MIRA INFORM REPORT

Report Date :

10.02.2014

IDENTIFICATION DETAILS

Name :	VALENCY INTERNATIONAL TRADING PTE. LTD.
Registered Office :	10, Anson Road, 17-23, International Plaza, 079903
Country :	Singapore
Financials (as on) :	31.03.2012
Date of Incorporation :	06.02.2007
Com. Reg. No.:	200702113-R
Legal Form :	Exempt Private
Line of Business :	Trader of Commodity Products, Such As Metal, Steel
No of Employees :	20

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 :	Exists

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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.

:

200702113-R

COMPANY NAME

:

VALENCY INTERNATIONAL TRADING PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

06/02/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

10, ANSON ROAD, 17-23, INTERNATIONAL PLAZA, 079903, SINGAPORE.

BUSINESS ADDRESS

:

10 ANSON ROAD, #17-23 INTERNATIONAL PLAZA , 079903, SINGAPORE.

TEL.NO.

:

65-62236141

FAX.NO.

:

65-62234252

WEB SITE

:

WWW.VALENCYINTERNATIONAL.COM

CONTACT PERSON

:

PRAVEEN KUMAR ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF COMMODITY PRODUCTS, SUCH AS METAL, STEEL

ISSUED AND PAID UP CAPITAL

:

1,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 10,000,000.00

SALES

:

USD 441,500,048 [2012]

NET WORTH

:

USD 24,426,661 [2012]

STAFF STRENGTH

:

20 [2014]

BANKER (S)

:

BANK OF BARODA BANK OF INDIA HABIB BANK LTD INDIAN BANK OVERSEA-CHINESE BANKING CORPORATION LTD RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD UCO BANK UNITED OVERSEAS BANK LTD SOCIETE GENERALE STANDARD CHARTERED BANK

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. 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, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due.

The Subject is principally engaged in the (as a / as an) trading of commodity products, such as metal, steel.

Share Capital History

Date	Issue & Paid Up Capital
07/02/2014	USD 10,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
PRAVEEN KUMAR JAIN +	110, TANJONG RHU ROAD, 05-05 CAMELOT BY-THE-WATER, 436928, SINGAPORE.	S2669189C	680,000.00	68.00
PRADEEP MAHESHWARI	187, TANJONG RHU ROAD, 14-07 SANCTUARY GREEN, 436925, SINGAPORE.	S7761157F	200,000.00	20.00
BASBA NAND BALODI	10B, HOUGANG STREET 11, 05-38 MINTON, THE, 534078, SINGAPORE.	S2706601A	120,000.00	12.00
			---------------	------
			1,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
201114132E	SINGAPORE	VARDHMAN INVESTMENTS PTE. LTD.	90.00	31/03/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	AJAIB HARI DASS
Address	:	17, JALAN INSAF, THOMSAN RISE ESTATE, 578013, SINGAPORE.
IC / PP No	:	S0889104D
Nationality	:	SINGAPOREAN
Date of Appointment	:	29/05/2007

DIRECTOR 2

Name Of Subject	:	SUNITA JAIN
Address	:	110, TANJONG RHU ROAD, 05-05 CAMELOT, 436928, SINGAPORE.
IC / PP No	:	S2669190G
Nationality	:	SINGAPOREAN
Date of Appointment	:	25/09/2007

DIRECTOR 3

Name Of Subject	:	PRAVEEN KUMAR JAIN
Address	:	110, TANJONG RHU ROAD, 05-05 CAMELOT BY-THE-WATER, 436928, SINGAPORE.
IC / PP No	:	S2669189C
Nationality	:	SINGAPOREAN
Date of Appointment	:	25/05/2007

MANAGEMENT

1)	Name of Subject	:	PRAVEEN KUMAR
	Position	:	DIRECTOR

AUDITOR

Auditor	:	STAMFORD ASSOCIATES LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	KOH HUI LIAK
	IC / PP No	:	S0059247A
	Address	:	842, SIMS AVENUE, 10-764, 400842, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BANK OF BARODA

2)

Name

:

BANK OF INDIA

3)

Name

:

HABIB BANK LTD

4)

Name

:

INDIAN BANK

5)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LTD

6)

Name

:

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

7)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

8)

Name

:

UCO BANK

9)

Name

:

UNITED OVERSEAS BANK LTD

10)

Name

:

SOCIETE GENERALE

11)

Name

:

STANDARD CHARTERED BANK

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200705104	03/07/2007	N/A	INDIAN BANK	-	Unsatisfied
C200709160	26/10/2007	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C200709161	26/10/2007	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C200808755	19/09/2008	N/A	HABIB BANK LTD	-	Unsatisfied
C200904685	29/07/2009	N/A	UCO BANK	-	Unsatisfied
C200904870	07/08/2009	N/A	OVERSEA-CHINESE BANKING CORPORATION LTD	-	Unsatisfied
C200904872	07/08/2009	N/A	OVERSEA-CHINESE BANKING CORPORATION LTD	-	Unsatisfied
C200905048	17/08/2009	N/A	INDIAN BANK	-	Unsatisfied
C200905589	04/09/2009	N/A	RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT	-	Unsatisfied
C200907736	25/11/2009	N/A	INDIAN BANK	-	Unsatisfied
C201000460	14/01/2010	N/A	CITIBANK N A	USD 200,000.00	Unsatisfied
C201002633	29/03/2010	N/A	INDIAN BANK	-	Unsatisfied
C201005709	06/07/2010	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD	-	Unsatisfied
C201006029	15/07/2010	N/A	BANK OF BARODA	-	Unsatisfied
C201103495	21/03/2011	N/A	UNITED OVERSEAS BANK LTD	-	Unsatisfied
C201107554	22/06/2011	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD	-	Unsatisfied
C201107784	28/06/2011	N/A	HABIB BANK LTD	-	Unsatisfied
C201107855	29/06/2011	N/A	HABIB BANK LTD	-	Unsatisfied
C201108569	14/07/2011	N/A	BANGKOK BANK PUBLIC CO LTD	-	Unsatisfied
C201110201	16/08/2011	N/A	BANGKOK BANK PUBLIC CO LTD	-	Unsatisfied
C201200866	18/01/2012	N/A	BANK OF INDIA	-	Unsatisfied
C201210599	18/09/2012	N/A	BANK OF BARODA	-	Unsatisfied
C201212892	08/11/2012	N/A	INDIAN BANK	-	Unsatisfied
C201301434	25/01/2013	N/A	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	-	Unsatisfied
C201301464	25/01/2013	N/A	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	-	Unsatisfied
C201302495	13/02/2013	N/A	SOCIETE GENERALE	-	Unsatisfied
C201302496	13/02/2013	N/A	SOCIETE GENERALE	-	Unsatisfied
C201304842	08/04/2013	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201304847	08/04/2013	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201315416	16/11/2013	N/A	INDIAN BANK	-	Unsatisfied
C201316290	06/12/2013	N/A	RHB BANK BERHAD	-	Unsatisfied
C201316294	06/12/2013	N/A	RHB BANK BERHAD	-	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	:	286
Year	:	2013	Place	:	SINGAPORE
Court	:	SESSIONS COURT
Date Filed	:	18/07/2013
Solicitor Ref	:	SRO/AL/201100569
Solicitor Firm	:	PREMIER LAW LLC
Plaintiff	:	ENDAEVOUR PTE LTD
Defendants	:	VALENCY INTERNATIONAL TRADING PTE. LTD. (200702113)
Remark	:	BANKING CREDIT AND SECURITY

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

OURCES 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	[	X	]	Good 31-60 Days	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[		]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA AFRICA
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

COMMODITY PRODUCTS

Total Number of Employees:
YEAR	2014	2013	2012	2011	2010
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	20	20	10	10	12

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of commodity products, such as metal, steel.

The Subject is a premier global commodity trading house having wide network in various continents.

The Subject has been trading in diversified portfolio of products such as Steel and Steel Scrap, Iron Ore, Fertilizers, Raw Cashew Nuts and Kernels, Timber, Chemicals and Agro products.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62236141
Match	:	N/A
Address Provided by Client	:	19 ANSON ROAD, 17-23, INTERNATIONAL PLAZA SINGAPORE 079903
Current Address	:	10 ANSON ROAD, #17-23 INTERNATIONAL PLAZA , 079903, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2009 - 2012	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2012	]
Return on Shareholder Funds	:	Favourable	[	34.33%	]
Return on Net Assets	:	Favourable	[	50.16%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The Subject's management have been efficient in controlling its operating costs. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	0 Days	]
Debtor Ratio	:	Favourable	[	43 Days	]
Creditors Ratio	:	Favourable	[	2 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	[	1.27 Times	]
Current Ratio	:	Unfavourable	[	1.27 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	:	Acceptable	[	3.04 Times	]
Gearing Ratio	:	Unfavourable	[	3.52 Times	]
The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. 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 :
Generally, the Subject's performance has improved with higher turnover and profit. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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 : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	(0.8)	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	(2.2)	4.3	12.8	8.5	(1.3)
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	(32.5)	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	(10.78)	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	(0.8)	11.4	2.8	(5)	(2.2)
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	(15.9)	(11.5)	(25.3)	(0.7)	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	(7.7)	103.7	(26.3)	(38.2)	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	(0.32)	3.25	(0.48)	4.25	3.64
Fish Supply & Wholesale	(6.31)	(1.93)	(10.5)	12.10	(0.5)
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	(36.9)	14.20	20.50	28.70
Real Estate	(11.2)	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	(1.3)	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	(5.9)	(16.4)	(0.4)	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	(0.9)	(1.4)	0.30
* Based on Index of Industrial Production (2011 = 100)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.
The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.
In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.
For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2007, the Subject is an Exempt Private company, focusing on trading of commodity products, such as metal and steel. Having been in business for 7 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. 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's business operation is supported by 20 employees. 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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. 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 24,426,661, 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.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

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.

VALENCY INTERNATIONAL TRADING PTE. LTD.

Financial Year End	2012-03-31	2011-03-31	2010-03-31	2009-03-31
Months	12	12	12	12
Consolidated Account	Company	Company	Company	Company
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	441,500,048	264,591,097	129,029,973	108,928,727
Other Income	275,895	4,343,035	76,571	-
	----------------	----------------	----------------	----------------
Total Turnover	441,775,943	268,934,132	129,106,544	108,928,727
Costs of Goods Sold	(425,292,234)	(256,727,372)	(124,300,899)	(104,546,204)
	----------------	----------------	----------------	----------------
Gross Profit	16,483,709	12,206,760	4,805,645	4,382,523
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	9,341,535	7,846,203	1,824,179	1,705,012
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	9,341,535	7,846,203	1,824,179	1,705,012
Taxation	(951,532)	(789,523)	(182,187)	(177,747)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	8,390,003	7,056,680	1,641,992	1,527,265
Minority interests	(3,340)	-	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	8,386,663	7,056,680	1,641,992	1,527,265
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	8,386,663	7,056,680	1,641,992	1,527,265
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	11,036,649	3,985,894	2,343,902	757,878
Prior year adjustment	-	(5,925)	-	58,759
	----------------	----------------	----------------	----------------
As restated	11,036,649	3,979,969	2,343,902	816,637
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	19,423,312	11,036,649	3,985,894	2,343,902
TRANSFER TO RESERVES - General	(2,500,000)	-	-	-
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	16,923,312	11,036,649	3,985,894	2,343,902
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	4,589,701	2,574,621	1,544,047	1,481,428
	----------------	----------------	----------------	----------------
	4,589,701	2,574,621	1,544,047	1,481,428
	=============	=============	=============	=============

BALANCE SHEET

VALENCY INTERNATIONAL TRADING PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	2,761,707	2,875,505	46,194	71,349
LONG TERM INVESTMENTS/OTHER ASSETS
Investment properties	1,445,148	-	-	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,445,148	-	-	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	4,206,855	2,875,505	46,194	71,349
CURRENT ASSETS
Stocks	122,175	-	-	-
Trade debtors	52,361,391	23,470,059	16,076,961	8,537,169
Other debtors, deposits & prepayments	50,009,522	32,643,989	6,277,679	2,456,112
Short term deposits	7,246,761	4,029,816	3,194,153	1,056,263
Cash & bank balances	1,854,825	546,465	837,781	505,334
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	111,594,674	60,690,329	26,386,574	12,554,878
	----------------	----------------	----------------	----------------
TOTAL ASSET	115,801,529	63,565,834	26,432,768	12,626,227
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	2,869,914	1,236,946	4,692,003	272,545
Other creditors & accruals	1,486,695	23,278,755	410,412	107,003
Hire purchase & lease creditors	54,465	46,018	11,635	10,704
Bank overdraft	105,285	70,293	2,014	184,233
Short term borrowings/Term loans	829,957	777,416	679,963	464,820
Other borrowings	10,256,836	494,264	-	-
Bill & acceptances payable	71,373,450	16,731,765	9,677,548	3,165,810
Amounts owing to director	100,768	100,768	325,050	1,815,338
Provision for taxation	951,144	800,506	197,229	171,419
Other liabilities	-	1,261,889	644,942	504,787
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	88,028,514	44,798,620	16,640,796	6,696,659
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	23,566,160	15,891,709	9,745,778	5,858,219
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	27,773,015	18,767,214	9,791,972	5,929,568
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	7,500,000	5,000,000	5,000,000	3,500,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	7,500,000	5,000,000	5,000,000	3,500,000
RESERVES
Retained profit/(loss) carried forward	16,923,312	11,036,649	3,985,894	2,343,902
	----------------	----------------	----------------	----------------
TOTAL RESERVES	16,923,312	11,036,649	3,985,894	2,343,902
MINORITY INTEREST	3,349	-	-	-
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	24,426,661	16,036,649	8,985,894	5,843,902
LONG TERM LIABILITIES
Long term loans	2,977,069	2,385,005	722,950	-
Hire purchase creditors	369,418	346,081	74,593	79,338
Deferred taxation	(133)	(521)	8,535	6,328
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	3,346,354	2,730,565	806,078	85,666
	----------------	----------------	----------------	----------------
	27,773,015	18,767,214	9,791,972	5,929,568
	=============	=============	=============	=============

FINANCIAL RATIO

VALENCY INTERNATIONAL TRADING PTE. LTD.

TYPES OF FUNDS
Cash	9,101,586	4,576,281	4,031,934	1,561,597
Net Liquid Funds	(62,377,149)	(12,225,777)	(5,647,628)	(1,788,446)
Net Liquid Assets	23,443,985	15,891,709	9,745,778	5,858,219
Net Current Assets/(Liabilities)	23,566,160	15,891,709	9,745,778	5,858,219
Net Tangible Assets	27,773,015	18,767,214	9,791,972	5,929,568
Net Monetary Assets	20,097,631	13,161,144	8,939,700	5,772,553
BALANCE SHEET ITEMS
Total Borrowings	85,966,480	20,850,842	11,168,703	3,904,905
Total Liabilities	91,374,868	47,529,185	17,446,874	6,782,325
Total Assets	115,801,529	63,565,834	26,432,768	12,626,227
Net Assets	27,773,015	18,767,214	9,791,972	5,929,568
Net Assets Backing	24,426,661	16,036,649	8,985,894	5,843,902
Shareholders' Funds	24,426,661	16,036,649	8,985,894	5,843,902
Total Share Capital	7,500,000	5,000,000	5,000,000	3,500,000
Total Reserves	16,923,312	11,036,649	3,985,894	2,343,902
LIQUIDITY (Times)
Cash Ratio	0.10	0.10	0.24	0.23
Liquid Ratio	1.27	1.35	1.59	1.87
Current Ratio	1.27	1.35	1.59	1.87
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	0	0
Debtors Ratio	43	32	45	29
Creditors Ratio	2	2	14	1
SOLVENCY RATIOS (Times)
Gearing Ratio	3.52	1.30	1.24	0.67
Liabilities Ratio	3.74	2.96	1.94	1.16
Times Interest Earned Ratio	3.04	4.05	2.18	2.15
Assets Backing Ratio	3.70	3.75	1.96	1.69
PERFORMANCE RATIO (%)
Operating Profit Margin	2.12	2.97	1.41	1.57
Net Profit Margin	1.90	2.67	1.27	1.40
Return On Net Assets	50.16	55.53	34.40	53.74
Return On Capital Employed	49.87	55.18	34.35	52.03
Return On Shareholders' Funds/Equity	34.33	44.00	18.27	26.13
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. 62.31
UK Pound	1	Rs. 101.77
Euro	1	Rs. 84.68

INFORMATION DETAILS

Report Prepared by :

DPT

RATING EXPLANATIONS

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

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

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

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.