MIRA INFORM REPORT

Report Date :

31.12.2013

IDENTIFICATION DETAILS

Name :	SKK (S) PTE LTD
Registered Office :	14, Pandan Road, 609262,
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	17.08.1981
Com. Reg. No.:	198103872-W
Legal Form :	Private Limited
Line of Business :	Manufacture of paints and coatings
No. of Employees :	110

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 30, 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

EXECUTIVE SUMMARY

REGISTRATION NO.	:	198103872-W
COMPANY NAME	:	SKK (S) PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	17/08/1981
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	14, PANDAN ROAD, 609262, SINGAPORE.
BUSINESS ADDRESS	:	7 KIAN TECK ROAD, 628766, SINGAPORE.
TEL.NO.	:	65-62658355
FAX.NO.	:	65-62658275
CONTACT PERSON	:	FUJII MINORU ( DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURE OF PAINTS AND COATINGS
ISSUED AND PAID UP CAPITAL	:	6,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 6,000,000.00
SALES	:	SGD 63,180,517 [2012]
NET WORTH	:	SGD 12,008,301 [2012]
STAFF STRENGTH	:	110 [2013]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MATURE

HISTORY / BACKGROUND

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacture of paints and coatings.

The immediate and ultimate holding company of the Subject is SK KAKEN CO LTD, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
14/05/2012	SGD 6,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
SK KAKEN CO LTD	3-5-25, NAKAHOZUMI, IBARAKI, OSAKA, 567-0034, JAPAN.	S81UF0394	6,000,000.00	100.00
			---------------	------
			6,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	VIETNAM	SKK VIETNAM CO LTD	100.00	31/12/2011

DIRECTORS

DIRECTOR 1

Name Of Subject	:	SEKIGUCHI SATOSHI
Address	:	3B RIDLEY PARK, 03 - 04, TANGLIN PARK, 248473, SINGAPORE.
IC / PP No	:	F1980868T
Nationality	:	JAPANESE
Date of Appointment	:	15/12/2004

DIRECTOR 2

Name Of Subject	:	YAMAMOTO BUICHI
Address	:	180A, BENCOOLEN STREET, 10 - 08, BENCOOLEN, THE, 189647, SINGAPORE.
IC / PP No	:	G5865788W
Nationality	:	JAPANESE
Date of Appointment	:	01/06/2011

DIRECTOR 3

Name Of Subject	:	FUJII MITSUHIRO
Address	:	2-13-3-603, MAITANI TAKARAZUKA, HYOGO, JAPAN.
IC / PP No	:	TF1456370
Nationality	:	JAPANESE
Date of Appointment	:	09/06/2000

DIRECTOR 4

Name Of Subject	:	FUJII MINORU
Address	:	6-5, MAITANI 1-CHOME, TAKARAZUKA CITY, HYOGO PREFECTURE, JAPAN.
IC / PP No	:	TK5309624
Nationality	:	JAPANESE
Date of Appointment	:	10/04/2012

MANAGEMENT

1)	Name of Subject	:	FUJII MINORU
	Position	:	DIRECTOR

2)	Name of Subject	:	SEKIGUCHI SATOSHI
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	PKF-CAP LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	YAMAMOTO BUICHI
	IC / PP No	:	G5865788W
	Address	:	180A, BENCOOLEN STREET, 10 - 08, BENCOOLEN, THE, 189647, 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 SUBJECT

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

LEGAL ACTION
Code No	:	99	Case No	:	6749
Year	:	2007	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	26/03/2007
Solicitor	:	KWOK LING LING BONNIE
Solicitor Ref	:	BK.5157.06
Solicitor Firm	:	BONNIE KWOK & CO
Plaintiff	:	POWER-VAC SERVICES (S) PTE. LTD.
Defendants	:	SKK (S) PTE LTD (198103872)
Amount Claimed	:	4050
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	3679
Year	:	2011	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	08/12/2011
Solicitor Ref	:	KR 8045
Solicitor Firm	:	K RAVI LAW CORPORATION
Plaintiff	:	KANAGARAJI PRAKASAM
Defendants	:	SKK (S) PTE LTD (198103872)
Amount Claimed	:	90000
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	13649
Year	:	2013	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	20/06/2013
Solicitor Ref	:	D.AQ.IA.9573.10.J Y
Solicitor Firm	:	DOMINION LLC
Plaintiff	:	ZILLUR RAHMAN BHUIYAN MD AMIR CHAN BHUIYAN
Defendants	:	SKK (S) PTE LTD (198103872)
Amount Claimed	:	60000
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 Subject refused to disclose its suppliers.

The Subject 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
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

PAINTS AND COATINGS

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	110

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture of paints and coatings.

The Subject refused to disclose any information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6274 0020
Current Telephone Number	:	65-62658355
Match	:	NO
Address Provided by Client	:	NO. 14 PANDAN ROAD, SINGAPORE 609262
Current Address	:	7 KIAN TECK ROAD, 628766, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided belongs to the Subject's registered office.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2010 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	<1.19%>	]
Return on Net Assets	:	Unfavourable	[	<0.62%>	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	37 Days	]
Debtor Ratio	:	Unfavourable	[	90 Days	]
Creditors Ratio	:	Favourable	[	44 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.25 Times	]
Current Ratio	:	Unfavourable	[	1.70 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	<2.02 Times>	]
Gearing Ratio	:	Favourable	[	0.17 Times	]
The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the Subject's losses. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject 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 Subject : 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)

INDUSTRY ANALYSIS

INDUSTRY :	MANUFACTURING
The manufacturing sector contracted by 1.1% in the fourth quarter of 2012, led by declines in the electronics and precision engineering clusters. These clusters were weighed down by weak global demand for semiconductors and semiconductor-related equipment. For the whole year of 2012, the manufacturing sector grew by 0.1%, significantly lower than the 7.8% recorded in 2011 when the sector was boosted by a surge in the growth of the biomedical manufacturing cluster.
Output of the biomedical manufacturing cluster grew by 2.4% in the fourth quarter. The expansion was driven by the medical technology segment which grew by a healthy 9.2%, benefitting from robust export demand for medical devices. The pharmaceuticals segment also grew by a modest 1.1%. For 2012, the biomedical manufacturing cluster expanded by 9.9%.
Output of the transport engineering cluster expanded by 4.9% in the fourth quarter. The aerospace segment grew by 6.2%, supported by higher demand for repair jobs from commercial airlines. Similarly, the marine & offshore engineering segment expanded by 5.0%, on the back of higher contributions from oil rig projects and oilfield equipment components. In the year 2012, the transport engineering cluster surged by 11%.
The output of the precision engineering cluster shrank by 1.3% in the fourth quarter. The decline was led by the 5.3% contraction in the machinery & systems segment, which saw weak export demand for semiconductor-related equipment. On the other hand, the precision modules & components segment grew by 2.9%, supported by higher production of optical instruments & photographic equipment and electronic connectors. In 2012, the precision engineering cluster expanded by 1.3%.
The general manufacturing cluster's output grew by 1.2% in the fourth quarter, driven by the 6.4% growth in the miscellaneous industries segment. The segment's growth was supported by higher production of batteries and constructionrelated materials. By contrast, the printing and food, beverages & tobacco segments declined by 6.4% and 1.3% respectively. For 2012, the general manufacturing cluster grew by 2.0%.
The chemicals cluster's output grew by 7.7% in the fourth quarter. The petrochemicals and petroleum segments registered growth of 9.3% and 6.3% respectively, partly due to the low base from plant shutdowns in end of 2011. The specialty chemicals segment also expanded by 8.0% on the back of higher regional demand. For the year 2012, the chemicals cluster declined by 0.4%, primarily due to weak regional demand for specialty chemicals in the second and third quarter of 2012.
Output of the electronics cluster contracted by 10% in the fourth quarter, led by the semiconductors and computer peripherals segments which contracted by 13% and 15% respectively. By contrast, the data storage segment grew by 7.8%, mainly due to the low base in end of 2011 when floods in Thailand had disrupted the supply chain for data storage products. For the whole of 2012, the electronics cluster contracted by 11%.
OVERALL INDUSTRY OUTLOOK : MATURE

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1981, the Subject is a Private Limited company, focusing on manufacture of paints and coatings. With over 3 decades of experience in the business, the Subject has fairly rich experiences in the business and has achieved a certain market share. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 110 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Despite the higher turnover, the Subject suffered pre-tax losses which reflected a highly competitive business environment. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject 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 lowly geared company, the Subject 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 12,008,301, the Subject should be able to maintain its business in the near terms.

Overall, the Subject's payment habit is good as the Subject 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 has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

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

PROFIT AND LOSS ACCOUNT

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

SKK (S) PTE LTD

Financial Year End	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12
Consolidated Account	Company	Company	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	FULL
Currency	SGD	SGD	SGD
Unit
TURNOVER	63,180,517	60,596,446	55,881,857
Other Income	448,800	105,308	64,705
	----------------	----------------	----------------
Total Turnover	63,629,317	60,701,754	55,946,562
Costs of Goods Sold	<55,253,033>	<53,146,615>	<48,203,550>
	----------------	----------------	----------------
Gross Profit	8,376,284	7,555,139	7,743,012
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	<142,562>	<1,341,744>	550,945
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	<142,562>	<1,341,744>	550,945
Taxation	-	-	<134,453>
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	<142,562>	<1,341,744>	416,492
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	6,150,863	7,492,607	7,076,115
	----------------	----------------	----------------
As restated	6,150,863	7,492,607	7,076,115
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	6,008,301	6,150,863	7,492,607
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	6,008,301	6,150,863	7,492,607
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	1,463	1,483	998
Term loan / Borrowing	45,809	34,174	32,699
	----------------	----------------	----------------
	47,272	35,657	33,697

BALANCE SHEET

SKK (S) PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	4,211,815	4,470,897	4,647,724
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	614,350	614,350	-
Investments	445,292	444,887	440,847
	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,059,642	1,059,237	440,847
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	-	-	5,226
	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	-	-	5,226
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	5,271,457	5,530,134	5,093,797
CURRENT ASSETS
Stocks	6,474,426	7,210,565	6,688,150
Trade debtors	15,603,763	13,513,849	11,309,238
Other debtors, deposits & prepayments	475,548	482,651	659,478
Amount due from related companies	1,593,748	1,393,481	2,783,004
Cash & bank balances	226,580	399,394	701,709
Amount owing by customer	-	-	2,766,864
Others	-	-	35,146
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	24,374,065	22,999,940	24,943,589
	----------------	----------------	----------------
TOTAL ASSET	29,645,522	28,530,074	30,037,386
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	6,616,441	7,057,861	6,281,221
Other creditors & accruals	1,838,846	2,325,142	2,526,649
Hire purchase & lease creditors	7,102	7,102	-
Bank overdraft	527,840	-	-
Short term borrowings/Term loans	1,500,000	600,000	-
Other liabilities & accruals	3,323,600	4,549,965	4,173,070
Amounts owing to holding company	441,236	1,449,811	1,409,855
Provision for taxation	10,680	10,680	111,000
Other liabilities	86,216	86,216	1,786,984
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	14,351,961	16,086,777	16,288,779
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	10,022,104	6,913,163	8,654,810
	----------------	----------------	----------------
TOTAL NET ASSETS	15,293,561	12,443,297	13,748,607
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	6,000,000	6,000,000	6,000,000
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	6,000,000	6,000,000	6,000,000
RESERVES
Retained profit/(loss) carried forward	6,008,301	6,150,863	7,492,607
	----------------	----------------	----------------
TOTAL RESERVES	6,008,301	6,150,863	7,492,607
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	12,008,301	12,150,863	13,492,607
LONG TERM LIABILITIES
Lease obligations	29,260	36,434	-
Deferred taxation	256,000	256,000	256,000
Others	3,000,000	-	-
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	3,285,260	292,434	256,000
	----------------	----------------	----------------
	15,293,561	12,443,297	13,748,607
	=============	=============	=============

FINANCIAL RATIO

SKK (S) PTE LTD

TYPES OF FUNDS
Cash	226,580	399,394	701,709
Net Liquid Funds	<301,260>	399,394	701,709
Net Liquid Assets	3,547,678	<297,402>	1,966,660
Net Current Assets/(Liabilities)	10,022,104	6,913,163	8,654,810
Net Tangible Assets	15,293,561	12,443,297	13,743,381
Net Monetary Assets	262,418	<589,836>	1,710,660
BALANCE SHEET ITEMS
Total Borrowings	2,064,202	643,536	0
Total Liabilities	17,637,221	16,379,211	16,544,779
Total Assets	29,645,522	28,530,074	30,037,386
Net Assets	15,293,561	12,443,297	13,748,607
Net Assets Backing	12,008,301	12,150,863	13,492,607
Shareholders' Funds	12,008,301	12,150,863	13,492,607
Total Share Capital	6,000,000	6,000,000	6,000,000
Total Reserves	6,008,301	6,150,863	7,492,607
LIQUIDITY (Times)
Cash Ratio	0.02	0.02	0.04
Liquid Ratio	1.25	0.98	1.12
Current Ratio	1.70	1.43	1.53
WORKING CAPITAL CONTROL (Days)
Stock Ratio	37	43	44
Debtors Ratio	90	81	74
Creditors Ratio	44	48	48
SOLVENCY RATIOS (Times)
Gearing Ratio	0.17	0.05	0.00
Liabilities Ratio	1.47	1.35	1.23
Times Interest Earned Ratio	<2.02>	<36.63>	17.35
Assets Backing Ratio	2.55	2.07	2.29
PERFORMANCE RATIO (%)
Operating Profit Margin	<0.23>	<2.21>	0.99
Net Profit Margin	<0.23>	<2.21>	0.75
Return On Net Assets	<0.62>	<10.50>	4.25
Return On Capital Employed	<0.60>	<10.49>	4.25
Return On Shareholders' Funds/Equity	<1.19>	<11.04>	3.09
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.00
UK Pound	1	Rs.102.17
Euro	1	Rs.85.19

INFORMATION DETAILS

Report Prepared by :

NIS

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.