MIRA INFORM REPORT

Report Date :

21.11.2014

IDENTIFICATION DETAILS

Name :	KL RESOURCES PTE. LTD.
Formerly Known As :	K.L. PAPER TRADING PTE LTD
Registered Office :	17, Defu Lane, 8, Defu Industrial Park, B, 539319
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	29.06.2000
Com. Reg. No.:	200005707-W
Legal Form :	Private Limited
Line of Business :	Manufacture of Containers and Boxes of Paper and Paperboard.
No. of Employees :	Not Available

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	200005707-W
COMPANY NAME	:	KL RESOURCES PTE. LTD.
FORMER NAME	:	K.L. PAPER TRADING PTE LTD (21/08/2009)
INCORPORATION DATE	:	29/06/2000
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	17, DEFU LANE, 8, DEFU INDUSTRIAL PARK, B, 539319, SINGAPORE.
BUSINESS ADDRESS	:	17 DEFU LANE 8, DEFU INDUSTRIAL PARK B, 539319, SINGAPORE.
TEL.NO.	:	65-62884084
FAX.NO.	:	65-62814084
CONTACT PERSON	:	GOH TING TING ( DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURE OF CONTAINERS AND BOXES OF PAPER AND PAPERBOARD
ISSUED AND PAID UP CAPITAL	:	500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 500,000.00
SALES	:	SGD 55,040,885 [2013]
NET WORTH	:	SGD 12,153,441 [2013]
STAFF STRENGTH	:	N/A
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	STABLE
PAYMENT	:	PROMPT
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MATURE

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) manufacture of containers and boxes of paper and paperboard.

Share Capital History

Date	Issue & Paid Up Capital
18/11/2014	SGD 500,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
TANSFIELD LIMITED	P.O. BOX 957, OFFSHORE INCORPORATION CENTRE, ROAD TOWN, TORTOLA, VIRGIN ISLANDS, BRITISH.	T13UF2144J	200,000.00	40.00
GOH TING TING +	65, JALAN LENGKOK SEMBAWANG, SEMBAWANG PARK, 759246, SINGAPORE.	S6834995H	71,550.00	14.31
CHAN KIM LEONG +	47, HUME AVENUE, 05-07, PARC PALAIS, 598748, SINGAPORE.	S1630684C	59,625.00	11.93
INTRAPAC (SINGAPORE) PTE. LTD.	14, ARUMUGAM ROAD, 08-01, LION BUILDING C, 409959, SINGAPORE.	198204948Z	168,825.00	33.77
			---------------	------
			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
201307586H	SINGAPORE	KL LOGISTICS PTE. LTD.	100.00	31/12/2013
201220272G	SINGAPORE	IMPETUS CONCEPTUS PTE. LTD.	70.00	31/12/2013
200800191G	SINGAPORE	ASIA RECYCLING RESOURCES PTE. LTD.	70.00	31/12/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	PAN, YAW-CHENG
Address	:	FLAT G, 18/F, BLOCK 25, OCEAN VISTA, LAGUNA VERDE, HUNG HOM, KLN, HONG KONG.
IC / PP No	:	306638305
Nationality	:	TAIWANESE
Date of Appointment	:	15/05/2013

DIRECTOR 2

Name Of Subject	:	LIM CHIUN CHEONG
Address	:	15, JALAN 11, TAMAN KAJANG BARU, OFF JALAN SUNGEI CHUA, 43000 KAJANG, SELANGOR, MALAYSIA.
IC / PP No	:	A8295418
Nationality	:	MALAYSIAN
Date of Appointment	:	15/12/2006

DIRECTOR 3

Name Of Subject	:	LEE, MON-LUN
Address	:	FLAT A, 23/F, BLOCK 22, OCEAN VISTA, LAGUNA VERDE, HUNG HOM, KLN, HONG KONG.
IC / PP No	:	216310174
Nationality	:	TAIWANESE
Date of Appointment	:	15/05/2013

DIRECTOR 4

Name Of Subject	:	FAN CHIANG, TENG-CHANG
Address	:	SHUN XING ROAD, 6, PUBLIC STATE BLOCK 8, HUALIAN CITY, TAIWAN.
IC / PP No	:	301571391
Nationality	:	TAIWANESE
Date of Appointment	:	15/05/2013

DIRECTOR 5

Name Of Subject	:	LIM WAN PENG
Address	:	513-C, HILL RAILWAY ROAD, AIR ITAM, 11500 AYER ITAM, PULAU PINANG, MALAYSIA.
IC / PP No	:	1919219B
Nationality	:	MALAYSIAN
Date of Appointment	:	30/10/2006

DIRECTOR 6

Name Of Subject	:	TEOH HAI THOW
Address	:	130, CASHEW ROAD, 09-209, 670130, SINGAPORE.
IC / PP No	:	S7272695B
Nationality	:	SINGAPOREAN
Date of Appointment	:	31/05/2001

DIRECTOR 7

Name Of Subject	:	CHAN KIM LEONG
Address	:	47, HUME AVENUE, 05-07, PARC PALAIS, 598748, SINGAPORE.
IC / PP No	:	S1630684C
Nationality	:	SINGAPOREAN
Date of Appointment	:	29/06/2000

DIRECTOR 8

Name Of Subject	:	GOH TING TING
Address	:	65, JALAN LENGKOK SEMBAWANG, SEMBAWANG PARK, 759246, SINGAPORE.
IC / PP No	:	S6834995H
Nationality	:	SINGAPOREAN
Date of Appointment	:	29/06/2000

MANAGEMENT

1)	Name of Subject	:	GOH TING TING
	Position	:	DIRECTOR

AUDITOR

Auditor	:	ROBERT TAN & CO
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	RAGINI DHANVANTRAY
	IC / PP No	:	S2607093G
	Address	:	285, OCEAN DRIVE, 01-06, THE OCEANFRONT SENTOSA COVE, 098529, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)
Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201204008	13/04/2012	N/A	MALAYAN BANKING BERHAD	-	Unsatisfied

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

LEGAL ACTION
Code No	:	99	Case No	:	843
Year	:	2006	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	07/03/2006
Solicitor	:	TANG CHI LOONG
Solicitor Ref	:	TCL.CT.(FZ).50432.05.INJ
Solicitor Firm	:	HIN TAT AUGUSTINE & PARTNERS
Plaintiff	:	POH HWEE SIAN
Defendants	:	KL RESOURCES PTE. LTD. (200005707)
Amount Claimed	:	710 135 89 234
Nature of Claim	:	SGD SGD SGD SGD
Remark	:	TORT - NEGLIGENCE
Code No	:	99	Case No	:	1912
Year	:	2007	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	24/01/2007
Solicitor	:	SIOW JIT THONG
Solicitor Ref	:	DS/111116/1205/HT-PPC 1477
Solicitor Firm	:	DAVID SIOW CHUA & TAN LLC
Plaintiff	:	LAI POH HUAT
Defendants	:	KL RESOURCES PTE. LTD. (200005707)
Amount Claimed	:	4611
Nature of Claim	:	SGD
Remark	:	TORT - NEGLIGENCE
Code No	:	99	Case No	:	31346
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	28/11/2008
Solicitor	:	SIOW JIT THONG
Solicitor Ref	:	DS/111116A/1205 /PPC1477
Solicitor Firm	:	DAVID SIOW CHUA & TAN LLC
Plaintiff	:	KWONG YEA GUAN
Defendants	:	KL RESOURCES PTE. LTD. (200005707)
Amount Claimed	:	130
Nature of Claim	:	SGD
Remark	:	TORT - NEGLIGENCE
Code No	:	99	Case No	:	933
Year	:	2011	Place	:	SINGAPORE
Court	:	SUPREME COURT
Date Filed	:	22/12/2011
Solicitor Ref	:	DN/L139/11
Solicitor Firm	:	ELITAIRE LAW LLP
Plaintiff	:	NASHFIELD ENGINEERING CONSTRUCTION CONSTRUCTION PT
Defendants	:	KL RESOURCES PTE. LTD. (200005707)
Amount Claimed	:	116012.49
Nature of Claim	:	SGD
Remark	:	OTHERS /MISCELLANEOUS

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	[	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
Products manufactured	:	CONTAINERS AND BOXES OF PAPER AND PAPERBOARD

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture of containers and boxes of paper and paperboard.

The Subject is one of the leading players in the paper, plastic & scraps metal industry.

The Subject is one of the leading paper recycling company and paper products manufacturer.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62884084
Match	:	N/A
Address Provided by Client	:	29 SUNGEI KADUT LOOP SINGAPORE 729462
Current Address	:	17 DEFU LANE 8, DEFU INDUSTRIAL PARK B, 539319, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided belongs to the Subject's plant.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	8.09%	]
Profit/(Loss) Before Tax	:	Decreased	[	31.33%	]
Return on Shareholder Funds	:	Acceptable	[	12.30%	]
Return on Net Assets	:	Acceptable	[	16.35%	]
The lower turnover could be due to the unfavourable market conditions.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	8 Days	]
Debtor Ratio	:	Favourable	[	41 Days	]
Creditors Ratio	:	Favourable	[	6 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	3.56 Times	]
Current Ratio	:	Favourable	[	4.07 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	[	4.81 Times	]
Gearing Ratio	:	Favourable	[	0.18 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 lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the Subject : STABLE

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2009	2010	2011	2012	2013
Population (Million)	4.98	5.08	5.18	5.31	5.40
Gross Domestic Products ( % )	(0.8)	14.5	4.9	1.3	3.7
Consumer Price Index	0.6	2.8	5.2	4.6	2.4
Total Imports (Million)	356,299.3	423,221.8	459,655.1	474,554.0	466,762.0
Total Exports (Million)	391,118.1	478,840.7	514,741.2	510,329.0	513,391.0
Unemployment Rate (%)	3.2	2.2	2.1	2.0	1.9
Tourist Arrival (Million)	9.68	11.64	13.17	14.49	15.46
Hotel Occupancy Rate (%)	75.8	85.6	86.5	86.4	86.3
Cellular Phone Subscriber (Million)	1.37	1.43	1.50	1.52	1.97
Registration of New Companies (No.)	26,414	29,798	32,317	31,892	37,288
Registration of New Companies (%)	4.3	12.8	8.5	(1.3)	9.8
Liquidation of Companies (No.)	22,393	15,126	19,005	17,218	17,369
Liquidation of Companies (%)	113.4	(32.5)	25.6	9.4	(5.3)
Registration of New Businesses (No.)	26,876	23,978	23,494	24,788	22,893
Registration of New Businesses (%)	8.15	(10.78)	2.02	5.51	1.70
Liquidation of Businesses (No.)	23,552	24,211	23,005	22,489	22,598
Liquidation of Businesses (%)	11.4	2.8	(5)	(2.2)	0.5
Bankruptcy Orders (No.)	2,058	1,537	1,527	1,748	1,992
Bankruptcy Orders (%)	(11.5)	(25.3)	(0.7)	14.5	14.0
Bankruptcy Discharges (No.)	3,056	2,252	1,391	1,881	2,584
Bankruptcy Discharges (%)	103.7	(26.3)	(38.2)	35.2	37.4
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	3.25	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(1.93)	(10.5)	12.10	(0.5)	-
Manufacturing *	71.5	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	90.4	96.4	100.0	103.5	103.5
Textiles	145.9	122.1	100.0	104.0	87.1
Wearing Apparel	211.0	123.3	100.0	92.1	77.8
Leather Products & Footwear	79.5	81.8	100.0	98.6	109.8
Wood & Wood Products	101.4	104.0	100.0	95.5	107.4
Paper & Paper Products	95.4	106.1	100.0	97.4	103.2
Printing & Media	100.9	103.5	100.0	93.0	86.1
Crude Oil Refineries	96.4	95.6	100.0	99.4	93.5
Chemical & Chemical Products	80.3	97.6	100.0	100.5	104.1
Pharmaceutical Products	49.1	75.3	100.0	109.7	107.2
Rubber & Plastic Products	101.2	112.3	100.0	96.5	92.9
Non-metallic Mineral	91.9	92.5	100.0	98.2	97.6
Basic Metals	92.6	102.2	100.0	90.6	76.5
Fabricated Metal Products	90.8	103.6	100.0	104.3	105.1
Machinery & Equipment	57.3	78.5	100.0	112.9	114.5
Electrical Machinery	86.8	124.1	100.0	99.3	108.5
Electronic Components	85.2	113.6	100.0	90.6	94.3
Transport Equipment	96.0	94.0	100.0	106.3	107.5
Construction	(36.9)	14.20	20.50	28.70	-
Real Estate	1.4	21.3	25.4	31.9	-
Services
Electricity, Gas & Water	1.70	4.00	7.00	6.30	-
Transport, Storage & Communication	3.90	12.80	7.40	5.30	-
Finance & Insurance	(16.4)	(0.4)	8.90	0.50	-
Government Services	4.50	9.70	6.90	6.00	-
Education Services	0.10	(0.9)	(1.4)	0.30	-
* Based on Index of Industrial Production (2011 = 100)

INDUSTRY ANALYSIS
INDUSTRY :	MANUFACTURING
The manufacturing sector contracted by 1.1% in the fourth quarter of 2012, led by declines in the electronics and precision engineering clusters. These clusters were weighed down by weak global demand for semiconductors and semiconductor-related equipment. For the whole year of 2012, the manufacturing sector grew by 0.1%, significantly lower than the 7.8% recorded in 2011 when the sector was boosted by a surge in the growth of the biomedical manufacturing cluster.
Output of the biomedical manufacturing cluster grew by 2.4% in the fourth quarter. The expansion was driven by the medical technology segment which grew by a healthy 9.2%, benefitting from robust export demand for medical devices. The pharmaceuticals segment also grew by a modest 1.1%. For 2012, the biomedical manufacturing cluster expanded by 9.9%.
Output of the transport engineering cluster expanded by 4.9% in the fourth quarter. The aerospace segment grew by 6.2%, supported by higher demand for repair jobs from commercial airlines. Similarly, the marine & offshore engineering segment expanded by 5.0%, on the back of higher contributions from oil rig projects and oilfield equipment components. In the year 2012, the transport engineering cluster surged by 11%.
The output of the precision engineering cluster shrank by 1.3% in the fourth quarter. The decline was led by the 5.3% contraction in the machinery & systems segment, which saw weak export demand for semiconductor-related equipment. On the other hand, the precision modules & components segment grew by 2.9%, supported by higher production of optical instruments & photographic equipment and electronic connectors. In 2012, the precision engineering cluster expanded by 1.3%.
The general manufacturing cluster's output grew by 1.2% in the fourth quarter, driven by the 6.4% growth in the miscellaneous industries segment. The segment's growth was supported by higher production of batteries and constructionrelated materials. By contrast, the printing and food, beverages & tobacco segments declined by 6.4% and 1.3% respectively. For 2012, the general manufacturing cluster grew by 2.0%.
The chemicals cluster's output grew by 7.7% in the fourth quarter. The petrochemicals and petroleum segments registered growth of 9.3% and 6.3% respectively, partly due to the low base from plant shutdowns in end of 2011. The specialty chemicals segment also expanded by 8.0% on the back of higher regional demand. For the year 2012, the chemicals cluster declined by 0.4%, primarily due to weak regional demand for specialty chemicals in the second and third quarter of 2012.
Output of the electronics cluster contracted by 10% in the fourth quarter, led by the semiconductors and computer peripherals segments which contracted by 13% and 15% respectively. By contrast, the data storage segment grew by 7.8%, mainly due to the low base in end of 2011 when floods in Thailand had disrupted the supply chain for data storage products. For the whole of 2012, the electronics cluster contracted by 11%.
OVERALL INDUSTRY OUTLOOK : MATURE

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2000, the Subject is a Private Limited company, focusing on manufacture of containers and boxes of paper and paperboard. 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. The Subject is considered as a medium size company with issued and paid up capital standing at SGD 500,000. With a strong backing from its shareholders, the Subject enjoys timely financial assistance should the needs arise.

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. 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. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at SGD 12,153,441, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

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.

KL RESOURCES PTE. LTD.

Financial Year End	2013-12-31	2012-12-31	2011-12-31
Months	12	12	12
Consolidated Account	GROUP	GROUP	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	SUMMARY
Currency	SGD	SGD	SGD
TURNOVER	55,040,885	59,886,386	47,066,507
	----------------	----------------	----------------
Total Turnover	55,040,885	59,886,386	47,066,507
Costs of Goods Sold	(37,804,105)	(41,629,486)	-
	----------------	----------------	----------------
Gross Profit	17,236,780	18,256,900	-
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,576,469	2,459,117	4,773,168
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES	171,924	86,923	-
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,748,393	2,546,040	4,773,168
Taxation	(119,127)	(480,884)	(764,829)
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,629,266	2,065,156	4,008,339
Minority interests	(133,884)	(271,569)	-
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	1,495,382	1,793,587	4,008,339
	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	1,495,382	1,793,587	4,008,339
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	10,245,742	9,878,365	5,086,565
	----------------	----------------	----------------
As restated	10,245,742	9,878,365	5,086,565
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	11,741,124	11,671,952	9,094,904
TRANSFER TO RESERVES - General	-	73,790	-
DIVIDENDS - Ordinary (paid & proposed)	(1,000,000)	(1,500,000)	-
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	10,741,124	10,245,742	9,094,904
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Hire purchase	32,536	45,462	-
Others	425,961	475,702	-
	----------------	----------------	----------------
	458,497	521,164	-
	=============	=============

BALANCE SHEET

KL RESOURCES PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	5,476,448	5,506,189	3,698,680
Associated companies	321,906	201,582	-
	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	321,906	201,582	-
Goodwill on consolidation	70,207	-	-
	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	70,207	-	-
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	5,868,561	5,707,771	3,698,680
Stocks	1,270,358	498,137	-
Trade debtors	6,216,355	7,855,054	-
Other debtors, deposits & prepayments	917,446	1,568,495	-
Short term deposits	101,050	100,000	-
Amount due from associated companies	508,270	214,580	-
Cash & bank balances	1,101,969	439,583	-
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	10,115,448	10,675,849	9,854,353
	----------------	----------------	----------------
TOTAL ASSET	15,984,009	16,383,620	13,553,033
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	651,854	807,450	-
Other creditors & accruals	657,785	1,115,455	-
Hire purchase & lease creditors	401,369	292,921	-
Bank overdraft	236,363	401,053	-
Short term borrowings/Term loans	292,067	290,673	-
Provision for taxation	232,000	498,000	-
Other liabilities	14,393	-	-
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	2,485,831	3,405,552	3,958,129
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	7,629,617	7,270,297	5,896,224
	----------------	----------------	----------------
TOTAL NET ASSETS	13,498,178	12,978,068	9,594,904
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	500,000	500,000	500,000
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	500,000	500,000	500,000
Retained profit/(loss) carried forward	10,741,124	10,245,742	9,094,904
	----------------	----------------	----------------
TOTAL RESERVES	10,741,124	10,245,742	9,094,904
MINORITY INTEREST	912,317	816,022	-
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	12,153,441	11,561,764	9,594,904
Long term loans	748,265	1,042,074	-
Hire purchase creditors	474,472	227,230	-
Deferred taxation	122,000	147,000	-
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	1,344,737	1,416,304	-
	----------------	----------------	----------------
	13,498,178	12,978,068	9,594,904
	=============	=============	=============

FINANCIAL RATIO

KL RESOURCES PTE. LTD.

TYPES OF FUNDS
Cash	1,203,019	539,583	-
Net Liquid Funds	966,656	138,530	-
Net Liquid Assets	6,359,259	6,772,160	5,896,224
Net Current Assets/(Liabilities)	7,629,617	7,270,297	5,896,224
Net Tangible Assets	13,427,971	12,978,068	9,594,904
Net Monetary Assets	5,014,522	5,355,856	5,896,224
BALANCE SHEET ITEMS
Total Borrowings	2,152,536	2,253,951	-
Total Liabilities	3,830,568	4,821,856	3,958,129
Total Assets	15,984,009	16,383,620	13,553,033
Net Assets	13,498,178	12,978,068	9,594,904
Net Assets Backing	12,153,441	11,561,764	9,594,904
Shareholders' Funds	12,153,441	11,561,764	9,594,904
Total Share Capital	500,000	500,000	500,000
Total Reserves	10,741,124	10,245,742	9,094,904
LIQUIDITY (Times)
Cash Ratio	0.48	0.16	-
Liquid Ratio	3.56	2.99	-
Current Ratio	4.07	3.13	2.49
WORKING CAPITAL CONTROL (Days)
Stock Ratio	8	3	-
Debtors Ratio	41	48	-
Creditors Ratio	6	7	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.18	0.19	-
Liabilities Ratio	0.32	0.42	0.41
Times Interest Earned Ratio	4.81	5.89	-
Assets Backing Ratio	26.86	25.96	19.19
PERFORMANCE RATIO (%)
Operating Profit Margin	3.18	4.25	10.14
Net Profit Margin	2.72	2.99	8.52
Return On Net Assets	16.35	23.63	49.75
Return On Capital Employed	14.60	21.17	49.75
Return On Shareholders' Funds/Equity	12.30	15.51	41.78
Dividend Pay Out Ratio (Times)	0.67	0.84	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.10
UK Pound	1	Rs.97.32
Euro	1	Rs.77.91

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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.