MIRA INFORM REPORT

Report Date :

04.01.2013

IDENTIFICATION DETAILS

Name :	ANTARA STEEL MILLS SDN. BHD.
Registered Office :	Level 14, Office Tower, No. 1, Jalan Nagasari (Off Jalan Raja Chulan), 50200 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	30.06.2011
Date of Incorporation :	15.07.1975
Com. Reg. No.:	23848-W
Legal Form :	Private Limited
Line of Business :	Manufacturing of Steel Billets & Bars
No. of Employees :

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
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

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.

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.

:

23848-W

COMPANY NAME

:

ANTARA STEEL MILLS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/07/1975

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LEVEL 14, OFFICE TOWER, NO. 1, JALAN NAGASARI (OFF JALAN RAJA CHULAN), 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 277, JALAN GANGSA 1, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2598888

FAX.NO.

:

07-2598999

WEB SITE

:

www.lion.com.my

CONTACT PERSON

:

ERIC CHENG ( EXECUTIVE DIRECTOR )

INDUSTRY CODE

:

24101

PRINCIPAL ACTIVITY

:

MANUFACTURING OF STEEL BILLETS & BARS

AUTHORISED CAPITAL

:

MYR 250,300,000.00 DIVIDED INTO
ORDINARY SHARE 250,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 30,000,000.00 OF MYR 0.01 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 218,310,000.00 DIVIDED INTO
ORDINARY SHARES 109,429,087 CASH AND 108,580,913 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 30,000,000 OTHERWISE OF MYR 0.01 EACH.

SALES

:

MYR 1,651,127,991 [2011]

NET WORTH

:

MYR 971,656,836 [2011]

M1000 OVERALL RANKING

:

264[2011]

M1000 INDUSTRY RANKING

:

10[2011]

STAFF STRENGTH

:

750 [2013]

BANKER (S)

:

AMBANK (M) BHD MALAYAN BANKING BHD MALAYSIAN TRUSTEES BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE 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) manufacturing of steel billets & bars.

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

According to the Malaysia 1000 publication, the SC's ranking are as follows:
YEAR	2011	2009	2008
OVERALL RANKING	264	182	368
INDUSTRY RANKING	10	7	15

The immediate holding company of the SC is AMMB NOMINEES (TEMPATAN) SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the SC is LION INDUSTRIES CORPORATION BERHAD, a company incorporated in MALAYSIA.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
AMMB NOMINEES (TEMPATAN) SDN. BHD.	11TH FLOOR,BANGUNAN AMBANK GROUP, NO. 55 JALAN RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	51181	218,010,000.00	87.90
AMTRUSTEE BERHAD	15TH FLOOR, MENARA AMFIRST, NO.1, JALAN 19/3, 46300 PETALING JAYA, SELANGOR, MALAYSIA.	163032	30,000,000.00	12.10
			---------------	------
			248,010,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. LEE WHAY KEONG
Address	:	17,JALAN SS 24/22, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.
New IC No	:	561005-08-6393
Date of Birth	:	05/10/1956
Nationality	:	MALAYSIAN
Date of Appointment	:	10/09/2002

DIRECTOR 2

Name Of Subject	:	CHENG THENG HOW
Address	:	5000E LAGUNA PARK, #10-19 MARINE PARADE ROAD, SINGAPORE 449288, FOREIGN, MALAYSIA.
IC / PP No	:	E2168369F
Date of Birth	:	16/10/1955
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/07/2006

DIRECTOR 3

Name Of Subject	:	MR.WILLIAM CHENG HENG JEM
Address	:	A-16-1, BLOK A, SATU RESIDENSI, NO. 1, JALAN NAGASARI, (OFF JALAN RAJA CHULAN), 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
New IC No	:	430319-71-5033
Date of Birth	:	19/03/1943
Nationality	:	MALAYSIAN
Date of Appointment	:	18/02/2004

DIRECTOR 4

Name Of Subject	:	MR. KAMARUDDIN @ ABAS BIN NORDIN,DATO',HAJI
Address	:	22, JALAN SILAT 11/3, 40000 SHAH ALAM, SELANGOR, MALAYSIA.
New IC No	:	380621-10-5057
Date of Birth	:	21/06/1938
Nationality	:	MALAYSIAN
Date of Appointment	:	13/06/2003

MANAGEMENT

1)	Name of Subject	:	ERIC CHENG
	Position	:	EXECUTIVE DIRECTOR

2)	Name of Subject	:	RAHMAT IBRAHIM
	Position	:	GENERAL MANAGER

3)	Name of Subject	:	WILLIAM HJ CHENG
	Position	:	GROUP CHAIRMAN

4)	Name of Subject	:	CHUA TONG SO
	Position	:	ACCOUNT MANAGER

5)	Name of Subject	:	TAMMY
	Position	:	CREDIT CONTROLLER

6)	Name of Subject	:	LISA
	Position	:	EXECUTIVE

7)	Name of Subject	:	INTAN
	Position	:	EXECUTIVE

8)	Name of Subject	:	WILLIAM WONG
	Position	:	MARKETING MANAGER

9)	Name of Subject	:	TAN BOON MIN
	Position	:	HUMAN RESOURCE MANAGER

10)	Name of Subject	:	HUSIN KAMAL
	Position	:	MATERIAL MANAGER

AUDITOR

Auditor	:	DELOITTE KASSIMCHAN
Auditor' Address	:	LEVEL 19, UPTOWN 1,, 1 JALAN SS 21/58, DAMANSARA UPTOWN, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. WONG PHOOI LIN
	New IC No	:	651003-10-6046
	Address	:	68 JALAN SRI PETALING 1, BANDAR BARU SRI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

2)	Company Secretary	:	MS. CHAN POH LAN
	New IC No	:	560707-08-6078
	Address	:	23,JLN CEMPAKA 2, TAMAN CEMPAKA, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

2)

Name

:

MALAYAN BANKING BHD

3)

Name

:

MALAYSIAN TRUSTEES BHD

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

ENCUMBRANCE (S)

ENCUMBRANCE 1

Date of Creation

:

03/03/2003

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM1,607,918,248.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

AMTRUSTEE BHD

Form 40 Dated

Registered and Numbered 9 In The Register of Charges

ENCUMBRANCE 2

Date of Creation

:

06/06/2003

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM1,607,918,248.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

AMTRUSTEE BHD

Form 40 Dated

Registered and Numbered 10 In The Register of Charges

ENCUMBRANCE 3

Date of Creation

:

15/04/2004

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM8,500.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

MALAYAN BANKING BHD

Form 40 Dated

Registered and Numbered 11 In The Register of Charges

ENCUMBRANCE 4

Date of Creation

:

24/05/2004

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM1,607,918,248.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

AMTRUSTEE BHD

Form 40 Dated

Registered and Numbered 12 In The Register of Charges

ENCUMBRANCE 5

Date of Creation

:

19/04/2007

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

RM5,000,000.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

MALAYAN BANKING BHD

Form 40 Dated

Registered and Numbered 20 In The Register of Charges

ENCUMBRANCE 6

Date of Creation

:

03/12/2007

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

RM105,500.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

MALAYAN BANKING BHD

Form 40 Dated

Registered and Numbered 21 In The Register of Charges

ENCUMBRANCE 7

Date of Creation

:

04/04/2008

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM100,000.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

MALAYAN BANKING BHD
14, PUSAT PERDAGANGAN, JALAN BANDAR, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Form 40 Dated 22/04/2008

Registered and Numbered 22 In The Register of Charges

ENCUMBRANCE 8

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM50,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

AMBANK (M) BHD

Form 40 Dated

Registered and Numbered 23 In The Register of Charges

ENCUMBRANCE 9

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM5,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

AMBANK (M) BHD

Form 40 Dated

Registered and Numbered 24 In The Register of Charges

ENCUMBRANCE 10

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM100,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

AMBANK (M) BHD

Form 40 Dated

Registered and Numbered 25 In The Register of Charges

ENCUMBRANCE 11

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM50,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

AMBANK (M) BHD

Form 40 Dated

Registered and Numbered 26 In The Register of Charges

ENCUMBRANCE 12

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM300,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

DANAJAMIN NASIONAL BERHAD

Form 40 Dated

Registered and Numbered 27 In The Register of Charges

ENCUMBRANCE 13

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM300,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

DANAJAMIN NASIONAL BERHAD

Form 40 Dated

Registered and Numbered 28 In The Register of Charges

ENCUMBRANCE 14

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

DANAJAMIN NASIONAL BERHAD

Form 40 Dated

Registered and Numbered 29 In The Register of Charges

ENCUMBRANCE 15

Date of Creation

:

15/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM300,000,000.00

Description Of Property Affected

:

N/A

Form 40 Dated

Registered and Numbered 30 In The Register of Charges

ENCUMBRANCE 16

Date of Creation

:

16/06/2011

Description Of Charge

:

N/A

Amount Secured

:

RM350,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

AMTRUSTREE BERHAD

Form 40 Dated

Registered and Numbered 31 In The Register of Charges

ENCUMBRANCE 17

Date of Creation

:

02/08/2011

Description Of Charge

:

N/A

Amount Secured

:

RM300,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

DANAJAMIN NASIONAL BERHAD

Form 40 Dated

Registered and Numbered 32 In The Register of Charges

ENCUMBRANCE 18

Date of Creation

:

02/08/2011

Description Of Charge

:

N/A

Amount Secured

:

RM300,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

DANAJAMIN NASIONALBERHAD

Form 40 Dated

Registered and Numbered 33 In The Register of Charges

ENCUMBRANCE 19

Date of Creation

:

03/08/2011

Description Of Charge

:

N/A

Amount Secured

:

RM50,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

AMBANK (M) BHD

Form 40 Dated

Registered and Numbered 34 In The Register of Charges

ENCUMBRANCE 20

Date of Creation

:

03/08/2011

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM100,000,000.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

AMBANK (M) BHD

Form 40 Dated

Registered and Numbered 35 In The Register of Charges

ENCUMBRANCE 21

Date of Creation

:

03/03/2003

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SETOFF

Amount Secured

:

RM1,607,918,248.00

Description Of Property Affected

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND/ OR NEGOTIABLE CERTIFICATE OF DEPOSIT EXECUTED BY THE COMPANY IN FAVOUR OF THE BANK

Name & Address Of Chargee

:

AMTRUSTEE BHD

Form 40 Dated

Registered and Numbered 8 In The Register of Charges

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	:	817
Year	:	2006	Place	:	KUALA LUMPUR
Court No	:	D7
Court	:	HIGH COURT
Solicitor	:	CHEAH TEH & SU
Plaintiff	:	CHYE HUP HENG SDN BHD
Defendants	:	ANTARA STEEL MILLS SDN BHD (23848) MENARA CITIBANK, 165 JLN AMPANG, LEVEL 46, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Amount Claimed	:	0.00
Nature of Claim	:	AMT N0T STATED
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
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	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	SINGAPORE, THAILAND, INDONESIA, BRUNEI DARUSSALAM, VIETNAM, TAIWAN, HONG KONG
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES,TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	STEEL INDUSTRY,CONSTRUCTION INDUSTRY

OPERATIONS

Products manufactured

:

METAL STEEL PRODUCTS

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

Certification of Products

:

1 ) MS 146 : 2000

Competitor(s)

:

KINSTEEL BHD
LION CORPORATION BHD
LION INDUSTRIES CORPORATION BHD
MEGASTEEL SDN. BHD.
PERWAJA STEEL SDN BHD

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

Ownership of premises

:

OWNED

Factory / Premises

:

RANCA-RANCA INDUSTRIAL ESTATE, P.O. BOX NO 81555, 87017 LABUAN, WILAYAH PERSEKUTUAN, MALAYSIA.
Tel No: 087-411300
Fax No: 087-417122

Production Capacity

:

60,000 TONNES OF BILLETS PER MONTH

Shifts

:

3

Total Number of Employees:
YEAR	2013	2012	2011	2010	2009	2008
GROUP	N/A	N/A	N/A	N/A	N/A	N/A
COMPANY	750	750	750	750	730	747

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) manufacturing of steel billets & bars.

The SC's products include billets, mild steel round bars, equal anglebars, flat bars, high tensile deformed bars, high tensile vanadiumbars and others.

We were informed that the SC has 3 plants as follows:

* Steel plant - raw materials are brought forward in the form of scrap.The scrap iron is then melted and refined into liquid steel.Steel products include wire rods, deformed bars, rounds bars and anglebars.

* Rolling mill 1 - Producing angle bar and round bar in small sizes.

* Rolling mill 2 - Producing angle bar and round bar in big sizes.

In addition the SC's main production processes include melting scrap to become molten steel and rolling billets to finished products.

While the SC's secondary production process is ring crusher and slag recycling process.

The SC's plants are equipped with modern facilities comprising Electric Arc Furnaces, Ladle Furnaces and 6-strand Continuous Casting Machines.

These facilities are designed to produce high quality billets including special grade billets for rolling into specialty bars and higher grade wire rods for stringent applications.

PROJECTS

No projects found in our databank

RECENT DEVELOPMENT

14 OCTOBER 2009

Malaysian Rating Corp Bhd (MARC) has affirmed its AID rating on SC's RM500mil Bai Bithaman Ajil Islamic debt securities (BaIDs) with a stable outlook.The rating was given "on expectations of improvements in its operating performance in 2010," the rating agency said.

The rating was affirmed due to "signs of a recovery in global and domestic steel demand as well as Antara's continued ability to generate sufficient operating cash flow to pay down debt," it added. However, MARC expressed concerns over the company's continued large cash outlays for dividend payouts and investments. It noted that Antara paid out dividends of RM128.69mil and invested RM30mil in loan stocks of Lion Diversified Holdings Bhd in its 2009 financial year (FY09). Despite that, MARC said the company's cash balances remained strong at RM169.1mil, of which RM90mil was used to redeem its BaIDs in August. "With sound cash flow generation capacity over the past few years, the company has duly reduced its borrowings. "This has resulted in gearing declining to 0.48 times as of end-FY09 from a high of 1.93 times in FY06," it said.

20 JANUARY 2009

Major steel player Perwaja Holdings Bhd is still uncertain whether to stop production at its direct reduced iron (DRI) plant, while Lion Group has temporarily stopped operations at its hot briquetted iron (HBI) and DRI steel mills given the high cost of gas.Lion's Antara Steel Mills Sdn Bhd's HBI plant in Labuan and the Lion DRI Sdn Bhd plant in Banting, which use gas as feedstock in their production process, have stopped production since October and November 2008 respectively. Perwaja managing director Tan Sri Pheng Yin Huah, when contacted by StarBiz, declined to comment on whether the group might be forced to close its DRI plant in Kemaman soon. However, he said, the plant was currently still running at 50% of its installed capacity of 1.5 million tonnes a year. "We want to see the Government bring down the gas tariff as soon as possible to reflect the current world gas prices. "It is difficult for many players, including Perwaja, to cope with the high cost and want the Government to revert to the previous gas prices before the hike in June 2008," Pheng said.Meanwhile, a Lion Group spokesman said its HBI and DRI plants could no longer bear the high cost of gas, which had doubled to RM22.58 per mmbtu (million British thermal units) since June 2008."Given such high cost, we are unable to compete with overseas producers whose gas prices are much lower than ours," he said.

Before the stoppage, the group's HBI plant was operating at full capacity of 900,000 tonnes a year. Its DRI plant, which has an installed capacity of 1.54 million tonnes, started operations in June and was ramping up capacity before it stopped production in November due to the high cost of gas.The HBI and DRI plants currently employ a total of about 430 workers."Since we stopped production, they are currently doing maintenance work. "We will try to re-deploy them to other operations and not retrench anyone unless all the other operations are also affected by the increasingly difficult operating environment of high cost and weak demand," the spokesman said. The high electricity tariffs effective July 1 have also affected the group's steel-making plants as well as other steel mills in Malaysia which use huge amounts of electricity in their electric arc furnaces to produce molten steel.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	087-593999
Current Telephone Number	:	07-2598888
Match	:	NO
Address Provided by Client	:	RANCA-RANCA INUSTRIAL ESTATE, LABUAN F.T. ,P.O BOX 81555 87025 F.T.
Current Address	:	PLO 277, JALAN GANGSA 1, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the Admin Department. She provided some information on the SC.

The address provided belongs to the SC's factory in Labuan.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2008 - 2011	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2011	]
Return on Shareholder Funds	:	Acceptable	[	11.01%	]
Return on Net Assets	:	Unfavourable	[	9.32%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Unfavourable	[	147 Days	]
Debtor Ratio	:	Favourable	[	21 Days	]
Creditors Ratio	:	Unfavourable	[	95 Days	]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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	[	1.35 Times	]
Current Ratio	:	Favourable	[	2.64 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	:	Favourable	[	20.09 Times	]
Gearing Ratio	:	Favourable	[	0.00 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 had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : STRONG

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
24101 : Production of pig iron and spiegeleisen in pigs, blocks or other primary forms
INDUSTRY :	MANUFACTURING
The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.
The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.
The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.
Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.
According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.
According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).
Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1975, the SC is a Private Limited company, focusing on manufacturing of steel billets & bars. 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. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 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 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 large entity, the SC has a steady workforce of 750 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. 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.

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC 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. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 971,656,836, 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. Overall the SC has a good control over its resources.

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of 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)

ANTARA STEEL MILLS SDN. BHD.

Financial Year End	30/06/2011	30/06/2010	30/06/2009	30/06/2008
Months	12	12	12	12
Consolidated Account	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR
TURNOVER	1,651,127,991	1,689,665,476	1,376,486,188	2,445,085,712
	----------------	----------------	----------------	----------------
Total Turnover	1,651,127,991	1,689,665,476	1,376,486,188	2,445,085,712
Costs of Goods Sold	<1,511,552,156>	<1,392,740,268>	-	-
	----------------	----------------	----------------	----------------
Gross Profit	139,575,835	296,925,208	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	112,002,558	240,340,585	<121,882,924>	478,613,344
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	112,002,558	240,340,585	<121,882,924>	478,613,344
Taxation	<5,062,019>	<60,373,782>	29,268,000	2,670,943
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	106,940,539	179,966,803	<92,614,924>	481,284,287
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	614,377,089	434,410,286	655,712,603	174,428,316
	----------------	----------------	----------------	----------------
As restated	614,377,089	434,410,286	655,712,603	174,428,316
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	721,317,628	614,377,089	563,097,679	655,712,603
DIVIDENDS - Ordinary (paid & proposed)	<1,839,870>	-	<128,687,393>	-
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	719,477,758	614,377,089	434,410,286	655,712,603
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Hire purchase	1,694	7,278	3,300	6,670
Lease interest	3,300	3,300	7,858	6,205
Others	5,862,585	296,978	-	33,530,001
	----------------	----------------	----------------	----------------
	5,867,579	307,556	11,158	33,542,876

BALANCE SHEET

ANTARA STEEL MILLS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	217,800,064	257,017,680	270,862,538	242,270,804
LONG TERM INVESTMENTS/OTHER ASSETS
Investment properties	3,139,235	6,717,670	6,689,684	6,820,003
Investments	-	30,014,916	30,014,916	-
Deferred assets	45,627,000	49,045,000	109,130,000	79,862,000
Others	21,620,990	-	-	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	70,387,225	85,777,586	145,834,600	86,682,003
INTANGIBLE ASSETS
Own goodwill	-	-	101,109,079	101,109,079
Goodwill on consolidation	101,109,079	101,109,079	-	-
Others	30,014,916	-	-	-
	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	131,123,995	101,109,079	101,109,079	101,109,079
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	419,311,284	443,904,345	517,806,217	430,061,886
CURRENT ASSETS
Stocks	664,361,672	603,747,533	315,332,417	683,334,249
Trade debtors	93,210,784	84,686,277	38,663,017	145,889,671
Other debtors, deposits & prepayments	106,228,263	97,563,089	54,034,335	57,200,962
Short term deposits	-	-	151,792,000	152,563,838
Amount due from holding company	24,871,583	330,041	37,691,754	71,171,507
Amount due from related companies	82,040,604	12,468,670	32,341,282	23,792,946
Cash & bank balances	385,464,436	271,542,779	17,268,541	67,613,612
Others	4,763,331	957,635	737,156	447,384
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	1,360,940,673	1,071,296,024	647,860,502	1,202,014,169
	----------------	----------------	----------------	----------------
TOTAL ASSET	1,780,251,957	1,515,200,369	1,165,666,719	1,632,076,055
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	393,710,239	260,760,739	59,249,995	221,248,977
Other creditors & accruals	121,188,005	147,299,653	89,505,520	104,525,911
Hire purchase & lease creditors	27,816	36,036	64,581	77,793
Amounts owing to related companies	426,621	540,465	312,098	120,610
Other liabilities	-	110,000,000	90,000,000	70,000,000
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	515,352,681	518,636,893	239,132,194	395,973,291
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	845,587,992	552,659,131	408,728,308	806,040,878
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	1,264,899,276	996,563,476	926,534,525	1,236,102,764
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	218,310,000	218,310,000	218,310,000	218,310,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	218,310,000	218,310,000	218,310,000	218,310,000
RESERVES
Share premium	29,700,000	29,700,000	29,700,000	29,700,000
Retained profit/(loss) carried forward	719,477,758	614,377,089	434,410,286	655,712,603
Others	4,169,078	4,143,831	4,052,925	2,261,562
	----------------	----------------	----------------	----------------
TOTAL RESERVES	753,346,836	648,220,920	468,163,211	687,674,165
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	971,656,836	866,530,920	686,473,211	905,984,165
LONG TERM LIABILITIES
Lease obligations	-	-	942	30,409
Hire purchase creditors	4,740	32,556	60,372	88,190
Others	293,237,700	130,000,000	240,000,000	330,000,000
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	293,242,440	130,032,556	240,061,314	330,118,599
	----------------	----------------	----------------	----------------
	1,264,899,276	996,563,476	926,534,525	1,236,102,764
	=============	=============	=============	=============
Contingent Liabilities		22,390,002	23,159,015

FINANCIAL RATIO

ANTARA STEEL MILLS SDN. BHD.

TYPES OF FUNDS
Cash	385,464,436	271,542,779	169,060,541	220,177,450
Net Liquid Funds	385,464,436	271,542,779	169,060,541	220,177,450
Net Liquid Assets	181,226,320	<51,088,402>	93,395,891	122,706,629
Net Current Assets/(Liabilities)	845,587,992	552,659,131	408,728,308	806,040,878
Net Tangible Assets	1,133,775,281	895,454,397	825,425,446	1,134,993,685
Net Monetary Assets	<112,016,120>	<181,120,958>	<146,665,423>	<207,411,970>
BALANCE SHEET ITEMS
Total Borrowings	32,556	68,592	125,895	196,392
Total Liabilities	808,595,121	648,669,449	479,193,508	726,091,890
Total Assets	1,780,251,957	1,515,200,369	1,165,666,719	1,632,076,055
Net Assets	1,264,899,276	996,563,476	926,534,525	1,236,102,764
Net Assets Backing	971,656,836	866,530,920	686,473,211	905,984,165
Shareholders' Funds	971,656,836	866,530,920	686,473,211	905,984,165
Total Share Capital	218,310,000	218,310,000	218,310,000	218,310,000
Total Reserves	753,346,836	648,220,920	468,163,211	687,674,165
LIQUIDITY (Times)
Cash Ratio	0.75	0.52	0.71	0.56
Liquid Ratio	1.35	0.90	1.39	1.31
Current Ratio	2.64	2.07	2.71	3.04
WORKING CAPITAL CONTROL (Days)
Stock Ratio	147	130	84	102
Debtors Ratio	21	18	10	22
Creditors Ratio	95	68	16	33
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.00
Liabilities Ratio	0.83	0.75	0.70	0.80
Times Interest Earned Ratio	20.09	782.45	<10,922.37>	15.27
Assets Backing Ratio	4.57	3.61	3.33	4.58
PERFORMANCE RATIO (%)
Operating Profit Margin	6.78	14.22	<8.85>	19.57
Net Profit Margin	6.48	10.65	<6.73>	19.68
Return On Net Assets	9.32	24.15	<13.15>	41.43
Return On Capital Employed	8.44	21.92	<11.86>	38.30
Return On Shareholders' Funds/Equity	11.01	20.77	<13.49>	53.12
Dividend Pay Out Ratio (Times)	0.02	0.00	1.39	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	22,390,002	23,159,015	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.42
UK Pound	1	Rs.88.29
Euro	1	Rs.71.49

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%)