MIRA INFORM REPORT

Report Date :

07.12.2013

IDENTIFICATION DETAILS

Name :	MIDEA ELECTRIC TRADING (SINGAPORE) CO. PTE. LTD.
Registered Office :	50 Raffles Place, 38-05, Singapore Land Tower, 048623
Country :	Singapore
Financials (as on) :	31.12.2011
Date of Incorporation :	11.01.2008
Com. Reg. No.:	200800970-G
Legal Form :	Private Limited Company
Line of Business :	Wholesale trader & wholesaler of household electrical appliances (including Refrigerator, Air Conditioner, Washing Machine, Wine cooler & Fan) & equipment
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		TATUS	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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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.	:	200800970-G
COMPANY NAME	:	MIDEA ELECTRIC TRADING (SINGAPORE) CO. PTE. LTD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	11/01/2008
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	50 RAFFLES PLACE, 38-05, SINGAPORE LAND TOWER, 048623, SINGAPORE.
BUSINESS ADDRESS	:	50 RAFFLES PLACE, 38-05, SINGAPORE LAND TOWER, 048623, SINGAPORE.
TEL.NO.	:	65-65320216
FAX.NO.	:	65-65322782
CONTACT PERSON	:	BAEY CHENG SONG ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE TRADE & WHOLESALE OF HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT
ISSUED AND PAID UP CAPITAL	:	50,700,000.00 ORDINARY SHARE, OF A VALUE OF SGD 64,760,000.00
SALES	:	USD 2,500,393,000 [2011]
NET WORTH	:	USD 112,066,000 [2011]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) wholesale trade & wholesale of household electrical appliances & equipment.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MIDEA ELECTRIC INVESTMENT (BVI) LIMITED	P.O. BOX 3340, ROAD TOWN, TORTOLA, VIRGIN ISLANDS, BRITISH.	T07UF3838	50,700,000.00	100.00
			---------------	------
			50,700,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
011021	UNITED STATES	MIDEA LATIN AMERICA CORPORATION	100.00	31/12/2011
011008	NETHERLANDS	MIDEA ELECTRICS NETHERLANDS B.V.	100.00	31/12/2011
011000	MEXICO	MIDEA MEXICO S DE RL DE CV	99.00	31/12/2011

DIRECTORS

DIRECTOR 1

Name Of Subject	:	BAEY CHENG SONG
Address	:	37, GROVE DRIVE, HENRY PARK, 279077, SINGAPORE.
IC / PP No	:	S0247168Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	11/01/2008

DIRECTOR 2

Name Of Subject	:	GU YANMIN
Address	:	12-1-208 YIXIN YUAN, XING HE WAN, YING BIN ROAD, PANYU DISTRICT, GUANGZHOU, GUANGDONG PROVINCE, P.R.C., CHINA.
IC / PP No	:	G39865353
Nationality	:	CHINESE
Date of Appointment	:	22/02/2012

DIRECTOR 3

Name Of Subject	:	LIN GE
Address	:	BLOCK 4, DONGJI ROAD 6, 401, BEJIAO SHUNDE, FOSHAN, GUANGDONG, CHINA.
IC / PP No	:	G26119298
Nationality	:	CHINESE
Date of Appointment	:	26/03/2013

DIRECTOR 4

Name Of Subject	:	YUAN LIQUN
Address	:	89, DIE CUI TING, XI YUAN, BI GUI YUAN, BEIJIAO TOWN, SHUNDE DISTRICT, FOSHAN CITY, GUANGDONG PROVINCE, CHINA.
IC / PP No	:	G36491385
Nationality	:	CHINESE
Date of Appointment	:	25/03/2013

MANAGEMENT

1)	Name of Subject	:	BAEY CHENG SONG
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	RSM CHIO LIM LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	WONG YOEN HAR
	IC / PP No	:	S1771279I
	Address	:	243, BISHAN STREET 22, 21-280, 570243, SINGAPORE.

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 disclosed its supplier. 

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	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA

OPERATIONS

Goods Traded

:

AIR CONDITIONER, REFRIGERATOR, WASHING MACHINE, DEHUMIDIFIER, WINE CHILLER AND OTHER HOUSEHOLD ELECTRICAL APPLIANCES

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) wholesale trade & wholesale of household electrical appliances & equipment. 

SC involved in trading and wholesale of household electrical appliances.

The major products are :
- Refrigerator
- Air Conditioner
- Washing Machine
- Wine cooler
- Fan
- Other household electrical appliances 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	6565320216
Current Telephone Number	:	65-65320216
Match	:	YES
Address Provided by Client	:	50-RAFFLE'S PLACE, 38-05 SINGAPORE LAND TOWER, SINGAPORE 048623
Current Address	:	50 RAFFLES PLACE, 38-05, SINGAPORE LAND TOWER, 048623, SINGAPORE.
Match	:	YES

Other Investigations

we contacted the SC and she provide limited information on SC.

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	210.74%	]
Profit/(Loss) Before Tax	:	Increased	[	106.38%	]
Return on Shareholder Funds	:	Favourable	[	37.11%	]
Return on Net Assets	:	Favourable	[	44.83%	]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	0 Days	]
Debtor Ratio	:	Favourable	[	41 Days	]
Creditors Ratio	:	Favourable	[	1 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 SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.03 Times	]
Current Ratio	:	Unfavourable	[	1.03 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	8.82 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : FAIR

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 2008, the SC is a Private Limited company, focusing on wholesale trade & wholesale of household electrical appliances & equipment. 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. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. With a huge paid up capital, the SC is allowed to expand its business comfortably. 

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

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 112,066,000, the SC should be able to maintain its business in the near terms. 

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

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 promptly.

PROFIT AND LOSS ACCOUNT

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

MIDEA ELECTRIC TRADING (SINGAPORE) CO. PTE. LTD.

Financial Year End	2011-12-31	2010-12-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	2,500,393,000	804,657,000
	----------------	----------------
Total Turnover	2,500,393,000	804,657,000
Costs of Goods Sold	<2,427,479,000>	<780,702,000>
	----------------	----------------
Gross Profit	72,914,000	23,955,000
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	44,544,000	21,584,000
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	44,544,000	21,584,000
Taxation	<2,959,000>	<1,016,000>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	41,585,000	20,568,000
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	39,937,000	19,369,000
	----------------	----------------
As restated	39,937,000	19,369,000
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	81,522,000	39,937,000
DIVIDENDS - Ordinary (paid & proposed)	<19,968,000>	-
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	61,554,000	39,937,000
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	5,697,000	810,000
	----------------	----------------
	5,697,000	810,000

BALANCE SHEET

MIDEA ELECTRIC TRADING (SINGAPORE) CO. PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	12,000	6,000
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	38,228,000	38,228,000
Associated companies	45,257,000	14,768,000
Investments	1,818,000	1,818,000
Others	6,779,000	2,639,000
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	92,082,000	57,453,000
	----------------	----------------
TOTAL LONG TERM ASSETS	92,094,000	57,459,000
CURRENT ASSETS
Stocks	716,000	-
Trade debtors	282,925,000	175,992,000
Other debtors, deposits & prepayments	61,000	2,033,000
Amount due from subsidiary companies	6,092,000	60,000
Amount due from related companies	370,824,000	60,296,000
Cash & bank balances	28,039,000	14,677,000
Others	7,644,000	54,000
	----------------	----------------
TOTAL CURRENT ASSETS	696,301,000	253,112,000
	----------------	----------------
TOTAL ASSET	788,395,000	310,571,000
	=============	=============
CURRENT LIABILITIES
Trade creditors	7,141,000	2,855,000
Other creditors & accruals	28,000	-
Deposits from customers	65,335,000	48,911,000
Amounts owing to subsidiary companies	561,000	-
Amounts owing to related companies	152,596,000	132,294,000
Provision for taxation	2,784,000	940,000
Other liabilities	447,884,000	75,122,000
	----------------	----------------
TOTAL CURRENT LIABILITIES	676,329,000	260,122,000
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	19,972,000	<7,010,000>
	----------------	----------------
TOTAL NET ASSETS	112,066,000	50,449,000
	=============	=============
SHARE CAPITAL
Ordinary share capital	50,512,000	512,000
	----------------	----------------
TOTAL SHARE CAPITAL	50,512,000	512,000
RESERVES
Retained profit/(loss) carried forward	61,554,000	39,937,000
	----------------	----------------
TOTAL RESERVES	61,554,000	39,937,000
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	112,066,000	40,449,000
LONG TERM LIABILITIES
Others	-	10,000,000
	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	10,000,000
	----------------	----------------
	112,066,000	50,449,000
	=============	=============

FINANCIAL RATIO

MIDEA ELECTRIC TRADING (SINGAPORE) CO. PTE. LTD.

TYPES OF FUNDS
Cash	28,039,000	14,677,000
Net Liquid Funds	28,039,000	14,677,000
Net Liquid Assets	19,256,000	<7,010,000>
Net Current Assets/(Liabilities)	19,972,000	<7,010,000>
Net Tangible Assets	112,066,000	50,449,000
Net Monetary Assets	19,256,000	<17,010,000>
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	676,329,000	270,122,000
Total Assets	788,395,000	310,571,000
Net Assets	112,066,000	50,449,000
Net Assets Backing	112,066,000	40,449,000
Shareholders' Funds	112,066,000	40,449,000
Total Share Capital	50,512,000	512,000
Total Reserves	61,554,000	39,937,000
LIQUIDITY (Times)
Cash Ratio	0.04	0.06
Liquid Ratio	1.03	0.97
Current Ratio	1.03	0.97
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	41	80
Creditors Ratio	1	1
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	6.04	6.68
Times Interest Earned Ratio	8.82	27.65
Assets Backing Ratio	2.22	98.53
PERFORMANCE RATIO (%)
Operating Profit Margin	1.78	2.68
Net Profit Margin	1.66	2.56
Return On Net Assets	44.83	44.39
Return On Capital Employed	44.83	44.39
Return On Shareholders' Funds/Equity	37.11	50.85
Dividend Pay Out Ratio (Times)	0.48	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.67
UK Pound	1	Rs.100.65
Euro	1	Rs.84.25

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.