MIRA INFORM REPORT

Report Date :

06.09.2014

IDENTIFICATION DETAILS

Name :	SUNLIGHT MERCANTILE PTE. LTD.
Registered Office :	300, Beach Road,13-01, The Concourse, 199555,
Country :	Singapore
Financials (as on) :	30.06.2012
Date of Incorporation :	26.12.1984
Com. Reg. No.:	198404381-N
Legal Form :	Exempt Private
Line of Business :	Wholesale of logs, sawn timber, plywood and related products
No. of Employees	20 - GROUP [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 – 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

Company name and address

REGISTRATION NO.

:

198404381-N

COMPANY NAME

:

SUNLIGHT MERCANTILE PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

26/12/1984

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

300, BEACH ROAD,13-01, THE CONCOURSE, 199555, SINGAPORE.

BUSINESS ADDRESS

:

300, BEACH ROAD, #13-01,THE CONCOURSE,, 199555, SINGAPORE.

TEL.NO.

:

65-67226666

FAX.NO.

:

65-67226677

EMAIL

:

SUNLIGHT@SUNLIGHT.COM.SG

WEB SITE

:

WWW.SUNLIGHT.SG

CONTACT PERSON

:

OMAR CURRIM S/O FAZAL CURRIM ( DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF LOGS, SAWN TIMBER, PLYWOOD AND RELATED PRODUCTS

ISSUED AND PAID UP CAPITAL

:

3,300,000.00 ORDINARY SHARE, OF A VALUE OF SGD 3,300,000.00

SALES

:

SGD 140,162,279 [2012]

NET WORTH

:

SGD 9,941,639 [2012]

STAFF STRENGTH

:

20 - GROUP [2014]

BANKER (S)

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED DBS BANK LTD INDIAN BANK INDIAN OVERSEAS BANK CITIBANK N.A.

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. 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, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

The Subject is principally engaged in the (as a / as an) wholesale of logs, sawn timber, plywood and related products.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	SGD 3,300,000.00	SGD 3,300,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
FAZAL CURRIM BIN MANSOOR SHERIFF	99, MEYER ROAD, 16-02, THE SOVEREIGN, SAINT HELENA.	S170011H	2,329,797.00	70.60
ZULAIHAMA BINTE MEERAMOHIADEEN SYED THAMBY	99, MEYER ROAD, 15-03, THE SOVEREIGN, 437920, SINGAPORE.	S1564167C	970,203.00	29.40
			---------------	------
			3,300,000.00	100.00
			============	=====

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. OMAR CURRIM S/O FAZAL CURRIM
Address	:	99, MEYER ROAD, 15-03, THE SOVEREIGN, 437920, SINGAPORE.
IC / PP No	:	S8121193J
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/03/2013

DIRECTOR 2

Name Of Subject	:	MR. ABDUL RAB BIN ABDUL AZIZ
Address	:	104, WHAMPOA DRIVE, 06-56, 323104, SINGAPORE.
IC / PP No	:	S1288096J
Nationality	:	SINGAPOREAN
Date of Appointment	:	17/01/2013

DIRECTOR 3

Name Of Subject	:	FAZAL CURRIM BIN MANSOOR SHERIFF
Address	:	99, MEYER ROAD, 16-02, THE SOVEREIGN, 437920, SINGAPORE.
IC / PP No	:	2170011H
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/03/2013

MANAGEMENT

1)	Name of Subject	:	OMAR CURRIM S/O FAZAL CURRIM
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRUDENTIAL PUBLIC ACCOUNTIN G CORPORATI ON
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	ZULAIHAMA BINTE MEERAMOHIADEEN SYED THAMBY
	IC / PP No	:	S1564167C
	Address	:	99, MEYER ROAD, 15-03, THE SOVEREIGN, 437920, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

2)

Name

:

DBS BANK LTD

3)

Name

:

INDIAN BANK

4)

Name

:

INDIAN OVERSEAS BANK

5)

Name

:

CITIBANK N.A.

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
199805176	09/10/1998	N/A	INDIAN BANK	60,000.00	Unsatisfied
200204009	01/07/2002	N/A	INDIAN BANK	SGD 560,135.00	Unsatisfied
C200401023	04/03/2004	N/A	DBS BANK LTD	-	Unsatisfied
C200501750	28/03/2005	N/A	INDIAN BANK	-	Unsatisfied
C200705457	12/07/2007	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	-	Unsatisfied
C200705458	12/07/2007	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	-	Unsatisfied
C200708311	03/10/2007	N/A	INDIAN BANK	-	Unsatisfied
C201114661	21/11/2011	N/A	INDIAN BANK	-	Unsatisfied
C201203236	23/03/2012	N/A	INDIAN BANK	-	Unsatisfied
C201205522	21/05/2012	N/A	INDIAN OVERSEAS BANK	-	Unsatisfied
C201303164	27/02/2013	N/A	INDIAN BANK	-	Unsatisfied
C201310734	05/08/2013	N/A	CITIBANK N.A.	-	Unsatisfied

LEGAL CHECK AGAINST SUBJECT

* A check has been conducted in our databank againt 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	:	NO	Percentage	:	0%
Overseas	:	YES	Percentage	:	100%
Import Countries	:	ASIA,AFRICA,PAPUA NEW GUINEA,SOLOMON ISLANDS

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 MIDDLE EAST
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

LOGS, PLYWOOD AND OTHER WOOD PRODUCTS

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

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of logs, sawn timber, plywood and related products.

The Subject is engaged in the trading of timber, building materials, all kinds of logs, plywood and other wood products.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-67226666
Match	:	N/A
Address Provided by Client	:	300 BEACH ROAD# 13-01 THE CONCOURSE SINGAPORE-199555
Current Address	:	300, BEACH ROAD, #13-01,THE CONCOURSE,, 199555, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2012	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	6.33%	]
Return on Net Assets	:	Acceptable	[	23.04%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. 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	[	6 Days	]
Debtor Ratio	:	Unfavourable	[	114 Days	]
Creditors Ratio	:	Favourable	[	17 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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	[	1.15 Times	]
Current Ratio	:	Unfavourable	[	1.20 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	1.44 Times	]
Gearing Ratio	:	Unfavourable	[	3.87 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : LIMITED

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	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 :	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 1984, the Subject is an Exempt Private company, focusing on wholesale of logs, sawn timber, plywood and related products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. 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 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. However, the Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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 SGD 9,941,639, the Subject should be able to maintain its business in the near terms.

Investigation revealed that the Subject's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The Subject faces foreign currency fluctuation which may affect its overall operating costs.

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.

SUNLIGHT MERCANTILE PTE. LTD.

Financial Year End	2012-06-30	2011-06-30	2010-06-30
Months	12	12	6
Consolidated Account	Company	Company	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	FULL
Currency	SGD	SGD	SGD
TURNOVER	140,162,279	89,790,599	52,493,307
Other Income	1,175,351	449,214	-
	----------------	----------------	----------------
Total Turnover	141,337,630	90,239,813	52,493,307
Costs of Goods Sold	(137,012,129)	(87,297,465)	(50,418,433)
	----------------	----------------	----------------
Gross Profit	4,325,501	2,942,348	2,074,874
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	703,305	328,685	371,538
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	703,305	328,685	371,538
Taxation	(74,075)	(49,222)	(38,260)
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	629,230	279,463	333,278
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	6,012,409	5,732,946	5,399,668
	----------------	----------------	----------------
As restated	6,012,409	5,732,946	5,399,668
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	6,641,639	6,012,409	5,732,946
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	6,641,639	6,012,409	5,732,946
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	4,089	1,527	393
Trust receipts	490,802	296,067	138,539
Others	1,092,721	404,504	367,873
	----------------	----------------	----------------
	1,587,612	702,098	506,805
	=============	=============	=============

BALANCE SHEET

SUNLIGHT MERCANTILE PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	184,422	203,935	33,099
Investment properties	89,479	92,855	96,229
Investments	500	500	-
Others	-	-	500
	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	89,979	93,355	96,729
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	274,401	297,290	129,828
Stocks	2,233,926	4,993,440	1,177,274
Trade debtors	43,882,731	31,995,925	32,763,541
Other debtors, deposits & prepayments	1,281,704	979,672	1,623,747
Short term deposits	5,627,446	4,066,096	4,010,221
Interest receivable	11,081	9,960	-
Amount due from related companies	1,366,782	977,333	-
Amount due from director	193,989	40,720	-
Cash & bank balances	196,148	415,624	766,471
Others	3,109,786	3,629,337	2,333,023
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	57,903,593	47,108,107	42,674,277
	----------------	----------------	----------------
TOTAL ASSET	58,177,994	47,405,397	42,804,105
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	6,344,868	1,353,171	304,805
Other creditors & accruals	2,175,610	357,026	1,100,441
Bank overdraft	17,841	55,015	-
Other borrowings	25,345,817	18,441,964	7,740,614
Deposits from customers	117,327	85,775	-
Bill & acceptances payable	13,085,561	16,653,304	24,548,914
Amounts owing to related companies	1,114,759	1,092,801	-
Provision for taxation	30,499	50,439	76,385
Other liabilities	4,073	3,493	-
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	48,236,355	38,092,988	33,771,159
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	9,667,238	9,015,119	8,903,118
	----------------	----------------	----------------
TOTAL NET ASSETS	9,941,639	9,312,409	9,032,946
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	3,300,000	3,300,000	3,300,000
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	3,300,000	3,300,000	3,300,000
Retained profit/(loss) carried forward	6,641,639	6,012,409	5,732,946
	----------------	----------------	----------------
TOTAL RESERVES	6,641,639	6,012,409	5,732,946
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	9,941,639	9,312,409	9,032,946
	----------------	----------------	----------------
	9,941,639	9,312,409	9,032,946
	=============	=============	=============

FINANCIAL RATIO

SUNLIGHT MERCANTILE PTE. LTD.

TYPES OF FUNDS
Cash	5,823,594	4,481,720	4,776,692
Net Liquid Funds	(7,279,808)	(12,226,599)	(19,772,222)
Net Liquid Assets	7,433,312	4,021,679	7,725,844
Net Current Assets/(Liabilities)	9,667,238	9,015,119	8,903,118
Net Tangible Assets	9,941,639	9,312,409	9,032,946
Net Monetary Assets	7,433,312	4,021,679	7,725,844
BALANCE SHEET ITEMS
Total Borrowings	38,449,219	35,150,283	32,289,528
Total Liabilities	48,236,355	38,092,988	33,771,159
Total Assets	58,177,994	47,405,397	42,804,105
Net Assets	9,941,639	9,312,409	9,032,946
Net Assets Backing	9,941,639	9,312,409	9,032,946
Shareholders' Funds	9,941,639	9,312,409	9,032,946
Total Share Capital	3,300,000	3,300,000	3,300,000
Total Reserves	6,641,639	6,012,409	5,732,946
LIQUIDITY (Times)
Cash Ratio	0.12	0.12	0.14
Liquid Ratio	1.15	1.11	1.23
Current Ratio	1.20	1.24	1.26
WORKING CAPITAL CONTROL (Days)
Stock Ratio	6	20	8
Debtors Ratio	114	130	228
Creditors Ratio	17	6	2
SOLVENCY RATIOS (Times)
Gearing Ratio	3.87	3.77	3.57
Liabilities Ratio	4.85	4.09	3.74
Times Interest Earned Ratio	1.44	1.47	1.73
Assets Backing Ratio	3.01	2.82	2.74
PERFORMANCE RATIO (%)
Operating Profit Margin	0.50	0.37	0.71
Net Profit Margin	0.45	0.31	0.63
Return On Net Assets	23.04	11.07	9.72
Return On Capital Employed	23.00	11.00	9.72
Return On Shareholders' Funds/Equity	6.33	3.00	3.69
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.44
UK Pound	1	Rs.98.64
Euro	1	Rs.78.20

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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%)

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