Zip/postal code : 81800

Country : Malaysia

Tel : +60 7 8625252

Fax : +60 7 8625209

Email : benjamin.ramos@acerinox.com

Website : www.acerinox.es

Registered address C/o SSA PROFESSIONAL SERVICES SDN. BHD.

Suite 3.6, Level 3

Menara Pelangi

No. 2 Jalan Kuning

Taman Pelangi

Town Johor Bahru

Province Johor Darul Takzim

Zip/postal code 80400

_{Country Malaysia}

Summary details

Executive Summary

Date founded or registered 03/09/2004

Legal form Private Limited Company Limited By Shares

Chief executive Benjamin Ramos Flores

Issued & paid up capital MYR 24,000,000

Sales turnover MYR 1,070,456,625 (Non-consolidated 12 months, 31/12/2010)

Net income MYR 31,665,189 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets MYR 558,022,586 (Non-consolidated 12 months, 31/12/2010)

Line of business Trading of stainless steel products.

_{Staff employed 5
employees (Subject); 7,400 (Acerinox Group)}

Credit risk opinion

Company Analysis

Country risk Country risk is minimal

Operation trend Operational trend is developing

Management experience Management is reasonably experienced

Financial performance Financial performance is recovering

Organisation structure Organisational structure is stable

Detrimental No detrimental records found

Payment history No payment delays noted

_{Credit amount
suggestion : USD 1,500,000}

Credit amount asked Not described.

Comments Larger credit can still be considered if guaranteed by Parent Company as

financial stability of the group is positive.

The Subject has just recovered from an equity deficit and caution should be taken on granting large credit.

Statutory details

Registry Data

Registration date 03/09/2004

Legal form Private Limited Company Limited By Shares

Registration no 664822-X

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 : Benjamin Ramos Flores

_{Designation : Managing Director}

Board of directors / other appointments

Appointments

Name Miguel Ferrandis Torres

Designation Director

Identification no : 51389145S

Appointment date 03/09/04

Address Calle de Pablo Vidal, 7

28043 Madrid

Spain

Name Peter John A/L Francis

Designation Director

Identification no : 591109-10-5445

Appointment date 19/07/06

Address 32 Jalan Bulat

Taman Century

80250 Johor Bahru Johor Darul Takzim Malaysia

Name Mohd Rizal Bin Omar

Designation : Director

Identification no : 831129-01-5121

Appointment date 19/07/06

Address : 31, Jalan Tenang 12

Taman Damai Jaya

81300 Skudai

Johor Darul Takzim

Malaysia

Name Jose Carlos Valencia Diaz

Designation : Director

Identification no : AAB747701

Appointment date 03/09/04

Address : Calle de Bristol, 18

28028 Madrid

Spain

_{Name Benjamin
Ramos Flores}

Designation Director

Identification no : XD567791

Appointment date 03/09/04

Address 132 Tanjong Rhu Road

#14-10 Pebble Bay

Singapore 436919

Singapore

Name Sujata Menon A/P K.R.D.S. Chandran

Designation Company Secretary

Identification no : 700202-01-5954

Appointment date 03/09/04

Address No. 3 Jalan Puteh 5

Taman Pelangi

80400 Johor Bahru Johor Darul Takzim Malaysia

Staff employed : 5 employees (Subject); 7,400 (Acerinox Group)

Key Advisors

Auditors KPMG

KPMG Tower, 8 First Avenue

Bandar Utama, 47800 Petaling Jaya

Selangor Darul Ehsan

_Malaysia

Share capital

Composition

Authorized Capital MYR 50,000,000

No of shares 50,000,000 Ordinary Shares

Share par value MYR 1

Issued capital MYR 24,000,000

_{Paid
up capital MYR
24,000,000}

Ownership[ / shareholders

How listed : Full List

Composition

Shareholder name ACERINOX S.A.

Address Santiago de Compostela nº 100

28035 Madrid

Spain

No. of shares 23,999,999 Ordinary Shares

Shareholder name INOXIDABLES DE EUSKADI S.A.

Address Pol. Ind. de Jundiz. C/ Lermandabide, 17

01195 Vitoria

Alava

_{No. of shares 1
Ordinary Share}

Related companies & corporate Affiliations

Structure

Name ACERINOX S.A.

Affiliation type Parent Company

Address Santiago de Compostela nº 100

28035 Madrid

Spain

Comments : Acerinox, S.A., together with its subsidiaries, engages in the

manufacture, transformation, and sale of stainless steel products. It offers a range of stainless steel flat products, including slabs, billets, black coils, plates, hot rolled coils and sheets, coil/sheet engraved products, flat bars, cold rolled coils, cold rolled sheets, and circles. The company also provides stainless steel long products, such as billets, wire rods, angles, hot rolled flat bars and re-bars, reinforced bars in coils, cold rolled re-bars, hot rolled black bars, smooth turned bars, cold drawn bars, wires, profiles, color coated wires, stainless prestressed wires, and stainless reinforcement wires. It has operations primarily in Europe, the United States, Africa, and Asia. The company was founded in 1970 and is headquartered in Madrid, Spain.

Name BAHRU STAINLESS SDN. BHD.

Affiliation type Sister Company

Address Level 2, TLP Building

Tanjung Langsat Industrial Complex

Pasir Gudang 81707

Johor Darul Takzim

Malaysia

Comments The subject engages in the manufacture of flat stainless steel product.

Name YICK HOE METAL INDUSTRIES SDN BHD

Affiliation type Sister Company

Address Lot PT 50804 HS(D) 114109

Jalan Wawasan 1/KU7, Taman Sungai Kapar Indah

Jalan Kapar

42209 Kapar

Selangor Darul Ehsan

Malaysia

Comments : Yick Hoe Metals is a stainless steel trading company located in

Malaysia, which has a service centre in Johor Bahru and facilities in Kuala Lumpur and Penang. Yick Hoe Metals, with 230 employees, is the biggest stainless steel trading company in Malaysia, with a great set up in Malaysia and a wide customer network, which covers the whole country.

Name ACERINOX SOUTH EAST ASIA PTE LTD

Affiliation type Sister Company

Address 16 Raffles Quay

Hong Leong Building 33-02

048581 Singapore

Singapore

Comments The Subject engages in the marketing of stainless steel products.

Name ACERINOX (INDIA) PRIVATE LIMITED

Affiliation type Sister Company

Address Unit No. 504, Sagar Fortune Building Waterfield Road, Plot 184, Bandra

(West) Mumbai 400050

India

Comments The subject engages in the marketing of stainless steel products.

_{Name ACERINOX AUSTRALASIA PTY
LTD}

Affiliation type Sister Company

Address Suite 502, Level 5

781 Pacific Highway

Chatswood, NSW 2067

Sydney

Australia

Comments The subject engages in the marketing of stainless steel products.

Name COLUMBUS STAINLESS ( PTY ) LTD

Affiliation type Sister Company

Address Hendrina Rd Middelburg

1050 Mpumalanga

South Africa

Comments The subject engages in the manufacturing of flat stainless steel products.

Name ACERINOX ( SCHWEIZ ) A.G.

Affiliation type Sister Company

Address Weihermattstrasse Nº 2

5507 Mellingen

Switzerland

Comments The subject engages in the marketing of stainless steel products.

Name ACERINOX ARGENTINA S.A.

Affiliation type Sister Company

Address Av. Velez Sarsfield, 1535

1285 Buenos Aires

Argentina

Comments : The subject engages in the marketing of stainless steel products.

Name NORTH AMERICAN STAINLESS INC.

Affiliation type Sister Company

Address 740 Imperial Road North Guelph Ontario N1K 1Z3

Canada

Comments The subject engages in the manufacturing of flat and long stainless steel products.

Related companies and corporate affiliations comments Other companies of the Acerinox 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 : Malayan Banking Berhad (Maybank) Address : Malaysia

Account details : Current Account

Name of bank : Deutsche 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 details

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 3.02 as of 12-09-2011

Summarized Financial Information

^{Consolidation type :}Non Consolidated Non Consolidated Group Consolidated ^{Currency :}Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Euro (EUR) ^{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 :}1,070,456,625 847,982,474 4,500,467,000

^{Operating profit : ----
----}232,146,000

Profit before tax : _{33,305,816 -45,492,323 117,264,000}

Net income :	31,665,189	-45,573,323	122,739,000
Non current assets :	228,488	7,581	2,235,567,000
Current assets :	557,794,098	526,066,982	2,004,793,000
Inventories :			1,336,658,000
Total assets :	558,022,586	526,074,563	4,240,360,000
Current liabilities :	541,709,030	541,426,196	1,324,428,000
Non current liabilities :	0	0	992,194,000
Total liabilities :	541,709,030	541,426,196	2,316,622,000
Share equity :	16,313,556	-15,351,633	1,923,738,000
Reserve :			1,543,896,000
Retained earning :	-7,686,444	-39,351,633

Operation details

Main activities : The Subject is engages in the trading and distribution of

stainless steel products.

The Subject is part of Acerinox SA which is a Spain based company principally engaged in the manufacture, distribution and sale of flat and long stainless steel products. Its products portfolio comprises slabs, billets, plates, coils, sheets, bars, circles, wired rods, angles and profiles, among others. The Company’s facilities include a production plant located in Algeciras, service centers operating in Barcelona, La Coruna and Madrid,

as well as factories in Spain, the United States, South Africa and Malaysia. The Company is a parent of Grupo Acerinox, a group which comprises a number of controlled entities with operations established in Europe, North and South America, Africa, Asia and Oceania. In addition, the Company is a 24.24%-owned affiliate of Alba Participaciones SA.

Product & services : 1) Stainless Steel Flat Products

- Slabs

- Billets

- Black Coil

- Plates ( N1 Finish )

- Hot Rolled Coil ( N1 Finish )

- Hot Rolled Sheet

- Coil / Sheet engraved (Floor Plate)

- Flat bar (N1 Finish)

- Cold Rolled Coil (Strip)

- Colled Rolled sheet

- Circles

2) Stainless Steel Long Products

- Billet

- Wire Rod

- Angles

- Hot Rolled Flat Bars

- Hot Rolled Re-Bar

- Reinforcement Bar In Coils

- Cold Rolled Re-Bar

- Hot Rolled Black Bar

- Smooth Turned Bars

- Cold Drawn Bars

- Wire

- Profiles

- Color Coated Wire

- Stainless Prestressed Wire

_{- Stainless Reinforcement
Wire}

3) Stainless Steel Wire Rod

- Wire

- Welding wire bars (TIG)

- Bars for electrodes

Purchases

International : Mainly from India, South Africa, United States

Sales

Local : Yes

International : United States, Spain, Belgium, France, Germany, Italy, Norway, Poland, Portugal, Sweden, Switzerland, Turkey, United Kingdom, Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, Venezuela, China, Japan, Singapore, South Africa, and Australia

History

Property & Assets

Premises : The Subject operates from premises located at the verified heading address consisting of production facilities, warehouse and administrative office. The production facilities are occupied by the Subject's sister company Yick Hoe Metal Industries Sdn Bhd as the Subject has no involvement in production.

_{Branches : None reported.}

Summarized country risk

Gross Domestic Products (GDP) & Economic Overview

Central bank : Central Bank of Malaysia

Reserve of foreign exchange & gold : US$ 136.3 billion as of 29 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%,

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 %

List of associated company

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.13
UK Pound	1	Rs.74.18
Euro	1	Rs.64.88

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.