MIRA INFORM REPORT

Report Date :

29.11.2013

IDENTIFICATION DETAILS

Name :	SERIAL MICROELECTRONICS PTE LTD
Formerly Known As :	SERIAL SEMICONDUCTOR PTE LTD
Registered Office :	8, UBI View, 05-01, Serial System Building, 408554
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	16.04.1994
Com. Reg. No.:	199402706-W
Legal Form :	Private Limited
Line of Business :	Wholesale of electronic components
No. of Employees :	60

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 :	Slow but correct
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.	:	199402706-W
COMPANY NAME	:	SERIAL MICROELECTRONICS PTE LTD
FORMER NAME	:	SERIAL SEMICONDUCTOR PTE LTD (07/06/1994)
INCORPORATION DATE	:	16/04/1994
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	8, UBI VIEW, 05-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.
BUSINESS ADDRESS	:	8, UBI VIEW, 04-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.
TEL.NO.	:	65-65102408
FAX.NO.	:	65-65102447
WEB SITE	:	WWW.SERIALSYSTEM.COM
CONTACT PERSON	:	GOH BAK HENG ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF ELECTRONIC COMPONENTS
ISSUED AND PAID UP CAPITAL	:	22,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 22,500,000.00
SALES	:	SGD 202,586,546 [2012]
NET WORTH	:	SGD 25,945,144 [2012]
STAFF STRENGTH	:	60 [2013]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	AVERAGE
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 of electronic components.

The immediate and ultimate holding company of the SC is SERIAL SYSTEM LTD, a company incorporated in SINGAPORE.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
SERIAL SYSTEM LTD	8, UBI VIEW, 05-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.	199202071D	22,500,000.00	100.00
			---------------	------
			22,500,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
198205060D	SINGAPORE	INTRACO TECHNOLOGY PTE LTD	100.00	31/12/2012
011019	SOUTH KOREA	SERIAL MICROELECTRONICS KOREA LIMITED	98.20	31/12/2012
011029	TAIWAN	SERIAL MICROELECTRONICS INC.	94.30	31/12/2012
018694	HONG KONG	SERIAL MICROELECTRONICS (HK) LIMITED	91.00	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	GOH BAK HENG
Address	:	20D, QUEEN ASTRID PARK, 266848, SINGAPORE.
IC / PP No	:	S1536872A
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/04/1994

DIRECTOR 2

Name Of Subject	:	KIM SANG YEOL
Address	:	101-608, SAMSUNG CHEREVILLE, 199-18, GUUI-DONG, GWANGJIN GU, SEOUL, KOREA.
IC / PP No	:	JR3649269
Nationality	:	KOREAN
Date of Appointment	:	22/05/2006

DIRECTOR 3

Name Of Subject	:	GOH SU TENG
Address	:	143, RIVERVALE DRIVE, 08-549, 540143, SINGAPORE.
IC / PP No	:	S7921488D
Nationality	:	SINGAPOREAN
Date of Appointment	:	23/04/2011

MANAGEMENT

1)	Name of Subject	:	GOH BAK HENG
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	MOORE STEPHENS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	WUI HECK KOON
	IC / PP No	:	S6901668E
	Address	:	543, BEDOK NORTH STREET 3, 04-1316, 460543, 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 againt 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 suppliers information.

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

OPERATIONS

Goods Traded

:

ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2013	2008
GROUP	N/A	N/A
COMPANY	60	50

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) wholesale of electronic components.

The SC belongs to the Serial group of companies.

The SC focuses on the distribution of semiconductor and electronic components.

The SC is also committed in providing technical, logistics and service excellence to the electronics manufacturing base by providing local sales and marketing support, value-added and design-in services to their customers and maintain supplier brand focus and market share for their franchise partners.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	6565102408
Current Telephone Number	:	65-65102408
Match	:	YES
Address Provided by Client	:	8 UBL VIEW, #04-01 SERIAL SYSTEM BUILDING SINGAPORE - 408554
Current Address	:	8, UBI VIEW, 04-01, SERIAL SYSTEM BUILDING, 408554, 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 incorrect.

The SC refused to disclose its banker.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	23.60%	]
Profit/(Loss) Before Tax	:	Decreased	[	50.47%	]
Return on Shareholder Funds	:	Acceptable	[	10.82%	]
Return on Net Assets	:	Acceptable	[	12.69%	]
The higher turnover could be attributed to the favourable market condition and the SC could be gaining the market share progressively.The SC's profit fell sharply because of the high operating costs incurred. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	30 Days	]
Debtor Ratio	:	Unfavourable	[	73 Days	]
Creditors Ratio	:	Favourable	[	45 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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	:	Unfavourable	[	0.79 Times	]
Current Ratio	:	Unfavourable	[	1.04 Times	]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Acceptable	[	3.46 Times	]
Gearing Ratio	:	Unfavourable	[	1.53 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 was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.
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. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. 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's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
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)

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 1994, the SC is a Private Limited company, focusing on wholesale of electronic components. 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 SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. The SC has strong capital position.

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 moderate size company, the SC has a total workforce of 60 employees in its business operations. 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. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Given a positive net worth standing at SGD 25,945,144, the SC should be able to maintain its business in the near terms.

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

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.

SERIAL MICROELECTRONICS PTE LTD

Financial Year End	2012-12-31	2011-12-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	SGD	SGD
TURNOVER	202,586,546	163,910,312
	----------------	----------------
Total Turnover	202,586,546	163,910,312
Costs of Goods Sold	<183,885,352>	<148,112,086>
	----------------	----------------
Gross Profit	18,701,194	15,798,226
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	2,705,240	5,462,297
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	2,705,240	5,462,297
Taxation	102,016	156,087
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	2,807,256	5,618,384
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,637,888	<905,350>
	----------------	----------------
As restated	1,637,888	<905,350>
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	4,445,144	4,713,034
DIVIDENDS - Ordinary (paid & proposed)	<1,000,000>	<3,075,146>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,445,144	1,637,888
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from holding company	146,329	28,298
Term loan / Borrowing	954,247	837,136
	----------------	----------------
	1,100,576	865,434

BALANCE SHEET

SERIAL MICROELECTRONICS PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	363,880	414,780
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	26,658,625	24,653,103
Others	366,722	366,722
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	27,025,347	25,019,825
	----------------	----------------
TOTAL LONG TERM ASSETS	27,389,227	25,434,605
CURRENT ASSETS
Stocks	16,589,652	14,475,654
Trade debtors	40,325,448	34,688,183
Other debtors, deposits & prepayments	374,336	765,165
Amount due from subsidiary companies	1,720,436	1,138,471
Amount due from related companies	16,468	45,686
Cash & bank balances	11,737,155	3,076,686
Others	-	184,800
	----------------	----------------
TOTAL CURRENT ASSETS	70,763,495	54,374,645
	----------------	----------------
TOTAL ASSET	98,152,722	79,809,250
	=============	=============
CURRENT LIABILITIES
Trade creditors	22,838,855	17,726,307
Other creditors & accruals	3,656,969	2,007,498
Short term borrowings/Term loans	3,900,000	4,600,000
Other borrowings	25,696,277	17,845,241
Bill & acceptances payable	6,051,955	5,395,092
Amounts owing to holding company	1,681,766	1,787,127
Amounts owing to subsidiary companies	3,939,609	2,251,222
Amounts owing to related companies	318,802	129,419
Provision for taxation	68,406	368,232
	----------------	----------------
TOTAL CURRENT LIABILITIES	68,152,639	52,110,138
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	2,610,856	2,264,507
	----------------	----------------
TOTAL NET ASSETS	30,000,083	27,699,112
	=============	=============
SHARE CAPITAL
Ordinary share capital	22,500,000	22,500,000
	----------------	----------------
TOTAL SHARE CAPITAL	22,500,000	22,500,000
RESERVES
Retained profit/(loss) carried forward	3,445,144	1,637,888
	----------------	----------------
TOTAL RESERVES	3,445,144	1,637,888
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	25,945,144	24,137,888
LONG TERM LIABILITIES
Other long term borrowings	4,054,939	3,561,224
	----------------	----------------
TOTAL LONG TERM LIABILITIES	4,054,939	3,561,224
	----------------	----------------
	30,000,083	27,699,112
	=============	=============

FINANCIAL RATIO

SERIAL MICROELECTRONICS PTE LTD

TYPES OF FUNDS
Cash	11,737,155	3,076,686
Net Liquid Funds	5,685,200	<2,318,406>
Net Liquid Assets	<13,978,796>	<12,211,147>
Net Current Assets/(Liabilities)	2,610,856	2,264,507
Net Tangible Assets	30,000,083	27,699,112
Net Monetary Assets	<18,033,735>	<15,772,371>
BALANCE SHEET ITEMS
Total Borrowings	39,703,171	31,401,557
Total Liabilities	72,207,578	55,671,362
Total Assets	98,152,722	79,809,250
Net Assets	30,000,083	27,699,112
Net Assets Backing	25,945,144	24,137,888
Shareholders' Funds	25,945,144	24,137,888
Total Share Capital	22,500,000	22,500,000
Total Reserves	3,445,144	1,637,888
LIQUIDITY (Times)
Cash Ratio	0.17	0.06
Liquid Ratio	0.79	0.77
Current Ratio	1.04	1.04
WORKING CAPITAL CONTROL (Days)
Stock Ratio	30	32
Debtors Ratio	73	77
Creditors Ratio	45	44
SOLVENCY RATIOS (Times)
Gearing Ratio	1.53	1.30
Liabilities Ratio	2.78	2.31
Times Interest Earned Ratio	3.46	7.31
Assets Backing Ratio	1.33	1.23
PERFORMANCE RATIO (%)
Operating Profit Margin	1.34	3.33
Net Profit Margin	1.39	3.43
Return On Net Assets	12.69	22.84
Return On Capital Employed	12.69	22.84
Return On Shareholders' Funds/Equity	10.82	23.28
Dividend Pay Out Ratio (Times)	0.36	0.55

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.39
UK Pound	1	Rs.101.80
Euro	1	Rs.84.75

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.