MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	CREATIVE TECHNOLOGY LTD.
Formerly Known As :	CREATIVE TECHNOLOGY PTE. LTD
Registered Office :	31, International Business Park, 03-01, Creative Resource, 609921,
Country :	Singapore
Financials (as on) :	30.06.2013
Date of Incorporation :	18.07.1983
Com. Reg. No.:	198303359-D
Legal Form :	Public (Limited By Share)
Line of Business :	Engaged in Trading Digitised Sound and Video Boards, Computer and Related Multimedia as well as Personal Digital Entertainment Products
No. of Employees	800 [2014]

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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.	:	198303359-D
COMPANY NAME	:	CREATIVE TECHNOLOGY LTD.
FORMER NAME	:	CREATIVE TECHNOLOGY PTE. LTD. (15/06/1992)
INCORPORATION DATE	:	18/07/1983
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC (LIMITED BY SHARE)
LISTED STATUS	:	YES
LISTED DATE	:	15/06/1994
REGISTERED ADDRESS	:	31, INTERNATIONAL BUSINESS PARK, 03-01, CREATIVE RESOURCE, 609921, SINGAPORE.
BUSINESS ADDRESS	:	31 INTERNATIONAL BUSINESS PARK #03-01 CREATIVE RESOURCE,, 609921, SINGAPORE.
TEL.NO.	:	65-68954000
FAX.NO.	:	65-68954999
WEB SITE	:	WWW.ASIA.CREATIVE.Com
CONTACT PERSON	:	SIM WONG HOO ( CEO )
PRINCIPAL ACTIVITY	:	Engaged in Trading Digitised Sound and Video Boards, Computer and Related Multimedia as well as Personal Digital Entertainment Products
ISSUED AND PAID UP CAPITAL	:	75,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 454,698,850.74
SALES	:	USD 165,342,000 [2013]
NET WORTH	:	USD 163,049,000 [2013]
STAFF STRENGTH	:	800 [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

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading digitised sound and video boards, computer and related multimedia and personal digital entertainment products.

Share Capital History

Date	Issue & Paid Up Capital
27/08/2014	SGD 454,698,850.74

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
SIM WONG HOO +	5, CHESTNUT TERRACE, 679123, SINGAPORE.	S1216562E	23,270,652.00	31.03
DBS NOMINEES PTE LIMITED	12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.	196900222	4,718,518.00	6.29
CITIBANK NOMINEES SINGAPORE PTE LTD	8, MARINA VIEW, 21-00, ASIA SQUARE TOWER 1, 018960, SINGAPORE.	198801936	2,362,028.00	3.15
RAFFLES NOMINEES (PTE.) LTD	7, CHANGI BUSINESS PARK CRESCENT, 03-00, STANDARD CHARTERED @ CHANGI, SINGAPORE.	193700032	1,465,025.00	1.95
UNITED OVERSEAS BANK NOMINEES PTE LIMITED	80, RAFFLES PLACE, UOB PLAZA, 048624, SINGAPORE.	196800520	1,314,942.00	1.75
OCBC NOMINEES SINGAPORE PTE LTD	-	197400645	926,900.00	1.24
PORNCHADA VANICH	49, GREENLEAF PLACE, 279445, SINGAPORE.	S2615446D	856,000.00	1.14
NG KEH LONG	781, UPPER CHANGI ROAD EAST, 09-28, SUNHAVEN, 486069, SINGAPORE.	S1388036J	835,000.00	1.11
UOB KAY HIAN PTE LIMITED	8, ANTHONY ROAD, 01-01, 229957, SINGAPORE.	197000447W	641,000.00	0.85
BNP PARIBAS NOMINEES SINGAPORE PTE LTD	10, COLLYER QUAY, 35-01, OCEAN FINANCIAL CENTRE, 049315, SINGAPORE.	197800433	639,450.00	0.85
DB NOMINEES (SINGAPORE) PTE LTD	1, RAFFLES QUAY, 17-10, 048583, SINGAPORE.	197300322	529,356.00	0.71
LOW TING PONG	BLOCK 305, CLEMENTI AVE 4, 06-391, 12030, SINGAPORE.	0166303H	502,135.00	0.67
REMAINING SHAREHOLDERS	-	-	36,938,994.00	49.25
			---------------	------
			75,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	BERMUDA	CTI LIMITED	100.00	30/06/2013
	BERMUDA	CTI II LIMITED	100.00	30/06/2013
200601173M	SINGAPORE	QMAX PTE. LTD.	100.00	30/06/2013
	IRELAND	CREATIVE LABS (IRELAND) LTD	100.00	30/06/2013
	UNITED STATES	CREATIVE LABS, INC.	100.00	30/06/2013
199405087W	SINGAPORE	CREATIVE TECHNOLOGY CENTRE PTE LTD	100.00	30/06/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	LEE KHENG NAM
Address	:	31, VICTORIA PARK ROAD, VICTORIA PARK, 266511, SINGAPORE.
IC / PP No	:	S0005024E
Nationality	:	SINGAPOREAN
Date of Appointment	:	23/02/1991

DIRECTOR 2

Name Of Subject	:	NG KAI WA
Address	:	19, QUEEN ASTRID PARK, 266822, SINGAPORE.
IC / PP No	:	S1144859C
Nationality	:	SINGAPOREAN
Date of Appointment	:	28/06/2005

DIRECTOR 3

Name Of Subject	:	LEE GWONG-YIH
Address	:	20018, SPAICH COURT, SARATOGA, CA 95070, UNITED STATES.
IC / PP No	:	215815293
Nationality	:	AMERICAN
Date of Appointment	:	12/06/2009

DIRECTOR 4

Name Of Subject	:	SIM WONG HOO
Address	:	5, CHESTNUT TERRACE, 679123, SINGAPORE.
IC / PP No	:	S1216562E
Nationality	:	SINGAPOREAN
Date of Appointment	:	18/07/1983

MANAGEMENT

1)	Name of Subject	:	LEE KHENG NAM
	Position	:	DIRECTOR

2)	Name of Subject	:	SIM WONG HOO
	Position	:	CEO, MANAGER

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	NG KEH LONG
	IC / PP No	:	S1388036J
	Address	:	781, UPPER CHANGI ROAD EAST, 09-28, SUNHAVEN, 486069, 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.

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	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

DIGITISED SOUND AND VIDEO BOARDS, COMPUTER AND RELATED MULTIMEDIA AND PERSONAL DIGITAL ENTERTAINMENT PRODUCTS

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A
COMPANY	800	800	500	500

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading digitised sound and video boards, computer and related multimedia and personal digital entertainment products.

Creative is the worldwide leader in digital entertainment products for the personal computer (PC) and the Internet. Creative was founded in Singapore in 1981 with the vision that multimedia would revolutionize the way people interact with their PCs.

Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed ZEN line of digital audio players.

Creative is widely recognized as a global leader for product innovation in the audio and PDE segments, offering consumers a complete, high quality digital entertainment experience through Creative's hardware, software applications and services.

Creative is expanding the power of the personal computer with a wide range of interactive PDE products that comprises MP3 players, portable media centers, multimedia speakers and headphones, digital and web cameras, graphics solutions, revolutionary music keyboards and PC peripherals.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68954000
Match	:	N/A
Address Provided by Client	:	31, INTERNATIONAL BUSINESS PARK, CREATIVE RESOURCE NO.03-01, SINGAPORE 609921
Current Address	:	31 INTERNATIONAL BUSINESS PARK #03-01 CREATIVE RESOURCE,, 609921, 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	[	10.22%	]
Return on Net Assets	:	Unfavourable	[	7.94%	]
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	:	Acceptable	[	56 Days	]
Debtor Ratio	:	Favourable	[	33 Days	]
Creditors Ratio	:	Favourable	[	45 Days	]
The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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	[	3.06 Times	]
Current Ratio	:	Favourable	[	3.49 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	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. 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 did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. 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 : 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)

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 1983, the Subject is a Public Listed company, focusing on trading digitised sound and video boards, computer and related multimedia and personal digital entertainment products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. 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. Being a large entity, the Subject has a steady workforce of 800 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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 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 USD 163,049,000, 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 normally.

PROFIT AND LOSS ACCOUNT

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

CREATIVE TECHNOLOGY LTD.

Financial Year End	2013-06-30	2012-06-30	2011-06-30	2010-06-30	2009-06-30
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
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	165,342,000	191,783,000	231,025,000	275,307,000	466,074,000
Other Income	443,000	919,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	165,785,000	192,702,000	231,025,000	275,307,000	466,074,000
Costs of Goods Sold	(111,618,000)	(154,937,000)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	54,167,000	37,765,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	14,161,000	(83,584,000)	(51,903,000)	(46,680,000)	(138,391,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	14,161,000	(83,584,000)	(51,903,000)	(46,680,000)	(138,391,000)
Taxation	2,501,000	(312,000)	4,760,000	8,289,000	515,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	16,662,000	(83,896,000)	(47,143,000)	(38,391,000)	(137,876,000)
Minority interests	6,000	(68,000)	(90,000)	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	16,668,000	(83,964,000)	(47,233,000)	(38,391,000)	(137,876,000)
Extraordinary items	-	-	-	(405,000)	3,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	16,668,000	(83,964,000)	(47,233,000)	(38,796,000)	(137,873,000)
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(173,980,000)	(87,241,000)	(34,654,000)	9,072,000	146,945,000
	----------------	----------------	----------------	----------------	----------------
As restated	(173,980,000)	(87,241,000)	(34,654,000)	9,072,000	146,945,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(157,312,000)	(171,205,000)	(81,887,000)	(29,724,000)	9,072,000
DIVIDENDS - Ordinary (paid & proposed)	(2,858,000)	(2,775,000)	(5,354,000)	(4,930,000)	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(160,170,000)	(173,980,000)	(87,241,000)	(34,654,000)	9,072,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	-	43,000	72,000	80,000	135,000
	----------------	----------------	----------------	----------------	----------------
	-	43,000	72,000	80,000	135,000
	=============	=============	=============	=============	=============

BALANCE SHEET

CREATIVE TECHNOLOGY LTD.

ASSETS EMPLOYED:
FIXED ASSETS	6,892,000	7,427,000	26,088,000	29,411,000	33,944,000
Associated companies	-	-	322,000	-	1,372,000
Others	24,481,000	31,040,000	52,536,000	56,682,000	60,423,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	24,481,000	31,040,000	52,858,000	56,682,000	61,795,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	-	-	5,862,000	6,324,000	6,719,000
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	-	-	5,862,000	6,324,000	6,719,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	31,373,000	38,467,000	84,808,000	92,417,000	102,458,000
Stocks	25,353,000	27,822,000	44,089,000	46,120,000	37,600,000
Trade debtors	14,728,000	18,841,000	27,508,000	28,999,000	42,365,000
Other debtors, deposits & prepayments	2,178,000	12,732,000	22,642,000	144,846,000	-
Short term deposits	122,817,000	103,266,000	139,062,000	-	196,840,000
Loans & advances - current portion	-	-	-	20,990,000	21,448,000
Cash & bank balances	40,757,000	28,166,000	23,896,000	69,179,000	53,711,000
Others	-	4,991,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	205,833,000	195,818,000	257,197,000	310,134,000	351,964,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	237,206,000	234,285,000	342,005,000	402,551,000	454,422,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	13,753,000	13,844,000	-	24,089,000	30,296,000
Other creditors & accruals	44,496,000	53,367,000	60,662,000	65,249,000	70,014,000
Short term borrowings/Term loans	-	-	-	-	10,000
Amounts owing to related companies	-	-	19,764,000	-	-
Amounts owing to associated companies	-	-	865,000	-	-
Provision for taxation	706,000	742,000	790,000	2,235,000	2,203,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	58,955,000	67,953,000	82,081,000	91,573,000	102,523,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	146,878,000	127,865,000	175,116,000	218,561,000	249,441,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	178,251,000	166,332,000	259,924,000	310,978,000	351,899,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	266,753,000	266,753,000	266,753,000	266,753,000	266,753,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	266,753,000	266,753,000	266,753,000	266,753,000	266,753,000
General reserve	72,836,000	73,091,000	64,629,000	62,285,000	60,512,000
Retained profit/(loss) carried forward	(160,170,000)	(173,980,000)	(87,241,000)	(34,654,000)	9,072,000
Others	(16,606,000)	(17,676,000)	(2,119,000)	(4,608,000)	(13,948,000)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	(103,940,000)	(118,565,000)	(24,731,000)	23,023,000	55,636,000
MINORITY INTEREST	236,000	242,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	163,049,000	148,430,000	242,022,000	289,776,000	322,389,000
Deferred taxation	15,202,000	17,902,000	17,902,000	21,202,000	29,510,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	15,202,000	17,902,000	17,902,000	21,202,000	29,510,000
	----------------	----------------	----------------	----------------	----------------
	178,251,000	166,332,000	259,924,000	310,978,000	351,899,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

CREATIVE TECHNOLOGY LTD.

TYPES OF FUNDS
Cash	163,574,000	131,432,000	162,958,000	69,179,000	250,551,000
Net Liquid Funds	163,574,000	131,432,000	162,958,000	69,179,000	250,551,000
Net Liquid Assets	121,525,000	100,043,000	131,027,000	172,441,000	211,841,000
Net Current Assets/(Liabilities)	146,878,000	127,865,000	175,116,000	218,561,000	249,441,000
Net Tangible Assets	178,251,000	166,332,000	254,062,000	304,654,000	345,180,000
Net Monetary Assets	106,323,000	82,141,000	113,125,000	151,239,000	182,331,000
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	0	10,000
Total Liabilities	74,157,000	85,855,000	99,983,000	112,775,000	132,033,000
Total Assets	237,206,000	234,285,000	342,005,000	402,551,000	454,422,000
Net Assets	178,251,000	166,332,000	259,924,000	310,978,000	351,899,000
Net Assets Backing	163,049,000	148,430,000	242,022,000	289,776,000	322,389,000
Shareholders' Funds	163,049,000	148,430,000	242,022,000	289,776,000	322,389,000
Total Share Capital	266,753,000	266,753,000	266,753,000	266,753,000	266,753,000
Total Reserves	(103,940,000)	(118,565,000)	(24,731,000)	23,023,000	55,636,000
LIQUIDITY (Times)
Cash Ratio	2.77	1.93	1.99	0.76	2.44
Liquid Ratio	3.06	2.47	2.60	2.88	3.07
Current Ratio	3.49	2.88	3.13	3.39	3.43
WORKING CAPITAL CONTROL (Days)
Stock Ratio	56	53	70	61	29
Debtors Ratio	33	36	43	38	33
Creditors Ratio	45	33	0	32	24
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.00	0.00
Liabilities Ratio	0.45	0.58	0.41	0.39	0.41
Times Interest Earned Ratio	0.00	(1,942.81)	(719.88)	(582.50)	(1,024.12)
Assets Backing Ratio	0.67	0.62	0.95	1.14	1.29
PERFORMANCE RATIO (%)
Operating Profit Margin	8.56	(43.58)	(22.47)	(16.96)	(29.69)
Net Profit Margin	10.08	(43.78)	(20.44)	(13.94)	(29.58)
Return On Net Assets	7.94	(50.23)	(19.94)	(14.98)	(39.29)
Return On Capital Employed	7.93	(50.15)	(19.50)	(14.69)	(38.55)
Return On Shareholders' Funds/Equity	10.22	(56.57)	(19.52)	(13.25)	(42.77)
Dividend Pay Out Ratio (Times)	0.17	0.03	0.11	0.13	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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