MIRA INFORM REPORT

Report Date :

07.02.2012

IDENTIFICATION DETAILS

Name :	SOUTHERN EDIBLE OIL INDUSTRIES (M) SDN. BERHAD.
Registered Office :	C/O K C Teh Perpetual Sdn. Bhd., No. 9, Jalan Bayu Tinggi 2a/Ks6m Taipan 2, Batu Unjur, Klang, Selangor Darul Ehsan, Zip/Postal Code 41200
Country :	Malaysia
Financials (as on) :	31.12.2005
Date of Incorporation :	26.10.1972
Com. Reg. No.:	13087-H
Legal Form :	Private Company Limited By Shares
Line of Business :	Refining and processing of crude palm oil and palm kernel oil to various grades of palm oil down stream products & marketing of palm oil based products
No. of Employees :	400

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 1,400,000
	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

Bottom of Form

Identification details Bottom of Form

Verified Address

Subject name : SOUTHERN EDIBLE OIL INDUSTRIES (M) SDN. BERHAD.

Business address : 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

Town : Klang

Province : Selangor Darul Ehsan

Zip/postal code : 41000

Country : Malaysia

Tel : +60 3 33756789

Fax : +60 3 33713898

Email : enquiry@southern.com.my

Website : www.southern.com.my

Registered address : C/o K C TEH PERPETUAL SDN. BHD.

No. 9, Jalan Bayu Tinggi 2A/KS6

Taipan 2, Batu Unjur

Town : Klang

Province : Selangor Darul Ehsan

Zip/postal code : 41200

_{Country : Malaysia}

Summary details

Executive Summary

Date founded or registered : 26/10/1972

Legal form : Private Company Limited By Shares

Chief executive : Low Thing

Issued & paid up capital : MYR 20,000,000

Sales turnover : MYR 357,620,806 (Consolidated 12 months, 31/12/2005)

Net income : MYR 596,601 (Consolidated 12 months, 31/12/2005)

Total fixed assets : MYR 331,183,328 (Consolidated 12 months, 31/12/2005)

Line of business : Refining and processing of crude palm oil and palm kernel oil to various

grades of palm oil down stream products & marketing of palm oil based products.

_{Staff employed : 400 employees (Subject)}

Credit risk opinion

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is steady

Management experience : Management is adequately experienced

Financial performance : Financial performance is good

Organization structure : Organizational structure is stable

Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 1,400,000}

_{Credit amount asked : Not described.}

Statutory details

Registry Data

Registration date : 26/10/1972

Legal form : Private Company Limited By Shares

Registration no : 13087-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 : Low Thing

Designation : Managing Director

Name : Wong Hwa Sin

Designation : Plant Manager

Board of directors / other appointments

Appointments

Name : Lim Kim Long

Designation : Alternate Director

Identification no : 600929-10-5717

Appointment date : 13/08/07

Address : No. 28 Jalan Istana

41000 Klang

Selangor Darul Ehsan, Malaysia

Name : Low Kock Ching

Designation : Alternate Director

Identification no : 641123-10-6017

Appointment date : 09/04/07

Address : No. 30, Jalan Istana

41000 Klang

Selangor Darul Ehsan, Malaysia

Name : Lim Boon Eng

Designation : Director

Identification no : 231109-71-5471

Appointment date : 26/10/72

Address : No. 28 Jalan Istana

41000 Klang

Selangor Darul Ehsan

Malaysia

Name : Low Mun Chong

Designation : Director

Identification no : 440108-10-5445

Appointment date : 28/09/91

Address : 44, Lorong Tamarind

Southern Park

41200 Klang

_{Selangor Darul Ehsan}, Malaysia

Name : Lim Kum Loke

Designation : Director

Identification no : 480904-10-5143

Appointment date : 17/04/09

Address : 80, Jalan Tengku Kelana

41000 Klang

Selangor Darul Ehsan

Malaysia

Name : Dato' Low Boon Eng

Designation : Director

Identification no : 500506-10-5653

Appointment date : 07/03/02

Address : 125, Jalan SS 15/5A Subang Jaya

47500 Petaling Jaya Selangor Darul Ehsan Malaysia

Name : Low Thing

Designation : Director

Identification no : 531115-06-5369

Appointment date : 17/04/09

Address : 134, Jalan Tamarind

Southern Park

41200 Klang

Selangor Darul Ehsan, Malaysia

Name : Lou Ai Choo

Designation : Director

Identification no : 601102-10-5684

Appointment date : 23/04/09

Address : 3-5 Kondo Idaman

Jalan Laksamana 10, Taman Sentosa

41200 Klang

Selangor Darul Ehsan, Malaysia

Name : Low Boon Lai

Designation : Director

Identification no : 630412-10-6255

Appointment date : 06/01/05

Address : 62-64, Lebuh Palas Southern Park Klang 41200

Selangor Darul Ehsan

Malaysia

_{Name : Paul Ignatius Stanislaus}

Designation : Company Secretary

Identification no : 480731-10-5697

Appointment date : 31/01/94

Address : 138-H, Jalan Kemboja

Taman Gembira

41100 Klang

Selangor Darul Ehsan

Malaysia

Name : Lim Kui Suang

Designation : Company Secretary

Identification no : 580616-02-5788

Appointment date : 30/09/09

Address : 10, Jalan 8/24A Wangsa Melawati Setapak 53300

Kuala Lumpur Wilayah Persekutuan Malaysia

Name : Lim King Hua

Designation : Company Secretary

Identification no : 581217-10-5670

Appointment date : 30/06/91

Address : 3, Jalan Palas

Southern Park

41200 Klang

Selangor Darul Ehsan

Malaysia

Staff employed : 400 employees (Subject)

Key Advisors

Auditors : LOW & CO.

No. 9, Jalan Bayu Tinggi 2A/KS6

Taipan 2, Batu Unjur

Klang 41200

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 20,000,000

_{Paid up capital : MYR 20,000,000}

ownership / shareholders

How listed : Major Shareholders Only

Composition

Shareholder name : SOUTHERN REALTY (MALAYA) SDN BHD

Address : No. 26 Jalan Istana

41000 Klang

Selangor Darul Ehsan

Malaysia

No. of shares : 8,950,000 Ordinary Shares

Shareholder name : RASIONAL SDN. BHD.

Address : No. 26 Jalan Istana

41000 Klang

Selangor Darul Ehsan

Malaysia

No. of shares : 4,474,985 Ordinary Shares

Shareholder name : LOW MONG HUA SDN.BHD.

Address : No. 26 Jalan Istana

41000 Klang

Selangor Darul Ehsan

Malaysia

No. of shares : 700,000 Ordinary Shares

Shareholder name : LOW MONG HING ENTERPRISE SDN. BHD.

Address : No. 26 Jalan Rengas

Southern Park

41200 Klang

Selangor Darul Ehsan

Malaysia

No. of shares 450,000 Ordinary Shares

Shareholder name LEE CHOON SIEW & SONS REALTY SDN. BHD.

Address No. 26 Jalan Istana

41000 Klang

Selangor Darul Ehsan

_Malaysia

No. of shares 400,000 Ordinary Shares

Shareholder name BANTING HOCK HIN ESTATE COMPANY SDN BHD

Address No. 26 Jalan Istana

41000 Klang

Selangor Darul Ehsan

Malaysia

No. of shares 395,000 Ordinary Shares

Shareholder name : Low Mun Chong

Address : 44, Lorong Tamarind

Southern Park

41200 Klang

Selangor Darul Ehsan

Malaysia

No. of shares 450,000 Ordinary Shares

Shareholder name LIM MUN TONG & SONS REALTY SDN. BHD.

Address No. 26 Jalan Istana

41000 Klang

Selangor Darul Ehsan

Malaysia

No. of shares 350,000 Ordinary Shares

Shareholder name Low Ah Liek @ Low Mong Keng

Address 35 Lintang Hilir 3

Taman Gembira

41100 Klang

Selangor Darul Ehsan

Malaysia

No. of shares 250,000 Ordinary Shares

Shareholder name Low Mong Chai @ Low Ah Kow

Address Bukit Ijok Estate

45800 Jeram

Selangor Darul Ehsan

Malaysia

No. of shares 250,000 Ordinary Shares

_{Comments The Subject has a total of approximately 48 shareholders.}

Related companies & corporate Affiliations

Structure

Name SOUTHERN PRODUCTS MARKETING SDN. BERHAD

Affiliation type Wholly-owned Subsidiary

Address 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

41000 Klang

Selangor Darul Ehsan

Malaysia

_{Name SUNNY FUTURES SDN. BHD.}

Affiliation type Wholly-owned Subsidiary

Address 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

41000 Klang

Selangor Darul Ehsan

Malaysia

Name SOUTHERN PALM INDUSTRIES SDN. BHD.

Affiliation type Wholly-owned Subsidiary

Address 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

41000 Klang

Selangor Darul Ehsan

Malaysia

Name SOUTHERN DETERGENT (M) SDN. BHD.

Affiliation type Wholly-owned Subsidiary

Address 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

41000 Klang

Selangor Darul Ehsan

Malaysia

Name : SOUTHERN COCOA PRODUCTS (M) SDN BHD

Affiliation type Wholly-owned Subsidiary

Address 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

41000 Klang

Selangor Darul Ehsan

Malaysia

Name SOUTHERN ACIDS (M) BERHAD

Affiliation type Associate

Address Level 29, Centro Tower

No 8, Jalan Batu Tiga Lama

41300 Klang

Selangor Darul Ehsan

Malaysia

Name TORITA RUBBER WORKS SDN. BHD.

Affiliation type Associate

Address 6th Floor, Wisma Southern

No. 26-34, Jalan Dato' Hamzah

41000 Klang

Selangor Darul Ehsan

Malaysia

Name PKE (MALAYSIA) SDN BHD

Affiliation type Associate

Address No. 6579, Jalan Jerung

42000, Pelabuhan Klang Selangor Darul Ehsan Malaysia

_{Name PKE TRANSPORT (MALAYSIA) SDN. BERHAD}

Affiliation type Associate

Address No. 6579, Jalan Jerung

42000, Pelabuhan Klang Selangor Darul Ehsan Malaysia

Name SOUTHERN MEDICARE SDN. BHD.

Affiliation type Associate

Address Jalan Mohet

41000 Klang

Selangor Darul Ehsan

Related companies and corporate affiliations comments

Other companies of the Southern Group should be considered affiliates of the Subject

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

Total of Charge: 1,500,000.00

Date of Creation: 05-07-1977

Name of Chargee: UNITED ASIAN BANK BHD

Charge Status: UNSATISFIED

Total of Charge: 15,000,000.00

Date of Creation: 01-08-1979

Name of Chargee: UNITED ASIAN BANK

Charge Status: UNSATISFIED

Total of Charge: 29,050,000.00

Date of Creation: 28-09-1983

Name of Chargee: UNITED ASIAN BANK BHD

Charge Status: UNSATISFIED

Total of Charge: OPEN CHARGE

Date of Creation: 21-07-2000

Name of Chargee: HSBC BANK MALAYSIA BERHAD

Charge Status: FULLY SATISFIED

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 : 31/12/05

Type of accounts : Full audited

Currency : Malaysia, Ringgit (MYR)

_{Exchange rate : 1 USD = MYR 3.01 as of 06-02-2012}

Summarized Financial Information

^{Consolidation type :} Consolidated Consolidated

^{Currency :} Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) ^{Denomination :} (x1) One (x1) One

^{Date of financial year end :} 31/12/05 31/12/04

^{Length of accounts :} 12 months 12 months

^{Sale turnover / Income :} 357,620,806 401,719,212

^{Gross profit :} 35,454,860 36,447,176

^{Operating profit :} -72,280 6,075,336

^{Profit before tax :} 3,245,892 7,646,360

^{Net income :} 596,601 7,147,081

^{Non current assets :} 213,613,512 211,003,795

^{Current assets :} 117,569,816 110,767,593

^{Inventories :} 30,792,388 32,360,907

^{Total assets :} 331,183,328 321,771,388

^{Current liabilities :} 46,492,059 36,335,153

^{Non current liabilities :} 4,356,411 4,585,977

^{Total liabilities :} 50,848,470 40,921,130

^{Share equity :} 280,334,858 280,850,258

^{Retained earning :} 168,904,974 141,535,155

Comments : Since 2006, the Subject has been exempted from revealing their financials. The Subject filed for the certificate of exemption private company and their accountants states that all liabilities are in good manner.

Operation details

Main activities : The Subject is engaged in refining and processing of crude palm oil and palm kernel oil to various grades of palm oil downstream products & marketing of palm oil based products.

The Subject is part of the Southern Group of Companies based in Klang, Selangor.

The Southern Group is an established group of companies involved in the full spectrum of the palm oil industry, ranging from plantation, milling, refining, oleochemical, dry bulk terminal to commodity futures trading. It is also involved in property development, rubber product manufacturing, domestic consumer marketing, health care and overseas ventures.

The group started with humble beginnings in the 1950s with interests mainly in rubber estates, which was then one of the pillars of the Malayan economy. With the decline of the rubber industry in the 1960s, the Group identified the vast potential of the palm oil industry, which was then in its infancy, and began investing aggressively in every phase of the industry.

Today, the flagship of the Group is an integrated palm oil complex, located in Kapar, which houses plantation, mill, refinery and oleochemical plant. Coupled with its close proximity to Port Klang, this has resulted in a unique synergy, which has enabled the Group to better serve its customers worldwide with high quality products and reliable delivery.

Product & services : -Palm oil & palm oil based products: Soap, margarine etc

-Specialty fats

-Refined glycerin

-Palm oil base animal feed

Brand : SEO, SEOCOFIL, SEOFAT

Purchases

International : Asia countries

Sales

Local : Yes

International : Worldwide

Property & Assets

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

Branches : In addition, the Subject operates from refinery facilities located at:

Golcondo Estate, 10th Mile

_{Kapar Road}

42200 Kapar

Selangor Darul Ehsan

_Malaysia

summarized country risk

Gross Domestic Products (GDP) & Economic Overview

Central bank : Central Bank of Malaysia

Reserve of foreign exchange & gold : US$133.7 billion as of 13 January 2012

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 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

International : L/C, Prepayment, Telegraphic transfer, Credit up to 120 days

Sales Term

Local : Prepayment, Bank transfer, Credit up to 120 days

International : L/C, Prepayment, Telegraphic transfer, Credit up to 120 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.48.68
UK Pound	1	Rs.76.75
Euro	1	Rs.63.57

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.