MIRA INFORM REPORT

Report Date :

31.08.2014

IDENTIFICATION DETAILS

Name :	AVNET ASIA PTE LTD
Registered Office :	151, Lorong Chuan, 06-03, New Tech Park, 556741
Country :	Singapore
Financials (as on) :	28.06.2013
Date of Incorporation :	18.01.1999
Com. Reg. No.:	199900292-C
Legal Form :	Private Limited
Line of Business :	Trading of Electronic Components
No. of Employees	300

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 :	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 – 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

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199900292-C
COMPANY NAME	:	AVNET ASIA PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	18/01/1999
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	151, LORONG CHUAN, 06-03, NEW TECH PARK, 556741, SINGAPORE.
BUSINESS ADDRESS	:	151 LORONG CHUAN, NEW TECH PARK, #06-03, 556741, SINGAPORE.
TEL.NO.	:	65-65806000
FAX.NO.	:	65-65806200
CONTACT PERSON	:	TAN BOON PIN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF ELECTRONIC COMPONENTS
ISSUED AND PAID UP CAPITAL	:	5,474,720.00 ORDINARY SHARE, OF A VALUE OF SGD 466,514,786.40 242,514.00 PREFERENCE SHARE, OF A VALUE OF SGD 242,514,000.00 68,000,000.00 OTHERS SHARE, OF A VALUE OF USD 68,000,000.00
SALES	:	USD 3,022,102,000 [2013]
NET WORTH	:	USD 753,498,000 [2013]
STAFF STRENGTH	:	300 [2014]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

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) trading of electronic components.

Share Capital History

Date	Issue & Paid Up Capital
25/08/2014	SGD 777,028,786.40

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MEMEC GROUP HOLDINGS LIMITED [ORDINARY SGD= 5474720, ORDINARY USD= 68000000, PREFERENCE SGD= 242514]	AVENT HOUSE, RUTHERFORD CLOSE, MEADWAY, STEVENAGE, HERTFORDSHIRE, SG1 2EF, ENGLAND AND WALES, UNITED KINGDOM.	T14UF0328	73,717,234.00	100.00
			---------------	------
			73,717,234.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	HONG KONG	MEMEC (ASIA PACIFIC) LIMITED	100.00	28/06/2013
475896K	MALAYSIA	AVNET MALAYSIA SDN BHD	100.00	28/06/2013
	NEW ZEALAND	AVNET (NZ)	100.00	28/06/2013
	HONG KONG	AVNET (ASIA PACIFIC HOLDINGS) LIMITED	100.00	28/06/2013
199501472G	SINGAPORE	AVNET TECHNOLOGY SOLUTIONS (ASEAN) PTE. LTD.	100.00	28/06/2013
	VIRGIN ISLANDS, BRITISH	VANDA IT SOLUTIONS & SYSTEMS MANAGEMENT LIMITED	100.00	28/06/2013
	VIRGIN ISLANDS, BRITISH	PRIDE WELL LIMITED	100.00	28/06/2013
	AUSTRALIA	AVNET (AUSTRALIA) PTY. LTD.	100.00	28/06/2013
011	KOREA	AVNET KOREA, INC.	100.00	28/06/2013
	CHINA	AVNET LOGISTICS (SHENZHEN) LTD	100.00	28/06/2013
198905231K	SINGAPORE	AVNET EM JAPAN (ASIA) LIMITED	100.00	28/06/2013
	CHINA	AVNET (SHANGHAI) LIMITED	100.00	28/06/2013
	HONG KONG	CHINATRONIC TECHNOLOGY LIMITED	100.00	28/06/2013
	HONG KONG	AVNET SUNRISE LIMITED	100.00	28/06/2013
	HONG KONG	AVNET TECHNOLOGY HONG KONG LIMITED	100.00	28/06/2013
	CHINA	AVNET (TIANJIN) LOGISTICS LTD	100.00	28/06/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MICHAEL RYAN MCCOY
Address	:	6125 E, WETHERSFIELD ROAD, SCOTTSDALE ARIZONA, 85254, UNITED STATES.
IC / PP No	:	445421189
Nationality	:	AMERICAN
Date of Appointment	:	30/01/2013

DIRECTOR 2

Name Of Subject	:	TAN BOON PIN
Address	:	50K, FABER HEIGHTS, 03-72, FABER CREST, 129204, SINGAPORE.
IC / PP No	:	S1605016D
Nationality	:	SINGAPOREAN
Date of Appointment	:	18/10/2011

DIRECTOR 3

Name Of Subject	:	ROBIN KWOK MAN-SING
Address	:	FLAT B-2/F BLOCK 2, BEVERLEY HEIGHT, 56, CLOUD VIEW ROAD, HONG KONG.
IC / PP No	:	BA828732
Nationality	:	CANADIAN
Date of Appointment	:	20/06/2013

DIRECTOR 4

Name Of Subject	:	VAIDYANATHAN RADHAKRISHNAN
Address	:	370D, ALEXANDRA ROAD, 02-09, THE ANCHORAGE, 159957, SINGAPORE.
IC / PP No	:	S2696461Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/07/2014

MANAGEMENT

1)	Name of Subject	:	TAN BOON PIN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	PEK LAY PHENG @ BAI LIPING
	IC / PP No	:	S7704449C
	Address	:	318D, ANCHORVALE LINK, 06-229, 544318, SINGAPORE.

2)	Company Secretary	:	TAN BEE SUAN @ CHEN MEIZUAN
	IC / PP No	:	S7124493H
	Address	:	761, CHOA CHU KANG NORTH 5, 12-179, 680761, 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 againt the Subject 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	:	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
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	AS AGREED
Payment Mode	:	TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2014	2013	2012
GROUP	N/A	N/A	N/A
COMPANY	300	300	300

Branch

:

NO

Other Information:

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

The Subject is the distributor of electronic components, semiconductors and others.

The Subject supplies products including inter-connectors, passive and electro-mechanical components.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-65806000
Match	:	N/A
Address Provided by Client	:	80 ALPS AVENUE #01-05/06/07 SINGAPORE 498792
Current Address	:	151 LORONG CHUAN, NEW TECH PARK, #06-03, 556741, SINGAPORE.
Match	:	NO

Other Investigations

On 22nd August 2014 we contacted one of the staff from the Subject on behalf of AMOTECH and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	7.84%	]
Return on Net Assets	:	Acceptable	[	10.15%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	32 Days	]
Debtor Ratio	:	Favourable	[	44 Days	]
Creditors Ratio	:	Favourable	[	45 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	[	1.31 Times	]
Current Ratio	:	Unfavourable	[	1.79 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	:	Favourable	[	10.55 Times	]
Gearing Ratio	:	Favourable	[	0.02 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

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)
(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 1999, the Subject is a Private Limited company, focusing on trading of electronic components. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

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 300 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.

Financially, the Subject 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. 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 however 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 USD 753,498,000, the Subject should be able to maintain its business in the near terms.

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 has a good control over its resources.

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 shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

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

PROFIT AND LOSS ACCOUNT

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

AVNET ASIA PTE LTD

Financial Year End	2013-06-28	2012-06-26	2011-07-01	2010-07-01	2009-06-26
Months	12	12	12	13	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	USD	USD	USD	USD	USD
TURNOVER	3,022,102,000	2,717,905,000	2,966,118,000	2,211,526,000	1,624,086,000
Other Income	12,338,000	11,835,000	30,489,000	22,213,000	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	3,034,440,000	2,729,740,000	2,996,607,000	2,233,739,000	1,624,086,000
Costs of Goods Sold	(2,827,918,000)	(2,527,773,000)	(2,793,025,000)	(2,067,092,000)	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	206,522,000	201,967,000	203,582,000	166,647,000	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	69,234,000	108,102,000	64,332,000	63,629,000	86,282,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	69,234,000	108,102,000	64,332,000	63,629,000	86,282,000
Taxation	(10,191,000)	(9,503,000)	(8,970,000)	(7,958,000)	(7,847,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	59,043,000	98,599,000	55,362,000	55,671,000	78,435,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	59,043,000	98,599,000	55,362,000	55,671,000	78,435,000
Extraordinary items	(597,000)	(6,620,000)	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	58,446,000	91,979,000	55,362,000	55,671,000	78,435,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	173,103,000	74,504,000	19,142,000	(36,529,000)	(114,964,000)
	----------------	----------------	----------------	----------------	----------------
As restated	173,103,000	74,504,000	19,142,000	(36,529,000)	(114,964,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	231,549,000	166,483,000	74,504,000	19,142,000	(36,529,000)
TRANSFER TO RESERVES - General	597,000	6,620,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	232,146,000	173,103,000	74,504,000	19,142,000	(36,529,000)
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from holding company	-	-	113,000	-	-
Others	7,248,000	8,175,000	462,000	-	1,410,000
	----------------	----------------	----------------	----------------	----------------
	7,248,000	8,175,000	575,000	-	1,410,000
	=============	=============	=============	=============	=============

BALANCE SHEET

AVNET ASIA PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	4,119,000	6,038,000	3,178,000	3,860,000	4,277,000
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	314,345,000	315,292,000	260,886,000	187,211,000	179,941,000
Deferred assets	429,000	878,000	1,943,000	1,742,000	1,351,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	314,774,000	316,170,000	262,829,000	188,953,000	181,292,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	318,893,000	322,208,000	266,007,000	192,813,000	185,569,000
Stocks	265,766,000	301,619,000	299,411,000	238,216,000	141,413,000
Trade debtors	363,113,000	311,309,000	372,898,000	315,966,000	168,262,000
Other debtors, deposits & prepayments	14,916,000	23,942,000	22,988,000	16,568,000	12,806,000
Deposits with financial institutions	-	-	-	-	441,000
Amount due from related companies	214,855,000	239,485,000	154,017,000	134,673,000	84,785,000
Cash & bank balances	125,987,000	72,982,000	55,723,000	40,679,000	159,652,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	984,637,000	949,337,000	905,037,000	746,102,000	567,359,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	1,303,530,000	1,271,545,000	1,171,044,000	938,915,000	752,928,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	344,957,000	310,720,000	366,342,000	340,940,000	208,486,000
Other creditors & accruals	45,921,000	30,749,000	32,217,000	25,941,000	18,649,000
Short term borrowings/Term loans	11,770,000	-	-	-	-
Amounts owing to related companies	140,160,000	227,852,000	164,142,000	103,175,000	114,799,000
Provision for taxation	7,224,000	7,172,000	5,270,000	6,436,000	7,085,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	550,032,000	576,493,000	567,971,000	476,492,000	349,019,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	434,605,000	372,844,000	337,066,000	269,610,000	218,340,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	507,321,000	507,321,000	507,321,000	439,321,000	439,321,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	507,321,000	507,321,000	507,321,000	439,321,000	439,321,000
Exchange equalisation/fluctuation reserve	14,031,000	14,628,000	21,248,000	3,960,000	1,117,000
Retained profit/(loss) carried forward	232,146,000	173,103,000	74,504,000	19,142,000	(36,529,000)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	246,177,000	187,731,000	95,752,000	23,102,000	(35,412,000)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
	----------------	----------------	----------------	----------------	----------------
	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

AVNET ASIA PTE LTD

TYPES OF FUNDS
Cash	125,987,000	72,982,000	55,723,000	40,679,000	159,652,000
Net Liquid Funds	125,987,000	72,982,000	55,723,000	40,679,000	159,652,000
Net Liquid Assets	168,839,000	71,225,000	37,655,000	31,394,000	76,927,000
Net Current Assets/(Liabilities)	434,605,000	372,844,000	337,066,000	269,610,000	218,340,000
Net Tangible Assets	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
Net Monetary Assets	168,839,000	71,225,000	37,655,000	31,394,000	76,927,000
BALANCE SHEET ITEMS
Total Borrowings	11,770,000	0	0	0	0
Total Liabilities	550,032,000	576,493,000	567,971,000	476,492,000	349,019,000
Total Assets	1,303,530,000	1,271,545,000	1,171,044,000	938,915,000	752,928,000
Net Assets	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
Net Assets Backing	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
Shareholders' Funds	753,498,000	695,052,000	603,073,000	462,423,000	403,909,000
Total Share Capital	507,321,000	507,321,000	507,321,000	439,321,000	439,321,000
Total Reserves	246,177,000	187,731,000	95,752,000	23,102,000	(35,412,000)
LIQUIDITY (Times)
Cash Ratio	0.23	0.13	0.10	0.09	0.46
Liquid Ratio	1.31	1.12	1.07	1.07	1.22
Current Ratio	1.79	1.65	1.59	1.57	1.63
WORKING CAPITAL CONTROL (Days)
Stock Ratio	32	41	37	39	32
Debtors Ratio	44	42	46	52	38
Creditors Ratio	45	45	48	60	47
SOLVENCY RATIOS (Times)
Gearing Ratio	0.02	0.00	0.00	0.00	0.00
Liabilities Ratio	0.73	0.83	0.94	1.03	0.86
Times Interest Earned Ratio	10.55	14.22	112.88	0.00	62.19
Assets Backing Ratio	1.49	1.37	1.19	1.05	0.92
PERFORMANCE RATIO (%)
Operating Profit Margin	2.29	3.98	2.17	2.88	5.31
Net Profit Margin	1.95	3.63	1.87	2.52	4.83
Return On Net Assets	10.15	16.73	10.76	13.76	21.71
Return On Capital Employed	10.15	16.73	10.76	13.76	21.71
Return On Shareholders' Funds/Equity	7.84	14.19	9.18	12.04	19.42
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.60.48
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SDA

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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