MIRA INFORM REPORT

Report Date :

07.12.2012

IDENTIFICATION DETAILS

Name :	BP ASIA PACIFIC (MALAYSIA) SDN BHD
Registered Office :	Quill 7, 9, Jalan Stesen Sentral 5, Kuala Lumpur Sentral, Level 22, 50470 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2010
Date of Incorporation :	08.08.1994
Com. Reg. No.:	310913-T
Legal Form :	Private Limited
Line of Business :	Marketers of Petroleum and Petroleum Related Products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Slow but 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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Malaysia	A2	A2

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

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	310913-T
COMPANY NAME	:	BP ASIA PACIFIC (MALAYSIA) SDN BHD
FORMER NAME	:	N/A
INCORPORATION DATE	:	08/08/1994
COMPANY STATUS	:	EXIST
LEGAL STATUS	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	QUILL 7, 9, JALAN STESEN SENTRAL 5, KUALA LUMPUR SENTRAL, LEVEL 22, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
BUSINESS ADDRESS	:	LEVEL 22, QUILL 7 NO 9, JALAN SENTRAL 5 KUALA LUMPUR SENTRAL, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
TEL.NO.	:	03-22727272
FAX.NO.	:	03-22726868
CONTACT PERSON	:	YEOH LEAN IMM ( DIRECTOR )
INDUSTRY CODE	:	51411
PRINCIPAL ACTIVITY	:	MARKETERS OF PETROLEUM AND PETROLEUM RELATED PRODUCTS
AUTHORISED CAPITAL	:	MYR 60,000,000.00 DIVIDED INTO ORDINARY SHARE 600,000.00 OF MYR 100.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 47,800,200.00 DIVIDED INTO ORDINARY SHARES 478,002 CASH OF MYR 100.00 EACH.
SALES	:	MYR 42,395,722 [2010]
NET WORTH	:	MYR 8,767,181 [2010]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	MODERATE
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) marketers of petroleum and petroleum related products.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The immediate holding company of the SC is BP ASIA PACIFIC HOLDINGS LTD, a company incorporated in UNITED KINGDOM.

The ultimate holding company of the SC is BP P.L.C, a company incorporated in UNITED KINGDOM.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
BP ASIA PACIFIC HOLDINGS LTD	CHERTSEY ROAD, SUNBURY ON THAMES MIDDLESEX, TW16 7BP, ENGLAND.	1094398	478,002.00	100.00
			---------------	------
			478,002.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. YEOH LEAN IMM
Address	:	A-3-7, AVANT COURT, SRI SENTOSA, 6 1/2 MILES, JALAN KLANG LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	6129537
New IC No	:	610423-07-5628
Date of Birth	:	23/04/1961
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	01/03/2010

DIRECTOR 2

Name Of Subject	:	SEAN ZAHID PLANT
Address	:	1, LORONG PJU 7/22E, MUTIARA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	761326526
Nationality	:	N/A
Date of Appointment	:	08/05/2012

DIRECTOR 3

Name Of Subject	:	MR. LIEW CHEE SENG
Address	:	6, JALAN USJ 5/1A, UEP SUBANG JAYA, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	A2528757
New IC No	:	730608-14-5369
Date of Birth	:	08/06/1973
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	20/04/2012

MANAGEMENT

1)	Name of Subject	:	YEOH LEAN IMM
	Position	:	DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG
Auditor' Address	:	MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. CHIN NGEOK MUI
	IC / PP No	:	7311328
	New IC No	:	640423-10-7826
	Address	:	3, JALAN IBU KOTA 4, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

2)	Company Secretary	:	MS. CHEN BEE LING
	IC / PP No	:	A2824767
	New IC No	:	740719-06-5256
	Address	:	B-3-3A, PANGSAPURI IMPIAN, OFF JALAN PIPIT, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC

* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES,TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

PETROLEUM AND PETROLEUM RELATED PRODUCTS

Competitor(s)

:

BOUSTEAD PETROLEUM MARKETING SDN BHD
KEMAMAN BITUMEN COMPANY SDN BHD
PETRONAS DAGANGAN BHD
SANBUMI HOLDINGS BHD
SHELL TIMUR SDN BHD

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMALL & MEDIUM ENTERPRISE

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

Total Number of Employees:
YEAR	2008
GROUP	0
COMPANY	N/A

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) marketers of petroleum and petroleum related products.

The SC's lubricants business is concentrated on the higher margin sectors of automotive lubricants, especially in the consumer sector with a strong presence in the marine and industrial business markets.

It supplies fuel at about 1,200 airports in 90 countries and also presents at about 1,000 ports around the world.

PROJECTS

No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-22727272
Match	:	N/A
Address Provided by Client	:	LEVEL 22, QUILL 7 NO 9, JALAN SENTRAL 5 KUALA LUMPUR SENTRAL,50470,KUALA LUMPUR,WILAYAH PERSEKUTUAN.
Current Address	:	LEVEL 22, QUILL 7 NO 9, JALAN SENTRAL 5 KUALA LUMPUR SENTRAL, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the Finance Department. She provided some information on the SC.

The SC refused to disclose its number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	11.58%	]
Profit/(Loss) Before Tax	:	Decreased	[	<74.79%>	]
Return on Shareholder Funds	:	Unfavourable	[	<24.73%>	]
Return on Net Assets	:	Unfavourable	[	<14.02%>	]
The lower turnover could be due to the intense market competition.The SC could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	1 Days	]
Creditors Ratio	:	Favourable	[	7 Days	]
As the SC is a service oriented company, the SC does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.80 Times	]
Current Ratio	:	Unfavourable	[	1.80 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Although the SC's turnover decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : FAIR

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2008	2009	2010	2011*	2012**
Population ( Million)	27.73	28.13	28.35	28.70	29.10
Gross Domestic Products ( % )	4.6	<0.5>	7.2	5.5	5.3
Domestic Demand ( % )	6.9	2.9	6.3	4.8	7.6
Private Expenditure ( % )	7.1	<2.7>	8.1	7.0	8.7
Consumption ( % )	8.4	0.7	6.7	6.3	7.1
Investment ( % )	1.5	<17.2>	17.7	16.2	15.9
Public Expenditure ( % )	6.5	5.2	3.8	7.6	4.7
Consumption ( % )	11.6	3.1	0.2	8.9	3.0
Investment ( % )	0.7	8.0	2.8	0.6	7.0
Balance of Trade ( MYR Million )	129,563	89,650	118,356	116,058	-
Government Finance ( MYR Million )	<34,462>	<28,450>	<40,482>	<45,511>	<43,021>
Government Finance to GDP / Fiscal Deficit ( % )	<4.8>	<4.8>	<5.6>	<5.4>	<4.7>
Inflation ( % Change in Composite CPI)	<3.3>	<5.2>	5.1	3.1	-
Unemployment Rate	3.7	4.5	3.9	3.3	-
Net International Reserves ( MYR Billion )	388	331	329	415	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	1.91	2.87	2.20	3.50	-
Average 3 Months of Non-performing Loans ( % )	13.24	11.08	15.30	14.80	-
Average Base Lending Rate ( % )	6.72	5.53	6.30	6.60	-
Business Loans Disbursed( % )	11.6	10.5	14.7	15.3	-
Foreign Investment ( MYR Million )	23,261.4	22,156.8	22,517.9	23,546.1	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	41,599	41,578	44,148	-	-
Registration of New Companies ( % )	<4.0>	<0.1>	6.2	-	-
Liquidation of Companies ( No. )	27,992	39,075	25,585	-	-
Liquidation of Companies ( % )	23.7	39.6	<34.5>	-	-
Registration of New Business ( No. )	269,866	312,581	271,414	-	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	18,885	19,345	19,738	-	-
Business Dissolved ( % )	<7.6>	2.4	2.0	-	-
Sales of New Passenger Cars (' 000 Unit )	497.5	486.3	543.6	363.0	-
Cellular Phone Subscribers ( Million )	25.1	30.1	32.8	35.3	-
Tourist Arrival ( Million Persons )	21.5	23.6	24.6	25.3	-
Hotel Occupancy Rate ( % )	68.0	58.0	63.0	51.3	-
Credit Cards Spending ( % )	17.1	12.8	14.1	15.6	-
Bad Cheque Offenders (No.)	34,834	36,667	33,568	27,208	-
Individual Bankruptcy ( No.)	13,907	16,228	18,119	16,155	-
Individual Bankruptcy ( % )	5.1	16.7	11.7	<10.8>	-

INDUSTRIES ( % of Growth ):	2008	2009	2010	2011*	2012**
Agriculture	3.6	0.4	2.1	4.7	4.1
Palm Oil	7.0	<1.1>	<3.4>	7.3	-
Rubber	<1.1>	<19.8>	9.9	6.4	-
Forestry & Logging	<1.5>	<5.9>	<3.3>	<4.7>	-
Fishing	4.0	5.5	5.6	2.8	-
Other Agriculture	5.9	9.0	7.9	8.5	-
Industry Non-Performing Loans ( MYR Million )	393.0	413.7	508.4	634.1	-
% of Industry Non-Performing Loans	<2.0>	1.3	2.1	3.2	-
Mining	<0.8>	<3.8>	0.2	<2.4>	2.5
Oil & Gas	12.7	2.1	0.5	<1.7>	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	36.0	44.2	49.7	46.5	-
% of Industry Non-performing Loans	0.1	0.1	0.1	0.1	-
Manufacturing #	1.3	<9.4>	11.4	5.6	4.5
Exported-oriented Industries	2.7	<19.0>	12.1	2.8	-
Electrical & Electronics	2.4	<30.3>	28.4	<4.9>	-
Rubber Products	4.2	<10.1>	25.3	15.4	-
Wood Products	<6.0>	<24.1>	20.1	<7.3>	-
Textiles & Apparel	1.9	<19.5>	<0.4>	14.8	-
Domestic-oriented Industries	9.9	<9.8>	16.3	6.3	-
Food, Beverages & Tobacco	9.5	0.2	3.0	4.2	-
Chemical & Chemical Products	1.4	<7.7>	16.2	5.6	-
Plastic Products	6.5	<9.1>	2.4	3.8	-
Iron & Steel	16.8	<32.7>	29.3	2.4	-
Fabricated Metal Products	14.7	<2.5>	14.9	25.2	-
Non-metallic Mineral	8.3	<15.5>	20.2	16.3	-
Transport Equipment	27.1	<13.5>	36.5	<9.4>	-
Paper & Paper Products	8.6	<5.0>	18.7	15.6	-
Crude Oil Refineries	7.8	0.2	<11.4>	9.3	-
Industry Non-Performing Loans ( MYR Million )	5,729.4	6,007.3	6,217.5	6,537.2	-
% of Industry Non-Performing Loans	16.8	18.3	23.8	25.7	-
Construction	2.1	5.8	5.1	4.4	7.0
Industry Non-Performing Loans ( MYR Million )	4,149.8	3,241.8	4,038.5	3,856.9	-
% of Industry Non-Performing Loans	12.2	9.9	10.7	10.2	-
Services	7.3	2.6	6.5	6.4	6.5
Electric, Gas & Water	5.0	0.4	8.5	5.6	4.8
Transport, Storage & Communication	7.8	1.6	7.7	6.5	7.3
Wholesale, Retail, Hotel & Restaurant	10.0	2.8	4.7	5.2	6.9
Finance, Insurance & Real Estate	9.2	3.8	6.1	6.3	6.5
Government Services	8.6	2.0	6.7	7.6	5.6
Other Services	5.9	4.4	4.2	5.4	5.7
Industry Non-Performing Loans ( MYR Million )	8,281.4	6,631.3	7,384.6	6,825.2	-
% of Industry Non-Performing Loans	24.3	20.2	25.7	23.4	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index (Source : Department of Statistics / Economic Report / Bank Negara Report)

INDUSTRY ANALYSIS

MSIC CODE
51411 : Wholesale of petrol, diesel, lubricants, etc.
INDUSTRY :	TRADING
The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively.
It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.
Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.
During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.
Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.
Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1994, the SC is a Private Limited company, focusing on marketers of petroleum and petroleum related products. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. Presently, the issued and paid up capital of the SC stands at MYR 47,800,200.

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

Due to the challenging market conditions, the SC's business performance seems to be deteriorating and losses incurred. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 8,767,181, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. However, we are of the opinion that there are a large number of other companies in the same industry. In another word, we believe that the SC faces stiff competitions from other local players.

In view of the above, we recommend credit be granted to the SC with close monitoring.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

BP ASIA PACIFIC (MALAYSIA) SDN BHD

Financial Year End	31/12/2010	31/12/2009
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	MYR	MYR
TURNOVER	42,395,722	47,948,422
	----------------	----------------
Total Turnover	42,395,722	47,948,422
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	<2,028,519>	<8,047,381>
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	<2,028,519>	<8,047,381>
Taxation	<139,565>	<1,562,656>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	<2,168,084>	<9,610,037>
	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	<2,168,084>	<9,610,037>
Extraordinary items	-	<252,125>
	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	<2,168,084>	<9,862,162>
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	<39,791,350>	<29,929,188>
	----------------	----------------
As restated	<39,791,350>	<29,929,188>
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	<41,959,434>	<39,791,350>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	<41,959,434>	<39,791,350>
	=============	=============

BALANCE SHEET

BP ASIA PACIFIC (MALAYSIA) SDN BHD

ASSETS EMPLOYED:
FIXED ASSETS	2,905,576	10,724,969
LONG TERM INVESTMENTS/OTHER ASSETS
Deferred assets	1,261,285	1,000,220
Others	-	169,026,458
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,261,285	170,026,678
	----------------	----------------
TOTAL LONG TERM ASSETS	4,166,861	180,751,647
CURRENT ASSETS
Trade debtors	157,668	150,245
Other debtors, deposits & prepayments	731,920	516,730
Amount due from related companies	21,300,726	27,370,942
Cash & bank balances	796,043	9,867,133
Others	123,411	65,200,103
	----------------	----------------
TOTAL CURRENT ASSETS	23,109,768	103,105,153
	----------------	----------------
TOTAL ASSET	27,276,629	283,856,800
	=============	=============
CURRENT LIABILITIES
Trade creditors	770,776	335,540
Other creditors & accruals	5,397,633	9,921,773
Amounts owing to holding company	-	312,823
Amounts owing to related companies	6,636,617	662,402
Provision for taxation	-	460,649
Other liabilities	-	66,145,413
	----------------	----------------
TOTAL CURRENT LIABILITIES	12,805,026	77,838,600
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	10,304,742	25,266,553
	----------------	----------------
TOTAL NET ASSETS	14,471,603	206,018,200
	=============	=============
SHARE CAPITAL
Ordinary share capital	45,700,200	45,700,200
	----------------	----------------
TOTAL SHARE CAPITAL	45,700,200	45,700,200
RESERVES
Retained profit/(loss) carried forward	<41,959,434>	<39,791,350>
Others	5,026,415	3,972,887
	----------------	----------------
TOTAL RESERVES	<36,933,019>	<35,818,463>
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	8,767,181	9,881,737
LONG TERM LIABILITIES
Retirement benefits provision	5,704,422	6,110,005
Others	-	190,026,458
	----------------	----------------
TOTAL LONG TERM LIABILITIES	5,704,422	196,136,463
	----------------	----------------
	14,471,603	206,018,200
	=============	=============

FINANCIAL RATIO

BP ASIA PACIFIC (MALAYSIA) SDN BHD

TYPES OF FUNDS
Cash	796,043	9,867,133
Net Liquid Funds	796,043	9,867,133
Net Liquid Assets	10,304,742	25,266,553
Net Current Assets/(Liabilities)	10,304,742	25,266,553
Net Tangible Assets	14,471,603	206,018,200
Net Monetary Assets	4,600,320	<170,869,910>
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	18,509,448	273,975,063
Total Assets	27,276,629	283,856,800
Net Assets	14,471,603	206,018,200
Net Assets Backing	8,767,181	9,881,737
Shareholders' Funds	8,767,181	9,881,737
Total Share Capital	45,700,200	45,700,200
Total Reserves	<36,933,019>	<35,818,463>
LIQUIDITY (Times)
Cash Ratio	0.06	0.13
Liquid Ratio	1.80	1.32
Current Ratio	1.80	1.32
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	1	1
Creditors Ratio	7	3
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	2.11	27.73
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	30.28	431.00
PERFORMANCE RATIO (%)
Operating Profit Margin	<4.78>	<16.78>
Net Profit Margin	<5.11>	<20.04>
Return On Net Assets	<14.02>	<3.91>
Return On Capital Employed	<14.02>	<3.91>
Return On Shareholders' Funds/Equity	<24.73>	<97.25>
Dividend Pay Out Ratio (Times)	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.47
UK Pound	1	Rs.87.63
Euro	1	Rs.71.12

INFORMATION DETAILS

Report Prepared by :

MNL

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.