MIRA INFORM REPORT

Report No. :	318816
Report Date :	27.04.2015

IDENTIFICATION DETAILS

Name :	FUTURE ELECTRONICS INC. (DISTRIBUTION) PTE LTD
Formerly Known As :	LYNSTEDT TRADING PTE LTD
Registered Office :	8, Marina Boulevard, 05-02, Marina Bay Financial Centre, 018981
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	18.10.1995
Com. Reg. No.:	199507398-C
Legal Form :	Private Limited
Line of Business :	Trading of Electronic Components.
No. of Employees :	300 [2015]

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 :	--

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. Unemployment is very low. 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. Growth in 2014 was slower at 13.9%, 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. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

199507398-C

COMPANY NAME

:

FUTURE ELECTRONICS INC. (DISTRIBUTION) PTE LTD

FORMER NAME

:

LYNSTEDT TRADING PTE LTD (29/07/1996)

INCORPORATION DATE

:

18/10/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

8, MARINA BOULEVARD, 05-02, MARINA BAY FINANCIAL CENTRE, 018981, SINGAPORE.

BUSINESS ADDRESS

:

11, TAMPINES CONCOURSE, 03-01, 528729, SINGAPORE.

TEL.NO.

:

65-68083888

FAX.NO.

:

65-68083838

CONTACT PERSON

:

CHIN YEOW HON ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF ELECTRONIC COMPONENTS

ISSUED AND PAID UP CAPITAL

:

51,950,002.00 ORDINARY SHARE, OF A VALUE OF SGD 53,686,370.00
1,000.00 PREFERENCE SHARE, OF A VALUE OF SGD 13,673,123.50

SALES

:

USD 1,029,248,708 [2013]

NET WORTH

:

USD 354,236,223 [2013]

STAFF STRENGTH

:

300 [2015]

BANKER (S)

:

BANK OF MONTREAL AS ADMINISTRATIVE AGENT THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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 electronic components.

The ultimate holding company of the Subject is FUTURE ELECTRONICS INC., a company incorporated in CANADA.

Share Capital History

Date	Issue & Paid Up Capital
23/04/2015	SGD 67,359,493.50

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
FUTURE ELECTRONICS INC. [51,950,002 ORDINARY SHARES IN SGD & 1,000 PREFERENCE SHARES IN SGD]	237, HYMUS BOULEVARD POINTE CLAIRE, QUEBEC H9R 5C7, CANADA.	T07UF0267	51,951,002.00	100.00
			---------------	------
			51,951,002.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
199507143N	SINGAPORE	FUTURE ELECTRONICS INC. (WAREHOUSE) PTE LTD	100.00	23/04/2015
201014297G	SINGAPORE	FAI ELECTRONICS (SINGAPORE) PTE. LTD.	100.00	23/04/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	HOO CHEE KHUEN
Address	:	117, LORONG 1, TOA PAYOH, 04-387, 310117, SINGAPORE.
IC / PP No	:	S1557094F
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/07/2007

DIRECTOR 2

Name Of Subject	:	CHIN YEOW HON
Address	:	41, JALAN SEAVIEW, SEA VIEW PARK, 438355, SINGAPORE.
IC / PP No	:	S1828522C
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/07/2009

MANAGEMENT

1)	Name of Subject	:	CHIN YEOW HON
	Position	:	MANAGING DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	ANTHONY ANNE CATHARINE
	IC / PP No	:	S1347717E
	Address	:	8, LORONG, 29, GEYLANG, 07-06, 388064, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BANK OF MONTREAL AS ADMINISTRATIVE AGENT

2)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200801778	18/02/2008	N/A	BANK OF MONTREAL AS ADMINISTRATIVE AGENT	-	Unsatisfied
C200801779	18/02/2008	N/A	BANK OF MONTREAL AS ADMINISTRATIVE AGENT	-	Unsatisfied
C201101634	08/02/2011	N/A	BANK OF MONTREAL AS ADMINISTRATIVE AGENT	-	Unsatisfied
C201101635	08/02/2011	N/A	BANK OF MONTREAL AS ADMINISTRATIVE AGENT	-	Unsatisfied
C201309827	18/07/2013	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	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	:	22959
Year	:	2005	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	29/09/2005
Solicitor	:	SHAM S/O JHAMATMAL SABNANI
Solicitor Ref	:	SJS/AP/183690
Solicitor Firm	:	DREW & NAPIER LLC
Plaintiff	:	FCI SINGAPORE PTE LTD
Defendants	:	FUTURE ELECTRONICS INC. (DISTRIBUTION) PTE LTD (199507398) 8 MARINA BOULEVARD, 05-02 MARINA BAY FINANCIAL CENTRE, 018981, SINGAPORE.
Amount Claimed	:	6157
Nature of Claim	:	USD
Remark	:	CONTRACTS-OTHERS

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

OPERATIONS

Goods Traded

:

ELECTRONIC COMPONENTS

Ownership of premises

:

LEASED/RENTED

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	300	300	300	300	340

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of electronic components.

The Subject is doing distribution and marketing of semiconductors and passive, interconnect and electro-mechanical components.

The Subject also offers liquid crystal display solutions and wireless and radio frequency design solutions.

The Subject is a subsidiary of Future Electronics, Inc.

The Subject's products includes
*MPPT Solar Charger with Boost LED Driver - optimally charges the lead-acid battery by a smart tracking algorithm that maximizes energy harvest from solar panels.

*Intelligent Solar system Controller - equipped with Maximum Power Tracking and is specially designed to work with all established module technologies upto 720Wp and it is optimized for solar systems with module voltages higher than the battery voltage.

*Future Lighting Solutions - leading provider of LED lighting components and solution support for lighting designers and OEMs interested in taking advantage of solid state lighting technology.

The Subject's mission is mission to Delight the Customer® by providing an exemplary standard of quality service through superior product marketing, outstanding technical solution support, in-depth inventory, professional selling procedures and the most reliable operational systems in distribution.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68083888
Match	:	N/A
Address Provided by Client	:	11 TAMPINES CONCOURSE #03-01, SINGAPORE 528729
Current Address	:	11, TAMPINES CONCOURSE, 03-01, 528729, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	11.22%	]
Return on Net Assets	:	Acceptable	[	13.25%	]
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	:	Unfavourable	[	69 Days	]
Debtor Ratio	:	Acceptable	[	56 Days	]
Creditors Ratio	:	Favourable	[	20 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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	[	2.11 Times	]
Current Ratio	:	Favourable	[	3.59 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	:	Favourable	[	620.25 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : STRONG

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 sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.
The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.
In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.
For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1995, the Subject is a Private Limited company, focusing on trading of electronic components. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. The Subject is a large entity with strong capital position of SGD 67,359,494. We are confident with the Subject's business and its future growth prospect. 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. The Subject is a fairly large and rapidly growing company with over 300 staff in its 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. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 354,236,223, 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 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.

FUTURE ELECTRONICS INC. (DISTRIBUTION) 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	USD
TURNOVER	1,029,248,708	881,407,938	912,684,929	853,753,469	471,302,126
Other Income	742,719	1,131,764	1,430,121	923,240	526,810
	----------------	----------------	----------------	----------------	----------------
Total Turnover	1,029,991,427	882,539,702	914,115,050	854,676,709	471,828,936
Costs of Goods Sold	(917,092,592)	(783,084,914)	(804,279,446)	(718,542,648)	(413,332,786)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	112,898,835	99,454,788	109,835,604	136,134,061	58,496,150
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	46,947,890	35,602,588	44,583,744	85,082,857	19,419,776
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	46,947,890	35,602,588	44,583,744	85,082,857	19,419,776
Taxation	(7,200,283)	(3,303,090)	(6,736,078)	(11,503,255)	(3,121,182)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	39,747,607	32,299,498	37,847,666	73,579,602	16,298,594
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	273,206,941	276,607,443	238,759,777	165,180,175	148,959,558
	----------------	----------------	----------------	----------------	----------------
As restated	273,206,941	276,607,443	238,759,777	165,180,175	148,959,558
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	312,954,548	308,906,941	276,607,443	238,759,777	165,258,152
TRANSFER TO RESERVES - General	(912,379)	-	-	-	-
DIVIDENDS - Ordinary (paid & proposed)	-	(35,700,000)	-	-	(77,977)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	312,042,169	273,206,941	276,607,443	238,759,777	165,180,175
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	75,814	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
	75,814	-	-	-	-
	=============	-	-	-	-
DEPRECIATION (as per notes to P&L)	2,745,189	2,590,398	2,092,633	1,676,991	1,639,153
	----------------	----------------	----------------	----------------	----------------
	2,745,189	2,590,398	2,092,633	1,676,991	1,639,153
	=============	=============	=============	=============	=============

BALANCE SHEET

FUTURE ELECTRONICS INC. (DISTRIBUTION) PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	11,189,725	11,353,544	13,093,507	11,094,643	10,384,767
Deferred assets	160,013	119,629	214,474	111,292	24,731
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	160,013	119,629	214,474	111,292	24,731
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	11,349,738	11,473,173	13,307,981	11,205,935	10,409,498
Stocks	195,763,303	149,578,272	177,215,701	164,901,471	111,434,192
Trade debtors	157,979,035	128,756,840	114,806,289	109,878,508	72,303,280
Other debtors, deposits & prepayments	15,116,634	11,306,079	11,094,161	7,082,611	6,220,792
Amount due from holding company	-	-	3,925,070	4,233,165	2,694,527
Amount due from related companies	85,513,263	68,650,462	66,585,074	65,014,576	51,508,639
Cash & bank balances	20,535,817	9,140,000	8,986,847	11,515,925	10,165,329
Others	1,642,496	1,898,999	-	1,533,251	817,235
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	476,550,548	369,330,652	382,613,142	364,159,507	255,143,994
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	487,900,286	380,803,825	395,921,123	375,365,442	265,553,492
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	49,223,218	37,581,025	44,509,431	61,227,322	36,306,882
Other creditors & accruals	13,803,819	21,942,978	22,115,406	890,001	558,049
Other liabilities & accruals	-	-	-	20,761,112	18,412,720
Amounts owing to holding company	41,296,629	338,072	-	-	-
Amounts owing to related companies	21,636,074	330,177	2,743,997	246,805	1,200,099
Provision for taxation	6,494,465	4,093,144	7,340,446	10,977,477	2,615,262
Other liabilities	459,034	52,132	273,150	52,394	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	132,913,239	64,337,528	76,982,430	94,155,111	59,093,012
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	343,637,309	304,993,124	305,630,712	270,004,396	196,050,982
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	354,987,047	316,466,297	318,938,693	281,210,331	206,460,480
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	40,995,744	40,995,744	40,995,744	40,995,744	40,995,744
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	40,995,744	40,995,744	40,995,744	40,995,744	40,995,744
Exchange equalisation/fluctuation reserve	-	-	1,468,165	-	-
General reserve	-	-	(222,352)	-	-
Retained profit/(loss) carried forward	312,042,169	273,206,941	276,607,443	238,759,777	165,180,175
Others	1,198,310	1,347,907	(912,379)	331,478	(212,881)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	313,240,479	274,554,848	276,940,877	239,091,255	164,967,294
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	354,236,223	315,550,592	317,936,621	280,086,999	205,963,038
Deferred taxation	750,824	885,067	915,278	983,615	497,442
Others	-	30,638	86,794	139,717	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	750,824	915,705	1,002,072	1,123,332	497,442
	----------------	----------------	----------------	----------------	----------------
	354,987,047	316,466,297	318,938,693	281,210,331	206,460,480
	=============	=============	=============	=============	=============

FINANCIAL RATIO

FUTURE ELECTRONICS INC. (DISTRIBUTION) PTE LTD

TYPES OF FUNDS
Cash	20,535,817	9,140,000	8,986,847	11,515,925	10,165,329
Net Liquid Funds	20,535,817	9,140,000	8,986,847	11,515,925	10,165,329
Net Liquid Assets	147,874,006	155,414,852	128,415,011	105,102,925	84,616,790
Net Current Assets/(Liabilities)	343,637,309	304,993,124	305,630,712	270,004,396	196,050,982
Net Tangible Assets	354,987,047	316,466,297	318,938,693	281,210,331	206,460,480
Net Monetary Assets	147,123,182	154,499,147	127,412,939	103,979,593	84,119,348
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	47,023,704	35,602,588	44,583,744	85,082,857	19,419,776
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	49,768,893	38,192,986	46,676,377	86,759,848	21,058,929
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	0	0
Total Liabilities	133,664,063	65,253,233	77,984,502	95,278,443	59,590,454
Total Assets	487,900,286	380,803,825	395,921,123	375,365,442	265,553,492
Net Assets	354,987,047	316,466,297	318,938,693	281,210,331	206,460,480
Net Assets Backing	354,236,223	315,550,592	317,936,621	280,086,999	205,963,038
Shareholders' Funds	354,236,223	315,550,592	317,936,621	280,086,999	205,963,038
Total Share Capital	40,995,744	40,995,744	40,995,744	40,995,744	40,995,744
Total Reserves	313,240,479	274,554,848	276,940,877	239,091,255	164,967,294
LIQUIDITY (Times)
Cash Ratio	0.15	0.14	0.12	0.12	0.17
Liquid Ratio	2.11	3.42	2.67	2.12	2.43
Current Ratio	3.59	5.74	4.97	3.87	4.32
WORKING CAPITAL CONTROL (Days)
Stock Ratio	69	62	71	70	86
Debtors Ratio	56	53	46	47	56
Creditors Ratio	20	18	20	31	32
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.00	0.00
Liabilities Ratio	0.38	0.21	0.25	0.34	0.29
Times Interest Earned Ratio	620.25	0.00	0.00	0.00	0.00
Assets Backing Ratio	8.66	7.72	7.78	6.86	5.04
PERFORMANCE RATIO (%)
Operating Profit Margin	4.56	4.04	4.88	9.97	4.12
Net Profit Margin	3.86	3.66	4.15	8.62	3.46
Return On Net Assets	13.25	11.25	13.98	30.26	9.41
Return On Capital Employed	13.25	11.25	13.98	30.26	9.41
Return On Shareholders' Funds/Equity	11.22	10.24	11.90	26.27	7.91
Dividend Pay Out Ratio (Times)	0.00	1.11	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.49

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%)

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