MIRA INFORM REPORT

Report Date :

03.07.2014

IDENTIFICATION DETAILS

Name :	OLAM INTERNATIONAL LIMITED
Registered Office :	50, Raffles Place, 32-01, Singapore Land Tower, 048623
Country :	Singapore
Financials (as on) :	30.06.2013
Date of Incorporation :	04.07.1995
Com. Reg. No.:	199504676-H
Legal Form :	Public (Limited By Share)
Line of Business :	Engaged in supply chain management of agricultural products and food ingredients.  Subject's products includes coffee, almonds, cashews, cotton, grains, hazelnuts, peanut, rice, sesame and packaged products.
No. of Employees :	220 (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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199504676-H
COMPANY NAME	:	OLAM INTERNATIONAL LIMITED
FORMER NAME	:	N/A
INCORPORATION DATE	:	04/07/1995
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC (LIMITED BY SHARE)
LISTED STATUS	:	YES
LISTED DATE	:	11/02/2005
REGISTERED ADDRESS	:	50, RAFFLES PLACE, 32-01, SINGAPORE LAND TOWER, 048623, SINGAPORE.
BUSINESS ADDRESS	:	9, TEMASEK BOULEVARD #11-02, SUNTEC TOWER 2, 038989, SINGAPORE.
TEL.NO.	:	65-63394100
FAX.NO.	:	65-63399755
EMAIL	:	SINGAPORE@OLAMNET.COM
WEB SITE	:	WWW.OLAMONLINE.COM
CONTACT PERSON	:	SRIDHAR KRISHNAN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	SUPPLY CHAIN MANAGEMENT OF AGRICULTURAL PRODUCTS AND FOOD INGREDIENTS
ISSUED AND PAID UP CAPITAL	:	2,442,409,869.00 ORDINARY SHARE, OF A VALUE OF SGD 2,148,690,224.06
SALES	:	SGD 20,801,798,000 [2013]
NET WORTH	:	SGD 3,823,728,000 [2013]
STAFF STRENGTH	:	220 [2014]
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

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) supply chain management of agricultural products and food ingredients.

Share Capital History

Date	Issue & Paid Up Capital
21/01/2014	SGD 2,148,690,224.06

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CITIBANK NOMINEES SINGAPORE PTE LTD	8, MARINA VIEW, 21-00, ASIA SQUARE TOWER 1, 018960, SINGAPORE.	198801936	567,260,407.00	23.23
KEWALRAM SINGAPORE LIMITED	65, CHULIA STREET, 49-01, OCBC CENTRE, 049513, SINGAPORE.	197100490	372,265,793.00	15.24
BREEDENS INVESTMENTS PTE. LTD.	60B, ORCHARD ROAD, 06-18, THE ATRIUM @ ORCHARD, 238891, SINGAPORE.	200900787	311,136,140.00	12.74
DBS NOMINEES PTE LTD	12, MARINA BOULEVARD , 018982, SINGAPORE.	196900222	187,270,617.00	7.67
RAFFLES NOMINEES (PTE.) LIMITED	7, CHANGI BUSINESS PARK CRESCENT, 03-00, STANDARD CHARTERED @ CHANGI, 486028, SINGAPORE.	193700032	183,526,590.00	7.51
DBSN SERVICES PTE. LTD.	12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.	200602090	156,623,981.00	6.41
HSBC (SINGAPORE) NOMINEES PTE LTD	21, COLLYER QUAY, 10-02, HSBC BUILDING, 049320, SINGAPORE.	194600097	120,354,929.00	4.93
UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED	80, RAFFLES PLACE, UOB PLAZA , 048624, SINGAPORE.	196800520	81,582,256.00	3.34
ARANDA INVESTMENTS PTE. LTD.	60B, ORCHARD ROAD, 06-18, THE ATRIUM @ ORCHARD, 238891, SINGAPORE.	200312481K	79,262,313.00	3.25
MORGAN STANLEY ASIA (SINGAPORE) SECURITIES PTE LTD	1, MARINA BOULEVARD, 28-00, ONE MARINA BOULEVARD , 018989, SINGAPORE.	200008434	26,585,296.00	1.09
REMAINING SHAREHOLDERS	-	-	356,541,547.00	14.60
			---------------	------
			2,442,409,869.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	NIGERIA	CROWN FLOUR MILLS LIMITED	100.00	30/06/2011
	AUSTRALIA	OLAM ORCHARDS AUSTRALIA PTY. LTD	100.00	30/06/2011
	MEXICO	OUTSPAN MEXICO SA DE CV	100.00	30/06/2011
	CAMEROON	OLAM CAM SARL	100.00	30/06/2011
	UNITED KINGDOM	OLAM EUROPE LIMITED	100.00	30/06/2011
	LAOS	OUTSPAN BOLOVENS LIMITED	100.00	30/06/2011
	RUSSIAN	LLC OUTSPLAN INTERNATIONAL	100.00	30/06/2011
	AUSTRALIA	OLAM INVESTMENTS AUSTRALIA PTY LTD	100.00	30/06/2011
	THAILAND	OLAM (THAILAND) LIMITED	100.00	30/06/2011
	SWITZERLAND	TT TIMBER INTERNATIONAL AG	100.00	30/06/2011
	UNITED KINGDOM	BRITANNIA FOOD INGREDIENTS HOLDINGS LIMITED	100.00	30/06/2011
200715104C	SINGAPORE	FAR EAST AGRI PTE. LTD.	100.00	30/06/2012
200305038R	SINGAPORE	CARAWAY PTE. LTD.	100.00	30/06/2013
200715104C	SINGAPORE	FAR EAST AGRI PTE. LTD.	100.00	30/06/2013
200305038R	SINGAPORE	CARAWAY PTE. LTD.	100.00	30/06/2012
	PERU	OUTSPAN PERU S.A.C.	100.00	30/06/2011
	NIGERIA	OK FOODS LIMITED	100.00	30/06/2011
	TURKEY	OLAM TARIM URUNLERI YEM MADDELERI SANAYI VE TICARET LIMITED SIRKETI	100.00	30/06/2011
	SPAIN	OLAM MACAO SPAIN, S.L.	100.00	30/06/2011
	VIETNAM	CAFE OUTSPAN VIETNAM LIMITED	100.00	30/06/2011
	INDIA	OLAM AGRO INDIA LIMITED	100.00	30/06/2011
	SOUTH AFRICA	OLAM SOUTH AFRICA (PROPRIETARY) LIMITED	100.00	30/06/2011
	BRAZIL	OLAM BRASIL LTDA	100.00	30/06/2011
	MAURITIUS	OLAM INVESTMENTS LIMITED	100.00	30/06/2011
	BRAZIL	OUTSPAN BRASIL IMPORTACAO E EXPORTACAO LTDA	100.00	30/06/2011
	MOZAMBIQUE	OLAM MOCAMBIQUE LIMITADA	100.00	30/06/2011
	GABON	OLAM GABON SA	100.00	30/06/2011
	GHANA	OLAM GHANA LIMITED	100.00	30/06/2011
	NIGERIA	OLAM NIGERIA LTD	100.00	30/06/2011
	SOUTH AFRICA	OUTSPAN IVOIRE SA	100.00	30/06/2011
	CHINA	OLAM SHANGHAI LIMITED	100.00	30/06/2011
	INDONESIA	PT OLAM INDONESIA	100.00	30/06/2011
	HONG KONG	KEY FOODS HONG KONG LIMITED	100.00	30/06/2011
	VIETNAM	OLAM VIETNAM LIMITED	100.00	30/06/2011
	COLOMBIA	OUTSPAN COLOMBIA S.A	100.00	30/06/2011
	HONDURAS	OLAM HONDURAS, S.A., DE C.V.	100.00	30/06/2011
	TANZANIA	OLAM TANZANIA LTD	100.00	30/06/2011
	NETHERLANDS	NAARDEN AGRO PRODUCTS B,V	100.00	30/06/2011
	UNITED ARAB EMIRATES	PANASIA INTERNATIONAL FZCO	100.00	30/06/2011
	ARGENTINA	OLAM ARGENTINA S.A.	100.00	30/06/2011
201003986K	SINGAPORE	INVENIO HOLDINGS PTE. LTD.	88.64	30/06/2011
201003986K	SINGAPORE	INVENIO HOLDINGS PTE. LTD.	88.63	30/06/2012
201003986K	SINGAPORE	INVENIO HOLDINGS PTE. LTD.	88.63	30/06/2013
	NEW ZEALAND	NZ FARMING SYSTEMS URUGUAY LIMITED	85.93	30/06/2011
201107724M	SINGAPORE	OLEA INVESTMENT HOLDINGS PTE. LTD.	80.00	30/06/2013
201212127	SINGAPORE	CARMEL INVESTMENT HOLDINGS PTE. LTD.	80.00	30/06/2013
201107724M	SINGAPORE	OLEA INVESTMENT HOLDINGS PTE. LTD.	80.00	30/06/2011
	CYPRUS	MILKY PROJECTS LIMITED	75.00	30/06/2011
	GABON	OLAM PALM GABON SA	70.00	30/06/2011
	GABON	GABON SPECIAL ECONOMIC ZONE SA	60.00	30/06/2011
200721451H	SINGAPORE	NAUVU INVESTMENTS PTE. LTD.	50.00	30/06/2012
200721451H	SINGAPORE	NAUVU INVESTMENTS PTE. LTD.	50.00	30/06/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	SANJIV MISRA
Address	:	27, EAST SUSSEX LANE, 279813, SINGAPORE.
IC / PP No	:	S2653345G
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/11/2013

DIRECTOR 2

Name Of Subject	:	WONG HENG TEW
Address	:	79, HIGHGATE CRESCENT, 598857, SINGAPORE.
IC / PP No	:	S0207348Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	10/10/2003

DIRECTOR 3

Name Of Subject	:	RANGAREDDY JAYACHANDRAN
Address	:	3, GRANGE GARDEN, 09-01, THE GRANGE, 249633, SINGAPORE.
IC / PP No	:	S2220352E
Nationality	:	SINGAPOREAN
Date of Appointment	:	04/07/1995

DIRECTOR 4

Name Of Subject	:	SHEKHAR ANANTHARAMAN
Address	:	754, MOUNTBATTEN ROAD, 437856, SINGAPORE.
IC / PP No	:	S2675139Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/04/1998

DIRECTOR 5

Name Of Subject	:	ROBERT MICHAEL TOMLIN
Address	:	22, SAUNDERS ROAD, 228266, SINGAPORE.
IC / PP No	:	S2624570B
Nationality	:	SINGAPOREAN
Date of Appointment	:	24/09/2004

DIRECTOR 6

Name Of Subject	:	MARK HAYNES DANIELL
Address	:	34, DRAYCOTT DRIVE, 03-03, J C DRAYCOTT, 259426, SINGAPORE.
IC / PP No	:	S2728135D
Nationality	:	SINGAPOREAN
Date of Appointment	:	31/10/2002

DIRECTOR 7

Name Of Subject	:	JEAN-PAUL PINARD
Address	:	60, BAYSHORE ROAD, 30-01, BAYSHORE PARK, 469982, SINGAPORE.
IC / PP No	:	S2738913I
Nationality	:	SINGAPOREAN
Date of Appointment	:	29/10/2008

DIRECTOR 8

Name Of Subject	:	SUNNY GEORGE VERGHESE
Address	:	61, GRANGE ROAD, 14-04, BEVERLY HILL APARTMENTS, 249570, SINGAPORE.
IC / PP No	:	S2763335H
Nationality	:	SINGAPOREAN
Date of Appointment	:	11/07/1996

DIRECTOR 9

Name Of Subject	:	MR. MICHAEL LIM CHOO SAN
Address	:	11, CALDECOTT CLOSE, CALDECOTT HILL ESTATE, 299120, SINGAPORE.
IC / PP No	:	S2539208F
Nationality	:	SINGAPOREAN
Date of Appointment	:	24/09/2004

DIRECTOR 10

Name Of Subject	:	NARAIN GIRDHAR CHANRAI
Address	:	9, ARDMORE PARK, 14-02, ARDMORE PARK, 259955, SINGAPORE.
IC / PP No	:	S2584555B
Nationality	:	SINGAPOREAN
Date of Appointment	:	04/07/1995

MANAGEMENT

1)	Name of Subject	:	SRIDHAR KRISHNAN
	Position	:	DIRECTOR

2)	Name of Subject	:	SUNNY GEORGE VERGHESE
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	YOO LOO PING
	IC / PP No	:	S7278603C
	Address	:	348, BALESTIER ROAD, 14-03, PRESTIGE HEIGHTS, 329778, 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	[	]	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	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

AGRICULTURAL FOOD PRODUCT

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2014	2013	2012	2011	2010
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	220	233	180	180	150

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) supply chain management of agricultural products and food ingredients. 

The Subject is a global leader in the supply chain management of agricultural products and food ingredients.

The Subject's products includes coffee, almonds, cashews, cotton, grains, hazelnuts, peanut, rice, sesame and packaged products.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6563394100
Current Telephone Number	:	65-63394100
Match	:	YES
Address Provided by Client	:	9 TEMASEK BOULEVARD, # 11-02 SUNTEC TOWER TWO 038989 SINGAPORE
Current Address	:	9, TEMASEK BOULEVARD #11-02, SUNTEC TOWER 2, 038989, 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 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	9.48%	]
Return on Net Assets	:	Acceptable	[	10.50%	]
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. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	73 Days	]
Debtor Ratio	:	Favourable	[	42 Days	]
Creditors Ratio	:	Favourable	[	25 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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	[	1.05 Times	]
Current Ratio	:	Unfavourable	[	1.82 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	:	Unfavourable	[	1.91 Times	]
Gearing Ratio	:	Unfavourable	[	1.32 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 :
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. 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 1995, the Subject is a Public Listed company, focusing on supply chain management of agricultural products and food ingredients. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 220 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. However, 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. Given a positive net worth standing at SGD 3,823,728,000, 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.

OLAM INTERNATIONAL LIMITED

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	SGD	SGD	SGD	SGD	SGD
TURNOVER	20,801,798,000	17,093,751,000	15,803,387,000	10,455,032,000	8,587,932,000
Other Income	106,853,000	51,473,000	124,751,000	139,897,000	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	20,908,651,000	17,145,224,000	15,928,138,000	10,594,929,000	8,587,932,000
Costs of Goods Sold	(17,053,837,000)	(13,866,578,000)	(13,126,857,000)	(8,465,914,000)	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	3,854,814,000	3,278,646,000	2,801,281,000	2,129,015,000	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	476,167,000	437,910,000	510,265,000	420,195,000	258,024,000
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES	20,484,000	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	496,651,000	437,910,000	510,265,000	420,195,000	258,024,000
Taxation	(105,134,000)	(34,085,000)	(65,697,000)	(60,446,000)	(5,995,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	391,517,000	403,825,000	444,568,000	359,749,000	252,029,000
Minority interests	(28,899,000)	(32,917,000)	(14,727,000)	(280,000)	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	362,618,000	370,908,000	429,841,000	359,469,000	252,029,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	362,618,000	370,908,000	429,841,000	359,469,000	252,029,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,425,318,000	1,186,026,000	809,324,000	560,023,000	330,382,000
	----------------	----------------	----------------	----------------	----------------
As restated	1,425,318,000	1,186,026,000	809,324,000	560,023,000	330,382,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	1,787,936,000	1,556,934,000	1,239,165,000	919,492,000	582,411,000
TRANSFER TO RESERVES - General	-	-	-	-	20,445,000
DIVIDENDS - Ordinary (paid & proposed)	(114,912,000)	(131,616,000)	(53,139,000)	(110,168,000)	(42,833,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	1,673,024,000	1,425,318,000	1,186,026,000	809,324,000	560,023,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	17,695,000	12,693,000	20,302,000	13,515,000	18,025,000
Bonds	120,576,000	82,072,000	80,367,000	70,291,000	-
Term loan / Borrowing	272,203,000	277,991,000	191,508,000	120,963,000	176,128,000
Others	137,080,000	69,970,000	52,181,000	22,706,000	45,026,000
	----------------	----------------	----------------	----------------	----------------
	547,554,000	442,726,000	344,358,000	227,475,000	239,179,000
	=============	=============	=============	=============	=============

BALANCE SHEET

OLAM INTERNATIONAL LIMITED

ASSETS EMPLOYED:
FIXED ASSETS	3,427,775,000	2,620,995,000	1,576,715,000	1,054,166,000	514,334,000
LONG TERM INVESTMENTS/OTHER ASSETS
Associated companies	557,693,000	482,864,000	411,819,000	467,237,000	106,520,000
Investments	-	-	-	18,752,000	-
Deferred assets	34,832,000	37,735,000	43,053,000	63,978,000	74,704,000
Others	801,998,000	640,502,000	463,172,000	186,044,000	325,190,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,394,523,000	1,161,101,000	918,044,000	736,011,000	506,414,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	686,516,000	660,157,000	485,938,000	341,586,000	127,538,000
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	686,516,000	660,157,000	485,938,000	341,586,000	127,538,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	5,508,814,000	4,442,253,000	2,980,697,000	2,131,763,000	1,148,286,000
CURRENT ASSETS
Stocks	4,154,271,000	4,410,014,000	3,584,144,000	2,584,046,000	1,966,419,000
Trade debtors	2,372,900,000	1,596,796,000	1,595,446,000	976,781,000	732,500,000
Other debtors, deposits & prepayments	598,470,000	320,556,000	558,118,000	-	-
Short term deposits	68,232,000	108,894,000	43,162,000	259,117,000	239,688,000
Cash & bank balances	1,522,777,000	1,001,962,000	829,085,000	412,426,000	294,130,000
Others	1,158,720,000	1,947,507,000	2,989,484,000	1,440,525,000	1,034,393,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	9,875,370,000	9,385,729,000	9,599,439,000	5,672,895,000	4,267,130,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	15,384,184,000	13,827,982,000	12,580,136,000	7,804,658,000	5,415,416,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,188,242,000	678,331,000	613,112,000	396,153,000	439,175,000
Other creditors & accruals	559,721,000	455,562,000	482,491,000	252,238,000	219,813,000
Hire purchase & lease creditors	4,403,000	1,322,000	1,425,000	-	-
Bank overdraft	261,147,000	445,664,000	437,169,000	167,611,000	-
Short term borrowings/Term loans	308,522,000	281,125,000	302,148,000	840,087,000	128,005,000
Other borrowings	2,115,877,000	2,070,730,000	2,669,858,000	1,287,870,000	-
Provision for taxation	49,728,000	33,493,000	24,762,000	34,920,000	11,410,000
Other liabilities	949,260,000	1,798,871,000	2,598,999,000	706,697,000	2,331,763,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	5,436,900,000	5,765,098,000	7,129,964,000	3,685,576,000	3,130,166,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	4,438,470,000	3,620,631,000	2,469,475,000	1,987,319,000	1,136,964,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	9,947,284,000	8,062,884,000	5,450,172,000	4,119,082,000	2,285,250,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,077,038,000	2,077,038,000	1,577,110,000	1,201,581,000	708,586,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,077,038,000	2,077,038,000	1,577,110,000	1,201,581,000	708,586,000
RESERVES
Capital reserve	-	-	129,586,000	145,688,000	24,450,000
Exchange equalisation/fluctuation reserve	-	-	(378,825,000)	(166,452,000)	(85,035,000)
Retained profit/(loss) carried forward	1,673,024,000	1,425,318,000	1,186,026,000	809,324,000	560,023,000
Others	(58,202,000)	(96,746,000)	(268,555,000)	(218,212,000)	(162,178,000)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	1,614,822,000	1,328,572,000	668,232,000	570,348,000	337,260,000
MINORITY INTEREST	131,868,000	122,152,000	57,020,000	(1,144,000)	46,000
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	3,823,728,000	3,527,762,000	2,302,362,000	1,770,785,000	1,045,892,000
LONG TERM LIABILITIES
Long term loans	2,354,192,000	3,106,499,000	1,713,918,000	1,228,312,000	-
Lease obligations	21,563,000	29,729,000	21,556,000	-	-
Deferred taxation	240,877,000	194,071,000	177,283,000	140,861,000	62,812,000
Others	3,506,924,000	1,204,823,000	1,235,053,000	979,124,000	1,176,546,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	6,123,556,000	4,535,122,000	3,147,810,000	2,348,297,000	1,239,358,000
	----------------	----------------	----------------	----------------	----------------
	9,947,284,000	8,062,884,000	5,450,172,000	4,119,082,000	2,285,250,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

OLAM INTERNATIONAL LIMITED

TYPES OF FUNDS
Cash	1,591,009,000	1,110,856,000	872,247,000	671,543,000	533,818,000
Net Liquid Funds	1,329,862,000	665,192,000	435,078,000	503,932,000	533,818,000
Net Liquid Assets	284,199,000	(789,383,000)	(1,114,669,000)	(596,727,000)	(829,455,000)
Net Current Assets/(Liabilities)	4,438,470,000	3,620,631,000	2,469,475,000	1,987,319,000	1,136,964,000
Net Tangible Assets	9,260,768,000	7,402,727,000	4,964,234,000	3,777,496,000	2,157,712,000
Net Monetary Assets	(5,839,357,000)	(5,324,505,000)	(4,262,479,000)	(2,945,024,000)	(2,068,813,000)
BALANCE SHEET ITEMS
Total Borrowings	5,065,704,000	5,935,069,000	5,146,074,000	3,523,880,000	128,005,000
Total Liabilities	11,560,456,000	10,300,220,000	10,277,774,000	6,033,873,000	4,369,524,000
Total Assets	15,384,184,000	13,827,982,000	12,580,136,000	7,804,658,000	5,415,416,000
Net Assets	9,947,284,000	8,062,884,000	5,450,172,000	4,119,082,000	2,285,250,000
Net Assets Backing	3,823,728,000	3,527,762,000	2,302,362,000	1,770,785,000	1,045,892,000
Shareholders' Funds	3,823,728,000	3,527,762,000	2,302,362,000	1,770,785,000	1,045,892,000
Total Share Capital	2,077,038,000	2,077,038,000	1,577,110,000	1,201,581,000	708,586,000
Total Reserves	1,614,822,000	1,328,572,000	668,232,000	570,348,000	337,260,000
LIQUIDITY (Times)
Cash Ratio	0.29	0.19	0.12	0.18	0.17
Liquid Ratio	1.05	0.86	0.84	0.84	0.74
Current Ratio	1.82	1.63	1.35	1.54	1.36
WORKING CAPITAL CONTROL (Days)
Stock Ratio	73	94	83	90	84
Debtors Ratio	42	34	37	34	31
Creditors Ratio	25	18	17	17	19
SOLVENCY RATIOS (Times)
Gearing Ratio	1.32	1.68	2.24	1.99	0.12
Liabilities Ratio	3.02	2.92	4.46	3.41	4.18
Times Interest Earned Ratio	1.91	1.99	2.48	2.85	2.08
Assets Backing Ratio	4.46	3.56	3.15	3.14	3.05
PERFORMANCE RATIO (%)
Operating Profit Margin	2.39	2.56	3.23	4.02	3.00
Net Profit Margin	1.74	2.17	2.72	3.44	2.93
Return On Net Assets	10.50	10.92	15.68	15.72	21.76
Return On Capital Employed	9.47	9.48	13.29	14.00	20.61
Return On Shareholders' Funds/Equity	9.48	10.51	18.67	20.30	24.10
Dividend Pay Out Ratio (Times)	0.32	0.35	0.12	0.31	0.17
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.97
UK Pound	1	Rs.102.89
Euro	1	Rs.82.02

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.