MIRA INFORM REPORT

Report Date :

21.02.2013

IDENTIFICATION DETAILS

Name :	METTUBE INTERNATIONAL SDN BHD
Formerly Known As :	METTUBE.COM SDN BHD
Registered Office :	The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2011
Date of Incorporation :	05.05.2000
Com. Reg. No.:	513445-T
Legal Form :	Private Limited
Line of Business :	Trading Of Copper Tubes
No. of Employees :	20

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
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

EXECUTIVE SUMMARY

REGISTRATION NO.

:

513445-T

COMPANY NAME

:

METTUBE INTERNATIONAL SDN BHD

FORMER NAME

:

METTUBE.COM SDN BHD (17/02/2010)

INCORPORATION DATE

:

05/05/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2, PERSIARAN KUALA LANGAT, HICOM INDUSTRIAL ESTATE, SECTION 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51023252

FAX.NO.

:

03-51915405

CONTACT PERSON

:

PRATIK BASU ( MANAGING DIRECTOR )

INDUSTRY CODE

:

47420

PRINCIPAL ACTIVITY

:

TRADING OF COPPER TUBES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 1,303,550,265 [2011]

NET WORTH

:

MYR 2,722,048 [2011]

STAFF STRENGTH

:

20 [2013]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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) trading of copper tubes.

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

The immediate holding company of the SC is METTUBE SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the SC is METDIST S.A, a company incorporated in REPUBLIC OF PANAMA.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
METTUBE SDN. BHD.	NO. 2, PERSIARAN KUALA LANGAT, SEKSYEN 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.	181893	100,000.00	100.00
			---------------	------
			100,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. YAP KIM SWEE
Address	:	C45/46 JALAN TEBERAU, UKAY HEIGHTS, 68000 AMPANG, SELANGOR, MALAYSIA.
New IC No	:	470920-10-5881
Date of Birth	:	20/09/1947
Nationality	:	MALAYSIAN
Date of Appointment	:	27/01/2010

DIRECTOR 2

Name Of Subject	:	PRATIK BASU
Address	:	27 JALAN MAMBU, BUKIT BANDARAYA, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	Z1800246
Date of Birth	:	09/03/1945
Nationality	:	MALAYSIAN
Date of Appointment	:	27/01/2010

MANAGEMENT

1)	Name of Subject	:	PRATIK BASU
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS
Auditor' Address	:	1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, PO BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. LIM HOOI MOOI
	New IC No	:	590814-10-6262
	Address	:	NO. 28 JALAN 20/7, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

2)	Company Secretary	:	MS. WONG WAI FOONG
	New IC No	:	660510-10-6838
	Address	:	1164 JALAN 17/46, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK 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

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

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA EUROPE
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES CHEQUESTELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded	:	COPPER TUBES
Ownership of premises	:	LEASED/RENTED

Total Number of Employees:
YEAR	2013	2012	2011
GROUP	N/A	N/A	N/A
COMPANY	20	20	20

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading of copper tubes.

The SC only started its business 1st March 2010.

The SC is the related company of Mettube Sdn Bhd which is engaged in the manufacturing of copper tubes.

The SC is only focusing on the trading of copper tubes.

The products are mainly for air-conditioning and refrigeration industries.

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	:	03-51023252
Match	:	N/A
Address Provided by Client	:	2, PERSIARAN KUALA LANGAT, HICOM INDUSTRIAL ESTATE, SECTION 27,40400,SHAH ALAM,SELANGOR.
Current Address	:	2, PERSIARAN KUALA LANGAT, HICOM INDUSTRIAL ESTATE, SECTION 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

On 18th February 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The SC started its business operation in March 2010.

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	30.98%	]
Profit/(Loss) Before Tax	:	Decreased	[	167.75%	]
Return on Shareholder Funds	:	Unfavourable	[	<20.45%>	]
Return on Net Assets	:	Unfavourable	[	339.20%	]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The SC incurred losses during the year due to the inefficient control of its operating costs. 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	[	21 Days	]
Debtor Ratio	:	Unfavourable	[	76 Days	]
Creditors Ratio	:	Favourable	[	9 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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	:	Acceptable	[	0.81 Times	]
Current Ratio	:	Unfavourable	[	1.00 Times	]
The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	0.81 Times	]
Gearing Ratio	:	Unfavourable	[	117.23 Times	]
The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.
Overall Assessment :
Although the SC's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
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
47420 : Retail sale of audio and video equipment in specialized store
INDUSTRY :	ELECTRICAL & ELECTRONIC
The E&E industry is an important contributor to the national economy, accounting for RM37 billion or 6% of the Gross National Income (GNI) and RM250 billion or 40% of total exports, and provides about 522,000 skilled and semi-skilled jobs. The Malaysian economy is likely to pick up momentum in the latter part of 2012 as improving external conditions boost demand for the electrical and electronic products. There are 1,900 active companies in the electrical and electronics (E&E) which offering products with unique market characteristics.
The economy expected to grow at an average moderate pace of 4.41% in 2012 with contribution of E&E sector. Base effects on electrical and electronics (E&E) sector shows a near-term slowdown but more favourable base effects, will increase electrical and electronics (E&E) exports and fiscal will lift at the second half 2012.
Consumer electronic product sales are predicted to rise from US$11.47billion in 2012 to US$14.44billion in 2016, an increase of 25.8%, boosted by demand from the tech-literate urban middle class and by a growing interest in electronic products from under-penetrated areas outside the Klang Valley.
Integrated circuits and LED chip manufacturing also expecting a good demand at the second half 2012.On the industrial electronic products sector the second quarter expected to improve over the first half 2012, which fell compared with the first half 2011.
According to Statistics Department, exports jumped 14.5% year-on-year in February 2012 to RM56.9billion largely due to demand for electrical and electronic products, which rose 7.8% to RM18.6billon. More than half of Malaysia exports to the US are electrical and electronic (E&E) goods which is semiconductor devices, ICs, transistors and valves. E&E contributes 34.1% of the manufactured goods, which contribute 67.7 %of the total Malaysian exports compared to "price sensitive" commodities, which contribute 28.6%. The electrical and electronic exports expected to pick up in the second half 2012.
Softening of world demand for solar panels impact Malaysia on it's downturn in small scale compared to China where it facing great impact. The decline in E&E products was also due to the weak global demand.
E&E has been instrumental in the development of the Northern Corridor Klang Valley, Johor and Sarawak, contributing significantly to the socio-economic development of the relevant communities.However, the E&E sector faces significant challenges in maintaining growth with intense competition from China, Taiwan, Singapore and other Asian countries. Over the last 10 years, E&E's share of Malaysian exports has gradually declined.
Malaysia's E&E sector remains focused on assembly, the lower value-added part of the industry while Taiwan, South Korea and Singapore have captured the higher value-added activities in research and development, design and manufacturing.
To propel the E&E industry to a higher level, under the Economic Transformation Programme (ETP) launched by the Government, a few sub-sectors namely integrated circuits, solar photovoltaics, light emitting diodes, and solid state lighting & integrated electronics have been identified for greater promotion based on their potential to contribute significantly towards Gross National Income (GNI) targets 2020.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2000, the SC is a Private Limited company, focusing on trading of copper tubes. 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. It should have received supports from its regular customers. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is considered as small entity with paid up capital stand at RM100,000.

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. Being a small company, the SC's business operation is supported by 20 employees. 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.

Despite the higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Given a positive net worth standing at MYR 2,722,048, 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.

The SC's overall payment habit is fair and this clearly implied a weak credit control of the SC.

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.

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)

METTUBE INTERNATIONAL SDN BHD

Financial Year End	31/12/2011	31/12/2010	28/02/2010	30/06/2009	30/06/2008
Months	12	10	8	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	1,303,550,265	995,196,263	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	1,303,550,265	995,196,263	-	-	-
Costs of Goods Sold	<1,253,446,304>	<952,184,734>	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	50,103,961	43,011,529	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	<2,189,869>	3,232,115	<2,035>	<2,178>	<1,834>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	<2,189,869>	3,232,115	<2,035>	<2,178>	<1,834>
Taxation	1,633,119	<29,201>	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	<556,750>	3,202,914	<2,035>	<2,178>	<1,834>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	3,178,798	<24,116>	<22,081>	<19,903>	<18,069>
	----------------	----------------	----------------	----------------	----------------
As restated	3,178,798	<24,116>	<22,081>	<19,903>	<18,069>
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,622,048	3,178,798	<24,116>	<22,081>	<19,903>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,622,048	3,178,798	<24,116>	<22,081>	<19,903>
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	11,423,148	8,010,652	-	-	-
	----------------	----------------
	11,423,148	8,010,652

BALANCE SHEET

METTUBE INTERNATIONAL SDN BHD

LONG TERM INVESTMENTS/OTHER ASSETS
Deferred assets	1,603,918	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,603,918	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,603,918	-	-	-	-
CURRENT ASSETS
Stocks	74,325,395	147,978,354	-	-	-
Trade debtors	272,700,850	290,981,434	-	-	-
Other debtors, deposits & prepayments	6,484	4,150	1,750	600	-
Cash & bank balances	30,137,675	22,321,414	2	2	2
Others	1,212,091	814,826	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	378,382,495	462,100,178	1,752	602	2
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	379,986,413	462,100,178	1,752	602	2
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	29,578,451	60,979,383	-	-	-
Other creditors & accruals	361,486	275,056	600	22,681	19,903
Short term borrowings/Term loans	319,106,243	355,379,089	-	-	-
Other liabilities & accruals	1,882,231	2,407,310	-	-	-
Amounts owing to holding company	26,335,954	39,751,341	25,266	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	377,264,365	458,792,179	25,866	22,681	19,903
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,118,130	3,307,999	<24,114>	<22,079>	<19,901>
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	2,722,048	3,307,999	<24,114>	<22,079>	<19,901>
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	100,000	100,000	2	2	2
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	100,000	100,000	2	2	2
RESERVES
Retained profit/(loss) carried forward	2,622,048	3,178,798	<24,116>	<22,081>	<19,903>
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,622,048	3,178,798	<24,116>	<22,081>	<19,903>
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	2,722,048	3,278,798	<24,114>	<22,079>	<19,901>
LONG TERM LIABILITIES
Deferred taxation	-	29,201	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	29,201	-	-	-
	----------------	----------------	----------------	----------------	----------------
	2,722,048	3,307,999	<24,114>	<22,079>	<19,901>
	=============	=============	=============	=============	=============

FINANCIAL RATIO

METTUBE INTERNATIONAL SDN BHD

TYPES OF FUNDS
Cash	30,137,675	22,321,414	2	2	2
Net Liquid Funds	30,137,675	22,321,414	2	2	2
Net Liquid Assets	<73,207,265>	<144,670,355>	<24,114>	<22,079>	<19,901>
Net Current Assets/(Liabilities)	1,118,130	3,307,999	<24,114>	<22,079>	<19,901>
Net Tangible Assets	2,722,048	3,307,999	<24,114>	<22,079>	<19,901>
Net Monetary Assets	<73,207,265>	<144,699,556>	<24,114>	<22,079>	<19,901>
BALANCE SHEET ITEMS
Total Borrowings	319,106,243	355,379,089	0	0	0
Total Liabilities	377,264,365	458,821,380	25,866	22,681	19,903
Total Assets	379,986,413	462,100,178	1,752	602	2
Net Assets	2,722,048	3,307,999	<24,114>	<22,079>	<19,901>
Net Assets Backing	2,722,048	3,278,798	<24,114>	<22,079>	<19,901>
Shareholders' Funds	2,722,048	3,278,798	<24,114>	<22,079>	<19,901>
Total Share Capital	100,000	100,000	2	2	2
Total Reserves	2,622,048	3,178,798	<24,116>	<22,081>	<19,903>
LIQUIDITY (Times)
Cash Ratio	0.08	0.05	0.00	0.00	0.00
Liquid Ratio	0.81	0.68	0.07	0.03	0.00
Current Ratio	1.00	1.01	0.07	0.03	0.00
WORKING CAPITAL CONTROL (Days)
Stock Ratio	21	54	0	0	0
Debtors Ratio	76	107	0	0	0
Creditors Ratio	9	23	0	0	0
SOLVENCY RATIOS (Times)
Gearing Ratio	117.23	108.39	0.00	0.00	0.00
Liabilities Ratio	138.60	139.94	<1.07>	<1.03>	<1.00>
Times Interest Earned Ratio	0.81	1.40	0.00	0.00	0.00
Assets Backing Ratio	27.22	33.08	<0.24>	<0.22>	<0.20>
PERFORMANCE RATIO (%)
Operating Profit Margin	<0.17>	0.32	0.00	0.00	0.00
Net Profit Margin	<0.04>	0.32	0.00	0.00	0.00
Return On Net Assets	339.20	339.87	8.44	9.86	9.22
Return On Capital Employed	339.20	339.87	8.44	9.86	9.22
Return On Shareholders' Funds/Equity	<20.45>	97.69	8.44	9.86	9.22
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.05
UK Pound	1	Rs.83.44
Euro	1	Rs.72.53

INFORMATION DETAILS

Report Prepared by :

PDT

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.