MIRA INFORM REPORT

Report Date :

23.08.2013

IDENTIFICATION DETAILS

Name :	ROYAL SKANDIA LIFE ASSURANCE LIMITED (SINGAPORE BRANCH)
Registered Office :	8, Marina Boulevard, 05-02, Marina Bay Financial Centre, 018981
Country :	Singapore
Financials (as on) :	31.12.2011
Date of Incorporation :	29.01.2008
Com. Reg. No.:	T08FC7158-E
Legal Form :	Foreign Company
Line of Business :	Subject is engaged as a life insurance
No. of Employees :	Not available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

NOTES:

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

ECGC Country Risk Classification List – March 31^st 2013

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

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	T08FC7158-E
COMPANY NAME	:	ROYAL SKANDIA LIFE ASSURANCE LIMITED (SINGAPORE BRANCH)
FORMER NAME	:	N/A
INCORPORATION DATE	:	29/01/2008
COMPANY STATUS	:	EXIST
LEGAL FORM	:	FOREIGN
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	8, MARINA BOULEVARD, 05-02, MARINA BAY FINANCIAL CENTRE, 018981, SINGAPORE.
BUSINESS ADDRESS	:	LEVEL 25, NORTH TOWER, 1 RAFFLES QUAY, 048583, SINGAPORE.
TEL.NO.	:	65-66225406
FAX.NO.	:	65-66225400
CONTACT PERSON	:	DAVID BUENFIL ( DIRECTOR )
PRINCIPAL ACTIVITY	:	LIFE INSURANCE
AUTHORISED CAPITAL	:	SGD 65,000,000.00
SALES	:	N/A
NET WORTH	:	SGD 38,761,453 [2011]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	N/A
PAYMENT	:	N/A
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MARGINAL GROWTH

HISTORY / BACKGROUND

The SC is principally engaged in the (as a / as an) life insurance.

The ultimate holding company of the SC is OLD MUTUAL PLC., a company incorporated in UNITED KINGDOM.

No shareholders was found in our databank at the time of investigation

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. DAVID BUENFIL
Address	:	CALLE 86, 11-19, APARTMENT 904, BOGOTA, COLOMBIA.
IC / PP No	:	07340013866
Nationality	:	MEXICAN
Date of Appointment	:	30/05/2008

DIRECTOR 2

Name Of Subject	:	MICHELLE ANDREWS
Address	:	ROBIN HILL, MAIN ROAD, ITCHEN ABBAS, SO21 1AT, HAMPSHIRE, UNITED KINGDOM.
IC / PP No	:	203758972
Nationality	:	BRITISH
Date of Appointment	:	12/10/2006

DIRECTOR 3

Name Of Subject	:	STEVEN DAVIN LEVIN
Address	:	TUMBLERS BARN, FAIROAK LANE, OXSHOTT, LEATHERHEAD, KT22 0TY, SURREY, UNITED KINGDOM.
IC / PP No	:	C4YM3VR46
Nationality	:	GERMAN
Date of Appointment	:	12/07/2011

DIRECTOR 4

Name Of Subject	:	JOHN DIVID HOLLIS
Address	:	WILLOWMEAD, BALLAUGHTON MEADOWS, IM2 1JG, BRADDAN, ISLE OF MAN.
IC / PP No	:	621049823
Nationality	:	BRITISH
Date of Appointment	:	20/03/2002

DIRECTOR 5

Name Of Subject	:	ROBERT ADAM LONG
Address	:	EYRETON, QUARTERBRIDGE ROAD DOUGLAS, IM2 3RF, ISLE OF MAN.
IC / PP No	:	621100729
Nationality	:	BRITISH
Date of Appointment	:	26/08/2010

DIRECTOR 6

Name Of Subject	:	IAN MORRIS
Address	:	DENALI, FORT ROAD, ST PETER PORT, GY1 1ZU GUERNSEY
IC / PP No	:	627070604
Nationality	:	BRITISH
Date of Appointment	:	01/05/2008

MANAGEMENT

1)	Name of Subject	:	DAVID BUENFIL
	Position	:	DIRECTOR

AUDITOR

No Auditor found in our databank 

COMPANY SECRETARIES

1)	Company Secretary	:	TEH KWANG HWEE
	IC / PP No	:	S1153921A
	Address	:	74, TELOK BLANGAH HEIGHTS, 05-305, 100074, SINGAPORE.
	Remarks	:	AGENT

2)	Company Secretary	:	TAN KIA YEW
	IC / PP No	:	S1283945F
	Address	:	496F, TAMPINES AVENUE 9, 13-510, 522496, SINGAPORE.
	Remarks	:	AGENT

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation. 

LEGAL CHECK AGAINST SC

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

No legal action was found in our databank. 

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 supplier. 

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The SC refused to disclose its clientele. 

OPERATIONS

Services

:

LIFE INSURANCE SERVICES

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) life insurance. 

The SC refused to disclose business operation. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-66225406
Match	:	N/A
Address Provided by Client	:	SINGAPORE
Current Address	:	LEVEL 25, NORTH TOWER, 1 RAFFLES QUAY, 048583, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided is incomplete.

The SC refused to disclose its number of employees and its bankers.

The SC is service provider. Thus, the SC does not have turnover.

FINANCIAL ANALYSIS

Overall Assessment :

The SC's turnover was nil during the year. As a result, we are unable to comment on its financial performance.

Overall financial condition of the SC : N/A

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 :	ECONOMY
According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.
However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.
Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.
For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.
Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.
For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentagepoints. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.
In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.
Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2008, the SC is a Foreign company, focusing on life insurance. Having been in business for more than 5 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. 

Overall, we regard that the SC's management capability is average. 

The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. 

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. 

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

In view of the above, we recommend credit be granted to the SC with close monitoring.

PROFIT AND LOSS ACCOUNT

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

ROYAL SKANDIA LIFE ASSURANCE LIMITED (SINGAPORE BRANCH)

Financial Year End	31/12/2011	31/12/2010
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	SGD	SGD
PROFIT/(LOSS) FROM OPERATIONS	<10,865,113>	<9,604,729>
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	<10,865,113>	<9,604,729>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	<10,865,113>	<9,604,729>
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	<17,663,907>	<2,639,579>
	----------------	---------------
As restated	<17,663,907>	<2,639,579>
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	<28,529,020>	<12,244,308>
TRANSFER TO RESERVES - Statutory	-	<5,419,599>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	<28,529,020>	<17,663,907>
	=============	=============

BALANCE SHEET

ROYAL SKANDIA LIFE ASSURANCE LIMITED (SINGAPORE BRANCH)

LONG TERM INVESTMENTS/OTHER ASSETS
Investments	297,289,940	190,429,408
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	297,289,940	190,429,408
	----------------	----------------
TOTAL LONG TERM ASSETS	297,289,940	190,429,408
CURRENT ASSETS
Trade debtors	65,914	65,361
Short term deposits	6,233,714	6,172,646
Cash & bank balances	7,046,608	13,900,296
Others	72,583,686	45,706,468
	----------------	----------------
TOTAL CURRENT ASSETS	85,929,922	65,844,771
	----------------	----------------
TOTAL ASSET	383,219,862	256,274,179
	=============	=============
CURRENT LIABILITIES
Other creditors & accruals	40,298	40,113
Other liabilities & accruals	344,418,111	207,964,626
	----------------	----------------
TOTAL CURRENT LIABILITIES	344,458,409	208,004,739
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	<258,528,487>	<142,159,968>
	----------------	----------------
TOTAL NET ASSETS	38,761,453	48,269,440
	=============	=============
SHARE CAPITAL
Ordinary share capital	74,732,150	73,532,150
	----------------	----------------
TOTAL SHARE CAPITAL	74,732,150	73,532,150
RESERVES
Exchange equalisation/fluctuation reserve	<7,441,677>	<7,598,803>
Retained profit/(loss) carried forward	<28,529,020>	<17,663,907>
	----------------	----------------
TOTAL RESERVES	<35,970,697>	<25,262,710>
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	38,761,453	48,269,440
	----------------	----------------
	38,761,453	48,269,440
	=============	=============

FINANCIAL RATIO

ROYAL SKANDIA LIFE ASSURANCE LIMITED (SINGAPORE BRANCH)

TYPES OF FUNDS
Cash	13,280,322	20,072,942
Net Liquid Funds	13,280,322	20,072,942
Net Liquid Assets	<258,528,487>	<142,159,968>
Net Current Assets/(Liabilities)	<258,528,487>	<142,159,968>
Net Tangible Assets	38,761,453	48,269,440
Net Monetary Assets	<258,528,487>	<142,159,968>
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	344,458,409	208,004,739
Total Assets	383,219,862	256,274,179
Net Assets	38,761,453	48,269,440
Net Assets Backing	38,761,453	48,269,440
Shareholders' Funds	38,761,453	48,269,440
Total Share Capital	74,732,150	73,532,150
Total Reserves	<35,970,697>	<25,262,710>
LIQUIDITY (Times)
Cash Ratio	0.04	0.10
Liquid Ratio	0.25	0.32
Current Ratio	0.25	0.32
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	0	0
Creditors Ratio	0	0
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	8.89	4.31
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	-	-
PERFORMANCE RATIO (%)
Operating Profit Margin	0.00	0.00
Net Profit Margin	0.00	0.00
Return On Net Assets	<28.03>	<19.90>
Return On Capital Employed	<28.03>	<19.90>
Return On Shareholders' Funds/Equity	<28.03>	<19.90>
Dividend Pay Out Ratio (Times)	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.42
UK Pound	1	Rs.102.09
Euro	1	Rs.87.32

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

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

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

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

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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