MIRA INFORM REPORT

Report Date :

18.09.2014

IDENTIFICATION DETAILS

Name :	VITAL SOLUTIONS PTE LTD
Formerly Known As :	EPULPNPAPER PTE LTD (30/06/2001)
Registered Office :	77, Robinson Road, 14-01, Robinson 77, 068896
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	08.12.1999
Com. Reg. No.:	199907719-D
Legal Form :	Private Limited
Line of Business :	Trading of Paper, Building Materials
No. of Employees :	40

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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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.

:

199907719-D

COMPANY NAME

:

VITAL SOLUTIONS PTE LTD

FORMER NAME

:

EPULPNPAPER PTE LTD (30/06/2001)

INCORPORATION DATE

:

08/12/1999

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

77, ROBINSON ROAD, 14-01, ROBINSON 77, 068896, SINGAPORE.

BUSINESS ADDRESS

:

77, ROBINSON ROAD, #14-01 ROBINSON 77, 068896, SINGAPORE.

TEL.NO.

:

65-63259230

FAX.NO.

:

65-62211044

WEB SITE

:

WWW.VITAL.COM.SG

CONTACT PERSON

:

VARADARAJAN KRISHNAN ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF PAPER, BUILDING MATERIALS

ISSUED AND PAID UP CAPITAL

:

9,988,450.00 ORDINARY SHARE, OF A VALUE OF SGD 998,845.00
3,884,168.00 PREFERENCE SHARE, OF A VALUE OF SGD 13,792,111.80

SALES

:

USD 318,906,416 [2013]

NET WORTH

:

USD 35,412,878 [2013]

STAFF STRENGTH

:

40 [2014]

BANKER (S)

:

BNP PARIBAS CITIBANK N.A. DBS BANK LTD INDIAN BANK STANDARD CHARTERED BANK CITIBANK BHD THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

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

The Subject is principally engaged in the (as a / as an) trading of paper, building materials.

Share Capital History

Date	Issue & Paid Up Capital
15/09/2014	SGD 14,790,956.80
03/06/2014	SGD 14,790,956.80

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
LENSHERR UNIVERSAL S.A [ORD 3,604,852 & PREF 731,707]	PASEA ESTATE, ROAD TOWN, TOTOLA, VIRGIN ISLANDS, BRITISH.	T04UF2150	4,336,559.00	31.26
VARADARAJAN KRISHNAN +	9, TANJONG RHU ROAD, 15-03, THE WATERSIDE, 436894, SINGAPORE.	S2663619A	3,920,382.00	28.26
RAJIV DHAR +	9, TANJONG RHU ROAD, 12-03, THE WATERSIDE, 436894, SINGAPORE.	S7078521H	3,920,381.00	28.26
ASIA PACIFIC GROWTH FUND CAYMAN ISLANDS III L.P [PREF]	C/O WALKERS SPV LIMITED, WALKER HOUSE, 87, MARY STREET, GEORGETOWN, GRAND CAYMAN, KYI-9002, CAYMAN ISLANDS.	T08UF2125	713,436.00	5.14
INFOCOMM INVESTMENTS PTE LTD [PREF]	10, PASIR PANJANG ROAD, 10-01, MAPLETREE BUSINESS CITY, 117438, SINGAPORE.	199608120R	487,805.00	3.52
INTERNATIONAL FINANCE CORPORATION [PREF]	2121, PENNYSYVANIA AVENUE, N. W. WASHINGTON, D.C. 20433, UNITED STATES.	T00UF0372	487,805.00	3.52
GIBSON KENNETH WILLIAM	JL BDN 56-57, CILANDAK, JAKARTA SELATAN, INDONESIA.	E7059255	6,250.00	0.05
			---------------	------
			13,872,618.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
011	KOREA	ASIA PAPER MARKETS.COM CO., LTD	100.00	31/12/2013
	VIRGIN ISLANDS, BRITISH	VIBRANT INDUSTRIES INC	100.00	31/12/2013
	NIGERIA	VITAL SOLUTIONS (NIGERIA) PTE LTD	100.00	31/12/2013
	INDIA	VITAL PAPER PRODUCTS PVT LTD	100.00	31/12/2013
	SOUTH AFRICA	VITAL PAPERS (SOUTH AFRICA) PTY LTD	100.00	31/12/2013
	INDIA	VITAL PAPER INDIA PVT LTD	97.02	31/12/2013
	AUSTRALIA	VITAL SOLUTIONS (AUST) PTY LTD	75.00	31/12/2013
	GERMANY	VITAL PAPER GMBH	72.50	31/12/2013
	INDIA	VERTEX MANAGEMENT PVT LTD	70.00	31/12/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	HANSON CHEAH
Address	:	FLAT A, BLOCK 17, PROVIDENT CENTRE, NORTH POINT, 23RD FLOOR, HONG KONG.
IC / PP No	:	A21488871
Nationality	:	MALAYSIAN
Date of Appointment	:	01/05/2002

DIRECTOR 2

Name Of Subject	:	DEVKISHAN SITALDAS VARYANI
Address	:	1366, WOODGREEN WAY HIGHGATE, DAINFEM, JOHANNESBURG, SOUTH AFRICA.
IC / PP No	:	Z1422617
Nationality	:	INDIAN
Date of Appointment	:	29/12/1999

DIRECTOR 3

Name Of Subject	:	RAJIV DHAR
Address	:	9, TANJONG RHU ROAD, 12-03, THE WATERSIDE, 436894, SINGAPORE.
IC / PP No	:	S7078521H
Date of Appointment	:	29/12/1999
Remark	:	ORD 3,188,674, PREF 731,707

DIRECTOR 4

Name Of Subject	:	VARADARAJAN KRISHNAN
Address	:	9, TANJONG RHU ROAD, 15-03, THE WATERSIDE, 436894, SINGAPORE.
IC / PP No	:	S2663619A
Date of Appointment	:	13/12/1999
Remark	:	ORD 3,188,674, PREF 731,708; ALTERNATE DIRECTOR TO DEVKISHAN SITALDAS VARYANI

MANAGEMENT

1)	Name of Subject	:	VARADARAJAN KRISHNAN
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	NEXIA TS PUBLIC ACCOUNTING CORPORATION
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LEE SOO CHYE
	IC / PP No	:	S1660953F
	Address	:	12, WEST COAST CRESCENT, 07-01, WESTCOVE CONDOMINIUM, 128042, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BNP PARIBAS

2)

Name

:

CITIBANK N.A.

3)

Name

:

DBS BANK LTD

4)

Name

:

INDIAN BANK

5)

Name

:

STANDARD CHARTERED BANK

6)

Name

:

CITIBANK BHD

7)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

8)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
200202660	14/06/2002	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
200205051	19/11/2002	N/A	BNP PARIBAS	-	Unsatisfied
200205052	19/11/2002	N/A	BNP PARIBAS	-	Unsatisfied
C200605573	21/08/2006	N/A	BNP PARIBAS	-	Unsatisfied
C200701267	14/02/2007	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200701270	14/02/2007	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200708456	08/10/2007	N/A	BNP PARIBAS	-	Unsatisfied
C200801803	19/02/2008	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C200810381	18/11/2008	N/A	INDIAN BANK	-	Unsatisfied
C201001295	09/02/2010	N/A	CITIBANK N.A.	-	Unsatisfied
C201005797	09/07/2010	N/A	DBS BANK LTD.	-	Unsatisfied
C201010030	25/10/2010	N/A	DBS BANK LTD.	-	Unsatisfied
C201102935	09/03/2011	N/A	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	-	Unsatisfied
C201102968	10/03/2011	N/A	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	-	Unsatisfied
C201404340	30/04/2014	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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	X	]	Good 31-60 Days	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[		]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	60%
Domestic Markets	:	SINGAPORE
Overseas	:	YES	Percentage	:	40%
Export Market	:	SOUTH EAST ASIA EUROPE MIDDLE EAST UNITED STATES
Credit Term	:	N/A
Payment Mode	:	CHEQUES LETTER OF CREDIT (LC)

OPERATIONS

Goods Traded

:

PAPER PRODUCT,BUILDING MATERIALS

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A
COMPANY	40	45	40	40

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of paper, building materials.

The Subject offers two types of products which can be broadly categorized as Paper and Building Materials.

The Subject supplies the entire gambit of materials used in Building from Steel to Glass.

The Subject's products portfolio can be broadly categorized as below:

Newsprint
Coated Grades of paper
Uncoated Grades of paper
Packaging Paper
Specialities
Stationery
More Products...

Building Material:

The Subject offers quality building materials to the construction world. Its Building Materials Division (BMD) started in 2007. Within a short span of time it has gained confidence of customers from all over the world.

The building material that it supplies can be broadly categorized as below:

Iron & Steel
Glass & Mirror
Wood Products
Gypsum Products
Aluminium Composite Panel
More Products

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63259230
Match	:	N/A
Address Provided by Client	:	77 ROBINSON ROAD # 14-01 ROBINSON 77 SINGAPORE 068896 SINGAPORE
Current Address	:	77, ROBINSON ROAD, #14-01 ROBINSON 77, 068896, SINGAPORE.
Match	:	YES

Other Investigations

On 12th September 2014, we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	16.81%	]
Return on Net Assets	:	Acceptable	[	23.14%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	6 Days	]
Debtor Ratio	:	Unfavourable	[	98 Days	]
Creditors Ratio	:	Favourable	[	23 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	[	1.43 Times	]
Current Ratio	:	Unfavourable	[	1.50 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	[	4.75 Times	]
Gearing Ratio	:	Unfavourable	[	1.17 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 :
Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 : 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)
(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 1999, the Subject is a Private Limited company, focusing on trading of paper, building materials. 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 shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is operating on a medium scale and it has approximately 40 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.

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 35,412,878, the Subject should be able to maintain its business in the near terms.

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject promptly.

PROFIT AND LOSS ACCOUNT

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

VITAL SOLUTIONS PTE LTD

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	USD	USD	USD	USD	SGD
TURNOVER	318,906,416	257,277,838	289,608,488	262,261,430	240,705,248
	----------------	----------------	----------------	----------------	----------------
Total Turnover	318,906,416	257,277,838	289,608,488	262,261,430	240,705,248
Costs of Goods Sold	(297,874,230)	(239,845,699)	(270,572,605)	(245,682,350)	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	21,032,186	17,432,139	19,035,883	16,579,080	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	6,640,705	4,240,103	6,746,648	5,273,388	8,473,318
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	6,640,705	4,240,103	6,746,648	5,273,388	8,473,318
Taxation	(707,077)	(474,985)	(944,275)	(672,567)	(1,176,596)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	5,933,628	3,765,118	5,802,373	4,600,821	7,296,722
Minority interests	20,965	131,490	288,221	158,582	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	5,954,593	3,896,608	6,090,594	4,759,403	7,296,722
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	5,954,593	3,896,608	6,090,594	4,759,403	7,296,722
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	20,143,899	17,917,554	13,914,160	10,669,540	7,537,948
	----------------	----------------	----------------	----------------	----------------
As restated	20,143,899	17,917,554	13,914,160	10,669,540	7,537,948
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	26,098,492	21,814,162	20,004,754	15,428,943	14,834,670
DIVIDENDS - Ordinary (paid & proposed)	(1,643,905)	(1,670,263)	(2,087,200)	(1,514,783)	(1,057,093)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	24,454,587	20,143,899	17,917,554	13,914,160	13,777,577
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Lease interest	15,695	17,715	17,711	-	-
Term loan / Borrowing	87,281	92,444	119,671	-	-
Others	1,667,408	1,251,026	1,382,625	-	-
	----------------	----------------	----------------	----------------	----------------
	1,770,384	1,361,185	1,520,007	-	-
	=============	=============	=============

BALANCE SHEET

VITAL SOLUTIONS PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	1,824,045	1,696,171	556,714	409,181	216,696
Associated companies	32,100	32,136	26,804	-	-
Deferred assets	53,863	-	-	-	-
Others	51,885	51,885	51,885	51,885	67,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	137,848	84,021	78,689	51,885	67,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	-	-	-	-	39,730
Computer software	-	63,140	-	29,157	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	-	63,140	-	29,157	39,730
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,961,893	1,843,332	635,403	490,223	323,426
Stocks	5,336,527	3,745,039	3,822,422	1,154,100	972,759
Trade debtors	85,848,738	74,328,970	62,244,338	67,312,130	57,492,565
Other debtors, deposits & prepayments	704,439	469,391	387,583	529,626	31,122
Short term deposits	6,259,155	6,048,782	5,618,748	5,241,811	6,281,785
Cash & bank balances	4,310,306	4,025,084	5,342,171	2,510,371	2,976,467
Others	47,167	17,663	1,165,903	530,052	1,518,699
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	102,506,332	88,634,929	78,581,165	77,278,090	69,273,397
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	104,468,225	90,478,261	79,216,568	77,768,313	69,596,823
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	18,882,151	16,405,683	15,547,476	18,034,762	12,388,566
Other creditors & accruals	7,739,515	6,695,592	7,542,621	8,761,883	7,360,019
Hire purchase & lease creditors	46,685	50,456	51,110	24,022	23,220
Bank overdraft	1,032,680	1,444,945	-	1,014,914	41,350
Short term borrowings/Term loans	-	-	-	19,202,295	16,423,616
Other borrowings	27,226,332	22,288,287	15,022,411	1,233,145	-
Bill & acceptances payable	12,123,644	11,419,704	10,886,953	2,882,889	2,709,064
Provision for taxation	804,620	508,749	664,075	691,417	929,346
Other liabilities	262,447	92,577	22,488	200,331	854,073
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	68,118,074	58,905,993	49,737,134	52,045,658	40,729,254
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	34,388,258	29,728,936	28,844,031	25,232,432	28,544,143
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	36,350,151	31,572,268	29,479,434	25,722,655	28,867,569
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	11,454,315	11,454,315	11,454,315	11,454,315	14,790,957
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	11,454,315	11,454,315	11,454,315	11,454,315	14,790,957
General reserve	-	-	-	-	176,898
Retained profit/(loss) carried forward	24,454,587	20,143,899	17,917,554	13,914,160	13,777,577
Others	9,589	276,983	243,525	258,563	-
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	24,464,176	20,420,882	18,161,079	14,172,723	13,954,475
MINORITY INTEREST	(505,613)	(484,648)	(353,158)	(64,937)	-
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	35,412,878	31,390,549	29,262,236	25,562,101	28,745,432
Long term loans	843,300	-	-	-	-
Lease obligations	93,973	135,450	168,563	-	-
Hire purchase creditors	-	-	-	120,251	116,100
Deferred taxation	-	46,269	48,635	40,303	6,037
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	937,273	181,719	217,198	160,554	122,137
	----------------	----------------	----------------	----------------	----------------
	36,350,151	31,572,268	29,479,434	25,722,655	28,867,569
	=============	=============	=============	=============	=============

FINANCIAL RATIO

VITAL SOLUTIONS PTE LTD

TYPES OF FUNDS
Cash	10,569,461	10,073,866	10,960,919	7,752,182	9,258,252
Net Liquid Funds	(2,586,863)	(2,790,783)	73,966	3,854,379	6,507,838
Net Liquid Assets	29,051,731	25,983,897	25,021,609	24,078,332	27,571,384
Net Current Assets/(Liabilities)	34,388,258	29,728,936	28,844,031	25,232,432	28,544,143
Net Tangible Assets	36,350,151	31,509,128	29,479,434	25,693,498	28,827,839
Net Monetary Assets	28,114,458	25,802,178	24,804,411	23,917,778	27,449,247
BALANCE SHEET ITEMS
Total Borrowings	41,366,614	35,338,842	26,129,037	24,477,516	19,313,350
Total Liabilities	69,055,347	59,087,712	49,954,332	52,206,212	40,851,391
Total Assets	104,468,225	90,478,261	79,216,568	77,768,313	69,596,823
Net Assets	36,350,151	31,572,268	29,479,434	25,722,655	28,867,569
Net Assets Backing	35,412,878	31,390,549	29,262,236	25,562,101	28,745,432
Shareholders' Funds	35,412,878	31,390,549	29,262,236	25,562,101	28,745,432
Total Share Capital	11,454,315	11,454,315	11,454,315	11,454,315	14,790,957
Total Reserves	24,464,176	20,420,882	18,161,079	14,172,723	13,954,475
LIQUIDITY (Times)
Cash Ratio	0.16	0.17	0.22	0.15	0.23
Liquid Ratio	1.43	1.44	1.50	1.46	1.68
Current Ratio	1.50	1.50	1.58	1.48	1.70
WORKING CAPITAL CONTROL (Days)
Stock Ratio	6	5	5	2	1
Debtors Ratio	98	105	78	94	87
Creditors Ratio	23	25	21	27	19
SOLVENCY RATIOS (Times)
Gearing Ratio	1.17	1.13	0.89	0.96	0.67
Liabilities Ratio	1.95	1.88	1.71	2.04	1.42
Times Interest Earned Ratio	4.75	4.12	5.44	0.00	0.00
Assets Backing Ratio	3.17	2.75	2.57	2.24	1.95
PERFORMANCE RATIO (%)
Operating Profit Margin	2.08	1.65	2.33	2.01	3.52
Net Profit Margin	1.87	1.51	2.10	1.81	3.03
Return On Net Assets	23.14	17.74	28.04	20.50	29.35
Return On Capital Employed	22.78	17.16	28.33	19.73	29.25
Return On Shareholders' Funds/Equity	16.81	12.41	20.81	18.62	25.38
Dividend Pay Out Ratio (Times)	0.28	0.43	0.34	0.32	0.14
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.95
UK Pound	1	Rs.99.32
Euro	1	Rs.78.96

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	PDT

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.