MIRA INFORM REPORT

Report Date :

21.02.2014

IDENTIFICATION DETAILS

Name :	WELCOME TRADING CO. PTE LTD
Registered Office :	1, North Brigde Road, 12-04/05, High Street Central Building, 179094,
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	31.03.1971
Com. Reg. No.:	197100306-E
Legal Form :	Private Limited
Line of Business :	Trading of commodity products such as rubber, metal, steel
No. of Employees :	13 (2014)

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List – 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.

:

197100306-E

COMPANY NAME

:

WELCOME TRADING CO. PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

31/03/1971

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1, NORTH BRIGDE ROAD, 12-04/05, HIGH STREET CENTRAL BUILDING, 179094, SINGAPORE.

BUSINESS ADDRESS

:

1, NORTH BRIGDE ROAD, 12-04/05, HIGH STREET CENTRAL BUILDING, 179094, SINGAPORE.

TEL.NO.

:

63385001

FAX.NO.

:

63368821

CONTACT PERSON

:

LIM KUEH CHONG ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF COMMODITY PRODUCTS SUCH AS RUBBER, METAL, STEEL AND OTHERS

ISSUED AND PAID UP CAPITAL

:

3,800,000.00 ORDINARY SHARE, OF A VALUE OF SGD 4,250,000.00

SALES

:

SGD 248,244,604 [2012]

NET WORTH

:

SGD 5,323,846 [2012]

STAFF STRENGTH

:

13 [2014]

BANKER (S)

:

UNITED OVERSEAS BANK LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

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

Share Capital History

Date	Issue & Paid Up Capital
31/12/2011	SGD 4,250,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
WELCOME HOLDING PRIVATE LIMITED	1, NORTH BRIGDE ROAD, 12-04/05, HIGH STREET CENTRAL BUILDING, 179094, SINGAPORE.	198102806R	2,937,500.00	77.30
MR. LIM KUEH CHONG +	38, LUCKY VIEW, 467470, SINGAPORE.	S0549384F	532,500.00	14.01
STONE HARBOUR WORLDWIDE CORP	NERING CHAMBERS, P O BOX 905, ROAD TOWN, TORTOLA , VIRGIN ISLANDS, BRITISH.	T12UF3266K	270,000.00	7.11
EST OF YONGKIART KIARTARITARA	461, YAMARAJ SUKUM LANE, SUAPA ROAD, BANGKOK, THAILAND.	H010783	60,000.00	1.58
			---------------	------
			3,800,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
196800032R	SINGAPORE	COMFORT LEATHER SHOE MANUFACTORY PRIVATE LIMITED	62.48	20/02/2014

DIRECTORS

DIRECTOR 1

Name Of Subject	:	LIM CHIEW WAH
Address	:	38, LUCKY VIEW, 467470, SINGAPORE.
IC / PP No	:	S7527546C
Nationality	:	SINGAPOREAN
Date of Appointment	:	03/07/1997

DIRECTOR 2

Name Of Subject	:	LIM CHIEW LIN
Address	:	367, YISHUN RING ROAD, 12-1538, 760367, SINGAPORE.
IC / PP No	:	S1675762D
Nationality	:	SINGAPOREAN
Date of Appointment	:	22/06/2004

DIRECTOR 3

Name Of Subject	:	LIM QUIK SHEN
Address	:	104, BOON KENG ROAD, 06-03, 339775, SINGAPORE.
IC / PP No	:	S2052493F
Nationality	:	SINGAPOREAN
Date of Appointment	:	15/05/1974

DIRECTOR 4

Name Of Subject	:	MR. LIM KUEH CHONG
Address	:	38, LUCKY VIEW, 467470, SINGAPORE.
IC / PP No	:	S0549384F
Nationality	:	SINGAPOREAN
Date of Appointment	:	31/03/1971

MANAGEMENT

1)	Name of Subject	:	LIM KUEH CHONG
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	TAN KIAN TIN & CO.
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LIM CHIEW WAH
	IC / PP No	:	S7527546C
	Address	:	38, LUCKY VIEW, 467470, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK LTD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201208007	18/07/2012	ALL MONIES	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	-	Unsatisfied
C201302173	06/02/2013	ALL MONIES	DBS BANK LIMITED	-	Unsatisfied
C201302388	08/02/2013	ALL MONIES	DBS BANK LIMITED	-	Unsatisfied
C201304657	03/04/2013	ALL MONIES	MALAYAN BANKING BERHAD	-	Unsatisfied

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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers.

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	:	WORLDWIDE
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

COMMODITY PRODUCTS SUCH AS RUBBER, METAL, STEEL AND OTHERS

Total Number of Employees:
YEAR	2014	2013
GROUP	N/A	N/A
COMPANY	13	11

Branch

:

NO

Other Information:

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

The Subject is engaged in the Commercial trades that include Non-Ferrous metals, Construction and Commercial Steel, Rubber (Natural and Synthetic grades) and Paper Products.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6563385001
Current Telephone Number	:	63385001
Match	:	YES
Address Provided by Client	:	1 NORTH BRIDGE ROAD, NO 12-05, HIGH STREET CENTRE SINGAPORE 179094
Current Address	:	1, NORTH BRIGDE ROAD, 12-04/05, HIGH STREET CENTRAL BUILDING, 179094, SINGAPORE.
Match	:	YES

Other Investigations

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

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2008 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2008 - 2012	]
Return on Shareholder Funds	:	Acceptable	[	14.17%	]
Return on Net Assets	:	Favourable	[	41.15%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	2 Days	]
Debtor Ratio	:	Favourable	[	6 Days	]
Creditors Ratio	:	Favourable	[	1 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	:	Acceptable	[	0.97 Times	]
Current Ratio	:	Unfavourable	[	1.09 Times	]
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	1.53 Times	]
Gearing Ratio	:	Unfavourable	[	1.18 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 higher turnover had helped to reduce the Subject's losses. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. 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 : LIMITED

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 1971, the Subject is a Private Limited company, focusing on trading of commodity products such as rubber, metal, steel and others. Its long establishment in the market has allowed the Subject to build up a good reputation and gain higher market share against its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

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 13 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. 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its 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 SGD 5,323,846, the Subject should be able to maintain its business in the near terms.

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.

WELCOME TRADING CO. PTE LTD

Financial Year End	2012-12-31	2011-12-31	2010-12-31	2009-12-31	2008-12-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	248,244,604	188,241,975	165,467,691	143,531,553	159,677,960
	----------------	----------------	----------------	----------------	----------------
Total Turnover	248,244,604	188,241,975	165,467,691	143,531,553	159,677,960
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	754,340	(1,174,895)	926,710	2,042,055	(1,344,666)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	754,340	(1,174,895)	926,710	2,042,055	(1,344,666)
Taxation	-	(20,182)	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	754,340	(1,195,077)	926,710	2,042,055	(1,344,666)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(2,832,998)	(1,637,921)	(2,564,631)	(4,606,686)	(3,207,250)
	----------------	----------------	----------------	----------------	----------------
As restated	(2,832,998)	(1,637,921)	(2,564,631)	(4,606,686)	(3,207,250)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(2,078,658)	(2,832,998)	(1,637,921)	(2,564,631)	(4,551,916)
TRANSFER TO RESERVES - General	-	-	-	-	(54,770)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(2,078,658)	(2,832,998)	(1,637,921)	(2,564,631)	(4,606,686)
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	108,731	117,931	151,294	152,379	152,518
Lease interest	-	-	-	-	2,070
Term loan / Borrowing	-	-	16,899	19,048	32,719
Trust receipts	183,483	136,066	109,444	142,573	352,613
Others	1,143,970	815,915	690,865	206,775	499,635
	----------------	----------------	----------------	----------------	----------------
	1,436,184	1,069,912	968,502	520,775	1,039,555
	=============	=============	=============	=============	=============

BALANCE SHEET

WELCOME TRADING CO. PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	2,533,057	2,574,538	2,609,329	2,655,285	2,704,621
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	1,868,078	1,868,078	1,868,078	1,868,078	1,868,078
Investment properties	-	-	97,038	98,655	100,272
Others	181,800	246,394	187,834	380,333	287,883
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	2,049,878	2,114,472	2,152,950	2,347,066	2,256,233
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	4,582,935	4,689,010	4,762,279	5,002,351	4,960,854
CURRENT ASSETS
Stocks	1,039,120	1,515,734	635,057	2,022,471	2,870,196
Trade debtors	4,013,748	8,396,567	4,302,734	8,339,203	4,971,930
Other debtors, deposits & prepayments	132,595	322,245	631,912	539,932	204,970
Amount due from holding company	22,455	119,989	-	-	-
Amount due from director	103,519	64,891	27,789	26,964	20,456
Cash & bank balances	2,203,403	1,337,360	1,765,848	977,865	400,902
Others	1,850,169	1,842,162	1,958,260	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	9,365,009	13,598,948	9,321,600	11,906,435	8,468,454
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	13,947,944	18,287,958	14,083,879	16,908,786	13,429,308
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,012,989	1,211,792	13,929	774,365	1,340,284
Other creditors & accruals	321,852	68,876	1,009,247	1,279,809	960,977
Bank overdraft	1,259,834	1,678,753	2,174,498	2,299,379	1,946,183
Short term borrowings/Term loans	-	-	-	-	6,514,711
Other borrowings	5,010,645	9,644,811	4,933,313	7,687,691	-
Amounts owing to holding company	-	74,254	-	-	-
Amounts owing to subsidiary companies	773,524	876,214	-	-	-
Amounts owing to related companies	115,909	57,293	-	-	-
Amounts owing to director	8,877	-	127,340	86,069	143,097
Other liabilities	120,468	106,099	119,169	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	8,624,098	13,718,092	8,377,496	12,127,313	10,905,252
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	740,911	(119,144)	944,104	(220,878)	(2,436,798)
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	4,250,000	4,250,000	4,250,000	4,250,000	4,250,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	4,250,000	4,250,000	4,250,000	4,250,000	4,250,000
RESERVES
Capital reserve	2,844,688	2,844,688	2,844,688	2,844,688	2,844,688
Retained profit/(loss) carried forward	(2,078,658)	(2,832,998)	(1,637,921)	(2,564,631)	(4,606,686)
Others	307,816	308,176	249,616	251,416	36,054
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	1,073,846	319,866	1,456,383	531,473	(1,725,944)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
	----------------	----------------	----------------	----------------	----------------
	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
	=============	=============	=============	=============	=============

FINANCIAL RATIO

WELCOME TRADING CO. PTE LTD

TYPES OF FUNDS
Cash	2,203,403	1,337,360	1,765,848	977,865	400,902
Net Liquid Funds	943,569	(341,393)	(408,650)	(1,321,514)	(1,545,281)
Net Liquid Assets	(298,209)	(1,634,878)	309,047	(2,243,349)	(5,306,994)
Net Current Assets/(Liabilities)	740,911	(119,144)	944,104	(220,878)	(2,436,798)
Net Tangible Assets	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
Net Monetary Assets	(298,209)	(1,634,878)	309,047	(2,243,349)	(5,306,994)
BALANCE SHEET ITEMS
Total Borrowings	6,270,479	11,323,564	7,107,811	9,987,070	8,460,894
Total Liabilities	8,624,098	13,718,092	8,377,496	12,127,313	10,905,252
Total Assets	13,947,944	18,287,958	14,083,879	16,908,786	13,429,308
Net Assets	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
Net Assets Backing	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
Shareholders' Funds	5,323,846	4,569,866	5,706,383	4,781,473	2,524,056
Total Share Capital	4,250,000	4,250,000	4,250,000	4,250,000	4,250,000
Total Reserves	1,073,846	319,866	1,456,383	531,473	(1,725,944)
LIQUIDITY (Times)
Cash Ratio	0.26	0.10	0.21	0.08	0.04
Liquid Ratio	0.97	0.88	1.04	0.82	0.51
Current Ratio	1.09	0.99	1.11	0.98	0.78
WORKING CAPITAL CONTROL (Days)
Stock Ratio	2	3	1	5	7
Debtors Ratio	6	16	9	21	11
Creditors Ratio	1	2	0	2	3
SOLVENCY RATIOS (Times)
Gearing Ratio	1.18	2.48	1.25	2.09	3.35
Liabilities Ratio	1.62	3.00	1.47	2.54	4.32
Times Interest Earned Ratio	1.53	(0.10)	1.96	4.92	(0.29)
Assets Backing Ratio	1.25	1.08	1.34	1.13	0.59
PERFORMANCE RATIO (%)
Operating Profit Margin	0.30	(0.62)	0.56	1.42	(0.84)
Net Profit Margin	0.30	(0.63)	0.56	1.42	(0.84)
Return On Net Assets	41.15	(2.30)	33.21	53.60	(12.09)
Return On Capital Employed	33.27	(1.68)	24.05	36.19	(6.83)
Return On Shareholders' Funds/Equity	14.17	(26.15)	16.24	42.71	(53.27)
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.28
UK Pound	1	Rs.103.84
Euro	1	Rs.85.70

INFORMATION DETAILS

Report Prepared by :

NIS

RATING EXPLANATIONS

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

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

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

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

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.