What is Provision of Financial Assistance?

MELEWAR INDUSTRIAL GROUP BERHAD ("MIG" or "Company")
- Provision of Financial Assistance by Melewar Steel Engineering Sdn Bhd
(Formerly known as Simplex Trend Sdn Bhd) ("MSE") to Melewar Integrated
Engineering Sdn Bhd ("MIE")
1. INTRODUCTION
Pursuant to Paragraphs 8.23(1)(ii) and 10.08 of the Listing Requirements of the
Bursa Malaysia Securities Berhad, the Board of Directors of the Company wishes
to announce that MSE, a wholly-owned subsidiary of the Company has agreed to
advance an amount of RM1,500,000.00 (Ringgit Malaysia One Million Five Hundred
Thousand) (?the said Advance?) to MIE, a 70% subsidiary of the Company.
2. INFORMATION ON MIE
MIE was incorporated in Malaysia on 22 February 2003 as a private limited
company under the name of Melewar Integrated Engineering Sdn Bhd. MIE is a 70%
owned subsidiary of the Company whilst the remaining 30% equity of MIE is held
by Mr Uwe Ahrens.
The principal activity of MIE is business of engineering, technical consultancy
and advisory, undertaking the provision of complete engineering and technical
services.
The authorized share capital of MIE is RM500,000.00 divided into 400,000
ordinary shares of RM1.00 each and 100,000 Redeemable Preference Shares (?RPS?)
of RM1.00 each. As at current date, 300,000 ordinary shares of RM1.00 and 2,000
RPS of RM1.00 each issued at a premium of RM999.00 each have been issued and
fully paid-up.
3. INFORMATION ON MSE
MSE was incorporated in Malaysia on 3 October 2005 under the Companies Act,
1965 as a private limited company. MSE is a wholly-owned subsidiary of the
Company.
The present authorized share capital of MSE is RM1,000,000.00 comprising
1,000,000 ordinary shares of RM1.00 each whilst the issued and paid-up capital
is RM1,000,000 comprising 1,000,000 ordinary shares of RM1.00 each.
MSE is an investment holding company.

Plz give some explaination about above statement? There give debt for themselves?