MIRA INFORM REPORT

Report Date :

08.02.2014

IDENTIFICATION DETAILS

Name :	ECOM AGROINDUSTRIAL ASIA PTE. LTD.
Registered Office :	79, Robinson Road, 17-05/06, CPF Building, 068897
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	29.06.2000
Com. Reg. No.:	200005683-C
Legal Form :	Private Limited
Line of Business :	Wholesale of Coffee, Cocoa and Tea
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SINGAPORE - ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	200005683-C
COMPANY NAME	:	ECOM AGROINDUSTRIAL ASIA PTE. LTD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	29/06/2000
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	79, ROBINSON ROAD, 17-05/06, CPF BUILDING, 068897, SINGAPORE.
BUSINESS ADDRESS	:	79 ROBINSON RD, #17-04/05/06 CPF BLDG, 068897, SINGAPORE.
TEL.NO.	:	65-63189928
FAX.NO.	:	65-63189935
WEB SITE	:	WWW.ECOMTRADING.COM
CONTACT PERSON	:	FELIPE ESTEVE RECOLONS ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF COFFEE, COCOA AND TEA
ISSUED AND PAID UP CAPITAL	:	11,957,000.00 ORDINARY SHARE, OF A VALUE OF SGD 11,957,000.00
SALES	:	USD 552,891,242 [2012]
NET WORTH	:	USD 37,850,154 [2012]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	POOR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
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) wholesale of coffee, cocoa and tea.

The immediate and ultimate holding company of the Subject is ECOM AGROINDUSTRIAL CORPORATION LTD, a company incorporated in SWITZERLAND.

Share Capital History

Date	Issue & Paid Up Capital
11/04/2013	SGD 11,957,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
ECOM AGROINDUSTRIAL CORPORATION LTD	AVENUE GUILLEMIN 16, PO BOX 64, CH-1009 PULLY, SWITZERLAND.	T06UF0009	11,957,000.00	100.00
			---------------	------
			11,957,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	CHINA	ECOM TRADING SHANGHAI CO. LTD.	100.00	31/12/2012
	VIETNAM	ATLANTIC COMMODITIES VIETNAM, LTD.	100.00	31/12/2012
200512845H	SINGAPORE	XIN YI KANG TEXTILE PRODUCTS PTE. LTD.	100.00	31/12/2012
	VIETNAM	SUSTAINABILITY MANAGEMENT SERVICES LTD. (VIETNAM)	100.00	31/12/2012
	CHINA	SHANGHAI WEISEN TRADING CO. LTD.	100.00	31/12/2012
	AUSTRALIA	CONDESA PTY LTD	92.50	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	ANDREW DAVID HAY FALCONER
Address	:	29, GREENBANK PARK, 589390, SINGAPORE.
IC / PP No	:	G5880682Q
Nationality	:	BRITISH
Date of Appointment	:	23/02/2007

DIRECTOR 2

Name Of Subject	:	CHENG YAM SAN
Address	:	472, SEMBAWANG DRIVE, 07-417, 750472, SINGAPORE.
IC / PP No	:	S1638731B
Nationality	:	SINGAPOREAN
Date of Appointment	:	25/11/2005

DIRECTOR 3

Name Of Subject	:	LI LEI
Address	:	6A, BOON TIONG ROAD, 02-47, BOON TIONG VILLE, 164006, SINGAPORE.
IC / PP No	:	S7465980B
Nationality	:	SINGAPOREAN
Date of Appointment	:	18/05/2012
Remark	:	ALTERNATE DIRECTOR TO CHENG YAM SAN

DIRECTOR 4

Name Of Subject	:	YESSA MATINDAS TUEGEH
Address	:	78, BAYSHORE ROAD, 02-22, COSTA DEL SOL, 469991, SINGAPORE.
IC / PP No	:	S7482962G
Nationality	:	SINGAPOREAN
Date of Appointment	:	05/07/2007

DIRECTOR 5

Name Of Subject	:	RICHARD HENRY POLLARD
Address	:	38A, JALAN MAT JAMBOL, 01-01, ISLAND VIEW, 119519, SINGAPORE.
IC / PP No	:	G5098615U
Nationality	:	BRITISH
Date of Appointment	:	18/05/2012
Remark	:	ALTERNATE DIRECTOR TO FELIPE ESTEVE RECOLONS

DIRECTOR 6

Name Of Subject	:	FELIPE ESTEVE RECOLONS
Address	:	BOSQUES DE ALISOS, 45A-SEGUNDO PISO, BOSQUES DE LAS LOMAS, MEXICO CITY, 05120, MEXICO.
IC / PP No	:	G03938318
Nationality	:	MEXICAN
Date of Appointment	:	01/10/2006

DIRECTOR 7

Name Of Subject	:	NG CHOON NAM @ HUANG JUNLAN
Address	:	4, JALAN AMPAS, 07-07, BALESTIER REGENCY, 329505, SINGAPORE.
IC / PP No	:	S8008915E
Nationality	:	SINGAPOREAN
Date of Appointment	:	18/05/2012

DIRECTOR 8

Name Of Subject	:	UMA SURANA
Address	:	85, LORONG MARZUKI, 417183, SINGAPORE.
IC / PP No	:	G5321424Q
Nationality	:	AMERICAN
Date of Appointment	:	30/09/2013

DIRECTOR 9

Name Of Subject	:	FRANCISCO JAVIER VILLAZON GUTIERREZ
Address	:	183, HUAI HAI XI LU, B3-804, CHINA.
IC / PP No	:	450487046
Nationality	:	AMERICAN
Date of Appointment	:	02/04/2013

MANAGEMENT

1)	Name of Subject	:	FELIPE ESTEVE RECOLONS
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	TOON CHOI FAN
	IC / PP No	:	S2681354I
	Address	:	443C, FERNVALE ROAD, 24-381, 793443, SINGAPORE.

2)	Company Secretary	:	ANG SIEW KOON
	IC / PP No	:	S1721860C
	Address	:	122, YISHUN STREET 11, 06-463, 760122, 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	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	SOUTH EAST ASIA
Credit Term	:	15 DAYS
Payment Mode	:	CHEQUES
Type of Customer	:	DEALERS

OPERATIONS

Goods Traded

:

COFFEE, COCOA AND COTTON

Total Number of Employees:
YEAR	2013	2012
GROUP	N/A	N/A
COMPANY	30	15

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of coffee, cocoa and tea.

The Subject refused to disclose its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63189928
Match	:	N/A
Address Provided by Client	:	79 ROBINSON RD, #17-04/05/06 CPF BLDG, SINGAPORE 068897
Current Address	:	79 ROBINSON RD, #17-04/05/06 CPF BLDG, 068897, SINGAPORE.
Match	:	YES

Other Investigations

On 5th February 2014 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	(1.63%)	]
Return on Net Assets	:	Unfavourable	[	3.00%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	47 Days	]
Debtor Ratio	:	Favourable	[	47 Days	]
Creditors Ratio	:	Favourable	[	46 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	:	Unfavourable	[	0.70 Times	]
Current Ratio	:	Unfavourable	[	1.22 Times	]
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Unfavourable	[	0.63 Times	]
Gearing Ratio	:	Unfavourable	[	1.37 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. Due to its weak liquidity position, the Subject 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 Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject'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 Subject : POOR

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 2000, the Subject is a Private Limited company, focusing on wholesale of coffee, cocoa and tea. Having been in the industry for over a decade, the Subject 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. 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. 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. 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.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Nevertheless, given a positive net worth standing at USD 37,850,154, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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.

The Subject's payment habit is average. With its adequate working capital, the Subject 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 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.

Financial Year End	2012-12-31	2011-12-31	2010-12-31	2009-12-31
Months	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	USD	USD	USD	USD
TURNOVER	552,891,242	553,598,413	442,631,764	318,518,024
Other Income	1,608,985	5,196,210	-	-
	----------------	----------------	----------------	----------------
Total Turnover	554,500,227	558,794,623	442,631,764	318,518,024
Costs of Goods Sold	(559,299,893)	(554,564,951)	-	-
	----------------	----------------	----------------	----------------
Gross Profit	(4,799,666)	4,229,672	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(673,851)	(5,271,335)	16,773,000	323,715
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(673,851)	(5,271,335)	16,773,000	323,715
Taxation	28,569	652,549	(1,229,000)	(685)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(645,282)	(4,618,786)	15,544,000	323,030
Minority interests	29,443	-	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	(615,839)	(4,618,786)	15,544,000	323,030
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	(615,839)	(4,618,786)	15,544,000	323,030
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	31,430,436	36,049,222	20,505,222	20,182,192
	----------------	----------------	----------------	----------------
As restated	31,430,436	36,049,222	20,505,222	20,182,192
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	30,814,597	31,430,436	36,049,222	20,505,222
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	30,814,597	31,430,436	36,049,222	20,505,222
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	1,536,105	2,318,459	-	-
Others	287,506	754,887	993,207	1,349,387
	----------------	----------------	----------------	----------------
	1,823,611	3,073,346	993,207	1,349,387
	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	6,449,684	2,874,272	2,497,476	2,845,869
LONG TERM INVESTMENTS/OTHER ASSETS
Deferred assets	1,771,933	1,608,022	707,465	377,969
Deposits	80,916	69,458	-	-
Others	134,726	199,018	70,816	158,217
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,987,575	1,876,498	778,281	536,186
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	8,437,259	4,750,770	3,275,757	3,382,055
CURRENT ASSETS
Stocks	71,513,493	42,021,781	36,367,549	53,779,730
Trade debtors	70,491,532	50,300,020	62,096,506	56,490,385
Other debtors, deposits & prepayments	1,004,861	1,160,036	434,919	1,422,823
Amount due from holding company	-	1,851	-	-
Amount due from subsidiary companies	-	1,952,433	-	-
Cash & bank balances	12,610,909	11,268,229	11,136,517	6,090,096
Others	10,787,616	23,619,476	40,169,975	12,852,815
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	166,408,411	130,323,826	150,205,466	130,635,849
	----------------	----------------	----------------	----------------
TOTAL ASSET	174,845,670	135,074,596	153,481,223	134,017,904
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	71,058,119	34,445,405	45,665,334	29,167,993
Other creditors & accruals	3,807,866	2,881,568	2,740,850	2,100,538
Bank overdraft	-	471	-	-
Short term borrowings/Term loans	51,717,935	30,610,000	25,980,000	63,915,532
Provision for taxation	64,729	983,345	481,590	115
Other liabilities	9,816,883	27,434,416	34,396,810	11,043,702
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	136,465,532	96,355,205	109,264,584	106,227,880
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	29,942,879	33,968,621	40,940,882	24,407,969
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	38,380,138	38,719,391	44,216,639	27,790,024
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	6,990,000	6,990,000	6,990,000	6,990,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	6,990,000	6,990,000	6,990,000	6,990,000
RESERVES
Retained profit/(loss) carried forward	30,814,597	31,430,436	36,049,222	20,505,222
	----------------	----------------	----------------	----------------
TOTAL RESERVES	30,814,597	31,430,436	36,049,222	20,505,222
MINORITY INTEREST	45,557	-	-	-
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	37,850,154	38,420,436	43,039,222	27,495,222
LONG TERM LIABILITIES
Deferred taxation	88,984	123,955	994,417	2,616
Others	441,000	175,000	183,000	292,186
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	529,984	298,955	1,177,417	294,802
	----------------	----------------	----------------	----------------
	38,380,138	38,719,391	44,216,639	27,790,024
	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	12,610,909	11,268,229	11,136,517	6,090,096
Net Liquid Funds	12,610,909	11,267,758	11,136,517	6,090,096
Net Liquid Assets	(41,570,614)	(8,053,160)	4,573,333	(29,371,761)
Net Current Assets/(Liabilities)	29,942,879	33,968,621	40,940,882	24,407,969
Net Tangible Assets	38,380,138	38,719,391	44,216,639	27,790,024
Net Monetary Assets	(42,100,598)	(8,352,115)	3,395,916	(29,666,563)
BALANCE SHEET ITEMS
Total Borrowings	51,717,935	30,610,471	25,980,000	63,915,532
Total Liabilities	136,995,516	96,654,160	110,442,001	106,522,682
Total Assets	174,845,670	135,074,596	153,481,223	134,017,904
Net Assets	38,380,138	38,719,391	44,216,639	27,790,024
Net Assets Backing	37,850,154	38,420,436	43,039,222	27,495,222
Shareholders' Funds	37,850,154	38,420,436	43,039,222	27,495,222
Total Share Capital	6,990,000	6,990,000	6,990,000	6,990,000
Total Reserves	30,814,597	31,430,436	36,049,222	20,505,222
LIQUIDITY (Times)
Cash Ratio	0.09	0.12	0.10	0.06
Liquid Ratio	0.70	0.92	1.04	0.72
Current Ratio	1.22	1.35	1.37	1.23
WORKING CAPITAL CONTROL (Days)
Stock Ratio	47	28	30	62
Debtors Ratio	47	33	51	65
Creditors Ratio	46	23	38	33
SOLVENCY RATIOS (Times)
Gearing Ratio	1.37	0.80	0.60	2.32
Liabilities Ratio	3.62	2.52	2.57	3.87
Times Interest Earned Ratio	0.63	(0.72)	17.89	1.24
Assets Backing Ratio	5.49	5.54	6.33	3.98
PERFORMANCE RATIO (%)
Operating Profit Margin	(0.12)	(0.95)	3.79	0.10
Net Profit Margin	(0.11)	(0.83)	3.51	0.10
Return On Net Assets	3.00	(5.68)	40.18	6.02
Return On Capital Employed	2.99	(5.68)	40.18	6.02
Return On Shareholders' Funds/Equity	(1.63)	(12.02)	36.12	1.17
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.32
UK Pound	1	Rs.101.78
Euro	1	Rs.84.68

INFORMATION DETAILS

Report Prepared by :

NNA

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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