MIRA INFORM REPORT

Report Date :

03.09.2014

IDENTIFICATION DETAILS

Name :	BAOSTEEL SINGAPORE PTE LTD
Registered Office :	7, Temasek Boulevard, 40-02/03, Suntec Tower One, 038987
Country :	Singapore.
Financials (as on) :	31.12.2013
Date of Incorporation :	25.02.1997
Com. Reg. No.:	199701206-Z
Legal Form :	Private Limited
Line of Business :	Trading of Steel and Steel-Related Products
No. of Employees	25

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 – 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.	:	199701206-Z
COMPANY NAME	:	BAOSTEEL SINGAPORE PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	25/02/1997
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE, 038987, SINGAPORE.
BUSINESS ADDRESS	:	7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE, 038987, SINGAPORE.
TEL.NO.	:	65-63336818
FAX.NO.	:	65-63336819
WEB SITE	:	WWW.BAOSTEEL.SG
CONTACT PERSON	:	QIU CHENGZHI ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF STEEL AND STEEL-RELATED PRODUCTS
ISSUED AND PAID UP CAPITAL	:	1,419,036.00 ORDINARY SHARE, OF A VALUE OF SGD 1,419,036.00
SALES	:	USD 1,527,989,407 [2013]
NET WORTH	:	USD 113,998,765 [2013]
STAFF STRENGTH	:	25 [2014]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
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) trading of steel and steel-related products.

The ultimate holding company of the Subject is BAOSTEEL COMPANY CORPORATION LIMITED, a company incorporated in CHINA.

The intermediate holding company of the Subject is BAOSHAN IRON & STEEL CO. LTD., a company incorporated in CHINA.

Share Capital History

Date	Issue & Paid Up Capital
26/08/2014	SGD 1,419,036.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
BAOSHAN IRON & STEEL CO., LTD.	885, FUJIN ROAD, BAOSHAN DISTRICT, 201900, SHANGHAI, CHINA.	T10UF4045	1,419,036.00	100.00
			---------------	------
			1,419,036.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	INDIA	BAOSTEEL INDIA CO PRIVATE LTD	100.00	31/12/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	QIU CHENGZHI
Address	:	62, BAYSHORE ROAD, 08-03, PEARL TOWER, 469983, SINGAPORE.
IC / PP No	:	F5522963P
Nationality	:	CHINESE
Date of Appointment	:	25/02/1997

DIRECTOR 2

Name Of Subject	:	HUANG WEILIANG
Address	:	3509, TONG JI ROAD, BAOSHAN DISTRICT, 201900, SHANGHAI, CHINA.
IC / PP No	:	P01390765
Nationality	:	CHINESE
Date of Appointment	:	09/04/2008

MANAGEMENT

1)	Name of Subject	:	QIU CHENGZHI
	Position	:	MANAGING DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	TEO HUI YONG
	IC / PP No	:	S0214050J
	Address	:	28, KIM TIAN ROAD, 35-08, TWIN REGENCY, 169278, 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.

LEGAL ACTION
Code No	:	99	Case No	:	4421
Year	:	2009	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	18/12/2009
Solicitor Ref	:	LSP/RSS/3152/09/V C
Solicitor Firm	:	LEE SHERGILL LLP
Plaintiff	:	DANIEL TAN YU MENG
Defendants	:	BAOSTEEL SINGAPORE PTE LTD (199701206) 7 TEMASEK BOULEVARD, 04-02/03 SUNTEC TOWER ONE, 038987, SINGAPORE.
Amount Claimed	:	2084 320 5000
Nature of Claim	:	SGD SGD SGD
Remark	:	TORT- NEGLIGENCE

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

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	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA PACIFIC
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

STEEL AND STEEL-RELATED PRODUCTS

Total Number of Employees:
YEAR	2014	2013
GROUP	N/A	N/A
COMPANY	25	25

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of steel and steel-related products.

The Subject is engaged in the supply high-tech and high value-added steel products, including carbon steel, stainless steel and special steel, in the series of cold rolled sheets or coils, hot rolled plates or coils, long products and tubular products.

They are widely used in industries as automobile, household appliances, oil exploration, oil and gas transmission, shipbuilding, boiler and pressure vessel, electrical equipments, food and beverage packaging, construction, etc.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63336818
Match	:	N/A
Address Provided by Client	:	7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE,038987 SINGAPORE
Current Address	:	7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE, 038987, SINGAPORE.
Match	:	YES

Other Investigations

On 25th August 2014 we contacted one of the staff from the Subject and she provided some information.

The Subject refused to disclose its number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	104.50%	]
Profit/(Loss) Before Tax	:	Increased	[	1.37%	]
Return on Shareholder Funds	:	Acceptable	[	11.22%	]
Return on Net Assets	:	Acceptable	[	15.22%	]
The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	32 Days	]
Creditors Ratio	:	Favourable	[	11 Days	]
As the Subject is a service oriented company, the Subject does not need to keep 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	[	1.10 Times	]
Current Ratio	:	Unfavourable	[	1.10 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	[	4.93 Times	]
Gearing Ratio	:	Unfavourable	[	7.84 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 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 : FAIR

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)
(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 1997, the Subject is a Private Limited company, focusing on trading of steel and steel-related products. 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. Being a small company, the Subject's business operation is supported by 25 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at USD 113,998,765, 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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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.

BAOSTEEL SINGAPORE PTE LTD

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12	12
Consolidated Account	GROUP	GROUP	Company	Company
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	USD	USD	USD	USD
TURNOVER	1,527,989,407	747,170,283	672,165,668	490,197,614
Other Income	(7,033,321)	3,199,449	1,693,826	70,031
	----------------	----------------	----------------	----------------
Total Turnover	1,520,956,086	750,369,732	673,859,494	490,267,645
Costs of Goods Sold	(1,497,240,952)	(714,436,687)	(636,217,274)	(458,398,804)
	----------------	----------------	----------------	----------------
Gross Profit	23,715,134	35,933,045	37,642,220	31,868,841
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	13,836,340	13,648,674	17,051,919	14,028,808
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	13,836,340	13,648,674	17,051,919	14,028,808
Taxation	(1,040,874)	(1,141,623)	(1,299,384)	(853,340)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	12,795,466	12,507,051	15,752,535	13,175,468
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	100,764,462	88,257,411	72,504,876	59,329,408
	----------------	----------------	----------------	----------------
As restated	100,764,462	88,257,411	72,504,876	59,329,408
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	113,559,928	100,764,462	88,257,411	72,504,876
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	113,559,928	100,764,462	88,257,411	72,504,876
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	-	-	254,077	-
Others	3,519,038	1,496,675	-	-
	----------------	----------------	----------------	----------------
	3,519,038	1,496,675	254,077	-
	=============	=============	=============

BALANCE SHEET

BAOSTEEL SINGAPORE PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	7,026,580	3,797,406	3,953,444	4,105,623
Investments	10,552,830	10,766,712	4,000,000	-
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	10,552,830	10,766,712	4,000,000	-
Others	23,494	26,850	30,206	33,562
	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	23,494	26,850	30,206	33,562
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	17,602,904	14,590,968	7,983,650	4,139,185
Trade debtors	133,255,775	65,427,810	38,275,781	23,960,941
Other debtors, deposits & prepayments	231,751	316,404	928,945	760,140
Short term deposits	38,224,287	18,273,009	49,838,006	-
Loans & advances - current portion	15,068,074	16,188,872	-	-
Amount due from holding company	723,919,763	83,935,672	-	-
Amount due from related companies	135,487,602	-	-	-
Cash & bank balances	12,969,667	19,211,425	14,315,560	65,148,048
Others	470,379	1,248,596	2,633,081	-
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	1,059,627,298	204,601,788	105,991,373	89,869,129
	----------------	----------------	----------------	----------------
TOTAL ASSET	1,077,230,202	219,192,756	113,975,023	94,008,314
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	44,638,496	21,735,512	19,494,975	1,874,824
Other creditors & accruals	1,316,577	1,108,865	4,128,937	7,432,269
Short term borrowings/Term loans	894,167,079	85,240,792	-	-
Amounts owing to holding company	12,680,903	3,341,786	-	9,745,190
Amounts owing to related companies	4,909,939	2,541,336	-	692,355
Provision for taxation	1,052,000	1,080,000	1,072,700	737,800
Other liabilities	4,425,444	2,359,003	-	-
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	963,190,438	117,407,294	24,696,612	20,482,438
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	96,436,860	87,194,494	81,294,761	69,386,691
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	114,039,764	101,785,462	89,278,411	73,525,876
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	980,001	980,001	980,001	980,001
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	980,001	980,001	980,001	980,001
Exchange equalisation/fluctuation reserve	(541,164)	-	-	-
Retained profit/(loss) carried forward	113,559,928	100,764,462	88,257,411	72,504,876
	----------------	----------------	----------------	----------------
TOTAL RESERVES	113,018,764	100,764,462	88,257,411	72,504,876
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	113,998,765	101,744,463	89,237,412	73,484,877
Deferred taxation	40,999	40,999	40,999	40,999
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	40,999	40,999	40,999	40,999
	----------------	----------------	----------------	----------------
	114,039,764	101,785,462	89,278,411	73,525,876
	=============	=============	=============	=============

FINANCIAL RATIO

BAOSTEEL SINGAPORE PTE LTD

TYPES OF FUNDS
Cash	51,193,954	37,484,434	64,153,566	65,148,048
Net Liquid Funds	51,193,954	37,484,434	64,153,566	65,148,048
Net Liquid Assets	96,436,860	87,194,494	81,294,761	69,386,691
Net Current Assets/(Liabilities)	96,436,860	87,194,494	81,294,761	69,386,691
Net Tangible Assets	114,016,270	101,758,612	89,248,205	73,492,314
Net Monetary Assets	96,395,861	87,153,495	81,253,762	69,345,692
BALANCE SHEET ITEMS
Total Borrowings	894,167,079	85,240,792	0	0
Total Liabilities	963,231,437	117,448,293	24,737,611	20,523,437
Total Assets	1,077,230,202	219,192,756	113,975,023	94,008,314
Net Assets	114,039,764	101,785,462	89,278,411	73,525,876
Net Assets Backing	113,998,765	101,744,463	89,237,412	73,484,877
Shareholders' Funds	113,998,765	101,744,463	89,237,412	73,484,877
Total Share Capital	980,001	980,001	980,001	980,001
Total Reserves	113,018,764	100,764,462	88,257,411	72,504,876
LIQUIDITY (Times)
Cash Ratio	0.05	0.32	2.60	3.18
Liquid Ratio	1.10	1.74	4.29	4.39
Current Ratio	1.10	1.74	4.29	4.39
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	0	0
Debtors Ratio	32	32	21	18
Creditors Ratio	11	11	11	1
SOLVENCY RATIOS (Times)
Gearing Ratio	7.84	0.84	0.00	0.00
Liabilities Ratio	8.45	1.15	0.28	0.28
Times Interest Earned Ratio	4.93	10.12	68.11	0.00
Assets Backing Ratio	116.34	103.84	91.07	74.99
PERFORMANCE RATIO (%)
Operating Profit Margin	0.91	1.83	2.54	2.86
Net Profit Margin	0.84	1.67	2.34	2.69
Return On Net Assets	15.22	14.88	19.38	19.08
Return On Capital Employed	15.22	14.88	19.38	19.07
Return On Shareholders' Funds/Equity	11.22	12.29	17.65	17.93
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.61
UK Pound	1	Rs.100.49
Euro	1	Rs.79.56

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	SDA

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.