MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	REC SOLAR PTE. LTD.
Formerly Known As :	REC MODULES PTE. LTD.
Registered Office :	20, Tuas South Avenue 14, 637312,
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	19.12.2007
Com. Reg. No.:	2000 [2014]
Legal Form :	Private Limited
Line of Business :	Manufacturing of modules for the solar industry
No. of Employees	2,000 [2014]

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 :	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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. 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

Company name and address

REGISTRATION NO.	:	200723409-E
COMPANY NAME	:	REC SOLAR PTE. LTD.
FORMER NAME	:	REC MODULES PTE. LTD. (01/01/2014)
INCORPORATION DATE	:	19/12/2007
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	20, TUAS SOUTH AVENUE 14, 637312, SINGAPORE.
BUSINESS ADDRESS	:	20, TUAS SOUTH AVENUE 14, 637312, SINGAPORE.
TEL.NO.	:	65-64959228
FAX.NO.	:	65-64959050
WEB SITE	:	WWW.RECGROUP.COM
CONTACT PERSON	:	GERALD BALENDRAN SINGHAM ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURING OF MODULES FOR THE SOLAR INDUSTRY
ISSUED AND PAID UP CAPITAL	:	667,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 667,500,000.00
SALES	:	EUR 446,100,000 [2013]
NET WORTH	:	EUR 88,820,000 [2013]
STAFF STRENGTH	:	2000 [2014]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	STABLE
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	GOOD
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	HIGH
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) manufacturing of modules for the solar industry.

The immediate holding company of the Subject is REC SOLAR HOLDINGS AS, a company incorporated in NORWAY.

The ultimate holding company of the Subject is RENEWABLE ENERGY CORPORATION ASA, a company incorporated in NORWAY.

Share Capital History

Date	Issue & Paid Up Capital
06/08/2014	SGD 667,500,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
REC SOLAR HOLDINGS AS	KJORBOVEIEN 29, 1337 SANDVIKA, NORWAY.	T13UF4209	667,500,000.00	100.00
			---------------	------
			667,500,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	GERALD GERALD BALENDRAN SINGHAM
Address	:	100, CLEMENCEAU AVENUE NORTH, 14-111, CAVENAGH HOUSE, 229491, SINGAPORE.
IC / PP No	:	S1503623J
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/12/2007

DIRECTOR 2

Name Of Subject	:	MARTIN COOPER
Address	:	10A, MOUNT SOPHIA, 07-15, 8 @ MOUNT SOPHIA, 228462, SINGAPORE.
IC / PP No	:	S2751780C
Nationality	:	SINGAPOREAN
Date of Appointment	:	24/01/2014

MANAGEMENT

1)	Name of Subject	:	GERALD BALENDRAN SINGHAM
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	GERALD BALENDRAN SINGHAM
	IC / PP No	:	S1503623J
	Address	:	100, CLEMENCEAU AVENUE NORTH, 14-111, CAVENAGH HOUSE, 229491, SINGAPORE.

2)	Company Secretary	:	AU YAN SHUK SHAN MARIA
	IC / PP No	:	S2570131C
	Address	:	5, JALAN RUMBIA, 11-07, THE IMPERIAL, 239618, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201403385	02/04/2014	N/A	DNB BANK ASA SINGAPORE BRANCH	-	Unsatisfied

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	:	461
Year	:	2004	Place	:	SINGAPORE
Court	:	SUPREME COURT
Date Filed	:	30/04/2014
Solicitor	:	YEE MUN HOWE GERALD
Solicitor Ref	:	GYE.PRN.RECWAFER.SK
Solicitor Firm	:	COLIN NG & PARTNERS LLP
Plaintiff	:	REC WAFER NORWAY A/S
Defendants	:	REC SOLAR PTE. LTD. (200723409)
Remark	:	OTHERS

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	:	YES
Overseas	:	YES

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	Percentage	:	40%
Domestic Markets	:	SINGAPORE
Overseas	:	YES	Percentage	:	60%
Export Market	:	WORLDWIDE
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES LETTER OF CREDIT (LC)

OPERATIONS

Products manufactured

:

MODULES FOR THE SOLAR INDUSTRY

Total Number of Employees:
YEAR	2014	2013	2012
GROUP	N/A	N/A	N/A
COMPANY	2000	2000	2,000

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of modules for the solar industry.

The Subject is a leading vertically integrated player in the solar energy industry.

The Subject is among the world's largest producers of polysilicon and wafers for solar applications, and a rapidly growing manufacturer of solar cells and modules.

Products
* Silicon materials
* Wafers
* Solar solutions

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6564959228
Current Telephone Number	:	65-64959228
Match	:	YES
Address Provided by Client	:	20 TUAS SOUTH AVENUE 14 SINGAPORE 637312
Current Address	:	20, TUAS SOUTH AVENUE 14, 637312, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	21.19%	]
Return on Net Assets	:	Acceptable	[	13.88%	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	31 Days	]
Debtor Ratio	:	Favourable	[	29 Days	]
Creditors Ratio	:	Favourable	[	19 Days	]
The Subject'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 Subject. 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	[	1.39 Times	]
Current Ratio	:	Unfavourable	[	1.76 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	[	(4.02 Times)	]
Gearing Ratio	:	Favourable	[	0.00 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 had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Although the Subject's turnover decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : STABLE

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2009	2010	2011	2012	2013
Population (Million)	4.98	5.08	5.18	5.31	5.40
Gross Domestic Products ( % )	(0.8)	14.5	4.9	1.3	3.7
Consumer Price Index	0.6	2.8	5.2	4.6	2.4
Total Imports (Million)	356,299.3	423,221.8	459,655.1	474,554.0	466,762.0
Total Exports (Million)	391,118.1	478,840.7	514,741.2	510,329.0	513,391.0
Unemployment Rate (%)	3.2	2.2	2.1	2.0	1.9
Tourist Arrival (Million)	9.68	11.64	13.17	14.49	15.46
Hotel Occupancy Rate (%)	75.8	85.6	86.5	86.4	86.3
Cellular Phone Subscriber (Million)	1.37	1.43	1.50	1.52	1.97
Registration of New Companies (No.)	26,414	29,798	32,317	31,892	37,288
Registration of New Companies (%)	4.3	12.8	8.5	(1.3)	9.8
Liquidation of Companies (No.)	22,393	15,126	19,005	17,218	17,369
Liquidation of Companies (%)	113.4	(32.5)	25.6	9.4	(5.3)
Registration of New Businesses (No.)	26,876	23,978	23,494	24,788	22,893
Registration of New Businesses (%)	8.15	(10.78)	2.02	5.51	1.70
Liquidation of Businesses (No.)	23,552	24,211	23,005	22,489	22,598
Liquidation of Businesses (%)	11.4	2.8	(5)	(2.2)	0.5
Bankruptcy Orders (No.)	2,058	1,537	1,527	1,748	1,992
Bankruptcy Orders (%)	(11.5)	(25.3)	(0.7)	14.5	14.0
Bankruptcy Discharges (No.)	3,056	2,252	1,391	1,881	2,584
Bankruptcy Discharges (%)	103.7	(26.3)	(38.2)	35.2	37.4
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	3.25	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(1.93)	(10.5)	12.10	(0.5)	-
Manufacturing *	71.5	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	90.4	96.4	100.0	103.5	103.5
Textiles	145.9	122.1	100.0	104.0	87.1
Wearing Apparel	211.0	123.3	100.0	92.1	77.8
Leather Products & Footwear	79.5	81.8	100.0	98.6	109.8
Wood & Wood Products	101.4	104.0	100.0	95.5	107.4
Paper & Paper Products	95.4	106.1	100.0	97.4	103.2
Printing & Media	100.9	103.5	100.0	93.0	86.1
Crude Oil Refineries	96.4	95.6	100.0	99.4	93.5
Chemical & Chemical Products	80.3	97.6	100.0	100.5	104.1
Pharmaceutical Products	49.1	75.3	100.0	109.7	107.2
Rubber & Plastic Products	101.2	112.3	100.0	96.5	92.9
Non-metallic Mineral	91.9	92.5	100.0	98.2	97.6
Basic Metals	92.6	102.2	100.0	90.6	76.5
Fabricated Metal Products	90.8	103.6	100.0	104.3	105.1
Machinery & Equipment	57.3	78.5	100.0	112.9	114.5
Electrical Machinery	86.8	124.1	100.0	99.3	108.5
Electronic Components	85.2	113.6	100.0	90.6	94.3
Transport Equipment	96.0	94.0	100.0	106.3	107.5
Construction	(36.9)	14.20	20.50	28.70	-
Real Estate	1.4	21.3	25.4	31.9	-
Services
Electricity, Gas & Water	1.70	4.00	7.00	6.30	-
Transport, Storage & Communication	3.90	12.80	7.40	5.30	-
Finance & Insurance	(16.4)	(0.4)	8.90	0.50	-
Government Services	4.50	9.70	6.90	6.00	-
Education Services	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 2007, the Subject is a Private Limited company, focusing on manufacturing of modules for the solar industry. Having been in business for more than 5 years, the Subject 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 Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a large entity, the Subject has a steady workforce of 2000 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 zero geared company, the Subject 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 EUR 88,820,000, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.

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.

Although its overall financial performance is stable, we need to observe closely on the Subject as it has just turned to a profit making company in year 2013. In view of the above, we recommend credit be granted to the Subject with close monitoring.

PROFIT AND LOSS ACCOUNT

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

REC SOLAR PTE. LTD.

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	EUR	EUR	EUR	EUR	EUR
TURNOVER	446,100,000	488,504,000	644,693,000	404,887,000	2,809,000
	----------------	----------------	----------------	----------------	----------------
Total Turnover	446,100,000	488,504,000	644,693,000	404,887,000	2,809,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	18,817,000	(132,554,000)	(124,144,000)	(19,053,000)	(6,103,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	18,817,000	(132,554,000)	(124,144,000)	(19,053,000)	(6,103,000)
Taxation	-	1,156,000	318,000	(1,459,000)	(17,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	18,817,000	(131,398,000)	(123,826,000)	(20,512,000)	(6,120,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(282,189,000)	(150,791,000)	(26,965,000)	(6,453,000)	(333,000)
	----------------	----------------	----------------	----------------	----------------
As restated	(282,189,000)	(150,791,000)	(26,965,000)	(6,453,000)	(333,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(263,372,000)	(282,189,000)	(150,791,000)	(26,965,000)	(6,453,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(263,372,000)	(282,189,000)	(150,791,000)	(26,965,000)	(6,453,000)
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	(3,745,000)	(2,109,000)	4,976,000	3,976,000	-
	----------------	----------------	----------------	----------------	----------------
	(3,745,000)	(2,109,000)	4,976,000	3,976,000	-
	=============	=============	=============	=============

BALANCE SHEET

REC SOLAR PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	28,533,000	30,444,000	154,034,000	163,043,000	115,120,000
Others	3,527,000	6,545,000	10,330,000	8,272,000	16,730,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	3,527,000	6,545,000	10,330,000	8,272,000	16,730,000
Goodwill on consolidation	-	-	-	3,913,000	-
Computer software	-	486,000	3,437,000	-	-
Others	305,000	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	305,000	486,000	3,437,000	3,913,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	32,365,000	37,475,000	167,801,000	175,228,000	131,850,000
Stocks	37,608,000	50,011,000	111,986,000	100,210,000	4,787,000
Trade debtors	35,221,000	36,560,000	2,141,000	178,632,000	5,856,000
Other debtors, deposits & prepayments	56,509,000	66,391,000	105,546,000	853,000	2,540,000
Amount due from holding company	35,576,000	38,259,000	18,819,000	-	659,000
Amount due from related companies	-	-	-	-	3,086,000
Cash & bank balances	11,149,000	402,000	124,000	1,000	-
Others	-	-	-	-	13,438,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	176,063,000	191,623,000	238,616,000	279,696,000	30,366,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	208,428,000	229,098,000	406,417,000	454,924,000	162,216,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	22,756,000	28,499,000	19,432,000	13,164,000	12,882,000
Other creditors & accruals	77,063,000	113,840,000	172,059,000	8,003,000	1,169,000
Short term borrowings/Term loans	-	-	-	4,241,000	-
Amounts owing to holding company	-	305,000	106,000	2,225,000	759,000
Amounts owing to related companies	-	-	-	172,592,000	8,409,000
Provision for taxation	-	-	-	29,000	17,000
Other liabilities	-	-	-	1,583,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	99,819,000	142,644,000	191,597,000	201,837,000	23,236,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	76,244,000	48,979,000	47,019,000	77,859,000	7,130,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	108,609,000	86,454,000	214,820,000	253,087,000	138,980,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	352,192,000	352,192,000	352,192,000	239,925,000	142,976,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	352,192,000	352,192,000	352,192,000	239,925,000	142,976,000
Capital reserve	-	-	23,000	7,000	-
Retained profit/(loss) carried forward	(263,372,000)	(282,189,000)	(150,791,000)	(26,965,000)	(6,453,000)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	(263,372,000)	(282,189,000)	(150,768,000)	(26,958,000)	(6,453,000)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	88,820,000	70,003,000	201,424,000	212,967,000	136,523,000
Long term loans	-	-	-	31,733,000	-
Deferred taxation	-	-	1,156,000	1,447,000	-
Others	19,789,000	16,451,000	12,240,000	6,940,000	2,457,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	19,789,000	16,451,000	13,396,000	40,120,000	2,457,000
	----------------	----------------	----------------	----------------	----------------
	108,609,000	86,454,000	214,820,000	253,087,000	138,980,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

REC SOLAR PTE. LTD.

TYPES OF FUNDS
Cash	11,149,000	402,000	124,000	1,000	0
Net Liquid Funds	11,149,000	402,000	124,000	1,000	0
Net Liquid Assets	38,636,000	(1,032,000)	(64,967,000)	(22,351,000)	2,343,000
Net Current Assets/(Liabilities)	76,244,000	48,979,000	47,019,000	77,859,000	7,130,000
Net Tangible Assets	108,304,000	85,968,000	211,383,000	249,174,000	138,980,000
Net Monetary Assets	18,847,000	(17,483,000)	(78,363,000)	(62,471,000)	(114,000)
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	35,974,000	0
Total Liabilities	119,608,000	159,095,000	204,993,000	241,957,000	25,693,000
Total Assets	208,428,000	229,098,000	406,417,000	454,924,000	162,216,000
Net Assets	108,609,000	86,454,000	214,820,000	253,087,000	138,980,000
Net Assets Backing	88,820,000	70,003,000	201,424,000	212,967,000	136,523,000
Shareholders' Funds	88,820,000	70,003,000	201,424,000	212,967,000	136,523,000
Total Share Capital	352,192,000	352,192,000	352,192,000	239,925,000	142,976,000
Total Reserves	(263,372,000)	(282,189,000)	(150,768,000)	(26,958,000)	(6,453,000)
LIQUIDITY (Times)
Cash Ratio	0.11	0.00	0.00	0.00	0.00
Liquid Ratio	1.39	0.99	0.66	0.89	1.10
Current Ratio	1.76	1.34	1.25	1.39	1.31
WORKING CAPITAL CONTROL (Days)
Stock Ratio	31	37	63	90	622
Debtors Ratio	29	27	1	161	761
Creditors Ratio	19	21	11	12	1,674
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.17	0.00
Liabilities Ratio	1.35	2.27	1.02	1.14	0.19
Times Interest Earned Ratio	(4.02)	63.85	(23.95)	(3.79)	0.00
Assets Backing Ratio	0.31	0.24	0.60	1.04	0.97
PERFORMANCE RATIO (%)
Operating Profit Margin	4.22	(27.13)	(19.26)	(4.71)	(217.27)
Net Profit Margin	4.22	(26.90)	(19.21)	(5.07)	(217.87)
Return On Net Assets	13.88	(155.76)	(55.47)	(5.96)	(4.39)
Return On Capital Employed	13.84	(154.89)	(54.60)	(5.87)	(4.39)
Return On Shareholders' Funds/Equity	21.19	(187.70)	(61.48)	(9.63)	(4.48)
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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