MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	TT DOTCOM SDN. BHD.
Formerly Known As :	TIME TELECOMMUNICATIONS SDN BHD (28/02/2000) TIME ENGINEERING & SLIPWAY SDN BHD (14/06/1991) TES SDN BHD (14/01/1981)
Registered Office :	14, Jalan Majistret U1/26, Hicom Glenmarie Industrial Park, Level 14, 40150 Shah Alam, Selangor
Country :	Malaysia
Financials (as on) :	31.12.2011
Date of Incorporation :	17.11.1979
Com. Reg. No.:	52371-A
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Subject is engaged in the provision of Voice, Data, Video and Image Communication Services.
No. of Employees :	800

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

52371-A

COMPANY NAME

:

TT DOTCOM SDN. BHD.

FORMER NAME

:

TIME TELECOMMUNICATIONS SDN BHD (28/02/2000)
TIME ENGINEERING & SLIPWAY SDN BHD (14/06/1991)
TES SDN BHD (14/01/1981)

INCORPORATION DATE

:

17/11/1979

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

14, JALAN MAJISTRET U1/26, HICOM GLENMARIE INDUSTRIAL PARK, LEVEL 14, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LEVEL 4, 14 JALAN MAJISTRET U1/26,HICOM GLENMARIE INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-50326000

FAX.NO.

:

03-50326250

WEB SITE

:

WWW.TIME.COM.MY

CONTACT PERSON

:

AFZAL ( CEO )

INDUSTRY CODE

:

61300

PRINCIPAL ACTIVITY

:

PROVISION OF VOICE, DATA, VIDEO AND IMAGE COMMUNICATION SERVICES THROUGH ITS ESTABLISHED DOMESTIC AND INTERNATIONAL NETWORK

AUTHORISED CAPITAL

:

MYR 2,800,000,000.00 DIVIDED INTO 
ORDINARY SHARE 2,800,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 840,008,000.00 DIVIDED INTO 
ORDINARY SHARES 576,000,000 CASH AND 264,008,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 304,030,000 [2011]

NET WORTH

:

MYR 1,307,508,000 [2011]

M1000 OVERALL RANKING

:

414[2005]

M1000 INDUSTRY RANKING

:

6[2005]

STAFF STRENGTH

:

800 [2013]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

STRONG 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) provision of voice, data, video and image communication services through its established domestic and international network.

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	2005	2004
OVERALL RANKING	414	392
INDUSTRY RANKING	6	6

The immediate holding company of the SC is TIME DOTCOM BERHAD, a company incorporated in MALAYSIA.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
TIME DOTCOM BERHAD	LEVEL 4,NO.14, JALAN MAJISTRET U1/26, HICOM GLENMARIE INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.	413292P	840,008,000.00	100.00
			---------------	------
			840,008,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. ROSSANA ANNIZAH BT AHMAD RASHID @ MOHD RASHIDI
Address	:	32, JALAN SETIAMURNI 4, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
New IC No	:	650813-10-7476
Date of Birth	:	13/08/1965
Nationality	:	MALAYSIAN
Date of Appointment	:	27/02/2013

DIRECTOR 2

Name Of Subject	:	MS. MISNI ARYANI BINTI MUHAMAD
Address	:	33, JALAN PJU 3/15, TROPICANA INDAH RESORT HOMES, 47410 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	8527798
New IC No	:	610322-71-5200
Date of Birth	:	22/03/1961
Nationality	:	MALAYSIAN MALAY
Date of Appointment	:	01/10/2010

MANAGEMENT

1)	Name of Subject	:	AFZAL
	Position	:	CEO

2)	Name of Subject	:	RAMIZU
	Position	:	DEPUTY GROUP GENERAL MANAGER

AUDITOR

Auditor	:	KPMG
Auditor' Address	:	KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. MISNI ARYANI BINTI MUHAMAD
	IC / PP No	:	8527798
	New IC No	:	610322-71-5200
	Address	:	33, JALAN PJU 3/15, TROPICANA INDAH RESORT HOMES, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	20/03/1998	N/A	COMMERCE INTERNATIONAL MERCHANT BANKERS BERHAD	MYR 1.00	Satisfied
2	17/10/2006	N/A	CIMB BANK BERHAD	N/A	Satisfied
3	18/12/2008	TTDC MEMO OF DEPOSIT OF SHARES & TTDC DEED OF ASSIGMENT OF DIVIDENS, OPEN CHARGE	CIMB BANK BERHAD	N/A	Unsatisfied
4	10/05/2012	FACILITY AGREEMENT	CIMB BANK BERHAD	N/A	Unsatisfied
5	21/06/2012	FACILITY AGREEMENT	CIMB BANK BERHAD	N/A	Unsatisfied

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	:	138	Case No	:	09
Year	:	2012	Place	:	KUALA LUMPUR
Court	:	HIGH COURT
Date Filed	:	21/09/2012
Solicitor	:	KADIR,ANDRI AIDHAM & PARTNERS
Solicitor Tel. No.	:	20782888
Solicitor Address	:	MENARA SAFUAN, 80, JALAN AMPANG, TINGKAT 8, 50450 KUALA LUMPUR
Solicitor Ref	:	20110424/MLK/JAN
Defendants	:	TT DOTCOM SDN. BHD. (52371)
Remark	:	REDUCTION OF CAPITAL

Code No	:	8	Case No	:	01
Year	:	2013	Place	:	KUALA LUMPUR
Court	:	HIGH COURT
Date Filed	:	21/02/2013
Solicitor	:	KADIR ANDRI & PARTNERS
Solicitor Tel. No.	:	20782888
Solicitor Address	:	MENARA SAFUAN, 80, JALAN AMPANG, TINGKAT 8, 50450 KUALA LUMPUR
Solicitor Ref	:	20130034/MLK/LCY
Defendants	:	TT DOTCOM SDN. BHD. (52371)
Remark	:	REDUCTION OF CAPITAL

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	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[	X	]

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	AUSTRALIA FRANCE GERMANY INDONESIA JAPAN SOUTH KOREA THAILAND SINGAPORE UNITED KINGDOM UNITED STATES
Credit Term	:	30 - 90 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Services

:

VOICE, DATA, VIDEO AND IMAGE COMMUNICATION

Competitor(s)

:

U MOBILE SDN BHD

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2013	2012	2011	2010	2009
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	800	800	800	800	800

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) provision of voice, data, video and image communication services through its established domestic and international network. 

The SC provides services from voice and data communications to dial-up and broadband Internet provision, payphones and multimedia solutions.

We were informed that the SC has received its 3G spectrum assignment from the Malaysian Communications and Multimedia Commission (MCMC) on 9 November, valid till 1 April 2018.

Besides 3G, the SC's network comprises over 3,600 km of terrestrial fibre-optic cable and over 1,600 km of submarine festoon fibre optics cable backup system with landing points around the coast of Peninsular Malaysia. It's currently upgrading the capacity and resilience of these networks.

The Group provides fixed line, voice and data communications and other value-added services.

The Group's fixed line and broadband business handle four major product categories, namely Direct Access, which deals with products that require the Group's infrastructure to be built into customers' premises; Indirect Access covers products that do not require the building of infrastructure; Multimedia; and Broadband and Managed Network systems.

Besides that the Group provides dial-up and broadband Internet services to commercial and residential customers under the 'TIMENet' brand. Also known as the Group's ISP, TIMENet, has been operating since August 2000 and it continues to grow in terms of subscriber base as well as usage. 

With existing capacity for high speed broadband, TIMENet has virtually unlimited bandwidth to meet the increasing demands of its customers. The growth of content application and through the fixed wireless and wireline technology TIMENet is poised to position itself as an industry leader in content and value added services. Focusing on both corporate and individual customers, TIMENet is also offering web hosting, web designing, server co-location and other facilities management services.

RECENT DEVELOPMENT

Dec 10, 2012

Time Dotcom Bhd jumped as much as 15% among top gainers on Monday morning after the ICT firm said it plans to distribute to shareholders a portion of its stake in mobile communication network provider DiGi.Com Bhd under a dividend-in-specie scheme. At 10.49am, Time Dotcom was traded at RM4 with some 3.1 million shares done after rising as much as 53 sen to RM4.03 earlier.

Analysts said the stock is deemed undervalued against its growth prospects, prompting anticipation that the shares will trade higher. "(Time Dotcom is an) undervalued stock with stronger growth potential," HwangDBS Vickers Research Sdn Bhd analyst Chin Jin Han wrote in a note on Monday. Chin said Time Dotcom’s forward valuations, excluding its DiGi stake, are deemed attractive in price- to-earnings (PER) and price-to- book value (PBV) terms. According to Chin, Time Dotcom trades at a forward PER of some 8.7 times financial year 2013 (FY13) earnings, compared to Telekom Malaysia’s 22 times. In PBV ratio terms, Chin said Time Dotcom is valued at 0.9 time its FY13 book value. The analyst said Time Dotcom shares have the potential to reach RM4.10, translating into a PER of 13 times.

Time Dotcom Bhd said in a statement to the exchange last Friday that it plans to restructure its quoted investments comprising 275 million shares or 3.54% equity interest in DiGi.The stake in DiGi currently held by TT dotCom Sdn Bhd, a wholly-owned subsidiary of Time Dotcom, will be transferred to the parent company under the reorganisation of the group’s investments.

After the transfer, Time Dotcom will, in turn, earmark half of the DiGi stake comprising to 137.5 million shares or 1.77% to shareholders of Time Dotcom on the basis of six DiGi shares for every 25 Time Dotcom units held, according to the statement. Government investment arm Khazanah Nasional Bhd is the single largest shareholder with a 43% stake in Time Dotcom.

October 16, 2012

Time dotCom Bhd is teaming up with Setia Haruman Sdn Bhd - the master developer of Cyberjaya -- to provide Internet pay-TV and also data, Internet and voice services.

It had on Tuesday signed an MoU with Setia Haruman Technology Sdn Bhd for the collaboration where it would introduce 100% fibre-to-the-home and fibre-to-the-office services.

Under the 10-year collaboration, it plans to rollout the services to about 3,000 homes and 1,400 offices in Cyberjaya.

"The fibre-to-the-home and fibre-to-the-office services will also be expanded to new buildings in Cyberjaya in the future," it said.

Time dotCom would provide its active network infrastructure to provide services through the gigabit passive optical network technology while Setia Haruman Technology will provide its active fibre network infrastructure.

"The services will enable customers to enjoy up to 100 Mbps broadband speed and subscribe Astro B.yong packages," it said.

"The collaboration will allow Time dotCom to acquire customers in Cyberjaya at a fastr rate without duplicating network, which will be provided by Setia Haruman Technology," it said.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that:

Telephone Number Provided By Client	:	60-3-5032 6000
Current Telephone Number	:	03-50326000
Match	:	YES
Address Provided by Client	:	LEVEL 4 NO 14 JALAN MAJISTRET U1/26 HICOM GLENMARIE INDUSTRIAL PARK 40150 SHAH ALAM SELANGOR
Current Address	:	LEVEL 4, 14 JALAN MAJISTRET U1/26,HICOM GLENMARIE INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2007 - 2011	]
Profit/(Loss) Before Tax	:	Increased	[	2007 - 2011	]
Return on Shareholder Funds	:	Unfavourable	[	8.34%	]
Return on Net Assets	:	Unfavourable	[	8.38%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Unfavourable	[	120 Days	]
Creditors Ratio	:	Unfavourable	[	259 Days	]
As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.50 Times	]
Current Ratio	:	Unfavourable	[	0.50 Times	]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The SC's interest cover was nil as it did not pay any interest during the year. 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 :
Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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 : FAIR

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2009	2010	2011	2012*	2013**
Population ( Million)	28.13	28.35	28.70	29.30	29.80
Gross Domestic Products ( % )	<0.5>	7.2	5.1	5.6	5.3
Domestic Demand ( % )	2.9	6.3	8.2	9.4	5.6
Private Expenditure ( % )	<2.7>	8.1	8.2	8.0	7.4
Consumption ( % )	0.7	6.7	7.1	1.0	5.7
Investment ( % )	<17.2>	17.7	12.2	11.7	13.3
Public Expenditure ( % )	5.2	3.8	8.4	13.3	1.2
Consumption ( % )	3.1	0.2	16.1	11.3	<1.2>
Investment ( % )	8.0	2.8	<0.3>	15.9	4.2
Balance of Trade ( MYR Million )	89,650	118,356	116,058	106,300	110,700
Government Finance ( MYR Million )	<28,450>	<40,482>	<45,511>	<42,297>	<39,993>
Government Finance to GDP / Fiscal Deficit ( % )	<4.8>	<5.6>	<5.4>	<4.5>	<4.0>
Inflation ( % Change in Composite CPI)	<5.2>	5.1	3.1	1.6	2.5
Unemployment Rate	4.5	3.9	3.3	3.2	3.0
Net International Reserves ( MYR Billion )	331	329	415	427	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	2.87	2.20	3.50	2.20	-
Average 3 Months of Non-performing Loans ( % )	11.08	15.30	14.80	14.70	-
Average Base Lending Rate ( % )	5.53	6.30	6.60	6.53	-
Business Loans Disbursed( % )	10.5	14.7	15.3	32.2	-
Foreign Investment ( MYR Million )	22,156.8	22,517.9	23,546.1	26,230.4	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	41,578	44,148	45,455	45,441	-
Registration of New Companies ( % )	<0.1>	6.2	3.0	<0.0>	-
Liquidation of Companies ( No. )	39,075	25,585	132,476	-	-
Liquidation of Companies ( % )	39.6	<34.5>	417.8	-	-
Registration of New Business ( No. )	312,581	271,414	284,598	324,761	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	19,345	19,738	20,121	-	-
Business Dissolved ( % )	2.4	2.0	1.9	-	-
Sales of New Passenger Cars (' 000 Unit )	486.3	543.6	535.1	552.2	-
Cellular Phone Subscribers ( Million )	30.1	32.8	35.3	38.5	-
Tourist Arrival ( Million Persons )	23.6	24.6	24.7	25.0	-
Hotel Occupancy Rate ( % )	58.0	63.0	60.6	62.4	-
Credit Cards Spending ( % )	12.8	14.1	15.6	12.6	-
Bad Cheque Offenders (No.)	36,667	33,568	32,627	26,982	-
Individual Bankruptcy ( No.)	16,228	18,119	19,167	19,575	-
Individual Bankruptcy ( % )	16.7	11.7	5.8	2.1	-

INDUSTRIES ( % of Growth ):	2009	2010	2011	2012*	2013**
Agriculture	0.4	2.1	5.9	0.6	2.4
Palm Oil	<1.1>	<3.4>	10.8	<2.8>	-
Rubber	<19.8>	9.9	6.1	<0.6>	-
Forestry & Logging	<5.9>	<3.3>	<7.6>	<2.2>	-
Fishing	5.5	5.6	2.1	<0.7>	-
Other Agriculture	9.0	7.9	7.1	6.4	-
Industry Non-Performing Loans ( MYR Million )	413.7	508.4	634.1	-	-
% of Industry Non-Performing Loans	1.3	2.1	3.2	-	-
Mining	<3.8>	0.2	<5.7>	1.5	2.7
Oil & Gas	2.1	0.5	<1.7>	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	44.2	49.7	46.5	-	-
% of Industry Non-performing Loans	0.1	0.1	0.1	-	-
Manufacturing #	<9.4>	11.4	4.7	4.2	4.9
Exported-oriented Industries	<19.0>	12.1	2.8	4.1	-
Electrical & Electronics	<30.3>	28.4	<4.9>	1.6	-
Rubber Products	<10.1>	25.3	15.4	3.6	-
Wood Products	<24.1>	20.1	<4.9>	4.6	-
Textiles & Apparel	<19.5>	<0.4>	14.8	<7.1>	-
Domestic-oriented Industries	<9.8>	16.3	6.5	8.6	-
Food, Beverages & Tobacco	0.2	3.0	4.2	-	-
Chemical & Chemical Products	<7.7>	16.2	5.5	9.9	-
Plastic Products	<9.1>	2.4	3.8	-	-
Iron & Steel	<32.7>	29.3	2.4	-	-
Fabricated Metal Products	<2.5>	14.9	25.2	-	-
Non-metallic Mineral	<15.5>	20.2	27.1	6.6	-
Transport Equipment	<13.5>	36.5	<10.4>	13.7	-
Paper & Paper Products	<5.0>	18.7	14.8	<7.8>	-
Crude Oil Refineries	0.2	<11.4>	9.3	-	-
Industry Non-Performing Loans ( MYR Million )	6,007.3	6,217.5	6,537.2	-	-
% of Industry Non-Performing Loans	18.3	23.8	25.7	-	-
Construction	5.8	5.1	4.4	15.5	11.2
Industry Non-Performing Loans ( MYR Million )	3,241.8	4,038.5	3,856.9	-	-
% of Industry Non-Performing Loans	9.9	10.7	10.2	-	-
Services	2.6	6.5	6.4	5.5	5.6
Electric, Gas & Water	0.4	8.5	5.6	4.8	-
Transport, Storage & Communication	1.6	7.7	6.5	7.3	-
Wholesale, Retail, Hotel & Restaurant	2.8	4.7	5.2	6.9	-
Finance, Insurance & Real Estate	3.8	6.1	6.3	6.5	-
Government Services	2.0	6.7	7.6	5.6	-
Other Services	4.4	4.2	5.4	5.7	-
Industry Non-Performing Loans ( MYR Million )	6,631.3	7,384.6	6,825.2	-	-
% of Industry Non-Performing Loans	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
61300 : Satellite telecommunications services
INDUSTRY :	TELECOMMUNICATION
Malaysia’s telecommunications sector expected to reach 8.2% in 2013. This will be further enhanced by the rollout of the 4G LTE network which will increase not only Internet speed, but also data traffic, accessibility and mobility of the Internet to more users and businesses.
According to Budget 2013, the telecommunication sector is estimated to growth 9.3% in year 2012, attributed to strong expansion in the cellular, broadband and third-generation (3G) segments. The cellular segment remains the main driver of growth supported by increased usage of data, voice and multimedia services. As at end of June 2012, cellular phone subscriptions rose 9% to 38.4 million with a penetration rate of 133.3%. The prepaid segment dominated total subscriptions with 31.2 million subscribers, while the remaining were postpaid subscribers. Growth was attributed to affordable and sophisticated smartphones with Internet access and better service quality. In addition, 3G subscriptions increased 23.2% to 12 million largely supported by growing demand for mobile broadband services
As at the first six month of 2012, the broadband segment continued to expand 8.2% with the number of subscribers increasing to 5.8 million and reaching a household penetration rate of 63.7%. Growth was largely driven by intense promotional activities and improved network coverage. In addition, the growing popularity of social network sites such as Facebook and Twitter will further spur demand for broadband services. In the wireless broadband segment, the number of hot spot locations rose to 26,698 nationwide mainly concentrated in Pulau Pinang, Selangor and Kuala Lumpur, which collectively accounted for 51.6% of total hot spot locations. It forcasted that broadband subscribers will rise to 8.18million by 2016.
Malaysia continues to score highly due to the competitive and open nature of its telecommunication 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.
The Malaysian telecommunications industry is expected to stay resilient until year 2016, as people spend more on mobile phone and broadband bills. For an increasing number of people, mobile is no longer a "nice-to-have"; it’s embedded in their daily lives and integrated into the workplace. Moreover, consumers are starting to see beyond the monthly bill and derive more value from the features, functionality and applications on their devices. With fourth generation (4G) technology rolling out, as well as other technologies to enhance broadband access, along with new devices and services exploiting it, data usage will continue to expand exponentially, and the overall value equation to consumers should move in the same direction. Higher speeds and widespread adoption of mobile also are expected to enable additional traction in vertical markets, especially in banking, mobile payments, automotive telematics and health care. These incremental services will present new opportunities and also drive even more data needs.
OVERALL INDUSTRY OUTLOOK : Strong Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1979, the SC is a Private Limited company, focusing on provision of voice, data, video and image communication services through its established domestic and international network. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up certain goodwill with its clients over times. 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 has 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 800 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.

Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. 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 1,307,508,000, the SC should be able to maintain its business in the near terms.

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

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

The industry 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 normally.

PROFIT AND LOSS ACCOUNT

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

TT DOTCOM SDN. BHD.

Financial Year End	2011-12-31	2010-12-31	2009-12-31	2008-12-31	2007-12-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	304,030,000	307,655,000	261,081,000	215,137,000	204,544,000
Other Income	1,159,000	1,692,000	898,000	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	305,189,000	309,347,000	261,979,000	215,137,000	204,544,000
Costs of Goods Sold	<129,896,000>	<176,337,000>	<167,596,000>	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	175,293,000	133,010,000	94,383,000	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	109,649,000	94,639,000	56,886,000	<341,539,000>	<129,103,000>
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	109,649,000	94,639,000	56,886,000	<341,539,000>	<129,103,000>
Taxation	<562,000>	15,784,000	-	113,000	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	109,087,000	110,423,000	56,886,000	<341,426,000>	<129,103,000>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	<1,764,907,000>	<1,875,330,000>	<1,932,216,000>	<1,590,790,000>	<1,461,687,000>
	----------------	----------------	----------------	----------------	----------------
As restated	<1,764,907,000>	<1,875,330,000>	<1,932,216,000>	<1,590,790,000>	<1,461,687,000>
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	<1,655,820,000>	<1,764,907,000>	<1,875,330,000>	<1,932,216,000>	<1,590,790,000>
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	<1,655,820,000>	<1,764,907,000>	<1,875,330,000>	<1,932,216,000>	<1,590,790,000>
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	-	-	-	-	4,000
				----------------	----------------
				-	4,000

BALANCE SHEET

TT DOTCOM SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	26,068,000	28,155,000	31,789,000	32,886,000	31,927,000
LONG TERM INVESTMENTS/OTHER ASSETS
Investments	1,067,040,000	676,500,000	599,500,000	599,500,000	-
Deferred assets	16,123,000	16,123,000	-	-	-
Others	437,498,000	368,096,000	312,635,000	294,260,000	1,256,979,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,520,661,000	1,060,719,000	912,135,000	893,760,000	1,256,979,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,546,729,000	1,088,874,000	943,924,000	926,646,000	1,288,906,000
CURRENT ASSETS
Trade debtors	100,368,000	105,818,000	76,496,000	50,693,000	61,672,000
Other debtors, deposits & prepayments	42,514,000	24,756,000	18,353,000	37,947,000	24,995,000
Short term deposits	77,529,000	78,200,000	162,630,000	65,926,000	73,300,000
Amount due from subsidiary companies	933,000	722,000	-	-	-
Amount due from related companies	-	-	-	33,535,000	-
Amount due from associated companies	-	-	621,000	-	-
Cash & bank balances	14,354,000	4,647,000	1,261,000	838,000	604,000
Others	85,000	168,000	507,000	801,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	235,783,000	214,311,000	259,868,000	189,740,000	160,571,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	1,782,512,000	1,303,185,000	1,203,792,000	1,116,386,000	1,449,477,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	92,174,000	61,285,000	48,847,000	51,845,000	35,966,000
Other creditors & accruals	93,462,000	113,564,000	92,871,000	68,974,000	486,526,000
Amounts owing to holding company	284,046,000	308,490,000	437,556,000	430,149,000	-
Amounts owing to subsidiary companies	5,084,000	7,666,000	2,675,000	-	-
Amounts owing to related companies	-	-	1,345,000	476,000	-
Other liabilities	-	-	-	1,330,000	21,947,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	474,766,000	491,005,000	583,294,000	552,774,000	544,439,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	<238,983,000>	<276,694,000>	<323,426,000>	<363,034,000>	<383,868,000>
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	1,307,746,000	812,180,000	620,498,000	563,612,000	905,038,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,480,288,000	2,480,288,000	2,480,288,000	2,480,288,000	2,480,288,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,480,288,000	2,480,288,000	2,480,288,000	2,480,288,000	2,480,288,000
RESERVES
Capital reserve	15,540,000	15,540,000	15,540,000	15,540,000	15,540,000
Retained profit/(loss) carried forward	<1,655,820,000>	<1,764,907,000>	<1,875,330,000>	<1,932,216,000>	<1,590,790,000>
Others	467,500,000	77,000,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	<1,172,780,000>	<1,672,367,000>	<1,859,790,000>	<1,916,676,000>	<1,575,250,000>
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	1,307,508,000	807,921,000	620,498,000	563,612,000	905,038,000
LONG TERM LIABILITIES
Others	238,000	4,259,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	238,000	4,259,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
	1,307,746,000	812,180,000	620,498,000	563,612,000	905,038,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TT DOTCOM SDN. BHD.

TYPES OF FUNDS
Cash	91,883,000	82,847,000	163,891,000	66,764,000	73,904,000
Net Liquid Funds	91,883,000	82,847,000	163,891,000	66,764,000	73,904,000
Net Liquid Assets	<238,983,000>	<276,694,000>	<323,426,000>	<363,034,000>	<383,868,000>
Net Current Assets/(Liabilities)	<238,983,000>	<276,694,000>	<323,426,000>	<363,034,000>	<383,868,000>
Net Tangible Assets	1,307,746,000	812,180,000	620,498,000	563,612,000	905,038,000
Net Monetary Assets	<239,221,000>	<280,953,000>	<323,426,000>	<363,034,000>	<383,868,000>
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	0	0
Total Liabilities	475,004,000	495,264,000	583,294,000	552,774,000	544,439,000
Total Assets	1,782,512,000	1,303,185,000	1,203,792,000	1,116,386,000	1,449,477,000
Net Assets	1,307,746,000	812,180,000	620,498,000	563,612,000	905,038,000
Net Assets Backing	1,307,508,000	807,921,000	620,498,000	563,612,000	905,038,000
Shareholders' Funds	1,307,508,000	807,921,000	620,498,000	563,612,000	905,038,000
Total Share Capital	2,480,288,000	2,480,288,000	2,480,288,000	2,480,288,000	2,480,288,000
Total Reserves	<1,172,780,000>	<1,672,367,000>	<1,859,790,000>	<1,916,676,000>	<1,575,250,000>
LIQUIDITY (Times)
Cash Ratio	0.19	0.17	0.28	0.12	0.14
Liquid Ratio	0.50	0.44	0.45	0.34	0.29
Current Ratio	0.50	0.44	0.45	0.34	0.29
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	0	0	0
Debtors Ratio	120	126	107	86	110
Creditors Ratio	259	127	106	88	64
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.00	0.00
Liabilities Ratio	0.36	0.61	0.94	0.98	0.60
Times Interest Earned Ratio	0.00	0.00	0.00	0.00	<32,274.75>
Assets Backing Ratio	0.53	0.33	0.25	0.23	0.36
PERFORMANCE RATIO (%)
Operating Profit Margin	36.07	30.76	21.79	<158.75>	<63.12>
Net Profit Margin	35.88	35.89	21.79	<158.70>	<63.12>
Return On Net Assets	8.38	11.65	9.17	<60.60>	<14.26>
Return On Capital Employed	8.38	11.65	9.17	<60.60>	<14.26>
Return On Shareholders' Funds/Equity	8.34	13.67	9.17	<60.58>	<14.26>
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.84.14

INFORMATION DETAILS

Report Prepared by :

NIT

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.