MIRA INFORM REPORT

Report Date :

11.01.2012

IDENTIFICATION DETAILS

Name :	RECRON (MALAYSIA) SDN. BHD.
Formerly Known As :	REAL AIM DEVELOPMENT SDN. BHD.
Registered Office :	Level 7, 8 & 9, Wisma Goldhill, 67, Jalan Raja Chulan, Kuala Lumpur , Wilayah Persekutuan, Zip/postal code 50200
Country :	Malaysia
Financials (as on) :	31.12.2010
Date of Incorporation :	20.07.2007
Com. Reg. No.:	781769-K
Legal Form :	Private Company Limited By Shares
Line of Business :	Manufacture of polyester resin, fibre, yarn and fabric and undertaking of fabrics’ bleaching, dyeing, printing and finishing
No. of Employees :	7,300

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 20,000,000
Status :	Good
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 : RECRON (MALAYSIA) SDN. BHD.

Business address : Level 7, 8 & 9, Wisma Goldhill

67, Jalan Raja Chulan

Town : Kuala Lumpur

Province : Wilayah Persekutuan

Zip/postal code : 50200

Country : Malaysia

Tel : +60 3 20316000

Fax : +60 3 20315000

Email : enquiry.marketing@recron.com

Website : www.recronmalaysia.com

Registered address : Level 7, 8 & 9, Wisma Goldhill

67, Jalan Raja Chulan

Town : Kuala Lumpur

Province : Wilayah Persekutuan

Zip/postal code : 50200

_{Country : Malaysia}

Summary details

Executive Summary

Date founded or registered : 20/07/2007

Legal form : Private Company Limited By Shares

Chief executive : Jutti Chandra Suresh

Issued & paid up capital : MYR 2,500,000

Sales turnover : MYR 3,192,020,000 (Non-consolidated 12 months, 31/12/2010)

Net income : MYR 122,810,000 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets : MYR 2,124,770,000 (Non-consolidated 12 months, 31/12/2010)

Line of business : Manufacture of polyester resin, fibre, yarn and fabric and undertaking of

fabrics’ bleaching, dyeing, printing and finishing.

_{Staff employed : 7,300 employees}

Credit risk opinion

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is progressing

Management experience : Management is adequately experienced

Financial performance : Financial performance is very good

Organization structure : Organizational structure is robust

Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 20,000,000}

Credit amount asked : Not described.

Comments : Larger credit can still be considered. The Subject is well positioned in the

market and the financial stability of the group is positive.

Statutory details

Registry Data

Registration date : 20/07/2007

Legal form : Private Company Limited By Shares

Registration no : 781769-K

Registered authority : Companies Commission of Malaysia

Registry status : Live/Active

Previous name : The Subject was established under the name REAL AIM DEVELOPMENT SDN.

BHD. and changed to the current style on 20-08-2007.

_{Change of legal form : None reported.}

Management / directors

Key Management

Name : Jutti Chandra Suresh

Designation : Managing Director

Name : Kulkarni Vinay Ramchandra

Designation : Chief Operating Officer

Name : Raman K. Chopra

Designation : Head of Marketing (Textiles)

Name : Sandeep Khanna

Designation : Head of Marketing (Fabric)

Name : G. P. Rao

_{Designation : Chief Human Resources}

Board of directors / other appointments

Appointments

Name Kulkarni Vinay Ramchandra

Designation Director

Identification no 094648090

Appointment date 26/04/11

Address 2-2, Taragon Puteri YKS

41, Jalan Yap Kwan Seng

50450 Kuala Lumpur Wilayah Persekutuan Malaysia

Name Man Mohan

Designation Director

Identification no: Z1777776

Appointment date 22/08/07

Address 41 Bakhtawar Annexe

22 Narayan Dabholkar Road

Malabar Hill

Mumbai 400 006

Maharashtra

India

Name Jutti Chandra Suresh

Designation Director

Identification no: Z1801030

_{Appointment date 24/03/08}

Address 10, Jalan 8/155A

Bukit Jalil Golf Resort

57100 Kuala Lumpur Wilayah Persekutuan Malaysia

Name Jain Praveen Kumar

Designation Director

Identification no Z1808929

Appointment date 22/08/07

Address Unit A-17-3, Mont Kiara Meridin

19, Jalan Duta Kiara

50480 Kuala Lumpur Wilayah Persekutuan Malaysia

Name Anil Kumar Rajbanshi

Designation Director

Identification no : Z1877333

Appointment date 05/02/08

Address A-402, Chaitanya Towers Appasahab Marathe Marg Prabhadevi

Mumbai 400 002

Maharashtra

India

Name Udeshi Rajen Dwarkadas

Designation Director

Identification no : Z21705096

Appointment date 22/08/07

Address 502 Shanti Apartments

98 Walkeshwar Road

Mumbai 400 006

Maharashtra

India

Name Lew Nyok Khim

Designation Company Secretary

Identification no : 581121-08-5708

Appointment date 24/11/11

Address 2, SS 3/59B Kelana Jaya

47300 Petaling Jaya Selangor Darul Ehsan Malaysia

Name Catherine Mah Suik Ching

Designation Company Secretary

Identification no : 600421-10-6364

Appointment date 08/08/07

_{Address 19,Jalan BK3/8D}

Bandar Kinrara

47180 Puchong Wilayah Persekutuan Malaysia

Staff employed 7,300 employees

Key Advisors

Auditors

PRICEWATERHOUSECOOPERS Level 10, 1 Sentral

Jalan Travers

Kuala Lumpur Sentral

50470 Kuala Lumpur

_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 2,500,000

Paid up capital : MYR 2,500,000

Changed in capital : The Subject increased share capital from MYR 100,000 to MYR 50,000,000 on

_02-10-2007.

ownership / shareholders

How listed : Full List

Composition

Shareholder name RELIANCE GLOBAL BUSINESS B.V.

Address Sophialaan 3

2514 JP 'S-Gravenhage

Netherlands

No. of shares 2,500,000 Ordinary Shares

_{% of shares 100%}

Related companies & corporate Affiliations

Structure

Name : RELIANCE INDUSTRIES LIMITED

Affiliation type : Ultimate Holding Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Comments : Reliance Industries Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas in India and internationally. It also produces and markets petrochemical products, such as polyethylene, polypropylene, polyvinyl chloride, poly butadiene rubber, polyester yarn, polyester fiber, purified terephthalic acid, ethylene glycol, olefins, aromatics, linear alkyl benzene, butadiene, acrylonitrile, caustic soda, and polyethylene terephthalate. In addition, the company involves in refining petroleum products, including liquefied petroleum gas, propylene, naphtha, gasoline, jet/aviation turbine fuel, kerosene, high speed diesel, sulphur, and petroleum coke, as well as

engages in lubricants and petroleum retail business. Further, it offers chemicals, such as linear alkyl benzene; and polyester and fiber intermediates, such as paraxylene, purified terephthalic acid, and mono ethylene glycol, as well as staple fiber filament yarns, texturised yarns, twisted/dyed yarns, stretch yarns, cotton yarns, hollow fibers, secondary reinforcement products, and polyethylene terephthalate. Additionally, the company produces textiles, such as suitings, shirtings, readymade garments, as well as ready-to-stitch, take away fabrics. It also operates retail stores, including food and grocery specialty stores; mini hypermarkets; hypermarkets; electronics specialty stores; Apple stores; apparel specialty stores; health, wellness, and pharma specialty stores; footwear specialty stores; jewelry specialty stores; convenience shopping; books, music, toys, gifts, kitchen solutions, furniture, furnishing and home ware, and automotive services and products specialty stores, as well as offers transportation fuels, fleet management services, highway hospitality services, and vehicle care services. In addition, the company focuses on SEZ development and telecom / broadband businesses. Reliance Industries Limited was founded in 1966 and is based in Mumbai, India.

Name : RELIANCE GLOBAL BUSINESS B.V.

Affiliation type : Parent Company

Address : Sophialaan 3

2514 JP 'S-Gravenhage

Netherlands

Comments : Holding company.

Name : RELIANCE RETAIL LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Comments : Reliance Retail Limited operates retail outlets in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The company’s outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and well-being products, as well as educational products and services. The company was formerly known as Reliance Petroleum Retail Private Limited and changed its name to Reliance Retail Limited in January 2006. The company was incorporated in 1998 and is based in Mumbai, India. Reliance Retail Limited operates as a subsidiary of Reliance Industries Ltd.

Name : RELIANCE HYPERMART LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Name : RELIANCE GEMS AND JEWELS LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Name : RELIANCE PETROINVESTMENTS LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Name : RELIANCE EXPLORATION & PRODUCTION DMCC

Affiliation type : Sister Company

Address : Al Falasi Residence, 1st Floor Centre Point Apartment Building Bur Dubai

P.O. Box 125307

Dubai

United Arab Emirates

Name : RELIANCE CHEMICALS LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Name : RELIANCE DAIRY FOODS LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Name : RELIANCE RETAIL FINANCE LIMITED

Affiliation type : Sister Company

Address : Makers Chambers - IV Nariman Point

Mumbai 400 021

India

Related companies and corporate affiliations comments

Other companies of the Reliance Group should be considered affiliates of the _Subject.

Bank & mortgages

Bank Details

Name of bank : Malayan Banking 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: FOREIGN CURRENCY

Date of Creation: 25-10-2010

Name of Chargee: ICICI BANK LIMITED, SINGAPORE BRANCH

Charge Status: UNSATISFIED

Total of Charge: OPEN CHARGE

Date of Creation: 25-10-2010

Name of Chargee: ICICI BANK LIMITED, SINGAPORE BRANCH

Charge Status: UNSATISFIED

Total of Charge: FOREIGN CURRENCY

Date of Creation: 11-10-2011

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: UNSATISFIED

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 3.14 as of 09-01-2012

Summarized Financial Information

Consolidation type : Non Consolidated Non Consolidated Group

_Consolidated

Currency :	Malaysia, Ringgit (MYR)	Malaysia, Ringgit (MYR)	India, Rupee (INR)
Denomination :	(x1) One	(x1) One	(x1) One
Date of financial year end :	31/12/10	31/12/09	31/03/11
Length of accounts :	12 months	12 months	12 months
Sale turnover / Income :	3,192,020,000	2,888,960,000	2,763,717,800,000
Operating profit :	164,800,000	43,030,000
Profit before tax :	144,620,000	11,710,000	240,549,600,000
Net income :	122,810,000	16,410,000	192,936,800,000
Non current assets :	1,481,940,000	1,579,120,000	2,094,378,600,000
Current assets :	642,830,000	599,220,000	980,795,800,000
Inventories :	452,260,000	449,240,000	385,194,300,000
Total assets :	2,124,770,000	2,178,340,000	3,075,174,400,000
Current liabilities :	1,077,190,000	1,229,450,000	574,467,300,000
Non current liabilities :	87,050,000	65,240,000	951,771,000,000
Total liabilities :	1,164,240,000	1,294,690,000	1,526,238,300,000
Share equity :	960,530,000	883,650,000	1,548,949,600,000
Retained earning :	184,920,000	62,110,000

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 Reliance Industries Limited and all its subsidiaries which include the Subject.

Operation details

Main activities : The Subject is engaged in producing polyester and textile products. The Subject products includes polyester, nylon, and cotton and blended fibers and yarns; woven and knitted fabrics; and polyester chips for making bottles, containers, and sheets, which are used for packaging water, carbonated soft drinks, and cooking oil. The company also provides polyester and nylon polymers, polyester staple fibers, spun yarns, polyester filament yarns, and PET bottle grade resins.

The Subject is part of Reliance Industries Limited (RIL), which is an Indian conglomerate company headquartered in Mumbai, India. The company operates through three business segments: petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business, special economic zone (SEZ) development and telecom/broadband business. RIL is the largest publicly traded company in India by market capitalization and second-largest public corporation in India when ranked by revenue. The company is listed on Fortune Global 500 and Forbes Global 2000. The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002) and now headed by Mr. Mukesh Dhirubhai Ambani, India's richest man and ninth richest man in the world.

Product & services Fibres & Yarns: Polyester Staple Fibre, Polyester Pre - Oriented Yarn, Polyester Fully Drawn Yarns, High Twisted Yarn, Nylon Draw Textured Yarn & Air Textured Yarn, Open End Yarn, Ring Spun Yarn, Specialty Yarn

Fabrics: Polyester Fabric, Nylon Fabric, Mixed Woven Fabric, Circular _{Knitted Fabric}

Chips: PET Fiber Grade, PET Bottle Grade, Nylon 6 Fiber Grade

Purchases

Local : Yes

International : Worldwide

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 production facilities located:

Nilai Plant

PT 1886, 1891, 1892, 7927, 7928

Kawasan Perindustrian Nilai

_{71800 Nilai}

Negeri Sembilan

Malaysia

Tel: +60 6 7992855

Melaka Plant

Lot 2322, Tangga Batu Industrial Estate

Tanjung Kling 76400

Melaka

Malaysia

Tel: +60 6 3511190

Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR _{1,481,940,000.}

Summarized country risk

Gross Domestic Products (GDP) & Economic Overview

Central bank : Central Bank of Malaysia

Reserve of foreign exchange & gold : US$135.0 billion as of 15 December 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 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 2008 US$ 7,172 million

2009: US$ 1,430 million

_{2010: US$ 9,103 million}

FDI Outflows 2008: US$ 14,965 million

2009: US$ 7,930 million

2010: US$ 13,329 million

Best countries for doing business 21 out of 183 countries

Global competitiveness ranking 21 (ranking by country on a basis of 142, 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 : 55.3%

Payment history

Purchase Term

Local : Prepayment, Bank transfer, D/P, D/A, Credit up to 120 days

International : L/C, Telegraphic transfer, D/P, D/A, Credit up to 120 days

Sales Term

Local : Prepayment, Bank transfer, D/P, D/A, Credit up to 120 days

International : L/C, Telegraphic transfer, D/P, D/A, 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.52.23
UK Pound	1	Rs.80.84
Euro	1	Rs.66.79

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.