MIRA INFORM REPORT

Report Date :

06.08.2013

IDENTIFICATION DETAILS

Name :	UNITED STEEL PTE. LTD.
Formerly Known As :	SS BUILDMAT (S) PTE LTD (13/09/2003)
Registered Office :	11, Benoi Place, 629931
Country :	Singapore
Financials (as on) :	30.06.2012
Date of Incorporation :	26.11.1997
Com. Reg. No.:	199708062-W
Legal Form :	Exempt Private
Line of Business :	Trading of Steel and Coils
No. of Employees :	20

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

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

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

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SINGAPORE - ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199708062-W
COMPANY NAME	:	UNITED STEEL PTE. LTD.
FORMER NAME	:	SS BUILDMAT (S) PTE LTD (13/09/2003) SS BUILDMAT SUPPLIES (S) PTE LTD (07/04/1999)
INCORPORATION DATE	:	26/11/1997
COMPANY STATUS	:	EXIST
LEGAL FORM	:	EXEMPT PRIVATE
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	11, BENOI PLACE, 629931, SINGAPORE.
BUSINESS ADDRESS	:	11 BENOI PLACE, 629931, SINGAPORE.
TEL.NO.	:	65-65587588
FAX.NO.	:	65-65587008
EMAIL	:	INFO@UNITEDSTEEL.COM.SG
WEB SITE	:	WWW.UNITEDSTEEL.COM.SG
CONTACT PERSON	:	CHAN CHEE WING ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF STEEL AND COILS
ISSUED AND PAID UP CAPITAL	:	1,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,000,000.00
SALES	:	SGD 25,275,804 [2012]
NET WORTH	:	SGD 3,466,915 [2012]
STAFF STRENGTH	:	20 [2013]
BANKER (S)		AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD CIMB BANK BHD CITIBANK N.A. CITIBANK BHD UNITED OVERSEAS BANK LIMITED STANDARD CHARTERED BANK
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the SC has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the SC is able to meet all its obligations as and when they fall due. The SC is not required to have their accounts audited. However, the SC will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

The SC is principally engaged in the (as a / as an) trading of steel and coils.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHAN CHEE WING +	33, JURONG WEST STREET 41, 01-45, THE LAKESHORE, 649413, SINGAPORE.	S7269659Z	1,000,000.00	100.00
			---------------	------
			1,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
200723447N	SINGAPORE	UNITED MULTI INDUSTRIES PTE. LTD.	100.00	30/06/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	CHAN CHEE MAN
Address	:	425, JURONG WEST AVENUE 1, 08-372, 640425, SINGAPORE.
IC / PP No	:	S6980558B
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/09/2009

DIRECTOR 2

Name Of Subject	:	CHAN CHEE WING
Address	:	33, JURONG WEST STREET 41, 01-45, THE LAKESHORE, 649413, SINGAPORE.
IC / PP No	:	S7269659Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	06/08/2003

MANAGEMENT

1)	Name of Subject	:	CHAN CHEE WING
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	D' ARK ASSOCIATES
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	CHIA LEE CHENG
	IC / PP No	:	S1591974D
	Address	:	635, PASIR RIS DRIVE 1, 10-600, 510635, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

2)

Name

:

CIMB BANK BHD

3)

Name

:

CITIBANK N.A.

4)

Name

:

CITIBANK BHD

5)

Name

:

UNITED OVERSEAS BANK LIMITED

6)

Name

:

STANDARD CHARTERED BANK

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200608259	07/12/2006	N/A	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	N/A	Unsatisfied
C200709041	24/10/2007	N/A	CIMB BANK BERHAD	N/A	Unsatisfied
C200803832	24/04/2008	N/A	DBS BANK LTD.	N/A	Unsatisfied
C201109747	05/08/2011	N/A	DBS BANK LTD.	N/A	Unsatisfied
C201112877	13/10/2011	N/A	MALAYAN BANKING BERHAD	N/A	Unsatisfied
C201114623	21/11/2011	N/A	UNITED OVERSEAS BANK LIMITED	N/A	Unsatisfied
C201205104	10/05/2012	N/A	STANDARD CHARTERED BANK	N/A	Unsatisfied

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation.

LEGAL ACTION
Code No	:	99	Case No	:	2899
Year	:	2009	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	03/02/2009
Solicitor	:	KWOK LING LING BONNIE
Solicitor Ref	:	BK.6549.08
Solicitor Firm	:	BONNIE KWOK & CO
Plaintiff	:	HO SEE PENG
Defendants	:	UNITED STEEL PTE. LTD. (199708062)
Amount Claimed	:	1854.65
Nature of Claim	:	SGD
Remark	:	TORT- NEGLIGENCE

NOTE:

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

No winding up petition was found in our databank

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The SC refused to disclose its suppliers.

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	AUSTRALIA ASIA EUROPE MIDDLE EAST
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

STEEL AND COILS

Services

:

FABRICATION AND OTHER RELATED SERVICES

Total Number of Employees:
YEAR	2013	2009
GROUP	N/A	N/A
COMPANY	20	12

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading of steel and coils.

Activities:
* global steel trading company and carry stockist

Products:

secondary metal materials/ ferrous metal scraps:

* etp coils & sheets
* tin free steel coils & sheets
* tinplate blank
* vinyl top cut sheets assorted

* blooms
* billets
* cobble plates
* used rails
* used beams & sheet piles
* used motors and transformers
* fully assorted secondary/ overrolled eg/gi/cr sheets
* unassorted secondary eg/gi/cr sheet

prime, & prime overrolled and secondary steel coils/sheets:
* secondary mix slit coils
* secondary base color coils/ sheets
* secondary crngo/crgo coils/ sheets

non-ferrous secondary & scraps:
* stainless steel 300 & 400 series coils , sheets , slit coils and scraps
* secondary welded stainless steel 300 and 400 series pipes and fittings
* secondary seamless stainless steel 300 and 400 series pipes and fittings
* aluminium coils , sheets , slit coils & scraps
* copper scraps
* others

secondary pipes and pipe fittings:
* secondary seamless carbon steel pipes, boiler pipes , galvanized
pipes and others kind of pipes
* carbon steel stock lots of flanges and fitting

services:
* slitting
* shearing

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	6565587588
Current Telephone Number	:	65-65587588
Match	:	YES
Address Provided by Client	:	11 BENOI PLACE SINGAPORE 629931
Current Address	:	11 BENOI PLACE, 629931, SINGAPORE.
Match	:	YES

Other Investigations

On 1st August 2013 we contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	5.45%	]
Profit/(Loss) Before Tax	:	Decreased	[	94.37%	]
Return on Shareholder Funds	:	Unfavourable	[	1.06%	]
Return on Net Assets	:	Acceptable	[	12.54%	]
The higher turnover could be attributed to the favourable market condition.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	47 Days	]
Debtor Ratio	:	Favourable	[	46 Days	]
Creditors Ratio	:	Unfavourable	[	117 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Acceptable	[	0.98 Times	]
Current Ratio	:	Unfavourable	[	1.38 Times	]
The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	1.44 Times	]
Gearing Ratio	:	Favourable	[	0.05 Times	]
The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : LIMITED

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	<0.8>	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	<2.2>	4.3	12.8	8.5	<1.3>
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	<32.5>	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	<10.78>	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	<0.8>	11.4	2.8	<5>	<2.2>
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	<15.9>	<11.5>	<25.3>	<0.7>	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	<7.7>	103.7	<26.3>	<38.2>	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	<0.32>	3.25	<0.48>	4.25	3.64
Fish Supply & Wholesale	<6.31>	<1.93>	<10.5>	12.10	<0.5>
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	<36.9>	14.20	20.50	28.70
Real Estate	<11.2>	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	<1.3>	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	<5.9>	<16.4>	<0.4>	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	<0.9>	<1.4>	0.30
* Based on Index of Industrial Production (2011 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.
The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.
In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.
For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1997, the SC is a Exempt Private company, focusing on trading of steel and coils. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 20 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at SGD 3,466,915, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

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

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

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

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

UNITED STEEL PTE. LTD.

Financial Year End	30/06/2012	30/06/2011
Months	12	12
Consolidated Account	GROUP	GROUP
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	SGD	SGD
TURNOVER	25,275,804	23,969,969
Other Income	146,320	3,258,293
	----------------	----------------
Total Turnover	25,422,124	27,228,262
Costs of Goods Sold	<23,904,388>	<22,282,062>
	----------------	----------------
Gross Profit	1,517,736	4,946,200
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	135,206	2,403,209
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	135,206	2,403,209
Taxation	<83,829>	178,570
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	51,377	2,581,779
Minority interests	<14,747>	<20,274>
	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	36,630	2,561,505
	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	36,630	2,561,505
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,430,285	1,468,780
	----------------	----------------
As restated	2,430,285	1,468,780
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,466,915	4,030,285
DIVIDENDS - Ordinary (paid & proposed)	-	<1,600,000>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,466,915	2,430,285
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	3,227	7,923
Hire purchase	5,626	12,334
Term loan / Borrowing	5,345	104,146
Trust receipts	286,243	256,801
Others	4,195	46,892
	----------------	----------------
	304,636	428,096
	=============	=============

BALANCE SHEET

UNITED STEEL PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	388,830	389,929
	----------------	----------------
TOTAL LONG TERM ASSETS	388,830	389,929
CURRENT ASSETS
Stocks	3,259,149	1,895,165
Trade debtors	3,183,666	2,366,965
Other debtors, deposits & prepayments	36,965	72,698
Short term deposits	3,129,051	2,703,814
Amount due from related companies	505,086	500,856
Amount due from director	326,600	498,245
Cash & bank balances	826,666	890,215
	----------------	----------------
TOTAL CURRENT ASSETS	11,267,183	8,927,958
	----------------	----------------
TOTAL ASSET	11,656,013	9,317,887
	=============	=============
CURRENT LIABILITIES
Trade creditors	7,647,350	4,643,421
Other creditors & accruals	2,644	95,190
Bank overdraft	36,933	-
Short term borrowings/Term loans	79,652	50,261
Provision for taxation	269,925	300,000
Lease payables	80,588	112,738
Other liabilities	31,215	403,243
	----------------	----------------
TOTAL CURRENT LIABILITIES	8,148,307	5,604,853
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	3,118,876	3,323,105
	----------------	----------------
TOTAL NET ASSETS	3,507,706	3,713,034
	=============	=============
SHARE CAPITAL
Ordinary share capital	1,000,000	1,000,000
	----------------	----------------
TOTAL SHARE CAPITAL	1,000,000	1,000,000
RESERVES
Retained profit/(loss) carried forward	2,466,915	2,430,285
	----------------	----------------
TOTAL RESERVES	2,466,915	2,430,285
MINORITY INTEREST	-	111,730
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	3,466,915	3,542,015
LONG TERM LIABILITIES
Long term loans	-	79,316
Lease obligations	40,791	71,849
Deferred taxation	-	19,854
	----------------	----------------
TOTAL LONG TERM LIABILITIES	40,791	171,019
	----------------	----------------
	3,507,706	3,713,034
	=============	=============

FINANCIAL RATIO

UNITED STEEL PTE. LTD.

TYPES OF FUNDS
Cash	3,955,717	3,594,029
Net Liquid Funds	3,918,784	3,594,029
Net Liquid Assets	<140,273>	1,427,940
Net Current Assets/(Liabilities)	3,118,876	3,323,105
Net Tangible Assets	3,507,706	3,713,034
Net Monetary Assets	<181,064>	1,256,921
BALANCE SHEET ITEMS
Total Borrowings	157,376	201,426
Total Liabilities	8,189,098	5,775,872
Total Assets	11,656,013	9,317,887
Net Assets	3,507,706	3,713,034
Net Assets Backing	3,466,915	3,542,015
Shareholders' Funds	3,466,915	3,542,015
Total Share Capital	1,000,000	1,000,000
Total Reserves	2,466,915	2,430,285
LIQUIDITY (Times)
Cash Ratio	0.49	0.64
Liquid Ratio	0.98	1.25
Current Ratio	1.38	1.59
WORKING CAPITAL CONTROL (Days)
Stock Ratio	47	29
Debtors Ratio	46	36
Creditors Ratio	117	76
SOLVENCY RATIOS (Times)
Gearing Ratio	0.05	0.06
Liabilities Ratio	2.36	1.63
Times Interest Earned Ratio	1.44	6.61
Assets Backing Ratio	3.51	3.71
PERFORMANCE RATIO (%)
Operating Profit Margin	0.53	10.03
Net Profit Margin	0.14	10.69
Return On Net Assets	12.54	76.25
Return On Capital Employed	12.41	74.03
Return On Shareholders' Funds/Equity	1.06	72.32
Dividend Pay Out Ratio (Times)	0.00	0.62
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.82
UK Pound	1	Rs.92.97
Euro	1	Rs.80.73

INFORMATION DETAILS

Report Prepared by :

SDA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.