MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	TELEKOM MALAYSIA BERHAD
Formerly Known As :	SYARIKAT TELEKOM MALAYSIA BHD (06/06/1991)
Registered Office :	North Wing, Menara Tm, Jalan Pantai Baharu, Level 51, 50672 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2011
Date of Incorporation :	12.10.1984
Com. Reg. No.:	128740-P
Legal Form :	Public (Limited By Share)
Line of Business :	Telecommunication and Related Services
No. of Employees :	34500

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist

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.

:

128740-P

COMPANY NAME

:

TELEKOM MALAYSIA BERHAD

FORMER NAME

:

SYARIKAT TELEKOM MALAYSIA BHD (06/06/1991)

INCORPORATION DATE

:

12/10/1984

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

YES

LISTED DATE

:

07/11/1990

REGISTERED ADDRESS

:

NORTH WING, MENARA TM, JALAN PANTAI BAHARU, LEVEL 51, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

NORTH WING, MENARA TM, JALAN PANTAI BARU, LEVEL 51, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22409494

FAX.NO.

:

03-22412519

EMAIL

:

ZAIMAH@TM.COM.MY

WEB SITE

:

WWW.TM.COM.MY

CONTACT PERSON

:

ZAMZAMZAIRANI MOHD ISA ( GROUP CEO )

INDUSTRY CODE

:

61101

PRINCIPAL ACTIVITY

:

TELECOMMUNICATION AND RELATED SERVICES

AUTHORISED CAPITAL

:

MYR 5,040,003,021.00 DIVIDED INTO
ORDINARY SHARE 5,040,003,021.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 3,577,401,980.00 DIVIDED INTO
ORDINARY SHARES 3,577,401,980 CASH OF MYR 1.00 EACH.

SALES

:

MYR 9,150,700,000 [2011]

NET WORTH

:

MYR 7,131,700,000 [2011]

M1000 OVERALL RANKING

:

31[2011]

M1000 INDUSTRY RANKING

:

3[2011]

STAFF STRENGTH

:

34500 [2013]

BANKER (S)

:

CIMB BANK BHD MALAYAN BANKING BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

LOW

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

STRONG GROWTH

HISTORY / BACKGROUND

As a public limited company, the SC must have at least one shareholder but there is no limit on the maximum number of shareholders. The SC must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

The SC is principally engaged in the (as a / as an) telecommunication and related services.

The SC was listed on the Main Board of Bursa Malaysia Securities Bhd on 07/11/1990

According to the Malaysia 1000 publication, the SC's ranking are as follows:
YEAR	2011	2009	2008	2005	2004
OVERALL RANKING	31	8	7	9	9
INDUSTRY RANKING	3	1	1	1	1

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
KHAZANAH NASIONAL BERHAD	TOWER 2 PETRONAS TWIN TOWERS KUALA LUMPUR CITY CENTRE, LEVEL 33, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	275505	1,027,841,692.00	28.73
CITIGROUP NOMINEES (TEMPATAN) SDN BHD [EMPLOYEE PROVIDENT FUND BOARD]	LEVEL 45, MENARA CITIBANK, 165,JALAN AMPANG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	267011	363,783,400.00	10.17
AMANAHRAYA TRUSTEES BHD [SKIM AMANAH SAHAM BUMIPUTERA]	6th Floor, Jln Melaka,, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	766894	350,000,000.00	9.78
MAYBANK NOMINEES (TEMPATAN) SDN. BHD.	14TH FLOOR, MENARA MAYBANK, 100 JALAN TUN PERAK, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	258939	144,512,703.00	4.04
KUMPULAN WANG PERSARAAN		00020763	92,571,100.00	2.59
VALUECAP SDN BHD	LEVEL 10, BLOCK B, HP TOWER, 12 JALAN GELENGGANG, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	595989	71,000,000.00	1.98
HSBC NOMINEES (ASING) SDN. BHD. [EXEMPT AN FOR THE BANK OF NEW YORK MELLON (MELLON ACCT)]	2,LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	4381	63,850,017.00	1.78
CARTABAN NOMINEES (ASING) SDN BHD [EXEMPT AN FOR STATE BANK & TRUST COMPANY]	2 JLN AMPANG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	263367	32,650,887.00	0.91
PERMODALAN NASIONAL BHD.	4TH FLOOR BALAI PNB, 201-A JALAN TUN RAZAK, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	38218	28,701,900.00	0.80
HSBC NOMINEES (TEMPATAN) SDN. BHD.	NO 2,LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	258854	23,836,500.00	0.67
AMSEC NOMINEES (TEMPATAN) SDN. BHD.	JLN RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	102918	19,122,300.00	0.53
PERTUBUHAN KESELAMATAN SOSIAL		00000224	15,365,700.00	0.43
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD	NO.1,JALAN AMPANG, 3RD.FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	17540	8,417,500.00	0.24
SBB NOMINEES (TEMPATAN) SDN. BHD.	LEVEL 7, AMANAH RAYA BUILDING, JALAN SEMANTAN, DAMANSARA HEIGHT, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	22016	6,865,500.00	0.19
DB (MALAYSIA) NOMINEE (TEMPATAN) SENDIAN BERHAD	LEVEL 18 MENARA IMC, 8 JALAN SULTAN ISMAIL, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	66878	6,591,700.00	0.18
CIMB GROUP NOMINEES (TEMPATAN) SDN. BHD.	LEVEL 2, WISMA AMANAH RAYA, JALAN SEMANTAN, DAMANSARA HEIGHT, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	274740	6,560,300.00	0.18
AMANAH RAYA BERHAD	WISMA AMANAHRAYA, 2 JALAN AMPANG, TINGKAT 15, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	344986	5,045,500.00	0.14
TOKIO MARINE LIFE INSURANCE MALAYSIA BHD.	GROUND FLOOR, MENARA TOKIO MARINE LIFE, 189, JALAN TUN RAZAK, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	457556	3,680,000.00	0.10
REMAINING SHAREHOLDERS			640,422,734.00	17.90
			---------------	------
			2,910,819,433.00	81.00
			============	=====

+ Also Director

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Company	(%)	As At
190661	TELEKOM ENTERPRISE SDN BHD	100	31/12/2011
345420	TELEKOM MULTI-MEDIA SDN BHD	100	31/12/2011
190662	TELEKOM SALES & SERVICES SDN BHD	100	31/12/2011
455343	TELEKOM APPLIED BUSINESS SDN BHD	100	31/12/2011
190656	MOBIKOM SDN BHD	100	31/12/2011
379558	GITN SDN BHD	100	31/12/2011
188533	MENARA KUALA LUMPUR SDN BHD	100	31/12/2011
365637	TM FACILITIES SDN BHD	100	31/12/2011
451011	TM NET SDN BHD	100	31/12/2011
381025	HIJRAH PERTAMA BHD	100	31/12/2011
809276	TM ESOS MANAGEMENT SDN BHD	100	31/12/2011
178079	TM INFO-MEDIA SDN BHD	100	31/12/2011
437333	TELEKOM RESEARCH & DEVELOPMENT SDN BHD	100	31/12/2011
436821	UNIVERSITI TELEKOM SDN BHD	100	31/12/2011
208739	VADS BHD	100	31/12/2011
620657	TEKAD MERCU BHD	100	31/12/2011
190730	FIBERAIL SDN BHD	54	31/12/2011
240859	FIBRECOMM NETWORK (M) SDN BHD	51	31/12/2011

DIRECTORS

DIRECTOR 1

Name Of Subject	:	DAVIDE GIACOMO BENELLO @ DAVID BENELLO
Address	:	4, ESSEX VILLAS, LONDON, KENSINGTON W8 7BN, UNITED KINGDOM.
IC / PP No	:	YA1747906
Date of Appointment	:	21/11/2011

DIRECTOR 2

Name Of Subject	:	DATUK DR HALIM BIN SHAFIE
Address	:	40, SS 21/23, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.
New IC No	:	490301-02-5661
Date of Birth	:	01/03/1949
Nationality	:	MALAYSIAN
Date of Appointment	:	31/07/2009

DIRECTOR 3

Name Of Subject	:	DATO' SRI ZAMZAMZAIRANI BIN MOHD ISA
Address	:	4, JALAN TITIAN U8/42E, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	600522-06-5493
Date of Birth	:	22/05/1960
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008

DIRECTOR 4

Name Of Subject	:	MR. IBRAHIM BIN MARSIDI
Address	:	18 JALAN SUASANA 5/3A, BANDAR TUN HUSSEIN ONN, BATU 9, 43200 KAJANG, SELANGOR, MALAYSIA.
New IC No	:	520711-01-5911
Date of Birth	:	11/07/1952
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008

DIRECTOR 5

Name Of Subject	:	MS. ESHAH BINTI MEOR SULEIMAN
Address	:	21, JALAN SEKAMAT JAYA 3, TAMAN SEKAMAT JAYA, 43000 KAJANG, SELANGOR, MALAYSIA.
New IC No	:	541101-08-5552
Date of Birth	:	01/11/1954
Nationality	:	MALAYSIAN
Date of Appointment	:	01/12/2011

DIRECTOR 6

Name Of Subject	:	MR. QUAH POH KEAT
Address	:	15, JALAN JEMERLANG KUNING SIERRA MAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
New IC No	:	520903-08-5367
Date of Birth	:	03/09/1952
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008

DIRECTOR 7

Name Of Subject	:	DATO' MAHMOOD FAWZY BIN TUNKU MUHIYIDDIN
Address	:	4, JALAN 4G, AMPANG JAYA, 68000 AMPANG, SELANGOR, MALAYSIA.
New IC No	:	580819-71-5551
Date of Birth	:	19/08/1958
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008

DIRECTOR 8

Name Of Subject	:	DATUK BAZLAN BIN OSMAN
Address	:	14, JALAN PM1, TAMAN PRIMA MELAWATI, SAUJANA MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	7284107
New IC No	:	640312-10-5983
Date of Birth	:	12/03/1964
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008
Qualification	:	DIP ACCOUNTANT FROM UNIVERSITY OF NORTH LONDON, UK.
Working Experience	:	ACCA & MIA.

DIRECTOR 9

Name Of Subject	:	DATUK NUR JAZLAN BIN MOHAMED
Address	:	119 JALAN SETIABAKTI 9, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
New IC No	:	660215-10-5605
Date of Birth	:	15/02/1966
Nationality	:	MALAYSIAN
Date of Appointment	:	01/06/2004

DIRECTOR 10

Name Of Subject	:	DATUK ZALEKHA BTE HASSAN
Address	:	37, JALAN SS 3/53, TAMAN SUBANG, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
New IC No	:	530521-08-5512
Date of Birth	:	21/05/1953
Nationality	:	MALAYSIAN
Date of Appointment	:	09/01/2008

DIRECTOR 11

Name Of Subject	:	DATO' IR ABDUL RAHIM BIN ABU BAKAR
Address	:	45, JALAN H-13, PHASE 5, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	1697468
New IC No	:	460104-07-5259
Date of Birth	:	04/01/1946
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008

DIRECTOR 12

Name Of Subject	:	DATO' MAT NOOR NAWI
Address	:	45, JALAN PUTRA INDAH 9/24, PUTRA HEIGHTS, 47650 SUBANG JAYA, SELANGOR, MALAYSIA.
New IC No	:	550606-03-5053
Date of Birth	:	06/06/1955
Nationality	:	MALAYSIAN
Date of Appointment	:	01/12/2011

DIRECTOR 13

Name Of Subject	:	DATO' DANAPALAN A/L T.P. VINGGRASALAM
Address	:	18, JALAN 14/50,, 46100 PETALING JAYA, SELANGOR, MALAYSIA.
New IC No	:	430320-08-5657
Date of Birth	:	20/03/1943
Nationality	:	MALAYSIAN
Date of Appointment	:	25/04/2008

MANAGEMENT

1)	Name of Subject	:	ZAMZAMZAIRANI MOHD ISA
	Position	:	GROUP CEO

2)	Name of Subject	:	BAZLAN BIN OSMAN
	Position	:	GROUP CHIEF FINANCIAL OFFICER

3)	Name of Subject	:	RAMLAN BIN OMAR
	Position	:	ASSISTANT GENERAL MANAGER

4)	Name of Subject	:	EZATUL FAIZURA MUSTAFFA KAMAL EFFENDEE
	Position	:	ASSISTANT GROUP BUSINESS MANAGER

5)	Name of Subject	:	NORAIDA SHAZLINA AWANG ABU BAKAR
	Position	:	ASSISTANT SALES MANAGER

6)	Name of Subject	:	ZAIMAH NEK ZAMBERI
	Position	:	DEVELOPMENT MANAGER

7)	Name of Subject	:	SHERENE AZURA AZLI
	Position	:	VICE PRESIDENT

8)	Name of Subject	:	GHAZALI OMAR
	Position	:	VICE PRESIDENT

9)	Name of Subject	:	MOHD KHALIS ABDUL RAHIM
	Position	:	GROUP HUMAN RESOURCE DIRECTOR

10)	Name of Subject	:	SUHAILI KASSIM
	Position	:	ASSISTANT CORPORATE COMMUNICATIONS MANAGER

11)	Name of Subject	:	SYAFINA
	Position	:	CORPORATE COMMUNICATIONS MANAGER

12)	Name of Subject	:	ZULKIFFLI HJ. ABDUL AZIZ M. SC
	Position	:	GENERAL MANAGER

13)	Name of Subject	:	TU' ALIA NADIRAH AHMAD SUHAIMI
	Position	:	ASSISTANT MANAGER

14)	Name of Subject	:	HANNAT MOHAMED
	Position	:	ASSISTANT MANAGER

15)	Name of Subject	:	JACK TAM
	Position	:	ASSISTANT MANAGER

16)	Name of Subject	:	NORAN
	Position	:	EVENT MANAGER

17)	Name of Subject	:	ASMA ABDUL AZIZ
	Position	:	MANAGER

18)	Name of Subject	:	NORLAILI MOHAMAD
	Position	:	MANAGER

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	MR. IDRUS BIN ISMAIL
	New IC No	:	540121-02-5253
	Address	:	20, JALAN TUN TEJA 35/4A, ALAM IMPIAN, SEKSYEN 35, 40470 SHAH ALAM, SELANGOR, MALAYSIA.

2)	Company Secretary	:	MS. ZAITON BINTI AHMAD
	IC / PP No	:	5921940
	New IC No	:	600607-01-6156
	Address	:	11, JALAN 4/10F, BANDAR BANGI, 43650 BANDAR BARU BANGI, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

2)

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 against the SC whether the subject has been involved in any litigation.

LEGAL ACTION
Code No	:	22	Case No	:	1481
Year	:	2003	Place	:	KUALA LUMPUR
Court	:	HIGH COURT
Solicitor	:	SHEARN DELAMORE & CO
Plaintiff	:	MEASAT BROADCAST NETWORK SYSTEMS SDN BHD
Defendants	:	TELEKOM MALAYSIA BHD (128740) KAW TENGAH, BGN BKT MAHKAMAH, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Amount Claimed	:	0.00
Nature of Claim	:	GENERAL DAMAGES
Remark	:	LIST
Code No	:	52	Case No	:	5721
Year	:	2003	Place	:	KUALA LUMPUR
Court	:	SESSIONS COURT
Solicitor	:	NGEH & CO
Plaintiff	:	NORTHERN PARADISE SDN BHD
Defendants	:	TENAGA NASIONAL BHD (200866) 129 JLN BANGSAR, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. TELEKOM MALAYSIA BHD (128740) MENARA TELEKOM, NORTH WING, OFF JLN PANTAI BHARU, LEVEL 51, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Amount Claimed	:	90,000.00
Remark	:	LIST
Code No	:	22	Case No	:	1218
Year	:	2006	Place	:	KUALA LUMPUR
Court	:	HIGH COURT
Solicitor	:	HISHAM YOONG-K C LIM
Plaintiff	:	XINTEL SDN BHD
Defendants	:	TELEKOM MALAYSIA BHD (128740) NORTH WING, MENARA TM, JLN PANTAI BAHARU, LEVEL 51, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Amount Claimed	:	897,136.23
Nature of Claim	:	SERVICES RENDERED
Remark	:	LIST
Code No	:	22	Case No	:	1242
Year	:	2008	Place	:	KUALA LUMPUR
Court No	:	D3
Court	:	HIGH COURT
Plaintiff	:	CELCOM (M) BHD
Defendants	:	TELEKOM MALAYSIA BHD (128740) MENARA TM, NORTH WING, JALAN PANTAI BAHARU, LEVEL 51, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Remark	:

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

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	Percentage	:	60%
Overseas	:	YES	Percentage	:	40%

According to our trade survey and the historical financial accounts, we are of the opinion that :

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	Percentage	:	70%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	30%
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES LETTER OF CREDIT (LC) TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	END USERS
CUSTOMER(S)	:	1) MEASAT BROADCAST NETWORK SYSTEMS SDN BHD

OPERATIONS

Services

:

TELECOMMUNICATION AND RELATED SERVICES

Award

:

1 ) STARBIZ-ICR MALAYSIA CORPORATE RESPONSIBILITY AWARD Year :2008
2 ) MS ISO 9001 : 2000 Year :2005
3 ) ACCA MALAYSIA ENVIRONMENTAL & SOCIAL REPORTING AWARD (MESRA) Year :2005
4 ) ACCA MALAYSIA ENVIRONMENTAL & SOCIAL REPORTING AWARD (MESRA) Year :2004
5 ) MS ISO 9001 : 2000 Year :2003
6 ) MS ISO 9001 : 2000 Year :2002
7 ) MS ISO 9001 : 2000 Year :2000
8 ) MS ISO 9001 : 2000 Year :1999
9 ) MS ISO 9001 : 2000 Year :1998

Competitor(s)

:

CELCOM AXIATA BHD
DIGI TELECOMMUNICATIONS SDN BHD
MAXIS COMMUNICATIONS BHD
MAXIS MOBILE SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

MALAYSIA LOGISTICS INDUSTRY

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2013	2012	2011	2010	2009	2008
GROUP	34500	34,500	34,500	34,500	33,542	32,850
COMPANY	22000	24,000	24,000	24,000	22,000	21,000

Branch

:

YES

Branch(es)

:

TELEKOM MALAYSIA BERHAD,TKT 2B, BGN. TM BUKIT MAHKAMAH, JALAN RAJA CHULAN., 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Tel No: 03-20205411
Fax No: 03-20205538

ARAS 2, WISMA TM BUTTERWORTH, JALAN BAGAN LUAR,, 12000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
Tel No: 04-3107220
Fax No: 04-3245108

MULTIMEDIA COLLEGE, JALAN GURNEY KIRI,, 54100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Tel No: 03-20201221
Fax No: 03-26982733

LEVEL 1A, BGN. TM BUKIT MAHKAMAH JALAN RAJA CHULAN,, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Tel No: 03-20206464
Fax No: 03-20314460

LEVEL 12, NORTH WING, MENARA TM, JALAN PANTAI BAHARU, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Tel No: 03-22412366
Fax No: 03-22411724

Other Information:

The SC is principally engaged in the (as a / as an) telecommunication and related services.

The SC is Malaysia's leading integrated information and communications group, offers a comprehensive range of communication services and solutions in broadband, data and fixed-line.

As a market leader in the broadband and fixed-line businesses, SC is driven to deliver value to its stakeholders in a highly competitive environment. The Group places emphasis on continuing customer service quality enhancements and innovations.

With its extensive global connectivity, SC is poised to position Malaysia as a regional Internet hub and digital gateway for South-East Asia.

In line with this, SC is evolving into a Next Generation Network service provider enabling the Group to enhance its efficiency and productivity while providing enriched products and services.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance.

The Group promotes 3 major platforms i.e. education, community/nation-building and environment.

Under education, SC has spent some RM800 million to develop Multimedia University into one of the top universities in Malaysia with more than 20,000 students. SC has also provided scholarships to over 11,000 graduates pursuing academic programmes locally and overseas.

It was formerly a government agency, Jabatan Telekom Malaysia, prior to its corporatisation and privatisation in 1987 and was known as Syarikat Telekom Malaysia Berhad (STMB).

Telekom Malaysia has officially changed its global brand from Telekom Malaysia to TM in April 2005.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

Besides operating in Malaysia, the Group also has investment in overseas especially in Indonesia, Sri Lanka, Bangladesh, Pakistan and Cambodia.

PROJECTS

No projects found in our databank

RECENT DEVELOPMENT

14/08/2012

TM wishes to announce that on 13 August 2012, MSI has filed an appeal to the Court of Appeal against the decision of the High Court handed down on 20 July 2012 allowing TM and Telekom Enterprise Sdn Bhd’s application to strike out MSI’s claim with costs. TM will make further announcement on any material development of the appeal from time to time.

20/07/2012

Telekom Malaysia Berhad (TM) wishes to announce that the High Court of Malaya has today granted an Order for the discharge of Encik Mohd Afrizan bin Husain of Aftaas Consulting Sdn Bhd as TCSB’s liquidator and the dissolution of TCSB pursuant to Section 239(d) of the Act. With this Order, the Company is now dissolved effective 20 July 2012.

May 1, 2012.

Koperasi Telekom Malaysia Bhd (Kota Mas) has distributed dividend of 7.5 per cent to members after recording profit of RM8.8 million in 2011. Kota Mas chairman Ismail Nordin said the earnings were the highest since it was founded in 1922.

We are now 90 years old but we still stand strong as the best cooperative in Malaysia as we gained RM8.8 million last year compared to RM8.6 million the previous year. Therefore, total dividend distributed is RM6.64 million to 19,000 Kota Mas members in the nation, he said at the opening of the annual general meeting for Sarawak branch. The AGM was launched by Telekom Malaysia Sarawak general manager Abdul Rahim Mohd Ali at TM Training College on Sunday.

Ismail added compared to the profits earned in 2006 before the investment committee was introduced, the profit then was only RM5.1million. After the committee was formed, the profit increased to RM8.1 million in 2007. He said the target earnings for this year was RM9 million, which he deemed achievable. The cooperative’s income increased from RM13 million in 2010 to RM13.2 million in 2011. The assets had also increased from RM113 million in 2010 to RM123 million in 2011, he added.

The cooperative has also introduced a new investment, the Ar-Rahnu franchise system, where Kota Mas will collect an estimated RM500,000 by the end of 2012. Kota Mas also announced RM77,000 to be distributed to members’ children for the purpose of furthering their studies. Various initiatives have been introduced to increase facilities for members in the cooperative. Therefore, use the opportunities given to better themselves, Ismail urged the members. Earlier, Kota Mas Sarawak chairman Abdul Ghazi Obeng said that Kota Mas has 633 members in the state. The branch is targeting to increase its members to 800 by year-end.

He urged TM group employees, who have yet to join, to do so as it offers various benefits. Also present was Kota Mas board of management member Mustapha Md Nasir.

20/01/2012

The SC refers to oits announcements on 22 February 2011, 23 February 2011, 21 April 2011, 3 June 2011, 21 July 2011 and 21 October 2011 in respect of the Memorandum of Understanding (MoU) between TM and Celcom Axiata Berhad (Celcom) (collectively known as the Parties) to cooperate strategically in providing fixed and mobile solutions. TM wishes to inform that as at todate, apart from the HSBB Services Agreement which has been executed on 3 June 2011, both TM and Celcom have yet to conclude and finalize the other Definitive Agreements under the MoU. Any major developments pertaining to the MoU would be announced in due course.

24/11/2011

TM delivered continued solid results for the third quarter ended 30 September 2011 posting Group Profit After Tax And Minority Interest (PATAMI) increase of 137.6% from RM127.2 million in the preceding quarter to RM302.2 million in the current quarter, including other gains and unrealized foreign exchange loss. Excluding this, Normalised PATAMI stood at RM137.3 million this quarter.

Revenue grew 3.9% to RM2,321.7 million against RM2,233.6 million in 2Q2011. The Company turned in a strong performance on the back of higher revenue from internet and multimedia as well as data services which grew by 6.4% and 0.2% to RM519.0 million and RM455.0 million respectively; with continuing financial discipline and a healthy momentum in broadband take-up.

The results were boosted by higher Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for QoQ to RM812.5 million, up 8.8% compared to RM746.9 million in 2Q2011 in line with higher revenue; while EBITDA margin improved by 0.7pp to 33.7%, ahead of the full-year headline target of 32%.

16/11/2011

Telekom Malaysia Berhad (TM) brought home once again the Challenge Trophy for the Platinum Award of the Most Outstanding Annual Report of the Year at the National Annual Corporate Report Awards (NACRA) 2011 yesterday. It was an especially meaningful victory as the Challenge Trophy was last in TM’s grasp in 2006.

TM captured top honours and swept up the highest number of awards for the evening in following 5 categories:

- Overall Excellence Award for Most Outstanding Annual Report of the Year - Platinum Award

- Industry Excellence Award for Main Board Companies in the Trading and Services category

- Best Corporate Social Responsibility Award - Silver Award

- Best Annual Report in Bahasa Malaysia - Silver Award

- Best Designed Annual Report - Silver Award

Present to receive the awards from Y.B. Datuk Seri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism were Dato’ Sri Zamzamzairani Mohd Isa, Group Chief Executive Officer, TM, Datuk Bazlan Osman, Group Chief Financial Officer, TM, Idrus Ismail, Chief Legal, Compliance & Company Secretary, TM and Izlyn Ramli, Vice President, Group Corporate Communications, TM.

24/08/2011

TM reported positive improvements all-round in its business and showed solid progress in transforming itself into becoming Malaysia’s Information Exchange.

The Group posted revenue of RM2,233.6 million for the second quarter of 2011 ended 30 June 2011, up by 3.8%, compared to RM2,150.9 million in the 2Q2010, mainly attributed to higher revenue from Internet and multimedia, data services and other telecommunications related services.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 2Q2011 was higher at RM746.9 million, up 8.8% from RM686.2 million recorded in 2Q2010. Normalised EBITDA improved 10.4% to RM768.0 million from RM695.5 million in 2Q2010. Normalised EBITDA margin improved by 2.0pp at 33.9%, as compared to 31.9% in 2Q2010.

Group Profit After Tax And Minority Interest (PATAMI) rose 2.3% to RM127.2 million in 2Q2011 from RM124.4 million in the corresponding period last year. This was mainly attributed to higher revenue, and lower net finance cost. Normalised PATAMI improved 20.8% from RM111.9 million in 2Q2010 to RM135.2 million this quarter.

Data revenue increased by 7.1% this quarter to RM455.0 million compared to RM424.9 million in the same quarter 2010 arising from demand for higher bandwidth services. Internet and multimedia registered higher revenue by 21.1% to RM487.9 million in the current year quarter arising from increased broadband and UniFi customers to 1.721 million and 109,019 respectively in the current quarter from 1.541 million and 4,051 in the corresponding quarter 2010.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-22409494
Match	:	N/A
Address Provided by Client	:	JALAN AIRPORT LAHAD DATU 30303 LAHAD DATU SABAH
Current Address	:	NORTH WING, MENARA TM, JALAN PANTAI BARU, LEVEL 51, 50672 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the Senior staff from the Human Resource Department. She provided some information on the SC.

The SC is not aware of the address provided.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2007 - 2011	]
Profit/(Loss) Before Tax	:	Decreased	[	2007 - 2011	]
Return on Shareholder Funds	:	Acceptable	[	16.70%	]
Return on Net Assets	:	Unfavourable	[	7.68%	]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	13 Days	]
Debtor Ratio	:	Acceptable	[	59 Days	]
Creditors Ratio	:	Unfavourable	[	92 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 management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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	:	Favourable	[	1.60 Times	]
Current Ratio	:	Unfavourable	[	1.65 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	4.15 Times	]
Gearing Ratio	:	Acceptable	[	0.90 Times	]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC's gearing was slightly high. The SC is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the SC. It will be more vulnerable in times of economy downturn.
Overall Assessment :
Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the SC's performance may deteriorate in the coming year.
Overall financial condition of the SC : STABLE

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
61101 : Wired telecommunications services
INDUSTRY :	TELECOMMUNICATION
The Malaysian telecommunications industry is expected to stay resilient over the 2012 to 2016, as people spend more on mobile phone and broadband bills.This sector posted a significant growth of 9.4% year-one-year in first quater 2012 on the back of higher consumption of mobile phone services and data communication. This sector also marked strong rally as total return of 13.9% for the year-to-year as of june 2012.
The mobile market expected to reach 38.7million by the year end 2012 and also expected to be supporting almost 40.4million subscribers, where yielding a penetration rate around 129% at the year 2016. Although 3G segment of the mobile market grew forecast to be 12.83million 3G subscribers by 2016, up from 10.31million in 2011.
Rapid growth in user of mobile and wireless internet connection become replacement of fixed lines and its already a major issue in fixed line market. The trend seems to have accelerated in the end of 2011 and earlier 2012 reflecting development to 3.87million fixed lines in service at the first quarter 2012. This figure forcasted fallen to under 3.6million by 2016 and only have a small impact on Malaysia's Risk/Reward Ratings scores of secind quarter 2012.
As for broadband, it forcasted to be 6.54million broadband subscribers by the end of 2012, a figure that will rise to 8.18million by 2016.
For broadband service providers, the Government has extended the tax incentive application period for last-mile infrastructure deployment as well as import duty and sales tax exemption on broadband equipment until 2012.
Malaysia continues to score highly due to the competitive and open nature of its telecomunication sector and relatively robust economy. Malaysia telecommunication sector continue to be safe for investor due to stable economy. It expected to give decent yield and strong operating cashflow generation capability.
In overall, industry players are now trying to balance average revenue per user (ARPU) and earnings against investments into increasing coverage and service quality. Industry players are also trying to create more demand for the use of data by implementing a strategy called "Smart Piping" which drives ore value into their existing connectivity infrastructure.
As for the consumer side, the introduction of next generation network would be inaccessible to the general public at first due to high cost for early adoption of new services as well as older devices being incompatible with the new connectivity technology.
OVERALL INDUSTRY OUTLOOK : Strong Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1984, the SC is a Public Listed company, focusing on telecommunication and related services. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Being a public listed company, the SC has the advantage to raise future capital through issuing shares. Having a strong shareholders' backing , the SC has the advantage to compete with its rivals and it is expected to enjoy timely financial assistance should the needs arise. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.

Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a large entity, the Group has a steady workforce of 34,500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.

Financially, the Group registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the Group was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Group is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The gearing level of the Group is slightly high, therefore it faces moderate financial risk. Nevertheless, given a positive net worth standing at MYR 7,131,700,000, the Group 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 is rapidly growing and continue to be attractive in the near terms. We believe that the SC has the potential of capturing a higher market share in line with the tremendous growth in the industry.

Based on the above condition, we recommend credit be granted to the SC promptly.

PROFIT AND LOSS ACCOUNT

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

TELEKOM MALAYSIA BERHAD

Financial Year End	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
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	9,150,700,000	8,791,000,000	8,608,000,000	8,674,900,000	17,842,900,000
	----------------	----------------	----------------	----------------	----------------
Total Turnover	9,150,700,000	8,791,000,000	8,608,000,000	8,674,900,000	17,842,900,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,001,100,000	1,360,300,000	921,000,000	353,400,000	3,113,100,000
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES	100,000	<100,000>	600,000	400,000	29,500,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,001,200,000	1,360,200,000	921,600,000	353,800,000	3,142,600,000
Taxation	235,900,000	<115,200,000>	<248,300,000>	<77,600,000>	<511,000,000>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,237,100,000	1,245,000,000	673,300,000	276,200,000	2,631,600,000
Minority interests	<46,100,000>	<38,500,000>	<30,300,000>	<109,200,000>	<83,900,000>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	1,191,000,000	1,206,500,000	643,000,000	167,000,000	2,547,700,000
Extraordinary items	-	-	-	624,900,000	193,000,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	1,191,000,000	1,206,500,000	643,000,000	791,900,000	2,740,700,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,719,400,000	2,222,200,000	2,303,200,000	12,512,800,000	12,829,000,000
Prior year adjustment	-	<18,000,000>	-	-	-
	----------------	----------------	----------------	----------------	----------------
As restated	2,719,400,000	2,204,200,000	2,303,200,000	12,512,800,000	12,829,000,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,910,400,000	3,410,700,000	2,946,200,000	13,304,700,000	15,569,700,000
TRANSFER TO RESERVES - Statutory	-	-	43,100,000	-	-
- General	-	2,500,000	<35,800,000>	<10,135,200,000>	-
DIVIDENDS - Ordinary (paid & proposed)	<737,900,000>	<693,800,000>	<731,300,000>	<866,300,000>	<3,056,900,000>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,172,500,000	2,719,400,000	2,222,200,000	2,303,200,000	12,512,800,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	318,200,000	365,200,000	143,600,000	375,200,000	819,900,000
	----------------	----------------	----------------	----------------	----------------
	318,200,000	365,200,000	143,600,000	375,200,000	819,900,000
	=============	=============	=============	=============	=============

BALANCE SHEET

TELEKOM MALAYSIA BERHAD

ASSETS EMPLOYED:
FIXED ASSETS	13,613,000,000	13,112,100,000	12,404,300,000	11,839,600,000	24,370,300,000
LONG TERM INVESTMENTS/OTHER ASSETS
Associated companies	600,000	500,000	600,000	-	252,500,000
Development properties/expenditure	108,400,000	107,400,000	163,700,000	164,300,000	165,400,000
Investments	-	-	152,800,000	137,800,000	138,900,000
Loans & advances - non-current	199,500,000	89,400,000	108,900,000	472,400,000	511,500,000
Deferred assets	21,700,000	86,700,000	10,600,000	8,900,000	179,400,000
Others	182,100,000	133,100,000	608,200,000	496,000,000	1,024,400,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	512,300,000	417,100,000	1,044,800,000	1,279,400,000	2,272,100,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	320,900,000	312,300,000	313,400,000	1,800,000	7,460,900,000
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	320,900,000	312,300,000	313,400,000	1,800,000	7,460,900,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	14,446,200,000	13,841,500,000	13,762,500,000	13,120,800,000	34,103,300,000
CURRENT ASSETS
Short term quoted/unquoted investments	-	-	294,700,000	277,600,000	378,100,000
Stocks	216,900,000	174,000,000	110,600,000	123,300,000	181,100,000
Trade debtors	1,483,000,000	1,797,000,000	1,781,000,000	2,127,900,000	2,992,600,000
Other debtors, deposits & prepayments	468,400,000	532,300,000	503,000,000	763,400,000	1,406,000,000
Short term deposits	3,577,100,000	3,051,300,000	3,062,300,000	1,709,000,000	3,370,900,000
Cash & bank balances	635,900,000	437,200,000	428,400,000	386,200,000	800,900,000
Others	544,300,000	946,700,000	-	4,025,000,000	988,400,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	6,925,600,000	6,938,500,000	6,180,000,000	9,412,400,000	10,118,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	21,371,800,000	20,780,000,000	19,942,500,000	22,533,200,000	44,221,300,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	2,302,800,000	2,403,200,000	2,020,700,000	1,852,200,000	4,058,700,000
Other creditors & accruals	1,249,300,000	641,200,000	792,600,000	960,400,000	1,962,300,000
Hire purchase & lease creditors	3,600,000	3,400,000	4,100,000	-	-
Bank overdraft	-	-	-	-	2,100,000
Short term borrowings/Term loans	-	-	-	34,900,000	2,175,100,000
Other borrowings	1,100,000	1,200,000	896,500,000	-	-
Deposits from customers	544,500,000	580,500,000	575,700,000	588,800,000	732,600,000
Provision for taxation	81,900,000	43,800,000	14,100,000	35,000,000	155,200,000
Dividends payable/proposed	-	-	-	-	1,654,500,000
Other liabilities	3,000,000	616,200,000	137,300,000	-	681,700,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	4,186,200,000	4,289,500,000	4,441,000,000	3,471,300,000	11,422,200,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	2,739,400,000	2,649,000,000	1,739,000,000	5,941,100,000	<1,304,200,000>
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	17,185,600,000	16,490,500,000	15,501,500,000	19,061,900,000	32,799,100,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	3,577,400,000	3,568,100,000	3,543,500,000	3,456,000,000	3,439,800,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	3,577,400,000	3,568,100,000	3,543,500,000	3,456,000,000	3,439,800,000
RESERVES
Share premium	43,200,000	1,055,100,000	1,011,800,000	4,305,400,000	4,262,100,000
Capital reserve	35,800,000	35,800,000	35,800,000	-	-
Exchange equalisation/fluctuation reserve	-	-	-	-	<412,600,000>
Retained profit/(loss) carried forward	3,172,500,000	2,719,400,000	2,222,200,000	2,303,200,000	12,512,800,000
Others	139,900,000	331,000,000	174,200,000	183,500,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	3,391,400,000	4,141,300,000	3,444,000,000	6,792,100,000	16,362,300,000
MINORITY INTEREST	162,900,000	150,800,000	142,500,000	226,500,000	849,400,000
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	7,131,700,000	7,860,200,000	7,130,000,000	10,474,600,000	20,651,500,000
LONG TERM LIABILITIES
Long term loans	6,348,100,000	5,447,800,000	5,735,400,000	6,965,100,000	9,747,200,000
Hire purchase creditors	54,600,000	58,200,000	61,500,000	-	-
Deferred taxation	1,559,600,000	1,664,200,000	1,588,700,000	1,362,000,000	2,313,200,000
Others	2,091,600,000	1,460,100,000	985,900,000	260,200,000	87,200,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	10,053,900,000	8,630,300,000	8,371,500,000	8,587,300,000	12,147,600,000
	----------------	----------------	----------------	----------------	----------------
	17,185,600,000	16,490,500,000	15,501,500,000	19,061,900,000	32,799,100,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TELEKOM MALAYSIA BERHAD

TYPES OF FUNDS
Cash	4,213,000,000	3,488,500,000	3,490,700,000	2,095,200,000	4,171,800,000
Net Liquid Funds	4,213,000,000	3,488,500,000	3,490,700,000	2,095,200,000	4,169,700,000
Net Liquid Assets	2,522,500,000	2,475,000,000	1,628,400,000	5,817,800,000	<1,485,300,000>
Net Current Assets/(Liabilities)	2,739,400,000	2,649,000,000	1,739,000,000	5,941,100,000	<1,304,200,000>
Net Tangible Assets	16,864,700,000	16,178,200,000	15,188,100,000	19,060,100,000	25,338,200,000
Net Monetary Assets	<7,531,400,000>	<6,155,300,000>	<6,743,100,000>	<2,769,500,000>	<13,632,900,000>
BALANCE SHEET ITEMS
Total Borrowings	6,407,400,000	5,510,600,000	6,697,500,000	7,000,000,000	11,924,400,000
Total Liabilities	14,240,100,000	12,919,800,000	12,812,500,000	12,058,600,000	23,569,800,000
Total Assets	21,371,800,000	20,780,000,000	19,942,500,000	22,533,200,000	44,221,300,000
Net Assets	17,185,600,000	16,490,500,000	15,501,500,000	19,061,900,000	32,799,100,000
Net Assets Backing	7,131,700,000	7,860,200,000	7,130,000,000	10,474,600,000	20,651,500,000
Shareholders' Funds	7,131,700,000	7,860,200,000	7,130,000,000	10,474,600,000	20,651,500,000
Total Share Capital	3,577,400,000	3,568,100,000	3,543,500,000	3,456,000,000	3,439,800,000
Total Reserves	3,391,400,000	4,141,300,000	3,444,000,000	6,792,100,000	16,362,300,000
LIQUIDITY (Times)
Cash Ratio	1.01	0.81	0.79	0.60	0.37
Liquid Ratio	1.60	1.58	1.37	2.68	0.87
Current Ratio	1.65	1.62	1.39	2.71	0.89
WORKING CAPITAL CONTROL (Days)
Stock Ratio	13	12	12	12	7
Debtors Ratio	59	75	76	90	61
Creditors Ratio	92	100	86	78	83
SOLVENCY RATIOS (Times)
Gearing Ratio	0.90	0.70	0.94	0.67	0.58
Liabilities Ratio	2.00	1.64	1.80	1.15	1.14
Times Interest Earned Ratio	4.15	4.72	7.42	1.94	4.83
Assets Backing Ratio	4.71	4.52	4.25	5.33	7.08
PERFORMANCE RATIO (%)
Operating Profit Margin	10.94	15.47	10.71	4.08	17.61
Net Profit Margin	13.02	13.72	7.47	1.93	14.28
Return On Net Assets	7.68	10.46	6.87	3.82	12.08
Return On Capital Employed	7.47	10.18	6.67	3.78	9.64
Return On Shareholders' Funds/Equity	16.70	15.35	9.02	1.59	12.34
Dividend Pay Out Ratio (Times)	0.62	0.58	1.14	5.19	1.20
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.48
UK Pound	1	Rs.82.71
Euro	1	Rs.72.23

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%)

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.