MIRA INFORM REPORT

Report Date :

01.03.2014

Tel. No.:	65-65574399
Fax No.:	65-65383393

IDENTIFICATION DETAILS

Name :	R1 INTERNATIONAL PTE LTD
Registered Office :	8, Robinson Road, 05-00, Aso Building, 048544
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	20.07.2001
Com. Reg. No.:	200104842-R
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of rubber
No. of Employees	20 [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 – 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

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

EXECUTIVE SUMMARY

REGISTRATION NO.

:

200104842-R

COMPANY NAME

:

R1 INTERNATIONAL PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

20/07/2001

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

8, ROBINSON ROAD, 05-00, ASO BUILDING, 048544, SINGAPORE.

BUSINESS ADDRESS

:

8 ROBINSON ROAD ASO BUILDING #05-00, 048544, SINGAPORE.

TEL.NO.

:

65-65574399

FAX.NO.

:

65-65383393

EMAIL

:

ENQUIRIES@R1INTERNATIONAL.COM

WEB SITE

:

WWW.R1INTERNATIONAL.COM

CONTACT PERSON

:

SANDANA DASS ( DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF RUBBER

ISSUED AND PAID UP CAPITAL

:

7,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 7,000,000.00 

SALES

:

USD 3,279,175,979 [2012]

NET WORTH

:

USD 52,457,512 [2012]

STAFF STRENGTH

:

20 [2014]

BANKER (S)

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD STANDARD CHARTERED BANK

LITIGATION

:

CLEAR

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

The Subject is principally engaged in the (as a / as an) wholesale of rubber.

Share Capital History

Date	Issue & Paid Up Capital
20/06/2013	USD 7,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
HAINAN STATE FARMS INVESTMENT LIMITED	P.O. BOX 957, OFFSHORE INCORPORATIONS CENTRE, ROAD TOWN, TORTOLA, VIRGIN ISLANDS, BRITISH.	T12UF1750B	4,200,000.00	60.00
HAINAN RUBBER GROUP (SINGAPORE) DEVELOPMENT PTE. LTD.	9, TEMASEK BOULEVAD, 28-03, SUNTEC TOWER TWO, 038989, SINGAPORE.	200918102R	1,050,000.00	15.00
MR. SANDANA DASS +	9, BOSCOMBE ROAD, 439746, SINGAPORE.	S2712656A	700,000.00	10.00
THAVEESAK HOLDING CO LTD	20/05, GOMARAPAT ROAD, 83000, PHUKET, THAILAND.	T07UF0849	410,000.00	5.86
LIM BENG SENG	373, ONAN ROAD, 03 - 13, MALVERN SPRINGS, 424775, SINGAPORE.	S2607496G	88,888.00	1.27
MR. LING CHAN YEW	7, JALAN USJ 2/6, UEP SUBANG JAYA, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.	720128-10-5211 A2078112	88,000.00	1.26
R1 INTERNATIONAL PTE LTD	-	200104842R	84,662.00	1.21
HO WAI LEONG	1, LEICESTER ROAD, 13-05, ONE LEICESTER, 358828, SINGAPORE.	S7625177J	80,000.00	1.14
TOSHINOBU HANDA	3-601, CITI'S FORT, 1-6-1, UTASE, MIHAMAKU, CHIBA-CITY, ZIP CODE 261-0013, , JAPAN.	TH3245093	50,000.00	0.71
CROSS COMMODITY INVESTMENT HOLDING CO. LTD.	P.O. BOX 957, OFFSHORE INCORPORATIONS CENTRE, ROAD TOWN, TORTOLA, VIRGIN ISLANDS, BRITISH.	T12UF4846C	40,450.00	0.58
LEE CHEE HOE	16, JALAN 2/50A, TAMAN DESA GOMBAK 2, SETAPAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	A18972208	40,000.00	0.57
REMAINING SHAREHOLDERS	-	-	252,662.00	3.61
			---------------	------
			7,084,662.00	101.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	VIETNAM	R1 INTERNATIONAL COMPANY LIMITED (VIETNAM)	100.00	31/12/2012
	UNITED STATES	R1 INTERNATIONAL (AMERICAS) INC.	100.00	31/12/2012
557593W	MALAYSIA	R1 INTERNATIONAL MALAYSIA SDN. BHD.	100.00	31/12/2012
	INDIA	R1 INTERNATIONAL (INDIA) PTE LTD	100.00	31/12/2012
	THAILAND	R1 INTERNATIONAL (THAILAND) LTD.	100.00	31/12/2012
	JAPAN	R1 INTERNATIONAL JAPAN LIMITED	100.00	31/12/2012
	CHINA	R1 INTERNATIONAL TRADING (SHANGHAI) CO. LIMITED	70.00	31/12/2012
201314463	SINGAPORE	RMLIB RUBBER COMPANY PTE. LTD.	70.00	20/06/2013
200612801W	SINGAPORE	R1 DELTA CIS PTE. LTD.	51.00	14/11/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	FANG TING
Address	:	LONGKUN XIACUN, 173, LONGHUA DISTRICT, HAIKOU, HAINAN PROVINCE, CHINA.
IC / PP No	:	G60374692
Nationality	:	CHINESE
Date of Appointment	:	30/04/2012

DIRECTOR 2

Name Of Subject	:	PONGSAK KERDVONGBUNDIT
Address	:	20/5, GOMARAPAT ROAD, PHUKET, 83000, THAILAND.
IC / PP No	:	P818414
Nationality	:	THAI
Date of Appointment	:	23/07/2001

DIRECTOR 3

Name Of Subject	:	BUNDIT KERDVONGBUNDIT
Address	:	20/5, GOMARAPAT ROAD MUANG, PHUKET, 83000, THAILAND.
IC / PP No	:	N877196
Nationality	:	THAI
Date of Appointment	:	18/09/2013
Remark	:	ALTERNATE DIRECTOR TO PONGSAK KERDVONGBUNDIT

DIRECTOR 4

Name Of Subject	:	YANG ZHICHENG
Address	:	HAIKEN INTERNATIONAL FINANCE CENTER, 115, BINHAI AVENUE, HAIKOU, HAINAN PROVINCE CHINA, 40TH FLOOR, 570100, CHINA.
IC / PP No	:	G37443476
Nationality	:	CHINESE
Date of Appointment	:	30/04/2012

DIRECTOR 5

Name Of Subject	:	LI YAN FENG
Address	:	113, BINHAI AVENUE, FORTUNE PLAZA, HAIKOU, HAINAN, CHINA.
IC / PP No	:	G3649119
Nationality	:	CHINESE
Date of Appointment	:	05/11/2012

DIRECTOR 6

Name Of Subject	:	LIN JINTING
Address	:	ZHAONAN LVDAO JIAYUAN, HAIDIAN ISLAND, MEILAN DISTRICT, HAIKOU, HAINAN PROVINCE, CHINA.
IC / PP No	:	P00737626
Nationality	:	CHINESE
Date of Appointment	:	30/04/2012

DIRECTOR 7

Name Of Subject	:	MR. SANDANA DASS
Address	:	9, BOSCOMBE ROAD, 439746, SINGAPORE.
IC / PP No	:	S2712656A
Nationality	:	SINGAPOREAN
Date of Appointment	:	20/07/2001

MANAGEMENT

1)	Name of Subject	:	SANDANA DASS
	Position	:	DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	IRENE CHAN YOKE HENG
	IC / PP No	:	S1459389F
	Address	:	997, BUKIT TIMAH ROAD, 08-04, CASA ESPERANZA, 589633, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

2)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

3)

Name

:

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

4)

Name

:

STANDARD CHARTERED BANK

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200901120	18/02/2009	ALL MONIES	THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200903382	10/06/2009	ALL MONIES	THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200908719	30/12/2009	ALL MONIES	OVERSEA-CHINESE BANKING CORPORATION LIMITED	-	Unsatisfied
C201005738	07/07/2010	ALL MONIES	STANDARD CHARTERED BANK	-	Unsatisfied
C201005739	07/07/2010	ALL MONIES	STANDARD CHARTERED BANK	-	Unsatisfied
C201010422	03/11/2010	ALL MONIES	ABN AMRO BANK BHD	-	Unsatisfied
C201105477	04/05/2011	ALL MONIES	AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD	-	Unsatisfied
C201303595	07/03/2013	ALL MONIES	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	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. 

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

OPERATIONS

Goods Traded

:

RUBBER

Total Number of Employees:
YEAR	2014	2013
GROUP	N/A	N/A
COMPANY	20	20

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of rubber. 

R1 is the market leader in the value chain management of Natural Rubber; offering a plethora of grades from diverse originations, to its customers globally; addressing their raw material needs in natural & synthetic rubbers and creating value through its risk management solutions. 

R1 is positioned as a single-stop solution to the rubber industry's raw material requirements. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	65-65574399
Current Telephone Number	:	65-65574399
Match	:	YES
Address Provided by Client	:	8 ROBINSON ROAD, ASO BUILDING NO # 05-00 SINGAPORE 048544
Current Address	:	8 ROBINSON ROAD ASO BUILDING #05-00, 048544, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2.23%	]
Profit/(Loss) Before Tax	:	Increased	[	34.28%	]
Return on Shareholder Funds	:	Favourable	[	31.21%	]
Return on Net Assets	:	Favourable	[	55.97%	]
The higher turnover could be attributed to the favourable market condition.The higher profit could be attributed to the increase in turnover. 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	[	6 Days	]
Debtor Ratio	:	Favourable	[	13 Days	]
Creditors Ratio	:	Favourable	[	8 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	[	1.23 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	:	Acceptable	[	3.66 Times	]
Gearing Ratio	:	Unfavourable	[	1.86 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'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. 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)
(Source : Department of Statistics)

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 2001, the Subject is a Private Limited company, focusing on wholesale of rubber. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The 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 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 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 USD 52,457,512, 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. 

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 promptly.

PROFIT AND LOSS ACCOUNT

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

R1 INTERNATIONAL PTE LTD

Financial Year End	2012-12-31	2011-09-30
Months	15	12
Consolidated Account	GROUP	GROUP
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	3,279,175,979	3,207,674,566
	----------------	----------------
Total Turnover	3,279,175,979	3,207,674,566
Costs of Goods Sold	(3,238,659,431)	(3,176,748,789)
	----------------	----------------
Gross Profit	40,516,548	30,925,777
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	21,376,052	15,919,595
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	21,376,052	15,919,595
Taxation	(4,134,187)	(3,299,674)
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	17,241,865	12,619,921
Minority interests	(870,688)	(1,388,986)
	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	16,371,177	11,230,935
	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	16,371,177	11,230,935
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	25,668,722	16,924,600
	----------------	----------------
As restated	25,668,722	16,924,600
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	42,039,899	28,155,535
CAPITALISATION FOR BONUS ISSUES	-	(771,813)
DIVIDENDS - Ordinary (paid & proposed)	-	(1,715,000)
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	42,039,899	25,668,722
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Hire purchase	-	1,442
Others	8,027,096	5,891,339
	----------------	----------------
	8,027,096	5,892,781
	=============	=============

BALANCE SHEET

R1 INTERNATIONAL PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	412,501	637,798
LONG TERM INVESTMENTS/OTHER ASSETS
Deferred assets	131,095	777,980
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	131,095	777,980
	----------------	----------------
TOTAL LONG TERM ASSETS	543,596	1,415,778
CURRENT ASSETS
Stocks	58,054,345	36,791,176
Trade debtors	116,301,205	259,550,839
Other debtors, deposits & prepayments	27,980,483	14,463,428
Amount due from related companies	15,527,752	78,475
Cash & bank balances	30,534,886	27,208,314
Others	27,058,972	46,463,288
	----------------	----------------
TOTAL CURRENT ASSETS	275,457,643	384,555,520
	----------------	----------------
TOTAL ASSET	276,001,239	385,971,298
	=============	=============
CURRENT LIABILITIES
Trade creditors	73,066,514	115,956,562
Other creditors & accruals	16,825,855	18,038,685
Short term borrowings/Term loans	97,747,329	114,054,836
Amounts owing to related companies	9,992,016	40,936,468
Provision for taxation	3,422,487	4,170,516
Other liabilities	22,416,256	55,929,459
	----------------	----------------
TOTAL CURRENT LIABILITIES	223,470,457	349,086,526
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	51,987,186	35,468,994
	----------------	----------------
TOTAL NET ASSETS	52,530,782	36,884,772
	=============	=============
SHARE CAPITAL
Ordinary share capital	7,000,000	7,000,000
	----------------	----------------
TOTAL SHARE CAPITAL	7,000,000	7,000,000
RESERVES
Capital reserve	771,813	771,813
Exchange equalisation/fluctuation reserve	(366,532)	(358,320)
General reserve	(762,533)	-
Retained profit/(loss) carried forward	42,039,899	25,668,722
	----------------	----------------
TOTAL RESERVES	41,682,647	26,082,215
MINORITY INTEREST	3,774,865	3,802,557
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	52,457,512	36,884,772
LONG TERM LIABILITIES
Deferred taxation	73,270	-
	----------------	----------------
TOTAL LONG TERM LIABILITIES	73,270	-
	----------------	----------------
	52,530,782	36,884,772
	=============	=============

FINANCIAL RATIO

R1 INTERNATIONAL PTE LTD

TYPES OF FUNDS
Cash	30,534,886	27,208,314
Net Liquid Funds	30,534,886	27,208,314
Net Liquid Assets	(6,067,159)	(1,322,182)
Net Current Assets/(Liabilities)	51,987,186	35,468,994
Net Tangible Assets	52,530,782	36,884,772
Net Monetary Assets	(6,140,429)	(1,322,182)
BALANCE SHEET ITEMS
Total Borrowings	97,747,329	114,054,836
Total Liabilities	223,543,727	349,086,526
Total Assets	276,001,239	385,971,298
Net Assets	52,530,782	36,884,772
Net Assets Backing	52,457,512	36,884,772
Shareholders' Funds	52,457,512	36,884,772
Total Share Capital	7,000,000	7,000,000
Total Reserves	41,682,647	26,082,215
LIQUIDITY (Times)
Cash Ratio	0.14	0.08
Liquid Ratio	0.97	1.00
Current Ratio	1.23	1.10
WORKING CAPITAL CONTROL (Days)
Stock Ratio	6	4
Debtors Ratio	13	30
Creditors Ratio	8	13
SOLVENCY RATIOS (Times)
Gearing Ratio	1.86	3.09
Liabilities Ratio	4.26	9.46
Times Interest Earned Ratio	3.66	3.70
Assets Backing Ratio	7.50	5.27
PERFORMANCE RATIO (%)
Operating Profit Margin	0.65	0.50
Net Profit Margin	0.50	0.35
Return On Net Assets	55.97	59.14
Return On Capital Employed	52.22	53.61
Return On Shareholders' Funds/Equity	31.21	30.45
Dividend Pay Out Ratio (Times)	0.00	0.15
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.07
UK Pound	1	Rs.103.61
Euro	1	Rs.85.03

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

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

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

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

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

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.