UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

X . QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2010

FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2009

. TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________

FOR THE TRANSITION PERIOD FROM ____________ TO ____________

COMMISSION FILE NUMBER: 000-52984

Ensign Services, Inc.

(Exact name of registrant as specified in its charter)

Nevada

26-1545353

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

95A Cach Mang Thang Tam ~~Quyet Thang Ward Bien Hoa City Dong Nai Province, Vietnam (Address of principal executive offices) (Zip Code)~~

Quyet Thang Ward

Bien Hoa City

Dong Nai Province, Vietnam

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: 00 84 613 822 486

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the ~~past~~preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No .

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ~~Website~~Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes . No .

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “~~accelerated filer”, “~~large accelerated filer”, “~~non-~~accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer . Accelerated filer . Non-accelerated filer X . (Do not check if a smaller reporting company) Smaller reporting company X .

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2) of the Act). Yes . No X X .

There were 55,900,600 shares of the registrant's common stock, par value $0.001, ~~issued and~~ outstanding as of ~~February~~June 1923, 2010.

ENSIGN SERVICES, INC.

TABLE OF CONTENTS

PART I. Financial Information

	Description	Page
Item 1.	Financial Statements ~~(unaudited)~~.	~~F-1~~3
	Condensed Balance Sheets as of December 31, 2009 and September 30, 2009	F-2
	Condensed Consolidated Balance Sheets as of March 31, 2010 and September 30, 2009	4
	Condensed Statements of Operations for the Three ended December 31, 2009 and 2008	F-3
	Condensed Consolidated Statements of Operations for the Three and Six Months ended March 31, 2010 and 2009	5
	Condensed Statements of Cash Flows for the Three Months ended December 31, 2009	F-4
	Condensed Consolidated Statements of Cash Flows for the Six Months ended March 31, 2010	6
	Condensed Statement of Changes in Stockholders’ Equity	F-5
	Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Six Months Ended March 31, 2010	7
	Notes to Condensed Financial Statements	~~F-6 to F-21~~8
Item 2.	Management’s Discussion and Analysis and Results of Operations.	226
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	631
Item 4.	Controls and Procedures.	631
PART II. Other Information
Item 1.	Legal Proceedings.	32
Item 1A.	Risk Factors.	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	32
Item 3.	Defaults Upon Senior Securities.	32
Item 4.	(Removed and Reserved).	32
Item 5.	Other Information.	32
Item 6.	Exhibits.	33
Signatures		34

PART II. Other Information

	Description	Page
Item 1.	Legal Proceedings	6
Item 1A.	Risk Factors	6
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6
Item 3.	Defaults Upon Senior Securities	6
Item 4.	Submission of Matters to a Vote of Security Holders	6
Item 5.	Other Information	6
Item 6.	Exhibits	7
Signatures		8

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements.

~~ENSIGN SERVICES, INC.~~3

~~INDEX~~ENSIGN TOSERVICES, ~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~INC.

~~(UNAUDITED)~~CONDENSED CONSOLIDATED BALANCE SHEETS

	Page
Condensed Consolidated Balance Sheets	F-2
Condensed Consolidated Statements of Operations	F-3
Condensed Consolidated Statements of Cash Flows	F-4
Condensed Consolidated Statement of Changes in Stockholders’ Equity	F-5
Notes to Condensed Consolidated Financial Statements	F-6 - F-21

AS OF MARCH 31, 2010 AND SEPTEMBER 30, 2009

~~F-1~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

ENSIGN SERVICES, INC.


	March 31, 2010		September 30, 2009
	(Unaudited)		(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	886,322	$	1,020,151
Accounts receivable, net		2,314,512		2,287,980
Amounts due from related parties		126,032		90,897
Inventories		3,461,242		1,890,737
Prepayment and other receivable		539,644		122,930

Total current assets		7,327,752		5,412,695

Non-current assets:
Marketable securities, available-for-sale		1,905,231		2,358,355
Property and equipment, net		1,623,498		1,449,518
Freehold lands		2,781,378		2,965,563
Other non-current assets		27,303		23,066
TOTAL ASSETS	$	13,665,162	$	12,209,197

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, trade	$	1,424,478	$	1,792,343
Revolving lines of credit, net		2,841,765		259,480
Long-term bank borrowings, current portion		57,027		-
Amounts due to related parties		1,236,773		1,557,134
Income tax payable		350,902		235,567
Accrued liabilities and other payable		499,178		473,627

Total current liabilities		6,410,123		4,318,151

Long-term liabilities:
Long-term bank borrowings		2,118,047		2,196,396
Other long-term liabilities		41,027		25,086

Total liabilities		8,569,197		6,539,633

Commitments and contingencies

Ensign Services, Inc. stockholders’ equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding as of March 31, 2010 and September 30, 2009		-		-
Common stock, $0.001 par value; 74,000,000 shares authorized; 55,900,600 shares issued and outstanding as of March 31, 2010 and September 30, 2009		55,901		55,901
Additional paid-in capital		2,256,408		2,050,673
Accumulated other comprehensive (loss) income		(232,191)		101,579
Reserve funds		223,625		185,016
Retained earnings		420,169		381,095
Total Ensign Services, Inc. stockholders’ equity		2,723,912		2,774,264
Non-controlling interest		2,372,053		2,895,300
Total equity		5,095,965		5,669,564
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	13,665,162	$	12,209,197

~~CONDENSED~~See ~~CONSOLIDATED~~accompanying ~~BALANCE~~notes ~~SHEETS~~to condensed consolidated financial statements.

~~AS OF DECEMBER 31, 2009 AND SEPTEMBER 30, 2009~~4

~~(Currency~~ENSIGN ~~expressed in United States Dollars (“US$”)~~SERVICES, ~~except for number of shares)~~INC.

	December 31, 2009		September 30, 2009
	(Unaudited)		(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,134,333	$	1,020,151
Accounts receivable, net		2,435,320		2,287,980
Amounts due from related parties		250,529		90,897
Inventories		4,009,851		1,890,737
Prepayment and other receivable		306,139		122,930
Total current assets		8,136,172		5,412,695
Non-current assets:
Marketable securities, available-for-sale		1,687,198		2,358,355
Property and equipment, net		1,689,816		1,449,518
Freehold lands		2,873,594		2,965,563
Other non-current assets		22,156		23,066
TOTAL ASSETS	$	14,408,936	$	12,209,197
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, trade	$	1,728,041	$	1,792,343
Revolving lines of credit, net		2,232,706		259,480
Amounts due to related parties		1,420,152		1,557,134
Income tax payable		315,447		235,567
Accrued liabilities and other payable		1,036,455		473,627
Total current liabilities		6,732,801		4,318,151
Long-term liabilities:
Long-term bank borrowings		2,247,188		2,196,396
Other long-term liabilities		17,675		25,086
Total liabilities		8,997,664		6,539,633
Commitments and contingencies
Ensign Services, Inc. stockholders’ equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding as of December 31 and September 30, 2009		-		-
Common stock, $0.001 par value; 74,000,000 shares authorized; 55,900,600 shares issued and outstanding as of December 31 and September 30, 2009		55,901		55,901
Additional paid-in capital		2,256,408		2,050,673
Accumulated other comprehensive (loss) income		(283,016)		101,579
Reserve funds		213,589		185,016
Retained earnings		378,025		381,095
Total Ensign Services, Inc. stockholders’ equity		2,620,907		2,774,264
Non-controlling interest		2,790,365		2,895,300
Total equity		5,411,272		5,669,564
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	14,408,936	$	12,209,197

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

~~See~~FOR ~~accompanying~~THE ~~notes~~THREE toAND ~~condensed~~SIX ~~consolidated~~MONTHS ~~financial~~ENDED ~~statements.~~MARCH 31, 2010 AND 2009

~~F-2~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~ENSIGN SERVICES, INC.~~(Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended March 31,				Six months ended March 31,
	2010		2009		2010		2009
REVENUES, NET:
Net revenue from third parties	$	22,020,123	$	15,704,502	$	48,676,642	$	36,267,217
Net revenue from related parties		222,399		73,684		442,954		366,486

Total revenues, net		22,242,522		15,778,186		49,119,596		36,633,703

COST OF REVENUE:
Cost of revenue from third parties		21,106,077		14,888,036		46,823,179		34,547,598
Cost of revenue from related parties		207,195		69,469		407,292		343,156

Total cost of revenue		21,313,272		14,957,505		47,230,471		34,890,754
GROSS PROFIT		929,250		820,681		1,889,125		1,742,949

Operating expenses:
Sales and marketing		372,236		320,605		723,645		600,430
General and administrative		169,336		119,908		381,307		226,095
Total operating expenses		541,572		440,513		1,104,952		826,525
INCOME FROM OPERATIONS		387,678		380,168		784,173		916,424

Other income (expense):
Interest income		212,048		4,066		220,190		14,987
Interest expense		(430,922)		(23,632)		(657,136)		(80,554)
Other expense		-		(14)		(11)		(58)
INCOME BEFORE INCOME TAX		168,804		360,588		347,216		850,799

Income tax expense		(43,578)		(67,019)		(132,473)		(167,140)

Net income	$	125,226	$	293,569	$	214,743	$	683,659

Less: net income attributable to non-controlling interest		(73,046)		(149,720)		(137,060)		(348,666)

Net income attributable to Ensign Services, Inc.	$	52,180	$	143,849	$	77,683	$	334,993

Net income per share attributable to Ensign Services, Inc. – basic and diluted	$	0.00	$	0.01	$	0.00	$	0.02

Weighted average shares outstanding for the period – basic and diluted		25,494,800		15,494,200		25,494,800		15,494,200

~~FOR~~See ~~THE~~accompanying ~~THREE~~notes ~~MONTHS~~to ~~ENDED~~condensed ~~DECEMBER~~consolidated ~~31,~~financial ~~2009 AND 2008~~statements.

~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~5

~~(Unaudited)~~ENSIGN SERVICES, INC.

	Three Months ended December 31,
	2009		2008
REVENUES, NET
Net revenue from third parties	$	26,656,519	$	20,562,715
Net revenue from related parties		220,555		292,802
Total revenues, net		26,877,074		20,855,517
COST OF REVENUE
Cost of revenue from third parties		25,717,102		19,659,562
Cost of revenue from related parties		200,097		273,687
Total cost of revenue		25,917,199		19,933,249
GROSS PROFIT		959,875		922,268
Operating expenses:
Sales and marketing		351,409		279,825
General and administrative		211,971		106,187
Total operating expenses		563,380		386,012
INCOME FROM OPERATIONS		396,495		536,256
Other income (expense):
Interest income		8,142		10,921
Interest expense		(226,214)		(56,922)
Other expense		(11)		(44)
INCOME BEFORE INCOME TAX		178,412		490,211
Income tax expense		88,895		100,121
Net income	$	89,517	$	390,090
Less: net income attributable to non-controlling interest		(64,014)		(198,946)
Net income attributable to Ensign Services, Inc.	$	25,503	$	191,144
Net income per share attributable to Ensign Services, Inc. – basic and diluted	$	0.00	$	0.01
Weighted average shares outstanding for the period – basic and diluted		25,494,800		15,494,200

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

~~See~~FOR ~~accompanying~~THE ~~notes~~SIX toMONTHS ~~condensed~~ENDED ~~consolidated~~MARCH ~~financial~~31, ~~statements.~~2010 AND 2009

~~F-3~~(Currency expressed in United States Dollars (“US$”))

~~ENSIGN SERVICES, INC.~~(Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Six months ended March 31,
	2010		2009
Cash flows from operating activities:
Net income	$	214,743	$	683,659
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation		118,296		81,162
Loss on disposal of property and equipment		46,945		-
Deferred tax expense		-		2,416
Allowance for (recovery of) doubtful accounts		10,109		(4,056)
Changes in operating assets and liabilities:
Accounts receivable		(184,806)		258,407
Amounts due from related parties		(42,246)		(91,349)
Inventories		(1,748,626)		(374,924)
Prepayment and other receivable		(439,607)		(1,038,392)
Other non-current assets		(5,873)		(2,295)
Accounts payable, trade		(265,770)		(2,671)
Amounts due to related parties		(18,280)		19,040
Income tax payable		134,638		68,073
Accrued liabilities and other payable		54,521		96,980
Other long term liabilities		18,128		29,249
Net cash used in operating activities		(2,107,828)		(274,701)

Cash flows from investing activities:
Purchase of property and equipment		(25,832)		(55,358)
Net cash used in investing activities		(25,832)		(55,358)

Cash flows from financing activities:
Net repayment of revolving lines of credit		(1,394,902)		-
Proceeds from long-term bank borrowings		119,230		-
Dividends paid		(535,280)		(404,421)
Repayment from its former parent company		4,086,731		209,076
Repayment to related parties		(213,411)		(1,959,328)
Capital contribution		8,232		2,268,928
Net cash provided by financing activities		2,070,600		114,255

Effect of exchange rate changes in cash and cash equivalents		(70,769)		(50,701)

NET CHANGE IN CASH AND CASH EQUIVALENTS		(133,829)		(266,505)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,020,151		746,464

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	886,322	$	479,959

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	$	-	$	-
Cash paid for interest	$	657,136	$	80,058

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment contributed by its former parent company	$	419,865	$	29,369
Acquisition of marketable securities	$	-	$	1,250,261

~~FOR~~See ~~THE~~accompanying ~~THREE~~notes ~~MONTHS~~to ~~ENDED~~condensed ~~DECEMBER~~consolidated ~~31,~~financial ~~2009 AND 2008~~statements.

~~(Currency expressed in United States Dollars (“US$”))~~6

~~(Unaudited)~~ENSIGN SERVICES, INC.

	Three Months ended December 31,
	2009		2008
Cash flows from operating activities:
Net income	$	89,517	$	390,090
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation		99,122		14,495
Loss on disposal of property and equipment		47,736		-
Allowance for (recovery from) doubtful accounts		10,280		(4,119)
Changes in operating assets and liabilities:
Accounts receivable		(232,855)		747,625
Amounts due from related parties		(165,636)		(430,579)
Inventories		(2,220,447)		(230,855)
Prepayment and other receivable		(190,685)		(881,506)
Other non-current assets		198		(1,045)
Accounts payable, trade		(8,888)		(209,228)
Amounts due to related parties		(20,092)		2,766
Income tax payable		88,895		-
Accrued liabilities and other payable		587,898		483,508
Other long term liabilities		(6,762)		30,941
Net cash used in operating activities		(1,921,719)		(87,907)
Cash flows from investing activities:
Purchase of property and equipment		(12,428)		(35,864)
Net cash used in investing activities		(12,428)		(35,864)
Cash flows from financing activities:
Net proceeds from revolving lines of credit		237,297		-
Proceeds from long-term bank borrowings		121,239		-
Dividends paid		-		(404,421)
Repayment from (advance to) its former parent company		1,712,483		(1,948,814)
Capital contribution		17,214		2,274,221
Net cash provided by (used in) financing activities		2,088,233		(79,014)
Effect of exchange rate changes in cash and cash equivalents		(39,904)		(28,814)
NET CHANGE IN CASH AND CASH EQUIVALENTS		114,182		(231,599)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,020,151		746,465
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	1,134,333	$	514,866
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes	$	-	$	-
Cash paid for interest expenses	$	226,214	$	56,922
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment contributed by its former parent company	$	419,865	$	29,824

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

~~See~~FOR ~~accompanying~~THE ~~notes~~SIX toMONTHS ~~condensed~~ENDED ~~consolidated~~MARCH ~~financial~~31, ~~statements.~~2010

~~F-4~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~ENSIGN SERVICES, INC.~~(Unaudited)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY


			Ensign Services, Inc. Stockholders
	Comprehensive loss		Common stock			Additional paid-in capital		Accumulated other comprehensive income(loss)		Reserve funds		Retained earnings		Non-controlling interest		Total equity
	Comprehensive loss		No of shares	Par value		Additional paid-in capital		Accumulated other comprehensive income(loss)		Reserve funds		Retained earnings		Non-controlling interest		Total equity

Balance as of October 1, 2009			55,900,600	$	55,901	$	2,050,673	$	101,579	$	185,016	$	381,095	$	2,895,300	$	5,669,564

Additional capital contribution			-		-		-		-		-		-		8,232		8,232
Contribution in kind			-		-		205,735		-		-		-		214,130		419,865
Appropriation to reserve funds			-		-		-		-		38,609		(38,609)		-		-
Distribution of dividends			-		-		-		-		-		-		(535,280)		(535,280)
Comprehensive loss:
Net income for the period	$	214,743	-		-		-		-		-		77,683		137,060		214,743
Other comprehensive loss:
- Foreign currency translation adjustment		(348,194)	-		-		-		(170,616)		-		-		(177,578)		(348,194)
- Unrealized holding loss on available-for-sales securities		(332,965)	-		-		-		(163,154)		-		-		(169,811)		(332,965)
Comprehensive loss	$	(466,416)
Balance as of March 31, 2010			55,900,600	$	55,901	$	2,256,408	$	(232,191)	$	223,625	$	420,169	$	2,372,053	$	5,095,965

~~FOR~~See ~~THE~~accompanying ~~THREE~~notes ~~MONTHS~~to ~~ENDED~~condensed ~~DECEMBER~~consolidated ~~31,~~financial ~~2009~~statements.

~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~7

~~(Unaudited)~~ENSIGN SERVICES, INC.

			Ensign Services, Inc. Stockholders
	Comprehensive income		Common stock			Additional paid-in capital		Accumulated other comprehensive income(loss)		Reserve funds		Retained earnings		Non- controlling interest		Total equity
			No of shares	Par value
Balance as of October 1, 2009			55,900,600	$	55,901	$	2,050,673	$	101,579	$	185,016	$	381,095	$	2,895,300	$	5,669,564
Additional capital contribution			-		-		-		-		-		-		17,214		17,214
Contribution in kind			-		-		205,735		-		-		-		214,130		419,865
Appropriation to reserve funds			-		-		-		-		28,573		(28,573)		-		-
Comprehensive income:
Net income for the period	$	89,517	-		-		-		-		-		25,503		64,014		89,517
Other comprehensive (loss) income:
- Foreign currency translation adjustment		(173,730)	-		-		-		(85,128)		-		-		(88,602)		(173,730)
- Unrealized holding loss on available-for-sales securities		(611,158)	-		-		-		(299,467)		-		-		(311,691)		(611,158)
Comprehensive income	$	(695,371)
Balance as of December 31, 2009			55,900,600	$	55,901	$	2,256,408	$	(283,016)	$	213,589	$	378,025	$	2,790,365	$	5,411,272

NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~See~~FOR ~~accompanying~~THE ~~notes~~THREE toAND ~~condensed~~SIX ~~consolidated~~MONTHS ~~financial~~ENDED ~~statements.~~MARCH 31, 2010 AND 2009

~~F-5~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~ENSIGN SERVICES, INC.~~(Unaudited)

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~NOTE－1

~~FOR~~BASIS ~~THE~~OF ~~THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~PRESENTATION

~~(Currency~~The ~~expressed~~accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States ~~Dollars~~of America (“~~US$~~GAAP”)) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the consolidated balance sheet as of September 30, 2009 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended March 31, 2010 are not necessarily indicative of the results to be expected for the entire fiscal year ending September 30, 2010 or for any future periods.

~~(Unaudited)~~These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2009.

NOTE-12

~~BASIS~~ORGANIZATION OFAND ~~PRESENTATION~~BUSINESS BACKGROUND

~~The~~Ensign ~~accompanying~~Services, ~~unaudited~~Inc. ~~condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States of America~~ (“~~GAAP~~Ensign”) ~~for~~or ~~interim financial information and with~~ “the ~~instructions~~Company”) towas ~~Form~~incorporated ~~10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted~~ in the ~~United~~State ~~States~~ of ~~America~~Nevada ~~for~~on ~~complete~~July ~~financial~~13, ~~statements.~~2005 Inin the ~~opinion~~former ofname ~~management, the consolidated balance sheet as~~ of ~~September~~Ensign 30Medical, 2009 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presentedInc. ~~The~~In ~~results for the period ended~~ December 312007, ~~2009~~the ~~are~~Company ~~not~~further ~~necessarily~~changed ~~indicative~~its ofcurrent ~~the~~name ~~results~~ to be“Ensign ~~expected for the entire fiscal year ending September 30~~Services, ~~2010 or for any future periods~~Inc”.

~~These~~On ~~unaudited~~August ~~condensed~~13, ~~consolidated~~2009, ~~financial~~the ~~statements~~Company consummated the share exchange transaction with Tin Nghia Petrol Joint Stock Company (“Timex A&S”) and ~~notes~~agreed ~~thereto~~to ~~should~~issue bean ~~read~~aggregate inof ~~conjunction~~45,900,000 ~~with~~shares of the ~~Management~~Company’s ~~Discussion~~common ~~and~~stock (the ~~audited~~“Acquisition ~~financial~~Shares”) ~~statements~~to ~~and~~the ~~notes~~Timex ~~thereto~~A&S’s ~~included~~shareholders in exchange for all of the ~~Annual~~issued ~~Report~~and onoutstanding ~~Form~~capital ~~10-K~~stock ~~for~~of Timex A&S. In connection with the ~~year~~share ~~ended~~exchange ~~September~~transaction, on the Closing Date, 30,405,800 ~~2009~~shares of the Company’s common stock and the 51% of the outstanding capital of Timex A&S, were placed into an escrow account pursuant to an escrow agreement.

~~NOTE-2~~This stock exchange transaction has been accounted for as a reverse acquisition and recapitalization of Ensign whereby Timex A&S is deemed to be the accounting acquirers (legal acquiree) and the Company to be the accounting acquiree (legal acquirer). The accompanying condensed consolidated financial statements are in substance those of Timex A&S, with the assets and liabilities, and revenues and expenses, of the Company being included effective from the date of stock exchange transaction.

~~ORGANIZATION~~Summary ~~AND~~of ~~BUSINESS~~subsidiary ~~BACKGROUND~~and variable interest entity:

Ensign Services, Inc. (“Ensign” or “the Company”) was incorporated in the State of Nevada on July 13, 2005 in the former name of Ensign Medical, Inc. In December 2007, the Company further changed its current name to “Ensign Services, Inc”.


Name	Place of incorporation and kind of legal entity	Principal activities and place of operation	Particulars of registered share capital	Effective interest held

Tin Nghia Petrol Joint Stock Company (“Timex A&S”)	Vietnam, a joint stock company	Trading of petroleum and gasoline and building materials, leasing of retail space in gas stations and yacht	VND213,437,600,000	49%

Tin Nghia Petrol Trading Company Limited (“Timex Petrol Trade”) #	Vietnam, a limited liability company	Trading of petroleum and gasoline and building materials and leasing of retail space in gas stations	VND6,000,000,000	-

On# ~~August~~being ~~13,~~variable ~~2009,~~interest ~~the~~entity ~~Company consummated the share exchange transaction with Tin Nghia Petrol Joint Stock Company and agreed to issue an aggregate of 45,900,000 shares of the Company’s common stock~~ (~~the~~ “~~Acquisition Shares~~VIE”) to the Timex A&S’s shareholders in exchange for all of the issued and outstanding capital stock of Timex A&S. In connection with the share exchange transaction, on the Closing Date, 30,405,800 shares of the Company’s common stock and the 51% of the outstanding capital of Timex A&S, were placed into an escrow account pursuant to an escrow agreement.

This stock exchange transaction has been accounted for as a reverse acquisition and recapitalization of Ensign whereby Timex A&S is deemed to be the accounting acquirers (legal acquiree) and the Company to be the accounting acquiree (legal acquirer). The accompanying condensed consolidated financial statements are in substance those of Timex A&S, with the assets and liabilities, and revenues and expenses, of the Company being included effective from the date of stock exchange transaction.8

~~Summary~~ENSIGN ofSERVICES, ~~subsidiary and variable interest entity:~~INC.

Name	Place of incorporation and kind of legal entity	Principal activities and place of operation	Particulars of registered share capital	Effective interest held
Tin Nghia Petrol Joint Stock Company (“Timex A&S”)	Vietnam, a joint stock company	Trading of petroleum and gasoline and building materials, leasing of retail space in gas stations and yacht	VND213,437,600,000	49%
Tin Nghia Petrol Trading Company Limited (“Timex Petrol Trade”) #	Vietnam, a limited liability company	Trading of petroleum and gasoline and building materials and leasing of retail space in gas stations	VND6,000,000,000	-

NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

#FOR ~~being~~THE ~~variable~~THREE ~~interest~~AND ~~entity~~SIX ~~(“VIE”)~~MONTHS ENDED MARCH 31, 2010 AND 2009

~~Ensign~~(Currency ~~and~~expressed ~~its~~in ~~subsidiary,~~United asStates ~~well~~Dollars as(“US$”), ~~VIE~~except ~~are~~for ~~hereinafter~~number ~~referred~~of ~~to as “the Company”.~~ shares)

~~F-6~~(Unaudited)

~~ENSIGN~~Ensign ~~SERVICES~~and its subsidiary, ~~INC~~as well as VIE are hereinafter referred to as “the Company”.

~~NOTES~~The TOCompany, ~~CONDENSED~~through ~~CONSOLIDATED~~its ~~FINANCIAL~~subsidiary ~~STATEMENTS~~and VIE is principally engaged in the operation and distribution of petroleum products, including petrol, lubricants, LPG gas and fuel, as well as building materials supplies among a network of 31 gas stations in domestic markets, with its principal place of business in Bien Hoa City, Dong Nai Province, Vietnam.

~~FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~NOTE-3

~~(Currency~~SUMMARY ~~expressed~~OF inSIGNIFICANT ~~United~~ACCOUNTING ~~States Dollars (“US$”))~~POLICIES

~~(Unaudited)~~l

~~The~~Use ~~Company, through its subsidiary and VIE is principally engaged in the operation and distribution~~ of petroleum products, including petrol, lubricants, LPG gas and fuel, as well as building materials supplies among a network of 31 gas stations in domestic markets, with its principal place of business in Bien Hoa City, Dong Nai Province, Vietnam.estimates

~~NOTE-3~~In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results could differ from these estimates.

~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~l

lBasis of consolidation

~~Use~~The condensed consolidated financial statements reflect the consolidated operations of ~~estimates~~Ensign and its subsidiary and variable interest entity. All significant inter-company balances and transactions have been eliminated in consolidation and combination.

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results could differ from these estimates. l

lVariable interest entity (“VIE”)

~~Basis~~In June 2009, Timex A&S entered into a Cooperative Agreement with Timex Petrol Trade for a term of ~~consolidation~~50 years. Purusant to Cooperative Agreement, the Company has evaluated the relationship between Timex A&S and Timex Petrol Trade and concluded that the Company, through Timex A&S demonstrates its ability to control Timex Petrol Trade as the primary beneficiary and Timex Petrol Trade is a VIE of the Company, in accordance with ASC Topic 810-10-5-8, “Variable Interest Entities”.

~~The~~Accordingly, ~~condensed~~the ~~consolidated~~Company ~~financial~~has ~~statements~~consolidated ~~reflect~~Timex ~~the~~Petrol ~~consolidated~~Trade’s ~~operations~~results of ~~Ensign~~operations, ~~and~~assets ~~its subsidiary~~ and ~~variable~~liabilities ~~interest~~in ~~entity.~~the ~~All~~accompanying ~~significant~~consolidated ~~inter-company~~financial ~~balances~~statements ~~and~~of ~~transactions~~the ~~have been eliminated in consolidation and combination~~Company.

~~Variable~~Cash ~~interest~~and ~~entity~~cash ~~(“VIE”)~~equivalents

InCash ~~June~~and ~~2009,~~cash ~~Timex~~equivalents ~~A&S~~are ~~entered~~carried ~~into~~at acost ~~Cooperative~~and ~~Agreement~~represent ~~with~~cash ~~Timex~~on ~~Petrol Trade for a term of 50 years. Purusant to Cooperative Agreement~~hand, ~~the~~demand ~~Company~~deposits ~~has~~placed ~~evaluated~~with ~~the~~banks ~~relationship~~or ~~between~~other ~~Timex~~financial ~~A&S~~institutions and ~~Timex~~all ~~Petrol~~highly ~~Trade~~liquid ~~and~~investments ~~concluded~~with ~~that~~an ~~the~~original ~~Company,~~maturity ~~through~~of ~~Timex~~three ~~A&S~~months ~~demonstrates~~or ~~its~~less ~~ability to control Timex Petrol Trade~~ as ~~the primary beneficiary and Timex Petrol Trade is a VIE~~ of the ~~Company,~~purchase indate ~~accordance~~of ~~with~~such ~~ASC Topic 810-10-5-8, “Variable Interest Entities”~~investments.

~~Accordingly, the Company has consolidated Timex Petrol Trade’s results of operations, assets and liabilities in the accompanying consolidated financial statements of the Company.~~l

lAccounts receivable and allowance for doubtful accounts

~~Cash~~Accounts receivable are recorded at the invoiced amount and ~~cash~~do ~~equivalents~~not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers.

~~Cash~~Allowance ~~and~~for ~~cash~~doubtful ~~equivalents~~accounts ~~are~~as ~~carried~~of atMarch ~~cost~~31, 2010 and ~~represent~~September ~~cash on hand~~30, ~~demand~~2009 ~~deposits~~is ~~placed~~$10,059 ~~with banks or other financial institutions~~ and ~~all~~$320, ~~highly liquid investments with an original maturity of three months or less as of the purchase date of such investments~~respectively.

~~Accounts receivable and allowance for doubtful accounts~~Inventories

~~Accounts~~Inventories ~~receivable~~ are ~~recorded~~stated at the ~~invoiced~~lower ~~amount~~of ~~and~~cost door ~~not~~net ~~bear~~realizable ~~interest.~~value, ~~Management~~with ~~reviews~~cost ~~the~~being ~~adequacy~~determined ~~of the allowance for doubtful accounts~~ on ana ~~ongoing~~weighted average basis, ~~using~~which ~~historical~~consist ~~collection~~of ~~trends~~petroleum products and ~~aging~~building ofmaterial ~~receivables~~supplies. ~~Management~~The ~~also~~Company periodically ~~evaluates~~reviews ~~individual~~historical ~~customer’s~~sales ~~financial~~activity ~~condition,~~to ~~credit~~determine ~~history~~excess, ~~and~~slow ~~the~~moving ~~current~~items ~~economic~~and ~~conditions~~potentially toobsolete ~~make~~items ~~adjustments~~and inalso ~~the~~evaluates ~~allowance when it is considered necessary. Account balances are charged off against~~ the ~~allowance~~impact ~~after all means~~ of ~~collection~~any ~~have~~anticipated ~~been~~changes ~~exhausted~~in ~~and~~future ~~the potential for recovery is considered remote~~demand. The Company ~~does~~provides ~~not~~inventory ~~have~~allowances ~~any~~based ~~off-balance-sheet~~on ~~credit~~excess ~~exposure~~and ~~related~~obsolete toinventories ~~its~~determined ~~customers.~~principally by customer demand.

~~Allowance~~As ~~for doubtful accounts as~~ of ~~December~~March 31, ~~2009~~2010 and September 30, 2009, there is ~~$10,392~~no ~~and~~allowance ~~$320~~for obsolete inventories, ~~respectively~~nor have there been any write-offs.

~~Inventories~~ENSIGN SERVICES, INC.

~~Inventories~~NOTES ~~are~~TO ~~stated~~CONDENSED atCONDOLIFDATED ~~the~~FINANCIAL lower of cost or net realizable value, with cost being determined on a weighted average basis, which consist of petroleum products and building material supplies. The Company periodically reviews historical sales activity to determine excess, slow moving items and potentially obsolete items and also evaluates the impact of any anticipated changes in future demand. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. STATEMENTS

AsFOR ofTHE ~~December~~THREE ~~31,~~AND ~~2009~~SIX ~~and~~MONTHS ~~September~~ENDED ~~30,~~MARCH ~~2009~~31, ~~there~~2010 isAND ~~no allowance for obsolete inventories, nor have there been any write-offs.~~2009

~~F-7~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~ENSIGN SERVICES, INC.~~(Unaudited)

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~l

~~FOR~~Property ~~THE~~and ~~THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~equipment

~~(Currency~~Property ~~expressed~~and inequipment ~~United~~are ~~States~~stated ~~Dollars~~at ~~(“US$”))~~cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:

(Unaudited)


	Depreciable life
Buildings and structures	10-30 years
Plant and machinery	3-8 years
Motor vehicles	6-10 years

lExpenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

~~Property~~As of March 31, 2010, certain property and equipment with the net book value of $512,976 were pledged as securities in connection with the revolving lines of credit and long-term bank borrowings, as described in more details in Note 8 and Note 9.

~~Property~~Depreciation ~~and~~expenses ~~equipment~~for ~~are~~the ~~stated~~three atmonths ~~cost~~ended ~~less~~March ~~accumulated~~31, ~~depreciation~~2010 and ~~accumulated~~2009 ~~impairment~~were ~~losses~~$98,613 ifand ~~any.~~$66,889, ~~Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:~~respectively.

	Depreciable life
Buildings and structures	10-30 years
Plant and machinery	3-8 years
Motor vehicles	6-10 years

Depreciation expenses for the six months ended March 31, 2010 and 2009 were $118,296 and $81,162, respectively.

Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.l

lFreehold lands

Freehold lands are stated at cost and not subject to amortization. The Company expects these freehold lands as capital contribution in its joint venture investment. These freehold lands were pledged as securities in connection with the outstanding long-term bank borrowings.

lImpairment of long-lived assets

In accordance with ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property and equipment and freehold lands used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to estimated discounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment as of March 31, 2010.

lRevenue recognition

In accordance with the ASC Topic 605, “Revenue ~~recognition~~Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured.

InThe ~~accordance~~Company ~~with~~derives the ~~ASC~~major ~~Topic~~revenues ~~605,~~from ~~“Revenue~~the ~~Recognition”,~~distribution ~~the~~and sale of petroleum products at its gas station. The Company recognizes ~~revenue~~its revenues net of value-added taxes (“VAT”) when ~~persuasive~~the ~~evidence~~products ofare andelivered ~~arrangement~~to ~~exists~~the customers, ~~delivery~~which occurs when the customer has ~~occurred,~~taken title and has assumed the ~~sales~~risks ~~price~~and isrewards of ownership, prices are fixed or determinable and collectibility is reasonably assured.

The Company ~~derives~~recognizes ~~the~~revenue ~~major revenues~~ from the ~~distribution and~~ sale of ~~petroleum~~building ~~products~~material atsupplies ~~its~~upon ~~gas~~delivery ~~station.~~to ~~The~~the ~~Company~~customers ~~recognizes~~and ~~its~~the ~~revenues~~transfer ~~net~~ of ~~value-added~~title ~~taxes~~and ~~(“VAT”)~~risk ~~when~~of ~~the~~loss, ~~products~~and ~~are~~records ~~delivered~~its torevenues ~~the~~net ~~customers,~~of ~~which~~VAT. ~~occurs~~The ~~when~~Company ~~the~~experienced ~~customer~~no ~~has~~product ~~taken~~returns ~~title~~ and has ~~assumed~~recorded ~~the~~no ~~risks~~reserve ~~and~~for ~~rewards~~sales ofreturns ~~ownership,~~for ~~prices~~the ~~are~~three ~~fixed~~and orsix ~~determinable~~months ~~and~~ended ~~collectibility~~March is31, ~~reasonably~~2010 ~~assured.~~and 2009.

~~The~~Rental ~~Company~~income ~~recognizes revenue~~ from ~~the~~operating ~~sale~~leases ofon ~~building material supplies upon delivery to the customers and the transfer of title and risk of loss~~kiosks, ~~and~~gas ~~records~~station ~~its~~spaces ~~revenues net of VAT. The Company experienced no product returns~~ and ~~has~~yacht ~~recorded~~is norecognized ~~reserve~~on ~~for~~a ~~sales~~straight-line ~~returns~~basis ~~for~~over the ~~three~~lease ~~months ended December 31, 2009 and 2008~~period.

~~Rental income from operating leases on kiosks, gas station spaces and yacht is recognized on a straight-line basis over the lease period.~~10

lENSIGN SERVICES, INC.

~~Cost~~NOTES ofTO ~~revenue~~CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~Cost~~FOR ofTHE ~~revenue~~THREE ~~consists~~AND ~~primarily~~SIX ofMONTHS ~~purchase~~ENDED ~~cost~~MARCH ~~of petroleum products and building materials~~31, ~~direct~~2010 ~~labor,~~AND depreciation and other overheads, which are directly attributable to the sale of petroleum and building material and rental income. Shipping and handling cost, associated with the distribution of petroleum products and building materials to the customers, are recorded in cost of revenue and are recognized when the related product is delivered to the customer. 2009

~~F-8~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~ENSIGN SERVICES, INC.~~(Unaudited)

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~l

~~FOR~~Cost ~~THE~~of ~~THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~revenue

~~(Currency~~Cost ~~expressed~~of revenue consists primarily of purchase cost of petroleum products and building materials, direct labor, depreciation and other overheads, which are directly attributable to the sale of petroleum and building material and rental income. Shipping and handling cost, associated with the distribution of petroleum products and building materials to the customers, are recorded in ~~United~~cost ~~States~~of ~~Dollars~~revenue ~~(“US$”))~~and are recognized when the related product is delivered to the customer.

~~(Unaudited)~~l

lComprehensive income

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.


	Six months ended March 31,
	2010		2009

Net income	$	214,743	$	683,659

Other comprehensive loss:
- Foreign currency translation adjustment		(348,194)		(278,954)
- Unrealized holding loss on available-for-sale securities		(332,965)		-

Comprehensive loss	$	(466,416)	$	(404,705)

Less: comprehensive loss attributable to non-controlling interest		(210,329)		(206,400)

Comprehensive loss attributable to Ensign Services, Inc.	$	(256,087)	$	(198,305)

	Three Months ended December 31,
	2009		2008
Net income	$	89,517	$	390,090
Other comprehensive loss:
- Foreign currency translation adjustment		(173,730)		(199,820)
- Unrealized holding loss on available-for-sale securities		(611,158)		-
Comprehensive (loss) income	$	(695,371)	$	190,270
Less: comprehensive (loss) income attributable to non-controlling interest		(336,280)		97,038
Comprehensive (loss) income attributable to Ensign Services, Inc.	$	(359,091)	$	93,232

lIncome taxes

The Company adopts the ASC Topic 740, “Income Taxes” regarding accounting for uncertainty in income taxes which prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. In addition, the guidance requires the determination of whether the benefits of tax positions will be more likely than not sustained upon audit based upon the technical merits of the tax position. For tax positions that are determined to be more likely than not sustained upon audit, a company recognizes the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not determined to be more likely than not sustained upon audit, a company does not recognize any portion of the benefit in the financial statements. The guidance provides for de-recognition, classification, penalties and interest, accounting in interim periods and disclosure.

~~The~~For ~~Company adopts~~ the ~~ASC~~three ~~Topic 740, “Income Taxes” regarding accounting for uncertainty in income taxes prescribes the recognition threshold~~ and ~~measurement~~six ~~attributes~~months ~~for~~ended ~~financial~~March ~~statement~~31, ~~recognition~~2010 and ~~measurement of tax positions taken or expected to be taken on a tax return. In addition~~2009, the ~~guidance~~Company ~~requires~~did ~~the determination of whether the benefits of tax positions will be more likely than~~ not ~~sustained~~have ~~upon~~any ~~audit~~interest ~~based~~and ~~upon~~penalties ~~the~~associated ~~technical~~with ~~merits of the~~ tax ~~position~~positions. ~~For~~As ~~tax~~of ~~positions~~March ~~that~~31, ~~are determined to be more likely than not sustained upon audit~~2010, ~~a company recognizes~~ the ~~largest~~Company ~~amount~~did ~~of benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are~~ not ~~determined~~have ~~to be more likely than not sustained upon audit, a company does not recognize~~ any ~~portion~~significant ofunrecognized ~~the~~uncertain ~~benefit~~tax ~~in the financial statements~~positions. ~~The guidance provides for de-recognition, classification, penalties and interest, accounting in interim periods and disclosure.~~

~~For~~The ~~the~~Company ~~three~~conducts ~~months~~major ~~ended~~businesses ~~December~~in ~~31,~~Vietnam ~~2009~~ and ~~2008,~~is ~~the~~subject ~~Company~~to ~~did~~tax ~~not~~in ~~have~~its ~~any~~own ~~interest and penalties associated with tax positions~~jurisdiction. As a result of ~~December~~its ~~31,~~business ~~2009~~activities, the Company ~~did~~files ~~not~~separate ~~have~~tax ~~any~~returns ~~significant~~that ~~unrecognized~~are ~~uncertain~~subject to examination by the foreign tax ~~positions~~authorities.

The Company conducts major businesses in Vietnam and is subject to tax in its own jurisdiction. As a result of its business activities, the Company files separate tax returns that are subject to examination by the foreign tax authorities. l

lForeign currencies translation

~~Foreign~~Transactions denominated in currencies ~~translation~~other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statements of operation.11

~~The~~ENSIGN ~~reporting currency of the Company is the United States Dollars ("US$") and the accompanying financial statements have been expressed in US$. In addition~~SERVICES, the Company’s subsidiary and VIE operating in Vietnam maintain the books and record in a local currency, Vietnamese Dong ("VND"), which is functional currency as being the primary currency of the economic environment in which the operation is conductedINC. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses are recorded as a separate component of accumulated other comprehensive income within the statements of change in stockholders’ equity and comprehensive income.

~~F-9~~NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~ENSIGN~~FOR ~~SERVICES~~THE THREE AND SIX MONTHS ENDED MARCH 31, ~~INC.~~2010 AND 2009

~~NOTES~~(Currency TOexpressed ~~CONDENSED~~in ~~CONSOLIDATED~~United ~~FINANCIAL~~States ~~STATEMENTS~~Dollars (“US$”), except for number of shares)

~~FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~(Unaudited)

~~(Currency~~The ~~expressed~~reporting incurrency of the Company is United States Dollars (“"US$”") and the accompanying financial statements have been expressed in US$. In addition, the Company’s subsidiary and VIE operating in Vietnam maintain the books and record in a local currency, Vietnamese Dong ("VND"), which is functional currency as being the primary currency of the economic environment in which the operation is conducted. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses are recorded as a separate component of accumulated other comprehensive income within the statement of changes in stockholders’ equity.

~~(Unaudited)~~Translation of amounts from VND into US$1 has been made at the following exchange rates for the respective period:

Translation of amounts from VND into US$1 has been made at the following exchange rates for the respective period:


	March 31, 2010	March 31, 2009
Period-end VND:US$1 exchange rate	19,289	18,078
Period average VND:US$1 exchange rate	18,620	17,464

	Three Months ended December 31,
	2009	2008
Period-end rates VND:US$1 exchange rate	18,670	17,698
Average rates VND:US$1 exchange rate	18,311	17,195

lRelated parties

~~Related~~Parties, ~~parties~~which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.l

lSegment reporting

ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the three and six months ended March 31, 2010 and 2009, the Company operates in one principal reportable segment in Vietnam.

ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the three months ended December 31, 2009 and 2008, the Company operates in one principal reportable segment in Vietnam.l

lFair value measurement

ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10") establishes a new framework for measuring fair value ~~measurement~~and expands related disclosures. Broadly, ASC 820-10 framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. ASC 820-10 establishes a three-level valuation hierarchy based upon observable and non-observable inputs. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

~~ASC~~For ~~Topic~~financial ~~820-10,~~assets ~~“Fair Value Measurements~~ and ~~Disclosures” ("ASC 820-10") establishes a new framework for measuring fair value and expands related disclosures. Broadly~~liabilities, ~~ASC 820-10 framework requires~~ fair value tois ~~be determined based on~~ the ~~exchange~~ price ~~that~~the Company would bereceive ~~received~~to ~~for~~sell an asset or ~~paid~~pay to transfer a liability ~~(an exit price)~~ in ~~the principal or most advantageous market for the asset or liability in~~ an orderly transaction ~~between~~with a market ~~participants.~~participant ~~ASC~~at ~~820-10~~the ~~establishes~~measurement adate. ~~three-level~~In ~~valuation~~the ~~hierarchy~~absence ~~based~~of ~~upon~~active ~~observable~~markets ~~and~~for ~~non-observable~~the ~~inputs.~~identical ~~These~~assets ~~tiers~~or ~~include: Level 1~~liabilities, ~~defined~~such asmeasurements ~~observable~~involve ~~inputs~~developing ~~such~~assumptions asbased ~~quoted~~on ~~prices~~market inobservable ~~active~~data ~~markets; Level 2~~and, ~~defined~~in asthe ~~inputs~~absence ~~other~~of ~~than~~such ~~quoted~~data, ~~prices~~internal ininformation ~~active markets~~ that ~~are~~is ~~either~~consistent ~~directly~~with orwhat ~~indirectly~~market ~~observable;~~participants ~~and~~would ~~Level~~use ~~3, defined as unobservable inputs~~ in ~~which~~a ~~little~~hypothetical ortransaction nothat ~~market~~occurs ~~data~~at ~~exists,~~the ~~therefore~~measurement ~~requiring an entity to develop its own assumptions~~date.

For financial assets and liabilities, fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.l

lFair value of financial instruments

~~Fair~~The carrying value of the Company’s financial instruments include cash and cash equivalents, accounts receivable, amounts due from related parties, prepayment and other receivable, accounts payable, amounts due to related parties, income tax payable, accrued liabilities and other payable. Fair values were assumed to approximate carrying values for these financial instruments because they are short term in nature and their carrying amounts approximate fair values. The carrying value of the Company’s revolving line of credit and long-term bank borrowings approximated its fair value based on the current market conditions for similar debt instruments. The fair values of the marketable securities are based on quoted prices in active exchange-traded or over-the-counter markets.

The carrying value of the Company’s financial instruments include cash and cash equivalents, accounts receivable, amounts due from related parties, prepayment and other receivable, accounts payable, amounts due to related parties, income tax payable, accrued liabilities and other payable. Fair values were assumed to approximate carrying values for these financial instruments because they are short term in nature and their carrying amounts approximate fair values. The carrying value of the Company’s revolving line of credit and long-term bank borrowings approximated its fair value based on the current market conditions for similar debt instruments. The fair values of the marketable securities are based on quoted prices in active exchange-traded or over-the-counter markets. 12

lENSIGN SERVICES, INC.

~~Recent~~NOTES ~~accounting~~TO ~~pronouncements~~CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~The~~FOR ~~Company~~THE ~~has~~THREE ~~reviewed~~AND ~~all~~SIX ~~recently~~MONTHS ~~issued,~~ENDED ~~but~~MARCH ~~not yet effective~~31, ~~accounting~~2010 ~~pronouncements~~AND ~~and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.~~2009

~~F-10~~(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~ENSIGN SERVICES, INC.~~(Unaudited)

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~l

~~FOR~~Recent ~~THE~~accounting ~~THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~pronouncements

~~(Currency~~The ~~expressed~~Company inhas ~~United~~reviewed ~~States~~all ~~Dollars~~recently ~~(“US$”))~~issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

In June 2009, the Financial Accounting Standards Board (~~Unaudited~~“FASB”) expanded ASC 810-10, to provide guidance for variable interest entities (VIEs). The change modifies our approach for determining the primary beneficiary of a VIE by assessing whether we have control over such entities. This change is effective for us on July 1, 2010. The Company is currently evaluating the requirements of the VIE provisions of ASC 810-10, but does not expect a material impact on its condensed consolidated financial statements.

In October 2009, the FASB issued Accounting ~~Standards~~Standard Update (“ASU”) No. 2009-13, “Revenue Recognition” (Topic 605):. ~~Multiple-Deliverable~~The ~~Revenue~~accounting ~~Arrangements~~standard (aupdate ~~consensus~~addresses of the ~~FASB~~accounting ~~Emerging~~for ~~Issues Task Force)” which amends ASC 605~~multiple-~~25,~~deliverable ~~“Revenue~~arrangements ~~Recognition:~~to ~~Multiple-Element~~enable ~~Arrangements.”~~vendors ~~ASU No. 2009-13 addresses how~~ to ~~determine~~account ~~whether~~for anproducts ~~arrangement~~or ~~involving~~services ~~multiple~~separately ~~deliverables~~rather ~~contains more~~ than ~~one~~as ~~unit~~a ofcombined ~~accounting and how to allocate consideration to each~~ unit ~~of accounting in the arrangement~~. ~~This~~Specifically, ~~ASU~~this ~~replaces~~subtopic ~~all~~addresses ~~references~~how to ~~fair~~separate ~~value~~deliverables asand ~~the~~how ~~measurement~~to ~~criteria~~measure ~~with the term selling price~~ and ~~establishes~~allocate aarrangement ~~hierarchy~~consideration ~~for~~to ~~determining~~one ~~the~~or ~~selling~~more ~~price~~units of ~~a deliverable~~accounting. ASU ~~No.~~ 2009-13 ~~also eliminates the use of the residual value method for determining the allocation of arrangement consideration. Additionally, ASU No. 2009-13 requires expanded disclosures. This ASU~~ will ~~become~~be effective for us ~~for revenue arrangements entered into or materially modified~~ on orJuly ~~after April~~ 1, ~~2011~~2010. ~~Earlier~~The ~~application~~Company is ~~permitted~~currently ~~with~~evaluating ~~required transition disclosures based on~~ the ~~period~~requirements of ~~adoption.~~ASU ~~The~~2009-13, ~~Company~~but isdo ~~currently~~not ~~evaluating~~expect ~~the~~a ~~application~~material ~~date and the~~ impact ~~of this standard~~ on its condensed consolidated financial statements.

~~NOTE-4~~FASB ASC 810, “Consolidation” (“ASC 810”), establishes accounting and reporting standards for minority interests, which are recharacterized as noncontrolling interests. ASC 810 was revised so that noncontrolling interests are classified as a component of equity separate from the parent’s equity; purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions; net income attributable to the noncontrolling interest are included in consolidated net income in the statement of operations; and upon a loss of control, the interest sold, as well as any interest retained, is recorded at fair value, with any gain or loss recognized in earnings. This revision was effective for the Company as of January 1, 2009. It applies prospectively, except for the presentation and disclosure requirements, for which it applies retroactively. In addition, ASC 810, amends the consolidation guidance applicable to variable interest entities. The amendments will significantly affect the overall consolidation analysis under ASC 810. This phase of ASC 810 became effective for the Company on January 1, 2010 and did not impact the Company’s consolidation conclusions for its variable interest entities.

~~NON-CONTROLLING~~In ~~INTEREST~~January 2010, the FASB issued an amendment to the fair value measurement and disclosure standard improving disclosures about fair value measurements. This amended guidance requires separate disclosure of significant transfers in and out of Levels 1 and 2 and the reasons for the transfers. The amended guidance also requires that in the Level 3 reconciliation, the information about purchases, sales, issuances and settlements be disclosed separately on a gross basis rather than as one net number. The guidance for the Level 1 and 2 disclosures was adopted on January 1, 2010, and did not have an impact on our consolidated financial position, results of operations or cash flows. The guidance for the activity in Level 3 disclosures is effective January 1, 2011, and will not have an impact on our consolidated financial position, results of operations or cash flows as the amended guidance provides only disclosure requirements. The Company had no significant transfers between Level 1, 2 or 3 inputs during the quarter ended March 31, 2010.

~~Non-controlling~~In ~~interest~~February ~~represents~~2010, athe ~~partially~~FASB ~~owned~~issued ~~subsidiary’s~~amended ~~income,~~guidance ~~losses,~~on ~~and~~subsequent ~~components~~events. ofUnder ~~other~~this ~~comprehensive~~amended ~~income~~guidance, ~~which~~SEC ~~should~~filers beare ~~attributed~~no longer required to disclose the ~~controlling~~date ~~and~~through ~~non-controlling~~which ~~interests~~subsequent orevents ~~other~~have ~~parties~~been ~~with~~evaluated ain ~~right~~originally orissued ~~obligation~~and ~~that~~revised ~~affects~~financial ~~the~~statements. ~~attribution~~This ofguidance ~~comprehensive~~was ~~income~~effective orimmediately ~~loss,~~and on the ~~basis~~Company ofadopted ~~their~~these ~~contractual~~new ~~rights~~requirements orfor ~~obligations, if any, otherwise, on~~ the ~~basis~~quarter ofended ~~ownership~~March ~~interests~~31, 2010.

In connection with the stock exchange transaction as fully described in Note 1, the Company transferred 30,405,800 shares of the Company’s common stock and the remaining 51% of the share capital of Timex A&S to an escrow agent under Escrow Agreement. The Company has the right to acquire the remaining 51% of the outstanding capital of Timex A&S (the “Subsequent Closing”), subject to and in accordance with applicable Vietnamese laws and regulations, in exchange for the remaining 30,405,800 shares of the Company’s common stock as the Subsequent Closing of the stock exchange transaction.NOTE-4

~~Proforma~~NON-CONTROLLING ~~financial information~~INTEREST

~~The~~Non-controlling ~~following~~interest ~~summarized~~represents ~~pro~~a ~~forma~~partially ~~results~~owned ofsubsidiary’s ~~operations~~income, ~~for the three months ended December 31~~losses, ~~2009~~ and ~~2008,~~components ~~assume~~of ~~that~~other ~~the~~comprehensive ~~stock~~income ~~exchange~~which ~~transaction~~should ofbe ~~100%~~attributed ofto the ~~registered~~controlling ~~capital~~and ofnon-controlling ~~Timex~~interests ~~A&S~~or inother ~~exchange~~parties ~~for~~with ~~45,900,000~~a ~~shares~~right ofor ~~the~~obligation ~~Company’s~~that ~~common~~affects ~~stock~~the ~~occurred~~attribution as of ~~October~~comprehensive 1,income ~~2006.~~or ~~These~~loss, ~~pro~~on ~~forma~~the ~~results~~basis ~~have been prepared for comparative purposes only and do not purport to be indications~~ of ~~the~~their ~~result~~contractual ofrights ~~operations~~or ~~which~~obligations, ~~actually~~if ~~would~~any, ~~have~~otherwise, ~~resulted~~on ~~had~~ the ~~significant~~basis ~~stock exchange occurred as~~ of ~~October~~ownership ~~1, 2008~~interests.

	Three Months ended December 31,
	2009		2008
Net income attributable to holders of common stock	$	89,517	$	390,090
Weighted average shares outstanding – basic and diluted		55,900,600		45,900,000
Net income per share – basic and diluted	$	0.00	$	0.01

In connection with the stock exchange transaction as fully described in Note 2, the Company transferred 30,405,800 shares of the Company’s common stock and the remaining 51% of the share capital of Timex A&S to an escrow agent under Escrow Agreement. The Company has the right to acquire the remaining 51% of the outstanding capital of Timex A&S (the “Subsequent Acquisition”), subject to and in accordance with applicable Vietnamese laws and regulations, in exchange for the remaining 30,405,800 shares of the Company’s common stock as the Subsequent Closing of the stock exchange transaction.

~~NOTE-5~~13

~~INVENTORIES~~ENSIGN SERVICES, INC.

~~Inventories~~NOTES ~~consisted~~TO ofCONDENSED ~~the~~CONDOLIFDATED ~~following:~~FINANCIAL STATEMENTS

	December 31, 2009		September 30, 2009
Petroleum products	$	3,824,635	$	1,592,793
Building material supplies		185,216		297,944
Total	$	4,009,851	$	1,890,737

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

~~For~~(Currency ~~the~~expressed ~~three~~in ~~months~~United ~~ended~~States ~~December~~Dollars 31(“US$”), ~~2009~~except ~~and 2008, the Company recorded no allowance~~ for ~~slow-moving~~number ~~and~~of ~~obsolete inventories.~~shares)

~~F-11~~(Unaudited)

~~ENSIGN~~Proforma ~~SERVICES,~~financial ~~INC.~~information

~~NOTES~~The TOfollowing ~~CONDENSED~~summarized ~~CONSOLIDATED~~pro ~~FINANCIAL~~forma ~~STATEMENTS~~results of operations for the six months ended March 31, 2010 and 2009, assume that the stock exchange transaction of 100% of the registered capital of Timex A&S in exchange for 45,900,000 shares of the Company’s common stock occurred as of October 1, 2006. These pro forma results have been prepared for comparative purposes only and do not purport to be indications of the result of operations which actually would have resulted had the significant stock exchange occurred as of October 1, 2006.

FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008


	Six months ended March 31,
	2010		2009

Net income attributable to holders of common stock	$	214,743	$	683,659

Weighted average shares outstanding – basic and diluted		55,900,600		45,900,000

Net income per share – basic and diluted	$	0.00	$	0.01

~~(Currency expressed in United States Dollars (“US$”))~~NOTE-5

~~(Unaudited)~~INVENTORIES

~~NOTE-6~~Inventories consisted of the following:

MARKETABLE SECURITIES, AVAILABLE-FOR-SALE


	March 31, 2010		September 30, 2009
	(Unaudited)			(Audited)

Petroleum products	$	3,273,538	$	1,592,793
Building material supplies		187,704		297,944
Total	$	3,461,242	$	1,890,737

	December 31, 2009		September 30, 2009
Investment in Dai A Bank
At original cost	$	1,874,665	$	1,934,664
Add: unrealized holding (loss) gain on available-for-sales securities		(187,467)		423,691
Total	$	1,687,198	$	2,358,355

For the three and six months ended March 31, 2010 and 2009, the Company recorded no allowance for slow-moving and obsolete inventories.

~~The Company has an aggregate 3.5% equity interest in Dai A Bank acquired in March and April 2009, respectively. These marketable securities are classified as available~~NOTE-for-sale and are recorded at their fair market values with the corresponding unrealized holding gains or losses, recorded as a separate component of other comprehensive income within stockholders’ equity. The fair value of marketable securities is determined based on quoted market prices at the balance sheet dates. Realized gains and losses are determined by the difference between historical purchase price and gross proceeds received when the marketable securities are sold.6

~~The~~MARKETABLE ~~Company~~SECURITIES, uses quoted prices in active markets for identical assets (consistent with the Level 1 definition in the fair value hierarchy) to measure the fair value of its investments on a recurring basis pursuant to Accounting Standards Codification (“ASC”) Topic 820. AVAILABLE-FOR-SALE

The following table summarizes information on the fair value measurement of the Company’s assets as of December 31, 2009:


	March 31, 2010		September 30, 2009
	(Unaudited)			(Audited)

Investment in Dai A Bank
At original cost	$	1,814,506	$	1,934,664
Add: unrealized holding gain on available-for-sales securities		90,725		423,691
Total	$	1,905,231	$	2,358,355

	Total			Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Securities available-for-sale	$	1,687,198		$	1,687,198		$	-		$	-

In March 2009, the Company acquired 2,183,479 shares of Great Asia Commercial Joint Stock Bank (“Dai A Bank”) for an equity interest of 2.3%. In April 2009, the Company acquired further 1,316,521 shares of Dai A Bank and the aggregate equity interest was increased to 3.5%. The total purchase price consideration of $1,874,665 (equivalent to VND 35,000,000,000) was paid by Tin Nghia Company Limited, its former parent company, on behalf of the Company.

~~Securities~~These marketable securities are classified as available-for-sale asand ofare ~~December~~recorded ~~31,~~at ~~2009~~their ~~were~~fair ~~valued~~market atvalues with the ~~closing~~corresponding ~~prices~~unrealized ~~reported~~holding ongains ~~the~~or ~~Hanoi~~losses, ~~Over-~~recorded as a separate component of other comprehensive income within stockholders’ equity. The~~-Counter~~ fair value of marketable securities is determined based on quoted market ~~which~~prices at the ~~security~~balance issheet ~~traded~~dates. ~~The~~Realized ~~Company~~gains ~~has~~and anlosses ~~unrealized~~are ~~holding~~determined ~~loss~~by ofthe ~~$611,158~~difference ~~for~~between ~~the~~historical ~~three~~purchase ~~months~~price ~~ended~~and ~~December~~gross ~~31,~~proceeds ~~2009.~~received when the marketable securities are sold.

~~NOTE-7~~14

~~PROPERTY~~ENSIGN ~~AND~~SERVICES, ~~EQUIPMENT~~INC.

~~Property~~NOTES ~~and~~TO ~~equipment~~CONDENSED ~~consisted~~CONDOLIFDATED ofFINANCIAL ~~the following:~~STATEMENTS

	December 31, 2009		September 30, 2009
Buildings and structures	$	2,390,392	$	2,019,163
Plant and machinery		661,726		663,102
Motor vehicles		951,796		939,198
Construction in progress		5,303		-
Foreign translation difference		(388,102)		(277,027)
		3,621,115		3,344,436
Less: accumulated depreciation		(2,150,565)		(2,053,546)
Foreign translation difference		219,266		158,628
Property and equipment, net	$	1,689,816	$	1,449,518

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

As(Currency ofexpressed ~~December~~in ~~31,~~United ~~2009,~~States ~~certain~~Dollars ~~property and equipment with the net book value of~~ (“US$~~571~~”),~~124~~ ~~were~~except ~~pledged~~for asnumber ~~securities in connection with the revolving lines~~ of ~~credit and long-term bank borrowings, as described in more details in Note 8 and Note 10.~~shares)

~~Depreciation expenses for the three months ended December 31, 2009 and 2008 were $99,122 and $14,495 respectively.~~(Unaudited)

~~F-12~~The Company uses quoted prices in active markets for identical assets (consistent with the Level 1 definition in the fair value hierarchy) to measure the fair value of its investments on a recurring basis pursuant to ASC Topic 820.

~~ENSIGN~~The ~~SERVICES~~following table summarizes information on the fair value measurement of the Company’s assets as of March 31, ~~INC.~~2010:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Securities available-for-sale	$	1,905,231	$	1,905,231	$	-	$	-

~~FOR~~Securities ~~THE~~available-for-sale ~~THREE~~as ~~MONTHS~~of ~~ENDED~~March ~~DECEMBER~~ 31, ~~2009~~2010 ~~AND~~were ~~2008~~valued at the closing prices reported on the Hanoi Over-The-Counter market which the security is traded. The Company has an unrealized holding loss of $332,965 for the six months ended March 31, 2010.

~~(Currency expressed in United States Dollars (“US$”))~~NOTE-7

~~(Unaudited)~~REVOLVING LINES OF CREDIT, NET

NOTE-8


		March 31, 2010		September 30, 2009
			(Unaudited)		(Audited)

Outstanding payable to financial institutions in Vietnam:
Bank for Foreign Trade of Vietnam (“VCB”)		$	4,448,412	$	6,527,116
Vietnam Maritime Stock Bank (“MSB”)			5,012,051		4,995,480

Total revolving lines of credit, outstanding	(a)		9,460,463		11,522,596

Offseting with:
Short-term loan to related party	(b)		(6,618,698)		(11,263,116)

Net balance		$	2,841,765	$	259,480

~~REVOLVING LINES OF CREDIT, NET~~(a)

		December 31, 2009		September 30, 2009
Outstanding payable to financial institutions in Vietnam:
Bank for Foreign Trade of Vietnam (“VCB”)		$	6,357,638	$	6,527,116
Vietnam Maritime Stock Bank (“MSB”)			5,355,363		4,995,480
Total revolving lines of credit, outstanding	(a)		11,713,001		11,522,596
Offseting with:
Short-term loan to related party	(b)		(9,480,295)		(11,263,116)
Net balance		$	2,232,706	$	259,480

Revolving lines of credit

In November 2009, the Company renewed the revolving line of credit facility from VCB with the maximum available balance of $6,221,162 (aequivalent to VND120,000,000,000) for a term of 5 years, expiring in November 2014. The used credit facility is repayable within three and six months commencing from its withdrawal date. Borrowings under the credit facility bear interest up to 150% of interest rate per annum by the State Bank of Vietnam, with an allowance of government subsidy rate of 4% per annum. Starting from January 1, 2010, the Company is no longer entitled to allowance of government subsidy. Weighted average effective interest rate approximated from 10% per annum, monthly payable.

~~Revolving~~Availability ~~lines~~under the credit facility is restricted to the purchase of petroleum products to its eligible suppliers. The credit facility is fully guaranteed by Tin Nghia Company Limited, its former parent company.

In ~~November~~April 2009, the Company ~~renewed~~obtained ~~the~~a revolving line of credit facility from ~~VCB~~MSB with the maximum available balance of $65,~~427~~184,~~424~~302 (equivalent to ~~VND120~~VND100,000,000,000) for a term of 51 ~~years~~year, expiring inon ~~November~~March ~~2014.~~31, ~~The used credit facility is repayable within three months commencing from its withdrawal date~~2010. Borrowings under the credit facility bear interest up to 150% of interest rate per annum by the State Bank of Vietnam, with an allowance of government subsidy rate of 4% per annum. Starting from January 1, 2010, the Company is no longer entitled to allowance of government subsidy. Weighted average effective interest rate approximated from 710% per annum, monthly payable. Subsequently in May 2010, the Company has fully repaid the outstanding balance.

Availability under the credit facility is restricted to the purchase of petroleum products to its eligible suppliers. The credit facility is fully guaranteed by Tin Nghia Company Limited, its former parent company.15

InENSIGN ~~April 2009~~SERVICES, ~~the Company obtained a revolving line of credit facility from MSB with the maximum available balance of $5,356,186 (equivalent to VND100,000,000,000) for a term of 1 year, expiring on March 31, 2010~~INC. The Company currently intends to extend or replace the agreement at its expiry. Borrowings under the credit facility bear interest up to 150% of interest rate per annum by the State Bank of Vietnam, with an allowance of government subsidy rate of 4% per annum. Weighted average effective interest rate approximated from 7% per annum, monthly payable.

~~Availability~~NOTES ~~under~~TO ~~the~~CONDENSED ~~credit~~CONDOLIFDATED ~~facility~~FINANCIAL is restricted to the purchase of petroleum products to its eligible suppliers. The credit facility is secured by its real properties of 20 gas stations with an aggregate net book value of $262,790 and also guaranteed by Tin Nghia Company Limited, its former parent company.STATEMENTS

~~(b)~~FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

~~Short-term~~(Currency ~~loan~~expressed toin aUnited ~~related~~States ~~party~~Dollars (“US$”), except for number of shares)

In April 2009, the Company had made various cash advances to a related party, Tin Nghia Company Limited, its former parent company. The balance bears effective interest ranging from 10.5% to 12% per annum, unsecured and repayable within next 12 months. (Unaudited)

~~During~~Availability under the ~~three~~credit ~~months~~facility ~~ended~~is ~~December~~restricted ~~31,~~to ~~2009,~~ the ~~Company~~purchase ~~received~~of ~~the~~petroleum ~~repayment~~products to its eligible suppliers. The credit facility is secured by its real properties of 20 gas stations with an aggregate net book value of $1227,~~782,821~~513 ~~from~~and also guaranteed by Tin Nghia Company Limited, its former parent company.

Since both balances are related in substance whereas Tin Nghia Company Limited has an ultimate interest as guarantor in revolving lines of credit with the banks and has a financial obligation to repay the short-term loan to the Company within the next 12 months. Short-term loan due from Tin Nghia Company Limited will become matured on a basis consistent with the repayment schedule of the banks. Therefore, these balances have been presented on a net basis.(b)

FShort-13term loan to a related party

~~ENSIGN~~In ~~SERVICES~~April 2009, ~~INC~~the Company had made various cash advances to a related party, Tin Nghia Company Limited, its former parent company. The balance bears effective interest ranging from 10.5% to 12% per annum, unsecured and repayable within next 12 months..

~~NOTES~~On TOMarch ~~CONDENSED~~31, ~~CONSOLIDATED~~2010, ~~FINANCIAL~~the ~~STATEMENTS~~Company has extended the repayment terms with Tin Nghia Company Limited whereas the outstanding balance of $6,618,698 (equivalent to VND127,668,061,383) will be repayable on or before June 30, 2010.

~~FOR~~During ~~THE~~the ~~THREE~~three ~~MONTHS~~and ~~ENDED~~six ~~DECEMBER~~months ended March 31, ~~2009~~2010, ~~AND~~the ~~2008~~Company received the repayment of $2,861,597 and $4,644,418, respectively, from Tin Nghia Company Limited.

~~(Currency~~Since ~~expressed~~both balances are related in ~~United~~substance ~~States~~whereas ~~Dollars~~Tin ~~(“US$”))~~Nghia Company Limited has an ultimate interest as guarantor in revolving lines of credit with the banks and has a financial obligation to repay the short-term loan to the Company within the next 12 months. Short-term loan due from Tin Nghia Company Limited will become matured on a basis consistent with the repayment schedule of the banks. Therefore, these balances have been presented on a net basis.

~~(Unaudited)~~NOTE-8

~~NOTE~~LONG-9TERM BANK BORROWINGS

~~ACCRUED~~Long-term ~~LIABILITIES~~bank ~~AND~~borrowings ~~OTHER~~consisted ~~PAYABLE~~of the following:

Accrued liabilities and other payable consisted of the following:


	March 31, 2010		September 30, 2009
		(Unaudited)		(Audited)
Payable to financial institutions in Vietnam, secured:

Long-term loan payable, Vietnam Maritime Stock Bank, due July 20, 2012, interest rate of 12% per annum; secured by freehold lands	$	1,946,965	$	2,075,894

Long-term loan payable, Dai A Bank, due September 4, 2014, secured by four trucks		228,109		120,502
		2,175,074		2,196,396
Less: current portion		(57,027)		-
Long-term bank borrowings, net of current portion	$	2,118,047	$	2,196,396

	December 31, 2009		September 30, 2009
Advances from customers	$	596,990	$	113,007
Accrued expenses		253,365		251,492
Value-added tax payable		123,098		70,046
Other payable		63,002		39,082
	$	1,036,455	$	473,627

In July 2009, the Company entered into a loan payable with Vietnam Maritime Stock Bank for a fixed principal of $1,946,965 (equivalent to VND37,555,000,000) to finance the purchase of freehold lands. Interest is monthly payable and principal is repayable in full at its maturity date.

~~NOTE~~In September and October 2009, the Company entered into an installment loan payable with Dai A Bank for $113,018 and $115,091, respectively, due September 4, 2014. This loan was used to finance four trucks purchased by the Company. Borrowings under the credit facility bear interest up to 150% of interest rate per annum by the State Bank of Vietnam, bi-10annually payable, commencing from March 4, 2011. Weighted average effective interest rate approximated at 11% per annum for the three and six months ended March 31, 2010.

~~LONG-TERM BANK BORROWINGS~~16

~~Long-term~~ENSIGN ~~bank~~SERVICES, ~~borrowings consisted of the following:~~INC.

	December 31, 2009		September 30, 2009
Payable to financial institutions in Vietnam, secured:
Long-term loan payable, Vietnam Maritime Stock Bank, due July 20, 2012, interest rate of 12% per annum; secured by freehold lands	$	2,011,516	$	2,075,894
Long-term loan payable, Dai A Bank, due September 4, 2014, secured by four trucks		235,672		120,502
Total long-term bank borrowings	$	2,247,188	$	2,196,396

NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

InFOR ~~July~~THE ~~2009,~~THREE ~~the~~AND ~~Company~~SIX ~~entered~~MONTHS ~~into~~ENDED aMARCH ~~loan payable with Vietnam Maritime Stock Bank for a fixed principal of $2~~31,~~011,516~~ ~~(equivalent~~2010 toAND ~~VND37,555,000,000) to finance the purchase of freehold lands. Interest is monthly payable and principal is repayable in full at its maturity date.~~2009

In(Currency ~~September~~expressed ~~2009,~~in ~~the~~United ~~Company~~States ~~entered~~Dollars ~~into an installment loan payable with Dai A Bank for a sum of~~ (“US$~~235~~”),~~672,~~ ~~due~~except ~~September~~for 4,number ~~2014. During the three months ended December 31, 2009, the Company further withdrew the remaining balance~~ of $121,239 under the loan payable. This loan was used to finance four trucks purchased by the Company. Borrowings under the installment loan payable carried interest up to 150% of annual interest rate by the State Bank of Vietnam, principal repayable bi-annually commencing from March 4, 2011. Weighted average effective interest rate approximated at 11% per annum for the three months ended December 31, 2009. shares)

~~Maturities of long-term bank borrowings for each of the five years following December 31, 2009 are as follows:~~ (Unaudited)

Period ending December 31:
2010	$	-
2011		58,918
2012		2,070,434
2013		58,918
2014		58,918
Total	$	2,247,188

Maturities of long-term bank borrowings for each of the four years following March 31, 2010 are as follows:

F-14


Year ending March 31:
2011	$	57,027
2012		2,003,993
2013		57,027
2014		57,027

Total:	$	2,175,074

~~ENSIGN SERVICES, INC.~~NOTE-9

~~NOTES~~STOCKHOLDERS’ ~~TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~EQUITY

~~FOR~~As ~~THE~~of ~~THREE~~March ~~MONTHS~~31, ~~ENDED~~2010, ~~DECEMBER~~the 31number of authorized and outstanding shares of the Company’s common stock was 74,000,000 ~~2009~~shares ~~AND~~and ~~2008~~55,900,600 shares, respectively, in which 30,405,800 shares were held in escrow.

~~(Currency expressed in United States Dollars (“US$”))~~NOTE-10

~~(Unaudited)~~NET INCOME PER SHARE

~~NOTE~~The Company calculates net income per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-11average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

~~STOCKHOLDERS’~~The ~~EQUITY~~following table sets forth the computation of basic and diluted net income per share for the six months ended March 31, 2010 and 2009:

As of December 31, 2009, the number of authorized and outstanding shares of the Company’s common stock was 74,000,000 shares and 55,900,600 shares, respectively, of which 30,405,800 shares were held in escrow.


	Six months ended March 31,
	2010		2009
Basis and diluted net income per share calculation
Net income attributable to Ensign Services, Inc.	$	77,683	$	334,993

Denominator:
Weighted average shares outstanding		55,900,600		45,900,000
Less: common stock held in escrow		(30,405,800)		(30,405,800)
Weighted average shares used in computing basic and diluted net income per share		25,494,800		15,494,200

Net income per share attributable to Ensign Services, Inc. – Basic and diluted	$	0.00	$	0.02

~~NOTE-12~~17

~~NET~~ENSIGN ~~INCOME~~SERVICES, ~~PER SHARE~~INC.

~~The~~NOTES ~~Company~~TO ~~calculates~~CONDENSED ~~net~~CONDOLIFDATED ~~income~~FINANCIAL per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.STATEMENTS

~~The~~FOR ~~following~~THE ~~table~~THREE ~~sets~~AND ~~forth~~SIX ~~the~~MONTHS ~~computation~~ENDED ofMARCH ~~basic and diluted net income per share for the three months ended December~~ 31, ~~2009~~2010 ~~and~~AND ~~2008:~~2009

	Three Months ended December 31,
	2009		2008
Basis and diluted net income per share calculation
Net income attributable to Ensign Services, Inc.	$	25,503	$	191,144
Denominator:
Weighted average shares outstanding		55,900,600		45,900,000
Less: common stock held in escrow		(30,405,800)		(30,405,800)
Weighted average shares used in computing basic and diluted net income per share		25,494,800		15,494,200
Net income per share attributable to Ensign Services, Inc. – Basic and diluted	$	0.00	$	0.01

(Currency expressed in United States Dollars (“US$”), except for number of shares)

~~NOTE-13~~(Unaudited)

~~INCOME TAXES~~NOTE-11

~~For~~INCOME ~~the three months ended December 31, 2009 and 2008, the local (“United States of America”) and foreign components of income before income taxes were comprised of the following:~~TAXES

	Three Months ended December 31,
	2009		2008
Tax jurisdiction from:
– Local	$	(36,000)	$	-
– Foreign		214,412		490,211
Income before income taxes	$	178,412	$	490,211

For the six months ended March 31, 2010 and 2009, the local (“United States of America”) and foreign components of income before income taxes were comprised of the following:

The provision for income taxes consisted of the following:


	Six months ended March 31,
	2010		2009
Tax jurisdiction from:
– Local	$	(54,000)	$	-
– Foreign		401,216		850,799
Income before income taxes	$	347,216	$	850,799

	Three Months ended December 31,
	2009		2008
Current:
– Local	$	-	$	-
– Foreign		88,895		100,121
Deferred:
– Local		-		-
– Foreign		-		-
Income tax expense	$	88,895	$	100,121

The provision for income taxes consisted of the following:

F-15


	Six months ended March 31,
	2010		2009
Current:
– Local	$	-	$	-
– Foreign		132,473		167,140

Deferred:
– Local		-		-
– Foreign		-		-
Income tax expense	$	132,473	$	167,140

~~ENSIGN~~The ~~SERVICES,~~effective ~~INC~~tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiary and VIE that operate in various countries: United States and Vietnam that are subject to tax in the jurisdictions in which they operate, as follows:

~~NOTES~~United TOStates ~~CONDENSED~~of ~~CONSOLIDATED FINANCIAL STATEMENTS~~America

~~FOR~~Ensign ~~THE~~is ~~THREE~~registered ~~MONTHS~~in ~~ENDED~~the ~~DECEMBER~~State ~~31,~~of ~~2009~~Nevada ~~AND~~and ~~2008~~is subject to the tax laws of the United States of America.

~~(Currency~~Socialist ~~expressed~~Republic inof ~~United States Dollars (“US$”))~~Vietnam

~~(Unaudited)~~The Company’s subsidiary and VIE, Timex A&S and Timex Petrol Trade are subject to the Law on Corporate Income Tax of the Socialist Republic of Vietnam at the statutory rate of 25% on the assessable income for the periods presented.

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company is incorporated in the United States and its subsidiary, Timex A&S and VIE, Timex Petrol Trade operate in Vietnam. The Company and its subsidiaries are subject to tax in the jurisdictions in which they operate, as follows:18

~~United~~ENSIGN ~~States~~SERVICES, ~~of America~~INC.

~~Ensign~~NOTES isTO ~~registered~~CONDENSED inCONDOLIFDATED ~~the~~FINANCIAL ~~State of Nevada and is subject to the tax laws of the United States of America. The Company does not incur any operation in the United States.~~STATEMENTS

~~Socialist~~FOR ~~Republic~~THE ofTHREE ~~Vietnam~~AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

~~The~~(Currency ~~Company’s~~expressed ~~subsidiary~~in ~~and~~United ~~VIE,~~States ~~Timex~~Dollars ~~A&S~~(“US$”), ~~and~~except ~~Timex~~for ~~Petrol~~number ~~Trade are subject to the Law on Corporate Income Tax~~ of ~~the Socialist Republic of Vietnam at the statutory rate of 28% on the assessable income for the periods presented.~~shares)

~~On June 3, 2008, the National Assembly of the Socialist Republic of Vietnam approved the Law on Corporate Income Tax~~ (~~the “New CIT Law”~~Unaudited). The new CIT Law, among other things, imposes a reduction of income tax rate from 28% to 25% for both domestic and foreign invested enterprises with effect from January 1, 2009. Hence, the Company is subject to the new income tax rate of 25% on the taxable income.

The reconciliation of income tax rate to the effective income tax rate based on income before income taxes for the ~~three~~six months ended ~~December~~March 31, ~~2009~~2010 and ~~2008~~2009 is as follows:

			Three Months ended December 31,
	Six months ended March 31,
			2009			2008
	2010			2009
Income before income taxes	$	401,216	$	~~214,412~~$	850,799	$	~~490,211~~
Statutory income tax rate		25%		~~25%~~	25%		~~28%~~
Income taxes at statutory rate		100,304		~~53,603~~	212,700		~~137,259~~
Non-deductible items		32,169		~~35,292~~	(45,560)		~~(37,138)~~
Income taxes at effective rate	$	132,473	$	~~88,895~~$	167,140	$	~~100,121~~

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. There were no significant temporary differences as of ~~December~~March 31, ~~2009~~2010 and September 30, 2009, no components of deferred tax assets and liabilities have been recognized.

~~F-16~~19

ENSIGN SERVICES, INC.

NOTES TO CONDENSED ~~CONSOLIDATED~~CONDOLIFDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED ~~DECEMBER~~MARCH 31, ~~2009~~2010 AND ~~2008~~2009

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

NOTE-1412

RELATED PARTY TRANSACTIONS

(a)

Receivable from and payable to related parties at the balance sheet date were as follows:

			December 31, 2009			September 30, 2009
	March 31, 2010			September 30, 2009
Amounts due from related parties, accounts receivable:
		(Unaudited)			(Audited)
- Nhon Trach 3 Industrial Park Company Limited			$	2,778		$	-
Amounts due from related parties, accounts receivable:
- Nhon Trach Investment Joint Stock Company				11,789			8,942
- Nhon Trach 3 Industrial Park Company Limited	$	3,694		$	-
- Ong Keo Industrial Park Company Limited				709			-
- Nhon Trach Investment Joint Stock Company		5,973			8,942
- Tan Phu Service Station (branch of Tin Nghia Company Limited)				2,792			23,548
- Ong Keo Industrial Park Company Limited		692			-
- Tin Nghia Agro-Product Trading Company Limited				262			-
- Tan Phu Service Station (branch of Tin Nghia Company Limited)		1,532			23,548
- Tin Nghia Company Limited		8,285		~~8,104~~	-		-
- ICD Bien Hoa – Tin Nghia Logistics Company Limited		18,343		~~18,273~~	128		~~128~~
- Tin Nghia Construction Joint Stock Company		8,284		~~5,284~~	-		-
- Tin Nghia Construction Materials Company Limited		68,926		~~197,074~~	56,531		~~56,531~~
- Tin Nghia Granite Stones Company Limited		543		~~448~~	-		-
- Tin Nghia Industrial Park Development Joint Stock Company				3,016			1,748
- Thong Nhat Joint Stock Company		1,113			-
Total amounts due from related parties			$	250,529		$	90,897
- Cau Kien Be Tong Dong Sai Gon Joint Stock Company		719			-
Amount due to related party, accounts payable:
- Long Thanh Industrial Park Development Joint Stock Company		791			-
- Tin Nghia Company Limited			$	-		$	20,337
- Tin Khai Joint Stock Company		369			-
Amounts due to related parties, other payable:
- Dai A Commercial Joint Stock Bank		2,033			-
- Tin Nghia Company Limited			$	558,074		$	647,128
- Dong Nai Container Terminal Joint Stock Company		144			-
- Thong Nhat Real Estate Joint Stock Company				862,078			889,669
- Tin Nghia Industrial Park Development Joint Stock Company		4,591			1,748
Total amounts due to related parties			$	1,420,152		$	1,557,134
Total amounts due from related parties	$	126,032		$	90,897
Amount due to related party, accounts payable:
- Tin Nghia Design and Construction Consulting Joint Stock Company	$	513		$	-
- Quang Trung Gas Station		263			-
- Tin Nghia Company Limited		652			20,337
		1,428			20,337
Amounts due to related parties, other payable:
- Tin Nghia Company Limited	$	400,932		$	647,128
- Thong Nhat Real Estate Joint Stock Company		834,413			889,669
Total amounts due to related parties	$	1,236,773		$	1,557,134

The related parties are under common control of the Company’s director, Mr. Quach Van Duc. The balances are unsecured, non-interest bearing and repayable on demand.

~~F-17~~20

ENSIGN SERVICES, INC.

NOTES TO CONDENSED ~~CONSOLIDATED~~CONDOLIFDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED ~~DECEMBER~~MARCH 31, ~~2009~~2010 AND ~~2008~~2009

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

(b)

Significant transactions with related parties during the period were as follows:

			Three Months ended December 31,
	Six months ended March 31,
			2009			2008
	2010			2009
(i) Sales of goods
Tin Nghia Company Limited	$	24,215	$	~~12,415~~$	14,749	$	~~14,749~~
Tin Nghia Industrial Parks Development JSC		12,381		~~4,802~~	6,884		~~4,461~~
Tin Nghia Construction Materials Company Limited		193,670		~~93,580~~	262,539		~~193,381~~
Tin Nghia Granite Company Limited		4,002		~~1,941~~	2,699		~~2,422~~
ICD Bien Hoa - Tin Nghia Logistics Company Limited		91,753		~~44,472~~	46,137		~~46,137~~
Nhon Trach Investment Joint Stock Company		39,135		~~32,125~~	21,317		~~21,317~~
Tin Nghia Construction Joint Stock Company		15,596		~~6,181~~	1,128		~~1,128~~
Thong Nhat Joint Stock Company		5,396		~~2,652~~	1,921		~~1,921~~
Tin Nghia Agro-Product Trading Company Limited		4,321		~~2,092~~	3,194		~~3,194~~
Nhon Trach 3 Industrial Park Company Limited		14,833		~~6,257~~	3,220		~~3,220~~
Tin Nghia Project Management Company Limited		2,054		~~943~~	-		-
Tin Khai Joint Stock Company		1,864		~~896~~	872		~~872~~
Tan Phu Service Station (branch of Tin Nghia Company Limited)		4,007		~~2,588~~	-		-
Dai A Commercial Joint Stock Bank		20,391		~~6,260~~	1,826		-
Dong Nai Container Terminal Joint Stock Company		895		~~477~~	-		-
Long Thanh Industrial Park Development Joint Stock Company		3,792		~~1,949~~	-		-
Ong Keo Industrial Park Company Limited				925			-
Cau Kien Be Tong Dong Sai Gon Joint Stock Company		1,654			-
Total revenues from related parties			$	220,555		$	292,802
Ong Keo Industrial Park Company Limited		2,995			-
Total revenues from related parties	$	442,954		$	366,486

The related parties are under common control of a director of the Company, Mr. Quach Van Duc. The sales of petroleum products and building material supplies are generally transacted in an arm-length basis at the current market value.

				Three Months ended December 31,
		Six months ended March 31,
				2009			2008
		2010			2009
(ii) Transactions with Tin Nghia Company Limited, its former parent company
- Distribution of dividends	(1)	~~(1)~~$	535,280	$	-$	404,421	$	~~404,421~~
- Interest expense	(2)	~~(2)~~	-		-	123,779		~~44,967~~
- Interest income	(3)	~~(3)~~	202,960		~~264,108~~	-		-
- Contribution in kind	(4)	~~(4)~~	419,865		~~419,865~~	29,369		~~29,824~~

(1)

~~Being~~On anJanuary ~~operating~~14, ~~branch~~2010, ofthe ~~its~~Board ~~former~~of ~~parent~~Directors ~~company,~~of Timex A&S (approved the ~~Predecessor)~~advance ispayment ~~required~~of tofiscal ~~repatriate~~year ~~its~~2009 ~~retained~~dividends ~~earnings~~to ineach of the ~~form~~shareholders of ~~cash~~Timex ~~dividends~~A&S toexcept ~~its~~for ~~parent~~Ensign. ~~company~~On inApril ~~accordance~~2, ~~with~~2010, the ~~Decision~~shareholders ~~No.~~of ~~509-QD/TU~~Timex ~~until~~A&S at an annual meeting approved the ~~fiscal~~dividend ~~tax~~payments ~~period~~to ~~ended~~each ~~December~~of the shareholders of Timex A&S except for Ensign. On March 31, ~~2008.~~2010, an aggregate of $535,280 (equivalent to VND10,134,973,058) was paid to the shareholders of Timex A & S except for Ensign.

The decision to provide for and approve dividends to all of Timex A&S’ shareholders except for Ensign was based on several factors, including the fact that if a dividend payment is made to Ensign and the funds then used for the purpose of furthering the business of Timex A&S (2as would be contemplated), such funds would either be required to be treated as an interest bearing loan or contribution of capital from Ensign to Timex A&S, the net effects of which would be as follows:

~~Other payable due to Tin Nghia Company Limited carries interest ranging from 10.2% to~~ 21~~.6% per annum, unsecured and repayable on demand.~~

~~(3)~~ENSIGN SERVICES, INC.

~~Short-term~~NOTES ~~loan~~TO ~~due~~CONDENSED ~~from~~CONDOLIFDATED ~~Tin~~FINANCIAL ~~Nghia Company Limited carries interest ranging from 10.5% to 12% per annum, unsecured and repayable within next 12 months. See Note 8(b).~~STATEMENTS

~~(4)~~FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

~~During~~(Currency ~~the~~expressed ~~three~~in ~~months~~United ~~ended~~States ~~December~~Dollars 31(“US$”), ~~2009~~except ~~and~~for ~~2008,~~number ~~Tin~~of ~~Nghia Company Limited contributed certain property and equipment to the Company at the carrying value.~~shares)

(5Unaudited)

For the three months ended December 31, 2009, the Company obtained an operating right of 3 gas stations which are owned by Tin Nghia Company Limited, its former parent company on a free-rent basis. Imputed rent expense is considered insignificant.·

~~F-18~~a capital contribution would require Timex A&S to issue additional shares of its stock to Ensign in exchange for such capital contribution, which additional issuance of shares of Timex A&S to Ensign would result in Ensign owning in excess of 49% of the outstanding capital stock of Timex A&S which would violate existing applicable Vietnamese foreign ownership limitations; or

~~ENSIGN SERVICES, INC.~~·

~~NOTES~~a TOmore-than-one-year ~~CONDENSED~~loan ~~CONSOLIDATED~~from ~~FINANCIAL~~Ensign ~~STATEMENTS~~to Timex A&S would be treated as a “foreign loan,” which shall be subject to an approval of the State Bank of Vietnam whose the approval is not certain;

~~FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~·

~~(Currency~~Vietnamese ~~expressed~~law requires that the dividends are paid in ~~United~~Vietnam ~~States~~Dong, ~~Dollars~~which (“would result in Ensign incurring expenses in connection with the conversion of any dividends it may have received into US~~$”))~~ Dollar; and

~~(Unaudited)~~·

~~(6)~~such actions would subject the funds to additional taxation in multiple jurisdictions.

For the ~~three~~six months ended ~~December~~March 31, 2009, ~~and~~Timex ~~2008~~A&S (the Predecessor), ~~Tin~~being ~~Nghia~~an ~~Company~~operating ~~Limited,~~branch of its former parent company, ~~provides~~is ~~Timex~~required ~~A&S~~to ~~with~~repatriate ~~the~~its ~~office~~retained ~~premises~~earnings atin ~~95A~~the ~~Cach~~form ~~Mang~~of ~~Thang~~cash ~~Tam,~~dividends ~~Quyet~~to ~~Thang~~its ~~Ward,~~parent ~~Bien~~company ~~Hoa~~in ~~City,~~accordance ~~Dong~~with ~~Nai~~the ~~Province,~~Decision ~~Vietnam~~No. on509-QD/TU auntil ~~free-rent~~the ~~basis.~~fiscal ~~Imputed~~tax ~~rent~~period ~~expense~~ended isDecember ~~considered~~31, ~~insignificant~~2008.

~~NOTE-15~~Timex A&S has paid approximately $466,435 (equivalent to VND 8,544,476,312) to maintain the public status of the Company, which include, but are not limited to, expenses for maintaining the daily operation of Ensign and all expenses incurred by its officers and directors, expenses in relation to services provided by legal counsel, auditors and other service suppliers in the United States. Timex A&S expects to be reimbursed these expenses at such as Ensign has sufficient capital, received either from the payment of dividends by Timex A&S or through fund raising activities, whichever occurs first.

~~CONCENTRATIONS OF RISK~~(2)

~~The~~Other payable due to Tin Nghia Company isLimited ~~exposed~~carries interest ranging from 10.2% to ~~the~~21.6% ~~following~~per ~~concentrations~~annum, ofunsecured ~~risk:~~and repayable on demand.

(a3)

~~Major~~Short-term ~~customers~~loan due from Tin Nghia Company Limited carries interest ranging from 10.5% to 12% per annum, unsecured and repayable within next 12 months. See Note 8(b).

For the three months ended December 31, 2009, one customer represented more than 10% of the Company’s revenues. This customer accounted for 23% of revenues amounting to $6,065,324, with $135,356 of accounts receivable as of December 31, 2009.(4)

~~For~~During the ~~three~~six months ended ~~December~~March 31, ~~2008,~~2010 ~~one~~and ~~customer~~2009, ~~represented~~Tin ~~more~~Nghia ~~than 10% of the~~ Company’s ~~revenues.~~Limited ~~This~~contributed ~~customer~~certain ~~accounted~~property ~~for~~and ~~22%~~equipment ~~of revenues amounting~~ to ~~$4,521,807,~~the ~~with~~Company $0at ofthe ~~accounts~~carrying ~~receivable as of December 31, 2008~~value.

(b5)

~~Major~~For ~~vendors~~the six months ended March 31, 2010, the Company obtained an operating right of 3 gas stations which are owned by Tin Nghia Company Limited, its former parent company in a free-rent basis. Imputed rent expense is considered insignificant.

The following is a table summarizing the purchases from vendors that individually represent greater than 10% of the total purchases for the three months ended December 31, 2009 and 2008 and their outstanding balances as at period-end dates.(6)

		Three Months ended December 31, 2009			December 31, 2009
Vendors		Purchases		Percentage of purchases	Accounts payable, trade
Vendor A		$	17,035,344	61%	$	673,209
Vendor B			5,079,759	18%		779,381
Vendor C			3,112,987	11%		-
	Total:	$	25,228,090	90%	$	1,452,590

For the six months ended March 31, 2010 and 2009, Tin Nghia Company Limited, its former parent company provides Timex A&S with the office premises at 95A Cach Mang Thang Tam, Quyet Thang Ward, Bien Hoa City, Dong Nai Province, Vietnam on a free-rent basis. Imputed rent expense is considered insignificant.

		Three Months ended December 31, 2008			December 31, 2008
Vendors		Purchases		Percentage of purchases	Accounts payable, trade
Vendor A		$	12,477,272	62%	$	863,448
Vendor B			6,686,764	33%		514,167
	Total:	$	19,164,036	95%	$	1,377,615

NOTE-13

~~(c)~~CONCENTRATIONS OF RISK

~~Credit~~The Company is exposed to the following concentrations of risk:

Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its accounts receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.(a)

~~Also,~~Major ~~the Company transacts certain portion of the revenue on a cash basis. For the three months ended December 31, 2009 and 2008, cash revenue accounted 35% and 45% of the total revenue.~~ customers

~~F-19~~For the three months ended March 31, 2010 and 2009, no customer represented more than 10% of the Company’s revenues.

~~ENSIGN~~For ~~SERVICES~~the six months ended March 31, ~~INC~~2010, one customer represented more than 10% of the Company’s revenues. This customer accounted for 15% of total revenues amounting to $7,189,086, with $109,928 of accounts receivable as of March 31, 2010.

~~NOTES~~For TOthe ~~CONDENSED~~six ~~CONSOLIDATED~~months ~~FINANCIAL~~ended ~~STATEMENTS~~March 31, 2009, one customer represented more than 10% of the Company’s revenues. This customer accounted for 12% of total revenues amounting to $4,452,934, with $0 of accounts receivable as of March 31, 2009.

~~FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008~~22

~~(Currency~~ENSIGN ~~expressed~~SERVICES, ~~in United States Dollars (“US$”))~~INC.

~~(Unaudited)~~NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~(d)~~FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

~~Interest~~(Currency ~~rate~~expressed ~~risk~~in United States Dollars (“US$”), except for number of shares)

The Company’s interest-rate risk arises from revolving lines of credit and long-term bank borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of December 31, 2009, all revolving lines of credit and long-term bank borrowings were at variable rates. The interest rates and terms of repayment of all borrowings are disclosed in Note 8 and Note 10.(Unaudited)

(eb)

~~Exchange~~Major ~~rate risk~~vendors

The ~~reporting~~following ~~currency of the Company~~ is ~~US$,~~a totable ~~date~~summarizing the ~~majority~~purchases of ~~the~~petroleum ~~revenues~~products ~~and~~from ~~costs~~vendors ~~are~~that ~~denominated~~individually inrepresents ~~VND~~greater ~~and~~than a10% ~~significant portion~~ of the ~~assets~~total ~~and~~purchases ~~liabilities~~for ~~are denominated in VND. As a result,~~ the ~~Company~~three isand ~~exposed~~six tomonths ~~foreign~~ended ~~exchange~~March ~~risk~~31, as2010 ~~its revenues~~ and ~~results~~2009 ~~of operations may be affected by fluctuations in the exchange rate between US$~~ and ~~VND.~~their Ifoutstanding ~~VND~~balances ~~depreciates against US$, the value of VND revenues and assets~~ as ~~expressed~~at inperiod-end ~~US$ financial statements will decline~~dates. ~~The Company does not hold any derivative or other financial instruments that expose to substantial market risk.~~

(f)


		Three months ended March 31, 2010			March 31, 2010
Vendors		Purchases		Percentage of purchases	Accounts payable, trade

Vendor A		$	10,196,664	59%	$	939,735
Vendor B			4,039,832	23%		-

	Total:	$	14,236,496	82%	$	939,735

Economic and political risks


		Three months ended March 31, 2009			March 31, 2009
Vendors		Purchases		Percentage of purchases	Accounts payable, trade

Vendor A		$	9,660,022	59%	$	514,167
Vendor B			5,225,158	32%		863,448

	Total:	$	14,885,180	91%	$	1,377,615

Substantially all of the Company’s services are conducted in Vietnam and Asian region. The Company’s operations are subject to various political, economic, and other risks and uncertainties inherent in Vietnam. Among other risks, the Company’s operations are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Vietnam.


		Six months ended March 31, 2010			March 31, 2010
Vendors		Purchases		Percentage of purchases	Accounts payable, trade

Vendor A		$	28,982,663	60%	$	939,735
Vendor B			9,658,469	21%		-

	Total:	$	38,641,132	81%	$	939,735

NOTE-16


		Six months ended March 31, 2009			March 31, 2009
Vendors		Purchases		Percentage of purchases	Accounts payable, trade

Vendor A		$	23,464,609	61%	$	514,167
Vendor B			12,624,009	33%		863,448

	Total:	$	36,088,618	94%	$	1,377,615

~~COMMITMENTS AND CONTINGENCIES~~(c)

~~(a)~~Credit risk

~~Operating~~Financial ~~lease~~instruments ~~commitments~~that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its accounts receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

The Company leased various land areas under non-cancelable operating agreements from the Department of Natural Resource and Environment of Dong Nai Province to build its office premises, warehouses and gas stations in a term ranging from 37 to 50 years, with fixed monthly rentals, expiring between 2016 and 2056. Costs incurred under these operating leases are recorded as rent expense and totaled approximately $2,975 and $2,975 for the three months ended December 31, 2009 and 2008.23

AsENSIGN ~~of December 31~~SERVICES, ~~2009, future minimum rental payments due under various non-cancelable operating leases are as follows:~~INC.

Period ending December 31:
2010	$	11,900
2011		11,900
2012		11,900
2013		11,900
2014		11,900
Thereafter		405,681
Total	$	465,181

NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~(b)~~FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009

~~Investment~~(Currency ~~commitment~~expressed in United States Dollars (“US$”), except for number of shares)

~~On July 10, 2009, the Company, though its subsidiary, Timex A&S entered into the Joint Venture Agreement~~ (~~the “Agreement”~~Unaudited) among Tin Nghia Industrial Park Development Joint Stock Company, a related company and Dai A Real Estate Joint Stock Company. Pursuant to the Agreement, three parties agreed to establish a new company namely Thong Nhat Real Estate Joint Stock Company (“Thong Nhat”) and to engage in the development of real estate in Dong Nai Province, Vietnam. The total registered share capital of Thong Nhat is estimated $4,128,820 (approximately VND70,000,000,000) of which 53.65% will be contributed by Timex A&S in the form of freehold lands.

~~F-20~~Also, the Company transacts certain portion of the revenue on a cash basis. For the three months ended March 31, 2010 and 2009, cash revenue accounted 31% and 44% of the total revenue. For the six months ended March 31, 2010 and 2009, cash revenue accounted 33% and 45% of the total revenue.

~~ENSIGN SERVICES, INC.~~(d)

~~NOTES~~Interest TOrate ~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~risk

~~FOR~~The ~~THE~~Company’s ~~THREE~~interest-rate ~~MONTHS~~risk ~~ENDED~~arises ~~DECEMBER~~from revolving lines of credit and long-term bank borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of March 31, ~~2009~~2010, ~~AND~~all ~~2008~~revolving lines of credit and long-term bank borrowings were at variable rates. The interest rates and terms of repayment of all borrowings are disclosed in Note 7 and 8.

(~~Currency expressed in United States Dollars (“US$”~~e))

~~(Unaudited)~~Exchange rate risk

~~(c)~~The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in VND and a significant portion of the assets and liabilities are denominated in VND. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and VND. If VND depreciates against US$, the value of VND revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk.

~~Capital commitment~~(f)

~~During~~Economic the three months ended December 31, 2009, the Company’s subsidiary, Timex A&S entered into several agreements with a number of contractors amounting to $106,213 to construct 3 new gas stations in Dong Nai Province, Vietnam. This construction project is expected to commence upon the receipt of building approval from the local government. The total estimated construction cost is approximately $470,000. For the three months ended December 31, 2009, the Company incurred approximately $5,303 and ~~recorded~~political ~~as construction in progress. Hence the aggregate contingent payments associated with the future construction work under the agreements are approximately $100,910 as of December 31, 2009.~~risks

~~F-21~~Substantially all of the Company’s services are conducted in Vietnam and Asian region. The Company’s operations are subject to various political, economic, and other risks and uncertainties inherent in Vietnam. Among other risks, the Company’s operations are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Vietnam.

~~ITEM 2. Management’s Discussion and Analysis and Results of Operations~~NOTE-14

~~INTRODUCTION~~COMMITMENTS AND CONTINGENCIES

The following discussion should be read in conjunction with the consolidated financial statements and related notes thereto as filed with the SEC and other financial information contained elsewhere in this Report. This document contains certain forward-looking statements including, among others, anticipated trends in our financial condition and results of operations and our business strategy. These forward-looking statements are based largely on our current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from these forward-looking statements. Important factors to consider in evaluating such forward-looking statements include (ia) changes in external factors or in our internal budgeting process which might impact trends in our results of operations; (ii) unanticipated working capital or other cash requirements; (iii) changes in our business strategy or an inability to execute our strategy due to unanticipated changes in the industries in which we operate; and (iv) various competitive market factors that may prevent us from competing successfully in the marketplace. We base the forward-looking statements on information currently available to us, and we assume no obligation to update them.

~~Investors~~Operating ~~are~~lease also advised to refer to the information in our filings with the Securities and Exchange Commission, especially on Forms 10-K, 10-Q and 8-K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historic results. It is not possible to foresee or identify all such factors. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks and uncertainties or potentially inaccurate assumptions. commitments

~~OVERVIEW~~The Company leased various land areas under non-cancelable operating agreements from the Department of Natural Resource and Environment of Dong Nai Province to build its office premises, warehouses and gas stations in a term ranging from 37 to 50 years, with fixed monthly rentals, expiring between 2016 and 2056. Costs incurred under these operating leases are recorded as rent expense and totaled approximately $5,950 and $5,950 for the six months ended March 31, 2010 and 2009.

OnAs of March 1931, ~~2009~~2010, ~~Ensign~~future ~~Services,~~minimum ~~Inc.~~rental ~~(the~~payments ~~“Company”)~~due ~~entered~~under ~~into~~various anon-cancelable ~~Share~~operating ~~Exchange~~leases ~~Agreement~~in (the ~~“Original~~next ~~Share~~five ~~Exchange~~years ~~Agreement”) with Timex A&S,~~ and ~~the~~thereafter shareholders of Timex A&S (the “Timex A&S Shareholders”). Timex A&S is one of the key suppliers of gasoline to factories in area industrial parks and has 28 petrol stations in Dong Nai. In addition, the Company also operates 3 additional gas stations which are ~~owned~~as ~~by Tin Nghia Company Limited.~~follows:

On August 13, 2009, pursuant to and upon the initial closing of the Share Exchange Agreement, as amended by Amendment No. 1 dated as of August 6, 2009 (the “Amendment”) to the Share Exchange (as so amended, the “Share Exchange Agreement”), Ensign issued 15,494,200 of the Acquisition Shares to the Timex A&S Shareholders, and the parties agreed to transfer 49% of the outstanding shares of Timex A&S’s common stock from the Timex A&S Shareholders to the Company (the “Initial Acquisition”). In addition, the parties agreed that the remaining 30,405,800 Acquisition Shares, and the remaining 51% of the outstanding shares of Timex A&S will be placed into an escrow account established pursuant to an escrow agreement entered into in connection with the Share Exchange Agreement. Pursuant to the Share Exchange Agreement, following the closing, the Company shall have the right to acquire the remaining 51% of the outstanding shares of Timex A&S (the “Subsequent Acquisition”), subject to and in accordance with applicable Vietnamese laws and regulations, in exchange for the remaining 30,405,800 Acquisition Shares. The closing of the Subsequent Acquisition is subject to the fulfillment of certain conditions including, but not limited to, the receipt of all requisite consents, waivers and approvals by the Company and Timex A&S.


Year ending March 31:
2011	$	11,370
2012		11,370
2013		11,370
2014		11,370
2015		11,370
Thereafter		371,655

Total	$	428,505

Effective on the closing, pursuant to the Share Exchange Agreement, Timex A&S became a subsidiary of Ensign. The Initial Acquisition of Timex A&S is treated as a reverse acquisition, and the business of Timex A&S became the business of Ensign. At the time of the reverse acquisition, Ensign was not engaged in any active business.24

OnENSIGN ~~June 19~~SERVICES, ~~2009, Timex A&S entered into a cooperation agreement (the “Cooperation Agreement”) with Tin Nghia Petrol Trading Company Limited (“Timex Petrol Trade”)~~INC. ~~Pursuant to the Cooperation Agreement, for a term of 50 years commencing on June 19, 2009:~~

·NOTES TO CONDENSED CONDOLIFDATED FINANCIAL STATEMENTS

~~Timex~~FOR ~~A&S~~THE ~~and~~THREE ~~Timex~~AND ~~Petrol~~SIX ~~Trade~~MONTHS ~~agreed~~ENDED toMARCH ~~cooperate~~31, in2010 ~~exploiting~~AND ~~Timex A&S’s existing gas stations and the development of new gas stations;~~2009

·(Currency expressed in United States Dollars (“US$”), except for number of shares)

Timex A&S intends to develop and/or purchase new “Commerce and Service Complexes”, each of which will consist of a gas station and a “Commerce and Service Center.” A “Commerce and Service Center” will consist of construction works, building and equipment on the gas station land (~~excluding, however, the gas station itself~~Unaudited) ~~for the purpose of provision of service and commerce to commuters and local residents;~~

·(b)

~~Timex~~Investment A&S will contribute 98% of the capital into the new and existing gas stations and Timex Petrol Trade will contribute 2% of the capital into the new and existing gas stations (the “Contribution Proportion”);commitment

·On July 10, 2009, the Company, through its subsidiary, Timex A&S entered into the Joint Venture Agreement (the “Agreement”) among Tin Nghia Industrial Park Development Joint Stock Company, a related company and Dai A Real Estate Joint Stock Company. Pursuant to the Agreement, three parties agreed to establish a new company namely Thong Nhat Real Estate Joint Stock Company (“Thong Nhat”) and to engage in the development of real estate in Dong Nai Province, Vietnam. The total registered share capital of Thong Nhat is estimated $3,629,011 (approximately VND 70,000,000,000) of which 53.65% will be contributed by Timex A&S in the form of freehold lands.

~~Timex A&S and Timex Petrol Trade will be the co-owners of new and existing gas stations;~~(c)

·Capital commitment

~~Timex~~During ~~Petrol~~the ~~Trade~~six ~~will~~months ~~operate~~ended March 31, 2010, the ~~petroleum~~Company’s ~~business~~subsidiary, atTimex ~~the~~A&S ~~new~~entered ~~and~~into ~~existing~~several agreements with a number of contractors amounting to $106,213 (equivalent to VND1,983,000,000), to construct 3 new gas stations; in Dong Nai Province, Vietnam. This construction project is expected to commence upon the receipt of building approval from the local government. The total estimated construction cost is approximately $470,000. As of March 31, 2010, the Company recorded $8,031 (equivalent to VND 154,914,911) as construction in progress. Hence the aggregate contingent payments associated with the future construction work under the agreements are approximately $98,182.

225

·ITEM 2. Management’s Discussion and Analysis and Results of Operations.

~~Timex A&S will operate and provide services at the Commerce and Service Centers and lease assets to Timex Petrol Trade relating to the Commerce and Service Complexes;~~INTRODUCTION

·The following discussion should be read in conjunction with the consolidated financial statements and related notes thereto as filed with the Securities and Exchange Committee (the “SEC”) and other financial information contained elsewhere in this quarterly report on Form 10-Q. This document contains certain forward-looking statements including, among others, anticipated trends in our financial condition and results of operations and our business strategy. These forward-looking statements are based largely on our current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from these forward-looking statements. Important factors to consider in evaluating such forward-looking statements include: (i) changes in external factors or in our internal budgeting process which might impact trends in our results of operations; (ii) unanticipated working capital or other cash requirements; (iii) changes in our business strategy or an inability to execute our strategy due to unanticipated changes in the industries in which we operate; and (iv) various competitive market factors that may prevent us from competing successfully in the marketplace. We base the forward-looking statements on information currently available to us, and we assume no obligation to update them.

~~Timex~~Investors ~~A&S~~are ~~and Timex~~also ~~Petrol~~advised ~~Trade~~to ~~will~~refer ~~share~~to ~~revenue,~~the ~~profit~~information in our filings with the SEC, ~~expenses~~especially on Forms 10-K, 10-Q and ~~bear~~8-K, ~~the~~in ~~risks~~which we discuss in more detail various important factors that could cause actual results to differ from ~~the~~expected ~~operations~~or ~~contemplated~~historic byresults. ~~the~~It ~~Cooperation~~is ~~Agreement~~not inpossible ~~accordance~~to ~~with~~foresee ~~the~~or ~~Contribution~~identify ~~Proportion;~~all such factors. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks and uncertainties or potentially inaccurate assumptions.

·OVERVIEW

~~Timex~~On ~~A&S~~March ~~agreed~~19, to2009, ~~provide~~Ensign ~~Timex~~Services, ~~Petrol~~Inc. ~~Trade~~(“Ensign” ~~with~~or athe ~~revolving~~“Company”) ~~credit~~entered ~~facility~~into ina anShare ~~aggregate~~Exchange ~~amount~~Agreement to(the be“Original ~~agreed~~Share ~~upon~~Exchange byAgreement”) ~~the~~with ~~parties~~Timex A&S, ~~which~~and ~~shall~~the ~~not~~shareholders ~~exceed~~of ~~50%~~Timex ofA&S (the ~~total~~“Timex ~~assets~~A&S ofShareholders”). Timex A&S, ~~including~~is ~~loans~~a key supplier of gasoline to factories in area industrial parks and ~~loan~~has ~~guarantees~~28 petrol stations in Dong Nai Province, ~~which~~Vietnam. ~~will~~In ~~bear~~addition, ~~interest~~the atCompany aalso ~~rate~~operates to3 beadditional ~~agreed~~gas ~~upon~~stations which are owned by ~~the~~Tin ~~parties;~~Nghia Company Limited.

·On August 13, 2009, pursuant to and upon the initial closing of the Share Exchange Agreement, as amended by Amendment No. 1 dated as of August 6, 2009 (the “Amendment”) to the Share Exchange (as so amended, the “Share Exchange Agreement”), Ensign issued 15,494,200 shares of the Company’s common stock (the “Acquisition Shares”) to the Timex A&S Shareholders, and the parties agreed to transfer 49% of the outstanding shares of Timex A&S’s common stock from the Timex A&S Shareholders to the Company (the “Initial Acquisition”). In addition, the parties agreed that the remaining 30,405,800 Acquisition Shares, and the remaining 51% of the outstanding shares of Timex A&S will be placed into an escrow account established pursuant to an escrow agreement entered into in connection with the Share Exchange Agreement. Pursuant to the Share Exchange Agreement, following the closing, the Company has the right to acquire the remaining 51% of the outstanding shares of Timex A&S (the “Subsequent Acquisition”), subject to and in accordance with applicable Vietnamese laws and regulations, in exchange for the remaining 30,405,800 Acquisition Shares. The closing of the Subsequent Acquisition is subject to the fulfillment of certain conditions including, but not limited to, the receipt of all requisite consents, waivers and approvals by the Company and Timex A&S.

~~Timex~~Effective ~~A&S~~on ~~shall~~the ~~have~~closing, pursuant to the ~~right~~Share toExchange ~~purchase~~Agreement, Timex ~~Petrol~~A&S ~~Trade’s~~became ~~interest~~a insubsidiary ~~the~~of ~~assets~~Ensign. ~~relating~~The toInitial ~~the~~Acquisition ~~operations~~of ~~contemplated~~Timex byA&S ~~the~~is ~~Cooperation~~treated ~~Agreement,~~as ifa ~~applicable~~reverse ~~Vietnamese~~acquisition, ~~law~~and isthe ~~amended~~business toof ~~allow~~ Timex A&S tobecame ~~own~~the ~~all~~business of ~~the~~Ensign. ~~assets~~At ~~relating~~the totime of the ~~operations~~reverse ~~contemplated~~acquisition, byEnsign ~~the~~was ~~Cooperation~~not ~~Agreement~~engaged in any active business.

~~Results~~On ofJune ~~Operations~~19, –2009, ~~Three~~Timex ~~Months~~A&S ~~Ended~~entered ~~December~~into 31a cooperation agreement (the “Cooperation Agreement”) with Tin Nghia Petrol Trading Company Limited (“Timex Petrol Trade”). Pursuant to the Cooperation Agreement, ~~2009~~for ~~and~~a ~~2008~~ term of 50 years commencing on June 19, 2009:

~~The following notes highlight various segments of the financial statements from the Company and its subsidiary and variable interest entity (“VIE”) that the Company wishes to detail.~~·

~~Revenue~~Timex A&S and Timex Petrol Trade agreed to cooperate in exploiting Timex A&S’s existing gas stations and the development of new gas stations;

Net revenue from third parties increased from $20,562,715 for the three months ended December 31, 2008 to $26,656,519 for the comparable period in 2009. The increase was primary attributable to the increase in fuel price and sales volume. The fuel price increased from an average of $0.76/litre to $0.86/litre, creating more revenue from end users of the Company. The sales volume increased substantially from 29,990,947 liters to 34,721,586 liters for the three months ended December 31, 2009, an increase of 15.8%. Gross profit from third parties therefore increased from $903,153 to $939,417 due to the aforementioned price and sales volume increases.·

~~Total~~Timex ~~gross~~A&S ~~profit~~will ~~for~~develop ~~the~~and/or ~~three~~purchase ~~months~~new ~~ended~~“Commerce ~~December~~and ~~31,~~Service ~~2009 was $959~~Complexes”,~~875~~ aseach ~~compared~~of towhich ~~$922,268~~will ~~for~~consist ~~the~~of ~~same~~a ~~period~~gas instation ~~2008,~~and ana ~~increase~~“Commerce ofand ~~$37,607~~Service ~~or 4~~Center.~~1%. Net~~” ~~income~~A ~~decreased~~“Commerce ~~from~~and ~~$390,090~~Service ~~for~~Center” ~~the~~will ~~three~~consist ~~months ended December 31, 2008 to $89,517 for the comparable period in 2009, a decrease~~ of ~~$300,573~~construction ~~or 77.1%~~works, ~~due~~building ~~to increases in operating~~ and ~~financial~~equipment ~~expenses. Starting~~on ~~from 2009,~~ the ~~Company~~gas ~~obtained~~station ~~external~~land ~~borrowings to finance its working capital~~(excluding, ~~therefore more financial expenses will be incurred. As of December 31~~however, ~~2009,~~ the ~~Company~~gas ~~made~~station ~~revolving~~itself) ~~lines~~for ofthe ~~credit~~purpose ~~with Bank~~ of ~~Foreign~~provision ~~Trade~~ of ~~Vietnam~~service ~~(“VCB”)~~ and ~~Vietnam~~commerce ~~Maritime~~to ~~Stock~~commuters ~~Bank~~and ~~(“MSB”)~~local ~~in an aggregate of approximately $11.7 million.~~ residents;

~~Cost of Revenue~~·

~~The~~Timex ~~cost~~A&S ofwill ~~revenue~~contribute ~~from~~98% ~~third~~of ~~parties~~the ~~increased~~capital ~~from~~into ~~$19,659,562 for~~ the ~~three~~new ~~months~~and ~~ended~~existing ~~December~~gas ~~31,~~stations ~~2008~~and toTimex ~~$25,717,102~~Petrol ~~for~~Trade ~~the~~will ~~comparable~~contribute ~~period~~2% ~~in 2009, an increase~~ of ~~$6,057,540 or 30.8%. The increase was mainly due to an increase in~~ the ~~average~~capital ~~price~~into the ~~Company~~new ~~paid~~and toexisting ~~its~~gas ~~suppliers~~stations ~~for~~ (the ~~purchase~~“Contribution ~~of gasoline. The average price the Company paid for fuel increase from $0.65/liter in 2008 to $0.75/liter in 2009.~~Proportion”);

~~Sales and Marketing Expenses~~·

~~Sales~~Timex A&S and ~~marketing~~Timex ~~expenses~~Petrol ~~increased~~Trade ~~from~~will ~~$279,825~~be ~~for~~ the ~~three~~co-owners ~~months ended December 31, 2008 to $351,409 for the comparable period in 2009, an increase~~ of ~~$71,584~~new orand ~~25.6%,~~existing ~~due~~gas ~~to the 2009 annual bonus to employees.~~stations;

~~General and Administrative Expenses~~26

Administrative expenses increased from $106,187 for the three months ended December 31, 2008 to $211,971 for the comparable period in 2009, an increase of $105,784 or 99.6%. The increase was primarily due to the increase in salaries, 2009 annual bonus to employees, depreciation of oil-tank trucks, and legal and professional expenses incurred for this quarter review. ·

~~Interest~~Timex ~~Income~~Petrol Trade will operate the petroleum business at the new and ~~Expenses~~existing gas stations;

Interest expense increased significantly from $56,922 for the three months ended December 31, 2008 to $226,214 for the comparable period in 2009, an increase of $169,292 or 297.4%. This was mainly due to interest charged for the revolving lines of credit and long-term bank borrowings from VCB, MSB, and Dai A Bank. ·

3Timex A&S will operate and provide services at the Commerce and Service Centers and lease assets to Timex Petrol Trade relating to the Commerce and Service Complexes;

~~Liquidity and Capital Resources~~·

~~Cash~~Timex A&S and ~~Cash~~Timex ~~Equivalent~~Petrol Trade will share revenue, profit, expenses, and bear the risks from the operations contemplated by the Cooperation Agreement in accordance with the Contribution Proportion;

Cash and cash equivalents increased from $1,020,151 at the beginning of the three months ended December 31, 2009 to $1,134,333 by the end of the period. The main reason for the increase was because the Company received several key customers’ advance payments during the three months ended December 31, 2009. ·

~~Operating~~Timex ~~Activities~~A&S agreed to provide Timex Petrol Trade with a revolving credit facility in an aggregate amount to be agreed upon by the parties, which shall not exceed 50% of the total assets of Timex A&S, including loans and loan guarantees, which will bear interest at a rate to be agreed upon by the parties;

The net cash used in operating activities for the three months ended December 31, 2009 was $1,921,719 as compared to $87,907 for the comparable period in 2008, an increase of $1,833,812 or 2,086.1%. The increase was primary attributable from the changes in inventories, accounts receivable, amount due from related parties, and accrued liabilities and other payables.·

~~Inventories~~Timex ~~increased~~A&S ~~from~~shall ~~$1,890,737~~have asthe ofright ~~September 30, 2009~~ to ~~$4,009,851~~purchase asTimex ofPetrol ~~December~~Trade’s ~~31,~~interest ~~2009. The~~in ~~increase~~the ~~was~~assets ~~because~~relating to the ~~Company~~operations ~~has~~contemplated ~~forecasted~~by the ~~fuel~~Cooperation ~~price~~Agreement, ~~charge~~if toapplicable ~~end~~Vietnamese ~~users~~law is ~~going~~amended to ~~increase~~allow inTimex ~~January~~A&S ~~2010,~~to ~~therefore~~own ~~the~~all ~~Company stock up its inventory~~ of ~~petroleum~~the ~~for~~assets ~~resale. In~~relating ~~addition,~~to ~~inventories increased accordingly with~~ the ~~increase~~operations incontemplated ~~the~~by ~~average price of gasoline in Vietnam for~~ the ~~three~~Cooperation ~~months ended December 31, 2009 as compared to September 30, 2009~~Agreement.

~~Accounts~~Effective ~~receivable~~on ~~increased~~the ~~from~~Closing $2Date,~~287~~ pursuant to the Share Exchange Agreement,~~980~~ asTimex A&S became a subsidiary of ~~September~~the ~~30,~~Company. ~~2009~~The toInitial ~~$2,435,320~~Acquisition of Timex A&S is treated as ofa ~~December~~reverse 31acquisition, ~~2009.~~and ~~The~~the ~~main~~business ~~reason~~of ~~for~~Timex A&S became a part of the ~~increase~~business ~~was~~of ~~because~~the ~~there~~Company. isAt anthe ~~increase~~time inof ~~sales~~the ~~volumes~~reverse ~~and~~acquisition, ~~increase~~Ensign was not engaged in ~~sale~~any ~~prices.~~active business.

~~Amounts~~Founded ~~due~~on ~~from~~January ~~related~~28, ~~parties~~1999, ~~increased~~Timex ~~from~~A&S ~~$90,897~~was formerly known as The Hotel-Tourism-Service and Trade Center and was formed as a subsidiary of ~~September~~Tin 30Nghia Company Limited, ~~2009~~a toVietnamese ~~$250~~company. The Company was then incorporated as Tin Nghia Petrol Company Limited on August 8,~~529~~ 2008, and as ofTimex Petrol Joint Stock Company on December 318, ~~2009~~2008. The ~~reason~~Company supplies petrol, lubricants, LPG gas, fuel and building materials. Its services focus on rental services for warehouses; workshops and kiosks located at district trade centers. The Company also operates tour boats on the Dong Nai River. Timex A&S is ~~because~~one of the key suppliers of gasoline to factories in area industrial parks and has 28 petrol stations in Dong Nai province. It had net revenues of US$58.1 million and a ~~significant~~net ~~increase~~profit of US$0.25 million in ~~sale~~2007. In 2008 Timex A&S had net revenues of ~~gasoline~~US$87.7 million with a net profit of approximately US$1.3 million. Timex A&S’s retail business network dominates the market in Dong Nai province with gas stations spread along the main traffic routes and ~~building~~important ~~materials~~points in southeast provinces of Vietnam. For this reason, management believes that Timex A&S’s retail fuel operation contributes to ~~Tin~~the ~~Nghia~~business ~~Construction~~and ~~Material~~financial ~~Company~~development ~~Limited~~of Dong Nai Province as well as serving the local residents within Dong Nai and neighboring provinces. At present, ~~Nhon~~Timex ~~Trach~~A&S ~~Investment~~is ~~Joint~~the ~~Stock~~second ~~Company~~largest fuel supplier in Dong Nai. Timex A&S will seek to grow its customer base through its existing framework of gas stations, and ~~ICD~~what ~~Bien~~management ~~Hoa~~believes –to ~~Tin~~be ~~Nghia~~its ~~Logistics~~respected ~~Company~~name ~~Limited~~brand and well-known customer service.

~~Accrued~~Results ~~liabilities and other payable increased from $473,627 as~~ of ~~September~~Operations ~~30,~~– ~~2009~~Three toMonths ~~$1,036,455~~Ended asMarch ~~of December~~ 31, ~~2009.~~2010 ~~The increase is primary attributable to the Company received advance payments from several key customers during the three months ended December 31, 2009~~ and ~~the accrual of legal and professional fee incurred for this quarter review.~~ 2009

~~Financing~~The ~~Activities~~ following notes highlight various segments of the financial statements from the Company and its subsidiary and variable interest entity (“VIE”) that the Company wishes to detail.

The net cash provided by financing activities for the three months ended December 31, 2009 was $2,088,233 as compared to the net cash used in financing activities of $79,014 for the comparable period in 2008, an increase of $2,167,247 or 2,742.9%. During the three months ended December 31, 2008, the Company received a capital contribution of $2,274,221 from its former parent, Tin Nghia Company Limited. However, in the very same period, the Company made repayment to its former parent, Tin Nghia Company Limited of $1,948,814. Revenue

~~During~~For the three months ended ~~December~~March 31, ~~2009~~2010, ~~the~~net ~~Company~~income ~~received~~attributable ~~the~~to ~~repayment~~Ensign Services was $52,180, compared to net income of $1143,~~782~~849 for the three months ended March 31,~~821~~ ~~from~~2009, ~~Tin~~a ~~Nghia~~decrease ~~Company~~of ~~Limited~~$91,669 or 64 percent. This decrease was amainly ~~partial~~due ~~repayment~~to ofan ~~the~~increase ~~short-term~~in ~~loan~~operating toexpenses ~~Tin~~(see ~~Nghia~~“Sales ~~Company~~and ~~Limited~~Marketing ~~with~~Expenses ~~interest~~and ~~ranging~~General ~~from~~and ~~10.5%~~Administration toExpenses” ~~12%~~and ~~per~~a ~~annum~~significant increase in total interest and ~~repayable~~other ~~within~~expenses ~~the~~(see ~~next~~“Interest 12Income ~~months~~and Expenses”).

~~During~~Net revenue from third parties increased from $15,704,502 for the ~~same~~three ~~period~~months ended March 31, 2009 to $22,020,123 for the ~~Company~~comparable ~~further~~period ~~withdrew~~in ~~from~~2010. The increase was primary attributable to the ~~long-term~~increase ~~bank~~in ~~borrowings~~fuel price and sales volume. The gasoline price increased from ~~Dai~~an Aaverage ~~Bank~~of ~~amounted~~$0.65/litre to $~~121,239~~0.90/litre, ~~This~~whereas ~~loan~~the isdiesel ~~due~~price onincreased ~~September~~from 4,an ~~2014~~average ~~and~~of ~~used~~$0.59/litre to ~~finance~~$0.76/litre, ~~four~~creating ~~trucks~~more ~~purchased~~revenue byfrom end users of the Company. The ~~loan~~sales isvolume ~~repayable~~increased from 28,796,767 liters to 29,410,463 liters for the three months ended March 31, 2010, in 8which ~~installments~~diesel contributes 55 percent of its total volume. Total gross profit therefore increased from $23816,~~000~~466 ~~including~~to ~~interest~~$914,046, atan ~~10.5%~~increase ~~per~~of ~~annum~~$108,569 ~~bi-annually~~or ~~payable~~13 ~~commencing~~percent, ~~from~~due ~~March~~to 4,the ~~2011.~~aforementioned price and sales volume increases.

~~Critical~~Cost ~~Accounting~~of ~~Policies~~Revenue

lThe cost of revenue from third parties increased from $14,888,036 for the three months ended March 31, 2009 to $21,106,077 for the comparable period in 2010, an increase of $6,218,041 or 42 percent. The increase was mainly due to an increase in the average price the Company paid to its suppliers for the purchase of gasoline. The average price the Company paid for gasoline and diesel increase from $0.63/liter and $0.57/litre in 2009 to $0.88/liter and 0.75/litre in 2010 respectively.

~~Revenue recognition~~ 27

InSales accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and ~~collectibility~~Marketing ~~is reasonably assured.~~Expenses

~~The~~Sales ~~Company~~and ~~derives~~marketing ~~the~~expenses ~~major~~was ~~revenues~~slightly increased from $320,605 for the ~~distribution~~three ~~and~~months ~~sale~~ended ofMarch ~~petroleum~~31, ~~products~~2009 atto ~~its~~$372,236 ~~gas~~for ~~station.~~the ~~The~~comparable ~~Company~~period ~~recognizes~~in ~~its~~2010, ~~revenues~~an ~~net~~increase of ~~value-added~~$51,631 ~~taxes~~or ~~(“VAT”)~~16 ~~when~~percent. ~~the~~The ~~products~~expenses ~~are~~of ~~delivered~~second toquarter ~~the~~are ~~customers,~~mostly ~~which~~coming ~~occurs~~from ~~when~~fuel ~~the~~transportation ~~customer~~for ~~has~~8 ~~taken~~oil-tank ~~title~~trucks ~~and~~that ~~has~~recently ~~assumed~~purchased ~~the risks~~ and ~~rewards~~marketing ofcampaigns ~~ownership,~~to ~~prices~~raise ~~are~~public ~~fixed or determinable and collectibility is reasonably assured~~awareness.

~~The~~General ~~Company recognizes revenue from the sale of building material supplies upon delivery to the customers~~ and ~~the~~Administrative transfer of title and risk of loss, and records its revenues net of VAT. The Company experienced no product returns and has recorded no reserve for sales returns for the three months ended December 31, 2009 and 2008.Expenses

4Administrative expenses increased from $119,908 for the three months ended March 31, 2009 to $169,336 for the comparable period in 2010, an increase of $49,428 or 41 percent. The increase was primarily due to the increase in salaries, depreciation of oil-tank trucks, and legal and professional expenses incurred for this quarter review.

~~Rental~~Interest ~~income~~Income ~~from operating leases on kiosks, gas station spaces~~ and ~~yacht is recognized on a straight-line basis over the lease period.~~ Expenses

lInterest income increased significantly from $4,066 for the three months ended March 31, 2009 to $212,048 for the comparable period in 2010, an increase of $207,982 or 5,115 percent. This was primarily due to the income generating from lending former parent Tin Nghia Company Limited with 12 percent annual interest rate.

~~Accounts~~Interest ~~receivable~~expenses ~~and~~increased ~~allowance~~significantly from $23,632 for ~~doubtful~~the ~~accounts~~three months ended March 31, 2009 to $430,922 for the comparable period in 2010, an increase of $407,290 or 1,723 percent. This was mainly due to interest charged for the revolving lines of credit and long-term bank borrowings from VCB, MSB, and Dai A Bank.

~~Accounts~~Results ~~receivable are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy~~ of ~~the~~Operations ~~allowance~~– ~~for~~Six ~~doubtful~~Months ~~accounts~~Ended onMarch ~~an ongoing basis~~31, ~~using~~2010 ~~historical collection trends~~ and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. 2009

lRevenue

~~Inventories~~For the six months ended March 31, 2010, net income attributable to Ensign Services was $77,683, compared to net income of $334,993 for the six months ended March 31, 2009, a decrease of $257,310 or 77 percent. This decrease in was mainly due to an increase in operating expenses (see “Sales and Marketing Expenses and General and Administration Expenses”) and a significant increase in total interest and other expenses (see “ Interest Income and Expenses”).

~~Inventories~~Net ~~are~~revenue ~~stated~~from atthird parties increased from $36,267,217 for the ~~lower~~six ofmonths ~~cost~~ended orMarch ~~net~~31, ~~realizable~~2009 ~~value~~to $48,676,642 ~~with~~for ~~cost~~the ~~being~~comparable ~~determined~~period onin a2010. ~~weighted~~The ~~average~~increase ~~basis,~~was ~~which~~primary ~~consist~~attributable ofto ~~petroleum~~the ~~products~~increase ~~and~~in ~~building~~fuel ~~material~~price ~~supplies~~and sales volume. The ~~Company~~gasoline ~~periodically~~price ~~reviews~~increased ~~historical~~from ~~sales~~an ~~activity~~average of $0.77/litre to ~~determine~~$0.89/litre, ~~excess~~whereas the diesel price increase from an average of $0.68/litre to $0.75/litre, ~~slow~~creating ~~moving~~more ~~items~~revenue ~~and~~from ~~potentially~~end ~~obsolete~~users ~~items~~of ~~and~~the ~~also~~Company. ~~evaluates~~The sales volume increased from 58,787,714 liters to 65,491,695 liters for the ~~impact~~first half of ~~any~~2010, ~~anticipated~~in ~~changes~~which indiesel ~~future~~contributes ~~demand~~55 percent of the total volume. ~~The~~Total ~~Company~~gross ~~provides~~profit ~~inventory~~therefore ~~allowances~~increased ~~based~~from on$1,742,949 ~~excess~~to ~~and~~$1,889,125 ~~obsolete~~due ~~inventories~~to ~~determined~~the ~~principally~~aforementioned byprice ~~customer~~and ~~demand.~~sales volume increases.

lCost of Revenue

~~Impairment~~The cost of ~~long-lived~~revenue ~~assets~~from third parties increase from $34,547,598 for the six months ended March 31, 2009 to $46,823,179 for the comparable period in 2010, an increase of $12,275,581 or 36 percent. The increase was mainly due to an increase in the average price the Company paid to its suppliers for the purchase of gasoline. The average price the Company paid for gasoline and diesel increase from $0.76/liter and $0.67/litre in 2009 to $0.87/liter and $0.74/litre in 2010 respectively.

InSales ~~accordance with ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property~~ and ~~equipment~~Marketing and freehold lands used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to estimated discounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment as of December 31, 2009 and September 30, 2009. Expenses

lFor the six months period, sales and marketing expenses recorded $723,645, compared to $600,430 for the six months ended March 31, 2009, a $123,215 or 21 percent increase. Transportation expenses, assets insurance, and marketing campaign increased by 384%, 207% and 17% respectively.

~~Foreign~~General ~~currencies~~and ~~translation~~Administrative Expenses

~~Transactions~~For ~~denominated~~the insix ~~currencies~~months ~~other~~period, ~~than~~administrative ~~the~~expenses ~~functional~~increased ~~currency~~from ~~are~~$226,095 ~~translated~~for ~~into~~ the ~~functional~~six ~~currency~~months atended ~~the~~March ~~exchange~~31, ~~rates~~2009 ~~prevailing~~to at$381,307 ~~the~~for ~~dates of~~ the ~~transaction.~~comparable ~~Monetary~~period ~~assets and liabilities denominated~~ in ~~currencies~~2010, ~~other~~an ~~than~~increase ~~the~~of ~~functional~~$155,212 ~~currency~~or ~~are~~69 ~~translated~~percent. ~~into~~The ~~the~~increase ~~functional~~was ~~currency~~primarily ~~using~~due ~~the~~to ~~applicable~~employee’s ~~exchange~~study ~~rates~~abroad atprogram, ~~the~~increase ~~balance~~in ~~sheet~~salaries, ~~dates.~~depreciation ~~The~~of ~~resulting~~oil-tank ~~exchange~~trucks, ~~differences~~and ~~are~~legal ~~recorded~~and inprofessional ~~the~~expenses ~~consolidated~~incurred ~~statements~~for ofthis ~~operation~~quarter review.

The reporting currency of the Company is the United States Dollars ("US$") and the accompanying financial statements have been expressed in US$. In addition, the Company’s subsidiary and VIE operating in Vietnam maintain the books and record in a local currency, Vietnamese Dong ("VND"), which is functional currency as being the primary currency of the economic environment in which the operation is conducted. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses are recorded as a separate component of accumulated other comprehensive income within the statements of change in stockholders’ equity and comprehensive income.28

~~RECENT~~Interest ~~ACCOUNTING~~Income ~~PRONOUNCEMENTS~~and Expenses

~~The~~Interest ~~Company~~income ~~has~~increased ~~reviewed~~significantly ~~all~~from ~~recently issued~~$14,987 ~~but~~for ~~not~~the ~~yet~~six ~~effective,~~months ~~accounting~~ended ~~pronouncements~~March ~~and~~31, ~~does~~2009 ~~not~~to ~~believe~~$220,190 for the ~~future~~comparable ~~adoption~~period in 2010, an increase of ~~any~~$205,203 ~~such~~or ~~pronouncements~~1,369 ~~may~~percent. beThis ~~expected~~was primarily due to ~~cause~~the aincome ~~material~~generating ~~impact~~from onloan ~~its~~to ~~financial~~former ~~condition~~parent orcompany, ~~the~~Tin ~~results~~Nghia ofCompany ~~its~~Limited ~~operations~~with interest rate ranging from 10.5% to 12% per annum.

InInterest ~~October~~expenses ~~2009,~~increased ~~the~~significantly ~~FASB~~from ~~issued Accounting Standards Update (“ASU”) No. 2009-13~~$80,554 ~~“Revenue~~for ~~Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (a consensus of~~ the ~~FASB~~six ~~Emerging~~months ~~Issues~~ended ~~Task~~March ~~Force)” which amends ASC 605-25~~31, ~~“Revenue Recognition: Multiple-Element Arrangements.” ASU No.~~ 2009~~-13~~ ~~addresses how~~ to ~~determine~~$657,136 ~~whether~~for anthe ~~arrangement~~comparable ~~involving~~period ~~multiple~~in ~~deliverables~~2010, ~~contains~~an ~~more~~increase ~~than one unit~~ of ~~accounting~~$576,582 ~~and~~or ~~how~~7,157 ~~to allocate consideration to each unit of accounting in the arrangement~~percent. This ~~ASU~~was ~~replaces~~mainly ~~all~~due ~~references~~ to ~~fair~~interest ~~value~~charged ~~as the measurement criteria with the term selling price and establishes a hierarchy~~ for ~~determining~~ the ~~selling~~revolving ~~price~~lines of acredit ~~deliverable.~~and ~~ASU No. 2009~~long-13term ~~also~~bank ~~eliminates~~borrowings ~~the~~from ~~use of the residual value method for determining the allocation of arrangement consideration. Additionally~~VCB, ~~ASU No. 2009-13 requires expanded disclosures. This ASU will become effective for us for revenue arrangements entered into or materially modified on or after April 1~~MSB, ~~2011. Earlier application is permitted with required transition disclosures based on the period of adoption. The Company is currently evaluating the application date~~ and ~~the~~Dai ~~impact~~A ~~of this standard on its financial statements~~Bank.

5Liquidity and Capital Resources

~~ITEM~~Cash ~~3. Quantitative~~ and ~~Qualitative~~Cash ~~Disclosure About Market Risk~~Equivalent

~~Quantitative~~Cash and ~~Qualitative~~cash ~~Disclosures~~equivalents ~~about~~decreased ~~Market~~from ~~Risk represents the risk of loss that may impact the financial position~~$1,020,151 ~~results of operations or cash flows of the Company due~~ to ~~adverse~~$886,322 ~~changes~~since inSeptember ~~financial~~30, ~~rates~~2009. WeThe ~~are~~main ~~exposed~~reason tofor ~~market risk in~~ the ~~area~~decrease ofwas ~~interest~~because ~~rates.~~the ~~One~~Company ~~exposure~~made isrepayment ~~directly related~~ to ~~our~~its ~~revolving~~suppliers ~~lines~~during ~~of credit borrowings and long-term bank borrowings due to~~ the ~~variable~~six ~~interest~~months ~~rate~~ended ~~pricing.~~March ~~Management~~31, ~~believes that interest rate fluctuations will not have a material impact on Ensign's results of operations~~2010.

~~ITEM~~Operating ~~4. Controls and Procedures~~Activities

~~Evaluation~~The net cash used in operating activities for the six months ended March 31, 2010 was $2,107,828 as compared to $274,701 for the comparable period in 2009, an increase of ~~Disclosure~~$1,833,127 ~~Controls~~or 667 percent. The increase was primary attributable from the changes in inventories, accounts receivable, amount due from related parties, prepayment and ~~Procedures~~other receivable and accounts payable.

AsInventories ofincreased ~~the~~from ~~end of the period covered by this report~~$1, ~~we conducted an evaluation~~890,737 ~~under the supervision and with the participation of our chief executive officer and chief financial officer of our disclosure controls and procedures (~~as ~~defined in Rule 13a-15(e) and Rule 15d-15(e)~~ of ~~the~~September ~~Exchange~~30, ~~Act).~~2009 ~~Based~~to ~~upon this evaluation~~$3, ~~our management~~461,242 ~~with~~as ~~the participation~~ of ~~our~~March ~~principal executive officer and principal financial officer concluded that~~31, as2010. ofThe ~~December~~increase ~~31,~~was ~~2009,~~because ~~our~~the ~~disclosure~~Company ~~controls~~has ~~and~~forecasted ~~procedures~~the ~~are~~fuel ~~effective~~price charge to ~~ensure~~end ~~that~~users ~~information~~is ~~required~~going to beincrease ~~disclosed~~in byJanuary us2010, intherefore the ~~reports~~Company ~~that~~stock weup ~~file~~its orinventory ~~submit~~of ~~under~~petroleum ~~the~~for ~~Exchange~~resale. ~~Act~~In ~~is: (i) recorded~~addition, ~~processed,~~inventories ~~summarized~~increased ~~and~~accordingly ~~reported,~~with ~~within~~ the ~~time~~increase ~~periods specified~~ in the ~~Commission's~~average ~~rules~~price ~~and~~of ~~forms,~~gasoline ~~and~~in ~~(ii)~~Vietnam ~~accumulated~~for ~~and~~the ~~communicated~~six tomonths ~~our~~ended ~~management,~~Mach ~~including our chief executive officer and chief financial officer~~31, 2010 as ~~appropriate~~compared to ~~allow~~September ~~timely~~30, ~~decisions regarding required disclosure~~2009.

~~Changes~~Accounts receivable and prepayment and other receivables increased from $2,287,980 and $122,930 as of September 30, 2009 to $2,314,512 and $539,644 as of March 31, 2010 respectively. The main reason for the increase was because there is an increase in ~~Internal~~sales ~~Control~~volumes ~~Over~~and ~~Financial~~increase ~~Reporting~~in sale prices. In addition, our customers’ base has grown substantively since September 30, 2009.

~~There~~Amounts ~~was~~due ~~no change~~ to ~~our~~related ~~internal~~parties ~~control~~decreased ~~over~~from ~~financial~~$1,557,134 ~~reporting~~as ~~that~~of ~~occurred~~September ~~during~~30, ~~our~~2009 ~~last~~to ~~fiscal~~$1,236,773 ~~quarter~~as ~~that~~of ~~has~~March ~~materially affected~~31, or2010. The reason is ~~reasonably~~because ~~likely~~of early repayments to ~~materially~~Tin ~~affect~~Nghia Construction Material Company Limited, ~~our~~Nhon ~~internal~~Trach ~~control~~Investment ~~over~~Joint ~~financial~~Stock ~~reporting.~~Company, and ICD Bien Hoa – Tin Nghia Logistics Company Limited.

~~PART~~Financing IIActivities ~~- OTHER INFORMATION~~

~~ITEM~~The net cash provided by financing activities for the six months ended March 31, 2010 was $2,070,600 as compared to the net cash provided by financing activities of $114,255 for the comparable period in 2009, an increase of $1,956,345 or 1,712 percent. During the six months ended March 31, 2009, the Company received a capital contribution of $2,268,928 from its former parent, Tin Nghia Company Limited. However, in the very same period, the Company made repayment to its former parent, Tin Nghia Company Limited of $1,959,328.

~~Legal~~During ~~Proceedings~~the six months ended March 31, 2010, the Company received the repayment of $4,086,731 from Tin Nghia Company Limited. This was a partial repayment of the short-term loan to Tin Nghia Company Limited with interest ranging from 10.5% to 12% per annum and repayable within 12 months. After receiving payment from Tin Nghia Company Limited, the Company had made the repayment of $1,394,902 of revolving lines of credit to VCB and MSB.

~~None.~~Critical Accounting Policies

~~ITEM~~Revenue ~~1A.~~Recognition ~~Risk factors~~

~~There~~In ~~are~~accordance nowith ~~material~~the ~~changes~~ASC ~~from~~Topic ~~the~~605, ~~risk~~“Revenue ~~factors~~Recognition”, ~~previously~~the ~~disclosed~~Company inrecognizes ~~our~~revenue ~~Form~~when ~~I0-K~~persuasive ~~for~~evidence ~~the~~of ~~year~~an ~~ended~~arrangement ~~September 30~~exists, ~~2009~~delivery ~~initially~~has ~~filed~~occurred, ~~with~~ the ~~SEC~~sales onprice ~~January~~is ~~13,~~fixed ~~2010and~~or ~~further~~determinable ~~amended~~and oncollectability ~~January~~is ~~22,~~reasonably ~~2010~~assured.

~~ITEM 2.~~29

~~Unregistered~~The ~~Sales~~Company derives the major revenues from the distribution and sale of ~~Equity~~petroleum ~~Securities~~products at its gas station. The Company recognizes its revenues net of value-added taxes (“VAT”) when the products are delivered to the customers, which occurs when the customer has taken title and ~~Use~~has assumed the risks and rewards of ~~Proceeds~~ownership, prices are fixed or determinable and collectability is reasonably assured.

~~None~~The Company recognizes revenue from the sale of building material supplies upon delivery to the customers and the transfer of title and risk of loss, and records its revenues net of VAT. The Company experienced no product returns and has recorded no reserve for sales returns for the six months ended March 31, 2010 and 2009.

~~ITEM~~Rental 3.income ~~Defaults~~from ~~Upon~~operating ~~Senior~~leases ~~Securities~~on kiosks, gas station spaces and yacht is recognized on a straight-line basis over the lease period.

~~None.~~Accounts Receivable and Allowance for Doubtful Accounts

~~ITEM~~Accounts 4receivable are recorded at the invoiced amount and do not bear interest. ~~Submission~~Management reviews the adequacy of ~~Matters~~the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to amake ~~Vote~~adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the ~~Security~~potential ~~Holders~~for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers.

~~None.~~Inventories

~~ITEM~~Inventories 5are stated at the lower of cost or net realizable value, with cost being determined on a weighted average basis, which consist of petroleum products and building material supplies. ~~Other~~The ~~Information~~Company periodically reviews historical sales activity to determine excess, slow moving items and potentially obsolete items and also evaluates the impact of any anticipated changes in future demand. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand.

~~None.~~Impairment of Long-lived Assets

6In accordance with ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property and equipment and freehold lands used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to estimated discounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment as of March 31, 2010 and September 30, 2009.

Foreign Currencies Translation

The reporting currency of the Company is the United States Dollars ("US$") and the accompanying financial statements have been expressed in US$. In addition, the Company’s subsidiary and VIE operating in Vietnam maintain the books and record in a local currency, Vietnamese Dong ("VND"), which is functional currency as being the primary currency of the economic environment in which the operation is conducted. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses are recorded as a separate component of accumulated other comprehensive income within the statements of change in stockholders’ equity.

RECENT ACCOUNTING PRONOUNCEMENTS

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

In June 2009, the Financial Accounting Standards Board (“FASB”) expanded ASC 810-10, to provide guidance for variable interest entities (VIEs). The change modifies our approach for determining the primary beneficiary of a VIE by assessing whether we have control over such entities. This change is effective for us on July 1, 2010. The Company is currently evaluating the requirements of the VIE provisions of ASC 810-10, but does not expect a material impact on its condensed consolidated financial statements.

In October 2009, the FASB issued Accounting Standard Update (ASU) No. 2009-13, “Revenue Recognition” (Topic 605). The accounting standard update addresses the accounting for multiple-deliverable arrangements to enable vendors to account for products or services separately rather than as a combined unit. Specifically, this subtopic addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. ASU 2009-13 will be effective for us on July 1, 2010. The Company is currently evaluating the requirements of ASU 2009-13, but do not expect a material impact on its condensed consolidated financial statements.

FASB ASC 810, “Consolidation” (“ASC 810”), establishes accounting and reporting standards for minority interests, which are recharacterized as noncontrolling interests. ASC 810 was revised so that noncontrolling interests are classified as a component of equity separate from the parent’s equity; purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions; net income attributable to the noncontrolling interest are included in consolidated net income in the statement of operations; and upon a loss of control, the interest sold, as well as any interest retained, is recorded at fair value, with any gain or loss recognized in earnings. This revision was effective for the Company as of January 1, 2009. It applies prospectively, except for the presentation and disclosure requirements, for which it applies retroactively. In addition, ASC 810, amends the consolidation guidance applicable to variable interest entities. The amendments will significantly affect the overall consolidation analysis under ASC 810. This phase of ASC 810 became effective for the Company on January 1, 2010 and did not impact the Company’s consolidation conclusions for its variable interest entities.

In January 2010, the FASB issued an amendment to the fair value measurement and disclosure standard improving disclosures about fair value measurements. This amended guidance requires separate disclosure of significant transfers in and out of Levels 1 and 2 and the reasons for the transfers. The amended guidance also requires that in the Level 3 reconciliation, the information about purchases, sales, issuances and settlements be disclosed separately on a gross basis rather than as one net number. The guidance for the Level 1 and 2 disclosures was adopted on January 1, 2010, and did not have an impact on our consolidated financial position, results of operations or cash flows. The guidance for the activity in Level 3 disclosures is effective January 1, 2011, and will not have an impact on our consolidated financial position, results of operations or cash flows as the amended guidance provides only disclosure requirements. The Company had no significant transfers between Level 1, 2 or 3 inputs during the quarter ended March 31, 2010.

In February 2010, the FASB issued amended guidance on subsequent events. Under this amended guidance, SEC filers are no longer required to disclose the date through which subsequent events have been evaluated in originally issued and revised financial statements. This guidance was effective immediately and the Company adopted these new requirements for the quarter ended March 31, 2010.

ITEM 3. Quantitative and Qualitative Disclosure About Market Risk.

Quantitative and Qualitative Disclosures about Market Risk represents the risk of loss that may impact the financial position, results of operations or cash flows of the Company due to adverse changes in financial rates. We are exposed to market risk in the area of interest rates. One exposure is directly related to our revolving lines of credit borrowings and long-term bank borrowings due to the variable interest rate pricing. Management believes that interest rate fluctuations will not have a material impact on Ensign's results of operations.

ITEM 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based upon this evaluation, our management, with the participation of our principal executive officer and principal financial officer concluded that, as of March 31, 2010, our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is: (i) recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms, and (ii) accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings.

None.

ITEM 1A. Risk factors.

Except for the following risk factor, there are no material changes from the risk factors previously disclosed in our Form I0-K for the year ended September 30, 2009 initially filed with the SEC on January 13, 2010 and further amended on January 22, 2010.

We and our subsidiary may be subject to claims, lawsuits or other action in connection with the payment of dividends by our subsidiary.

Commencing in April 2010, our subsidiary, Timex A&S paid a dividend to all of its shareholders except for its parent, Ensign. The decision to pay dividends to all of Timex A&S’s shareholders except for Ensign was based on several factors, including the fact that if a dividend payment is made to Ensign and the funds then used for the purpose of furthering the business of Timex A&S (as would be contemplated), such funds would either be required to be treated as an interest bearing loan or contribution of capital from Ensign to Timex A&S, the net effects of which would be as follows:

a capital contribution would require Timex A&S to issue additional shares of its stock to Ensign in exchange for such capital contribution, which additional issuance of shares of Timex A&S to Ensign would result in Ensign owning in excess of 49% of the outstanding capital stock of Timex A&S which would violate existing applicable Vietnamese foreign ownership limitations;

a more-than-one-year loan from Ensign to Timex A&S would be a “foreign loan” which shall be subject to an approval of the State Bank of Vietnam whose approval is not certain;

Vietnamese law requires that the dividends are paid in Vietnam Dong, which would result in Ensign incurring expenses in connection with the conversion of any dividends it may have received into US Dollar;

such actions would subject the funds to additional taxation in multiple jurisdictions.

The results of any legal or other proceedings cannot be predicted with certainty. Regardless of merit, litigation may be both time-consuming and disruptive to the Company’s operations and cause significant expense and diversion of management attention. Should there be an adverse ruling against the Company or its subsidiary in any such legal or other proceeding, the Company and/or its subsidiary may be faced with monetary damages or injunctive relief against it that might materially affect the Company’s financial condition and operating results.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

ITEM 3. Defaults Upon Senior Securities.

None.

ITEM 4. (Removed and Reserved).

ITEM 5. Other Information.

None.

ITEM 6. Exhibits


31.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 1350 of Chapter 63 of 18 U.S.C. as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

* Filed herewith33

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ENSIGN SERVICES, INC.
February 22, 2010	By:	/s/ Quach Van Duc
June 24, 2010	By:	/s/ Quach Van Duc
		Chairman & President (Principal Executive Officer and Principal Financial and Accounting Officer)
		Quach Van Duc
		Chairman & President (Principal Executive Officer and Principal Financial and Accounting Officer)

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