MIRA INFORM REPORT

Report Date :

18.03.2014

IDENTIFICATION DETAILS

Name :	TOMEN (SINGAPORE) ELECTRONICS PTE LTD
Registered Office :	175a, Bencoolen Street, 09-12, Burlington Square, 189650
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	04.03.1995
Com. Reg. No.:	199501523-H
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of electronic components
No. of Employees	51 [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 :	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.	:	199501523-H
COMPANY NAME	:	TOMEN (SINGAPORE) ELECTRONICS PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	04/03/1995
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	175A, BENCOOLEN STREET, 09-12, BURLINGTON SQUARE, 189650, SINGAPORE.
BUSINESS ADDRESS	:	175A BENCOOLEN STREET, #09-12 BURLINGTON SQUARE, 189650, SINGAPORE.
TEL.NO.	:	65-62211422
FAX.NO.	:	65-62210400
CONTACT PERSON	:	LEONG KHAI MUN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF ELECTRONIC COMPONENTS
ISSUED AND PAID UP CAPITAL	:	500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 500,000.00
SALES	:	USD 181,222,227 [2012]
NET WORTH	:	USD 20,136,498 [2012]
STAFF STRENGTH	:	51 [2014]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
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 electronic components.

The immediate holding company of the Subject is TOMEN ELECTRONICS CORPORATION, a company incorporated in JAPAN.

The ultimate holding company of the Subject is TOYOTA TSUSHO CORPORATION, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
15/02/2013	SGD 500,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
TOMEN ELECTRONICS CORPORATION	NISHIN BUILDING, 8-27, KOHNAN 1-CHOME, MINATO-KU, TOKYO, 108-8510, JAPAN.	T03UF0318	500,000.00	100.00
			---------------	------
			500,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
819518U	MALAYSIA	TOMEN ELECTRONICS (MALAYSIA) SDN. BHD.	100.00	31/12/2012
	INDIA	TOMEN ELECTRONICS (INDIA) PVT. LTD.	95.00	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MINORU HIRATA
Address	:	4-1-106, 7-CHOME, KINUTA, SETAGAYA-KU, TOKYO, 157-0073, JAPAN.
IC / PP No	:	TZ0402311
Nationality	:	JAPANESE
Date of Appointment	:	06/08/2010

DIRECTOR 2

Name Of Subject	:	TAKEO SUZUKI
Address	:	2-403, 5-4, CHUORINKAN 6CHOME, YAMATO-SHI, KANAGAWA, 242-0007, JAPAN.
IC / PP No	:	TK0064040
Nationality	:	JAPANESE
Date of Appointment	:	20/06/2013

DIRECTOR 3

Name Of Subject	:	LEONG KHAI MUN
Address	:	79, FARRER DRIVE, 12-02, SOMMERVILLE PARK, 259283, SINGAPORE.
IC / PP No	:	S1471316F
Nationality	:	SINGAPOREAN
Date of Appointment	:	20/02/2008

DIRECTOR 4

Name Of Subject	:	TAKASHI ISHIBASHI
Address	:	2-24-21-101, YOSHIMOTO-CHO, KOHOKU-KU, YOKOHAMA-CITY, KANAGAWA, 2230062, JAPAN.
IC / PP No	:	TK9021200
Nationality	:	JAPANESE
Date of Appointment	:	01/01/2009

MANAGEMENT

1)	Name of Subject	:	LEONG KHAI MUN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LOTUS ISABELLA LIM MEI HUA
	IC / PP No	:	S2171051B
	Address	:	606, CLEMENTI WEST STREET 1, 04-53, 120606, 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	:	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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its clientele. 

OPERATIONS

Goods Traded

:

ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2014
GROUP	N/A
COMPANY	51

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of electronic components. 
The Subject refused to disclose its operation. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62211422
Match	:	N/A
Address Provided by Client	:	175A, BENCOOLEN STREET #9-12 BURLINGTON SQUARE SINGAPORE 189650
Current Address	:	175A BENCOOLEN STREET, #09-12 BURLINGTON SQUARE, 189650, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	10.39%	]
Profit/(Loss) Before Tax	:	Decreased	[	75.76%	]
Return on Shareholder Funds	:	Unfavourable	[	1.27%	]
Return on Net Assets	:	Unfavourable	[	2.09%	]
The lower turnover could be due to the intense market competition.The Subject's profit fell sharply because of the high operating costs incurred. 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	:	Favourable	[	38 Days	]
Debtor Ratio	:	Unfavourable	[	74 Days	]
Creditors Ratio	:	Favourable	[	22 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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	[	1.02 Times	]
Current Ratio	:	Unfavourable	[	1.49 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	3.49 Times	]
Gearing Ratio	:	Unfavourable	[	1.27 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 :
The Subject's performance deteriorated over the years with lower turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : 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)
(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 1995, the Subject is a Private Limited company, focusing on wholesale of electronic components. 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. 

Being a moderate size company, the Subject has a total workforce of 51 employees in its business 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. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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 USD 20,136,498, 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 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.

TOMEN (SINGAPORE) ELECTRONICS PTE LTD

Financial Year End	2012-12-31	2011-12-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	181,222,227	202,223,363
Other Income	204,412	827
	----------------	----------------
Total Turnover	181,426,639	202,224,190
Costs of Goods Sold	(173,180,701)	(193,047,161)
	----------------	----------------
Gross Profit	8,245,938	9,177,029
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	299,854	1,237,150
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	299,854	1,237,150
Taxation	(44,782)	(26,323)
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	255,072	1,210,827
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	19,524,283	18,313,456
	----------------	----------------
As restated	19,524,283	18,313,456
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	19,779,355	19,524,283
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	19,779,355	19,524,283
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	120,250	119,123
	----------------	----------------
	120,250	119,123
	=============	=============

BALANCE SHEET

TOMEN (SINGAPORE) ELECTRONICS PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	236,259	241,037
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	184,249	184,249
Deferred assets	43,004	87,133
Others	6,383	6,383
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	233,636	277,765
	----------------	----------------
TOTAL LONG TERM ASSETS	469,895	518,802
CURRENT ASSETS
Stocks	18,941,603	20,839,123
Trade debtors	36,775,028	28,212,347
Other debtors, deposits & prepayments	217,552	122,459
Amount due from holding company	774	25,584
Amount due from subsidiary companies	371,968	57,561
Amount due from related companies	1,844,240	1,940,221
Cash & bank balances	1,589,206	3,778,568
	----------------	----------------
TOTAL CURRENT ASSETS	59,740,371	54,975,863
	----------------	----------------
TOTAL ASSET	60,210,266	55,494,665
	=============	=============
CURRENT LIABILITIES
Trade creditors	10,238,717	7,578,287
Other creditors & accruals	75,406	84,194
Short term borrowings/Term loans	25,654,000	23,112,000
Amounts owing to holding company	3,019,474	4,006,374
Amounts owing to subsidiary companies	68,367	71,472
Amounts owing to related companies	1,017,804	641,716
Provision for taxation	-	119,196
	----------------	----------------
TOTAL CURRENT LIABILITIES	40,073,768	35,613,239
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	19,666,603	19,362,624
	----------------	----------------
TOTAL NET ASSETS	20,136,498	19,881,426
	=============	=============
SHARE CAPITAL
Ordinary share capital	357,143	357,143
	----------------	----------------
TOTAL SHARE CAPITAL	357,143	357,143
RESERVES
Retained profit/(loss) carried forward	19,779,355	19,524,283
	----------------	----------------
TOTAL RESERVES	19,779,355	19,524,283
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	20,136,498	19,881,426
	----------------	----------------
	20,136,498	19,881,426
	=============	=============

FINANCIAL RATIO

TOMEN (SINGAPORE) ELECTRONICS PTE LTD

TYPES OF FUNDS
Cash	1,589,206	3,778,568
Net Liquid Funds	1,589,206	3,778,568
Net Liquid Assets	725,000	(1,476,499)
Net Current Assets/(Liabilities)	19,666,603	19,362,624
Net Tangible Assets	20,136,498	19,881,426
Net Monetary Assets	725,000	(1,476,499)
BALANCE SHEET ITEMS
Total Borrowings	25,654,000	23,112,000
Total Liabilities	40,073,768	35,613,239
Total Assets	60,210,266	55,494,665
Net Assets	20,136,498	19,881,426
Net Assets Backing	20,136,498	19,881,426
Shareholders' Funds	20,136,498	19,881,426
Total Share Capital	357,143	357,143
Total Reserves	19,779,355	19,524,283
LIQUIDITY (Times)
Cash Ratio	0.04	0.11
Liquid Ratio	1.02	0.96
Current Ratio	1.49	1.54
WORKING CAPITAL CONTROL (Days)
Stock Ratio	38	38
Debtors Ratio	74	51
Creditors Ratio	22	14
SOLVENCY RATIOS (Times)
Gearing Ratio	1.27	1.16
Liabilities Ratio	1.99	1.79
Times Interest Earned Ratio	3.49	11.39
Assets Backing Ratio	56.38	55.67
PERFORMANCE RATIO (%)
Operating Profit Margin	0.17	0.61
Net Profit Margin	0.14	0.60
Return On Net Assets	2.09	6.82
Return On Capital Employed	2.09	6.82
Return On Shareholders' Funds/Equity	1.27	6.09
Dividend Pay Out Ratio (Times)	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.52
UK Pound	1	Rs.102.22
Euro	1	Rs.85.23

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.