MIRA INFORM REPORT

Report Date :

03.10.2012

IDENTIFICATION DETAILS

Name :	ISC ENTERPRISE (M) SDN BHD
Registered Office :	41, Jalan Tsb 9a, Taman Industri Sungai Buloh, 47000 Sungai Buloh, Selangor
Country :	Malaysia
Financials (as on) :	31.03.2010
Date of Incorporation :	06.04.2005
Com. Reg. No.:	687294-U
Legal Form :	Private Limited
Line of Business :	Repairing, Trading & Manufacture In Electro Magnet
No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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 (31.03.2011)	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.

:

687294-U

COMPANY NAME

:

ISC ENTERPRISE (M) SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

06/04/2005

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

41, JALAN TSB 9A, TAMAN INDUSTRI SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

41, JALAN TSB 9A, TAMAN INDUSTRI SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61568431

FAX.NO.

:

03-61568431

EMAIL

:

iscmas@gmail.com

WEB SITE

:

www.iscenterprise.net

CONTACT PERSON

:

RABINDRA SINGH ( MANAGING DIRECTOR )

INDUSTRY CODE

:

29

PRINCIPAL ACTIVITY

:

REPAIRING,TRADING & MANUFACTURE IN ELECTRO MAGNET

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 275,000.00 DIVIDED INTO
ORDINARY SHARES 125,000 CASH AND 150,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 578,370 [2010]

NET WORTH

:

MYR <28,406> [2010]

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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) repairing,trading & manufacture in electro magnet.

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

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
ARABINDRA SINGH +	41, JALAN TSB 9A, TAMAN SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.	Z024681	98.00	0.04
RABINDRA SINGH +	41, JALAN TSB 9A, TAMAN SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.	Z018423	2.00	0.00
ISC PROCESSORS PVT LTD	127/10/1, MANICKTALLA MAIN ROAD, 700054, KOLKATA, INDIA.		274,900.00	99.96
			---------------	------
			275,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. AHMAD KAMAL BIN SHAHABUDDIN
Address	:	104, MELIA A, JALAN NURI 7/1 B, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	4393163
New IC No	:	530126-08-5029
Date of Birth	:	26/01/1953
Nationality	:	MALAYSIAN MALAY
Date of Appointment	:	16/12/2011

DIRECTOR 2

Name Of Subject	:	RABINDRA SINGH
Address	:	41, JALAN TSB 9A, TAMAN SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
IC / PP No	:	Z018423
Nationality	:	INDIAN
Date of Appointment	:	10/08/2006

DIRECTOR 3

Name Of Subject	:	ARABINDRA SINGH
Address	:	41, JALAN TSB 9A, TAMAN SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
IC / PP No	:	Z024681
Nationality	:	INDIAN
Date of Appointment	:	06/04/2005

MANAGEMENT

1)	Name of Subject	:	RABINDRA SINGH
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	N S WONG & CO
Auditor' Address	:	45-1-1, JALAN 3/101C, CHERAS BUSINESS CENTRE, BATU 5, JALAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. LEO CHAN HON WENG
	IC / PP No	:	5590686
	New IC No	:	600702-10-6723
	Address	:	19, JALAN KENANGA SD 9/5G, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

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	[		]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[	X	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO	Percentage	:	0%

OPERATIONS

Products manufactured

:

ELECTRO MAGNET

Competitor(s)

:

AIR PRODUCTS SPECIALISED PROCESS EQUIPMENT SDN BHD
CAMERON INTERNATIONAL MALAYSIA SYSTEMS SDN BHD
ERAWAN LMW INDUSTRIES SDN BHD
NI MALAYSIA SDN BHD
PETRO-PIPE (SABAH) SDN BHD

Total Number of Employees:
YEAR	2012
GROUP	N/A
COMPANY	10

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) repairing,trading & manufacture in electro magnet.

ISC Lifting Magnets are highly effective for handling iron and steel in diversified forms. Ports, Steel industries and Scrap yards use these magnets extensively to lift scrap, ingots, rails, beams, plates, coils etc.

ISC Lifting Magnets have always proved their worth by saving labour, increasing productivity, shortening handling time.

PROJECTS

No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	603 6156 8431
Current Telephone Number	:	03-61568431
Match	:	YES
Address Provided by Client	:	NO. 41, JALAN TSB 9A, TAMAN INDUSTRI SUNGAI BULOH 47000 SELANGOR DARUL EHSAN
Current Address	:	41, JALAN TSB 9A, TAMAN INDUSTRI SUNGAI BULOH, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

Auditor Qualified Statement: The financial statement have been prepared on the going basis the validity of which is dependent upon the ability of the Company to generate profitable operations and on the continued financial support of its directors, shareholders and payable as disclosed in Note 11 to the financial statements. Subject to above reservation, in our opinion, the financial statements have been properly drawn up in accordance with Private Entity Reporting Standards and the Company Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Company as of 31 March, 2010 and of its financial performance and cash flow for the year ended.
Profitability
Turnover	:	Erratic	[	2008 - 2010	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2010	]
Return on Shareholder Funds	:	Unfavourable	[	<136.40%>	]
Return on Net Assets	:	Unfavourable	[	<140.13%>	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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	:	Favourable	[	50 Days	]
Debtor Ratio	:	Unfavourable	[	144 Days	]
Creditors Ratio	:	Unfavourable	[	124 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.61 Times	]
Current Ratio	:	Unfavourable	[	0.80 Times	]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Favourable	[	37.55 Times	]
Gearing Ratio	:	Unfavourable	[	<0.17 Times>	]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC's gearing was negative during the year as its shareholders' funds was in the red. This means the SC is running its business using borrowed money. We consider the SC as facing high financial risks.
Overall Assessment :
The SC's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the SC was more efficient in its operating cost control and was more competitive. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.
Overall financial condition of the SC : POOR

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
29 : Manufacture of Machinery and Equipment n.e.c.
INDUSTRY :	MACHINERY
Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.
Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.
Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia.
For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2005, the SC is a Private Limited company, focusing on repairing, trading & manufacture of electro magnet. Having been in business for 7 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. However, the capital standing of the SC is weak. The SC may face difficulties to expand its business compared to other large corporation. Without a strong capital, the business expansion opportunities of the SC is limited.

Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is weak. Without capable management, the SC is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. However, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The SC has generated an unfavourable gearing ratio indicated that the SC is in high financial risk. The SC's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR 28,406. Therefore, the SC as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. 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.

The poor payment habit may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.

Based on the above unfavourable condition, we regard granting credit to the SC to be quite risky. Hence, credit is not recommended.

PROFIT AND LOSS ACCOUNT

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

ISC ENTERPRISE (M) SDN BHD

Financial Year End	31/03/2010	31/03/2009	31/03/2008
Months	12	12	12
Consolidated Account	Company	Company	Company
Audited Account	NO	NO	YES
Unqualified Auditor's Report (Clean Opinion)	NO	NO	YES
Financial Type	FULL	FULL	FULL
Currency	MYR	MYR	MYR
TURNOVER	578,370	1,512,666	396,952
	----------------	----------------	----------------
Total Turnover	578,370	1,512,666	396,952
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	38,746	<142,120>	<116,754>
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	38,746	<142,120>	<116,754>
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	38,746	<142,120>	<116,754>
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	<317,152>	<175,032>	<58,278>
	----------------	----------------	----------------
As restated	<317,152>	<175,032>	<58,278>
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	<278,406>	<317,152>	<175,032>
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	<278,406>	<317,152>	<175,032>
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Hire purchase	-	1,156	674
Others	1,060	-	-
	----------------	----------------	----------------
	1,060	1,156	674

BALANCE SHEET

ISC ENTERPRISE (M) SDN BHD

ASSETS EMPLOYED:
FIXED ASSETS	55,334	67,680	79,783
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	55,334	67,680	79,783
CURRENT ASSETS
Stocks	79,281	55,000	8,718
Trade debtors	228,300	97,000	101,115
Other debtors, deposits & prepayments	8,910	5,150	4,814
Amount due from director	4,058	1,608	1,608
Cash & bank balances	12,433	34,034	14,792
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	332,982	192,792	131,047
	----------------	----------------	----------------
TOTAL ASSET	388,316	260,472	210,830
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	195,903	231,321	119,995
Other creditors & accruals	24,101	19,380	14,713
Hire purchase & lease creditors	4,941	9,115	9,943
Amounts owing to holding company	191,777	62,867	127,155
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	416,722	322,683	271,806
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	<83,740>	<129,891>	<140,759>
	----------------	----------------	----------------
TOTAL NET ASSETS	<28,406>	<62,211>	<60,976>
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	250,000	250,000	100,000
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	250,000	250,000	100,000
RESERVES
Retained profit/(loss) carried forward	<278,406>	<317,152>	<175,032>
	----------------	----------------	----------------
TOTAL RESERVES	<278,406>	<317,152>	<175,032>
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	<28,406>	<67,152>	<75,032>
LONG TERM LIABILITIES
Hire purchase creditors	-	4,941	14,056
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	4,941	14,056
	----------------	----------------	----------------
	<28,406>	<62,211>	<60,976>
	=============	=============	=============

FINANCIAL RATIO

ISC ENTERPRISE (M) SDN BHD

TYPES OF FUNDS
Cash	12,433	34,034	14,792
Net Liquid Funds	12,433	34,034	14,792
Net Liquid Assets	<163,021>	<184,891>	<149,477>
Net Current Assets/(Liabilities)	<83,740>	<129,891>	<140,759>
Net Tangible Assets	<28,406>	<62,211>	<60,976>
Net Monetary Assets	<163,021>	<189,832>	<163,533>
BALANCE SHEET ITEMS
Total Borrowings	4,941	14,056	23,999
Total Liabilities	416,722	327,624	285,862
Total Assets	388,316	260,472	210,830
Net Assets	<28,406>	<62,211>	<60,976>
Net Assets Backing	<28,406>	<67,152>	<75,032>
Shareholders' Funds	<28,406>	<67,152>	<75,032>
Total Share Capital	250,000	250,000	100,000
Total Reserves	<278,406>	<317,152>	<175,032>
LIQUIDITY (Times)
Cash Ratio	0.03	0.11	0.05
Liquid Ratio	0.61	0.43	0.45
Current Ratio	0.80	0.60	0.48
WORKING CAPITAL CONTROL (Days)
Stock Ratio	50	13	8
Debtors Ratio	144	23	93
Creditors Ratio	124	56	110
SOLVENCY RATIOS (Times)
Gearing Ratio	<0.17>	<0.21>	<0.32>
Liabilities Ratio	<14.67>	<4.88>	<3.81>
Times Interest Earned Ratio	37.55	<121.94>	<172.23>
Assets Backing Ratio	<0.11>	<0.25>	<0.24>
PERFORMANCE RATIO (%)
Operating Profit Margin	6.70	<9.40>	<29.41>
Net Profit Margin	6.70	<9.40>	<29.41>
Return On Net Assets	<140.13>	226.59	190.37
Return On Capital Employed	<169.64>	265.49	227.46
Return On Shareholders' Funds/Equity	<136.40>	211.64	155.61
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.78

INFORMATION DETAILS

Report Prepared by :

PRL

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.