MIRA INFORM REPORT

Report Date :

15.09.2011

IDENTIFICATION DETAILS

Name :	PROGRESS BIO PHARMA SDN BHD
Formerly Known As :	PROGRESS AGRICULTURE & FARMING SDN. BHD.
Registered Office :	No. 61-02 Jalan Permas 10/1, Bandar Baru Permas Jaya, Masai, Johor Darul Takzim, Zip/postal code 81750
Country :	Malaysia
Financials (as on) :	31.08.2010
Date of Incorporation :	09.08.1999
Com. Reg. No.:	490833-X
Legal Form :	Private Limited Company Limited By Shares
Line of Business :	Distribution of agriculture and farm fertilisers, medicines and poultry equipment

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 120,000
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 – 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

Bottom of Form

Identification details Bottom of Form

Verified Address

Subject name : PROGRESS BIO PHARMA SDN BHD

Business address : Lot 5016 Batu 4

Jalan Ayer Hitam

Town : Yong Peng

Province : Johor Darul Takzim

Zip/postal code : 83700

Country : Malaysia

Tel : +60 7 4678823 / 4678832

Fax : +60 7 4678428

Email : progress@progressagri.com

Website : www.progressagri.com

Registered address : No. 61-02 Jalan Permas 10/1

Bandar Baru Permas Jaya

Town : Masai

Province : Johor Darul Takzim

Zip/postal code : 81750

_{Country : Malaysia}

Summary details

Executive Summary

Date founded or registered : 09/08/1999

Legal form : Private Limited Company Limited By Shares

Chief executive : Chen Kong Yen

Issued & paid up capital : MYR 1,830,000

Sales turnover : MYR 18,973,778 (Non-consolidated 12 months, 31/08/2010)

Net income : MYR -1,860,436 (Non-consolidated 12 months, 31/08/2010)

Total fixed assets : MYR 19,895,664 (Non-consolidated 12 months, 31/08/2010)

Line of business : Distribution of agriculture and farm fertilisers, medicines and poultry equipment.

_{Staff employed : 15 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 fair

Organization structure : Organizational structure is stable

Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 120,000}

Statutory details

Registry Data

Registration date : 09/08/1999

Legal form : Private Limited Company Limited By Shares

Registration no 490833-X

Registered authority : Companies Commission of Malaysia

Registry status : Live/Active

Previous name : The Subject was established under the name PROGRESS

AGRICULTURE & FARMING SDN. BHD. on 09-08-1999 and changed to current style on 22-10-2007.

_{Change of legal form : None reported.}

Management / directors

Key Management

Name : Chen Kong Yen

Designation : Managing

Director Name : Chew Yew Chai

Designation : Marketing Director

Board of directors / other appointments

Appointments

Name : Chen Kong Yen

Designation : Director

Identification no : 640801-04-5109

Appointment date 09/08/99

Address No. 49 Jalan Permas 12/7

Bandar Baru Permas Jaya

81750 Masai

Johor Darul Takzim

Malaysia Name : Ng Sin Keong

Designation : Director

Identification no : 680328-10-5167

Appointment date 09/03/11

Address No.8 Jalan Intan 15

Taman Yayasan Fasa 4

42600 Jenjarom Selangor Darul Ehsan Malaysia

Name Chew Yew Chai

Designation : Director

Identification no : 700308-01-5813

Appointment date 01/07/02

Address : No.28 Jalan TU 28

Taman Tasek Utama

75450 Melaka

Malaysia Name Tey Sir Foon

Designation Company Secretary

Identification no : 700210-01-5380

Appointment date 01/09/10

_{Address No.31 Jalan Indah 18/1}

Taman Bukit Indah

81200 Johor Bahru Johor Darul Takzim Malaysia

Staff employed : 15 employees

Key Advisors

Auditors : ERNST & YOUNG

Level 23A, Menara Milenium

Jalan Damanlela

Pusat Bandar Damansara

Damansara Heights

50490 Kuala Lumpur Wilayah Persekutuan 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 1,830,000

Paid up capital : MYR 1,830,000

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

_30-08-2002.

ownership / shareholders

How listed : Full List

Composition

Shareholder name Chen Kong Yen

Address No. 49 Jalan Permas 12/7

Bandar Baru Permas Jaya

81750 Masai

Johor Darul Takzim

Malaysia

No. of shares 777,750 Ordinary Shares

Shareholder name Pua Poo Van

Address Malaysia

No. of shares 777,750 Ordinary Shares

Shareholder name Chew Yew Chai

Address No.28 Jalan TU 28

Taman Tasek Utama

75450 Melaka

Malaysia

No. of shares 274,500 Ordinary Shares

Related companies & corporate Affiliations

Structure

Name PROGRESS ANIMAL NUTRITION SDN BHD

Affiliation type Associate

Address Lot 5016 Batu 4

Jalan Ayer Hitam

_{83700 Yong Peng}

Johor Darul Takzim

Malaysia

Name PROGRESS LIVESTOCK EQUIPMENT SDN BHD

Affiliation type Associate

Address Lot 5016 Batu 4

Jalan Ayer Hitam

83700 Yong Peng Johor Darul Takzim Malaysia

Name OTO AGRICULTURE MARKETING & SERVICES SDN. BHD.

Affiliation type Associate

Address Lot 5016 Batu 4

Jalan Ayer Hitam

83700 Yong Peng Johor Darul Takzim Malaysia

Bank & mortgages

Bank Details

Name of bank : Malayan Banking Berhad (Maybank)

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: 875,000.00

Date of Creation: 27-12-2002

Name of Chargee: BUMIPUTRA COMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 875,000.00

Date of Creation: 13-02-2003

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 500,000.00

Date of Creation: 19-04-2004

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 500,000.00

Date of Creation: 14-03-2005

Name of Chargee: BUMIPUTRACOMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 314,000.00

Date of Creation: 24-10-2005

Name of Chargee: BUMIPUTRA-COMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 500,000.00

Date of Creation: 12-12-2005

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: UNSATISFIED

Total of Charge: 875,000.00

Date of Creation: 16-01-2006

Name of Chargee: BUMIPUTRA-COMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 350,000.00

Date of Creation: 16-01-2006

Name of Chargee: BUMIPUTRA-COMMERCE BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 750,000.00

Date of Creation: 03-05-2006

Name of Chargee: RHB BANK BERHAD

Charge Status: UNSATISFIED

Total of Charge: 5,150,000.00

Date of Creation: 16-08-2007

Name of Chargee: AMBANK (M) BERHAD

Charge Status: UNSATISFIED

Total of Charge: 5,150,000.00

Date of Creation: 16-08-2007

Name of Chargee: AMBANK (M) BERHAD

Charge Status: UNSATISFIED

Total of Charge: 5,150,000.00

Date of Creation: 16-08-2007

Name of Chargee: AMBANK (M) BERHAD Charge

Status: UNSATISFIED

Total of Charge: 969,000.00

Date of Creation: 01-08-2008

Name of Chargee: AMBANK (M) BERHAD

Charge Status: UNSATISFIED

Total of Charge: 969,000.00

Date of Creation: 01-08-2008

Name of Chargee: AMBANK (M) BERHAD

Charge Status: UNSATISFIED

Total of Charge: 250,000.00

Date of Creation: 17-08-2009

Name of Chargee: AMBANK (M) BERHAD

Charge Status: UNSATISFIED

Legal Fillings

Bankruptcy fillings : None reported.

Court judgements : None reported.

Tax liens : None reported.

Others : None reported.

financials

Description

_{Source of financial statement : Commercial Registry Filings}

Financial statement date : 31/08/10

Type of accounts : Full audited

Currency : Malaysia, Ringgit (MYR)

Exchange rate : 1 USD = MYR 3.05 as of 15-09-2011

Summarized Financial Information

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

^{Date of financial year end :} 31/08/10

^{Length of accounts :} 12 months

^{Sale turnover / Income :} 18,973,778

^{Profit before tax :} -1,828,177

^{Net income :} -1,860,436

^{Non current assets :} 6,776,397

^{Current assets :} 13,119,267

^{Total assets :} 19,895,664

^{Current liabilities :} 9,425,701

^{Non current liabilities :} 5,791,278

^{Total liabilities :} 15,216,979

^{Share equity :} 4,678,685

^{Retained earning :} 2,251,720

Comments : Comparative financial information is not available for previous year as the Subject was exempted from revealing their financial information. The last account made since latest financial information provided was 31-08-2005.

Operation details

Main activities : The Subject's main activities are distribution of agriculture and farm fertilisers, medicines and poultry equipment.

Product & services : 1) Animal Health Product

- Amoxycillin

- Amprocidia

- Colibez

- Ceplist 680

- C.C.R.D.

- Enrofloxacin

2) Farming Equipments

- Breeder Nest

- Fiberglass Silo

- Drinking Systems

- Feeder Systems

- Silo Truck Systems

- Livestock Switch Board Controllers

- Livestock Turn-key projects

Brand : 1) Animal Health Product

-Progress

-Olmix

-Woogene B&G

-VTR

-Ceetal

-Franvet

2) Farming Equipments

-Progress

-Codaf

-Ebmpapst

-Bayle

-Hotraco

-Jansen

-Natureform

Purchases

International : Korea, China, USA, Spain, France, Germany, Netherlands, India, Jordan, Tunisia, Italy, Belgium

Sales

Local : Yes

_{International : No export.}

Property & Assets

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

_{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: 55.2%}

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

International : L/C, Prepayment, Credit up to 90 days

Sales Term

Local : Prepayment, Cash against documents, 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.47.81
UK Pound	1	Rs.75.16
Euro	1	Rs.65.11

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.