MIRA INFORM REPORT

Report No. :	335026
Report Date :	03.08.2015

IDENTIFICATION DETAILS

Name :	SERIAL MICROELECTRONICS PTE LTD
Formerly Known As :	SERIAL SEMICONDUCTOR PTE LTD (07/06/1994)
Registered Office :	8, Ubi View, 05-01, Serial System Building, 408554
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	16.04.1994
Com. Reg. No.:	199402706-W
Legal Form :	Private Limited
Line of Business :	Wholesale of electronic components
No of Employees :	100 [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 :	Slow But Correct
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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. Unemployment is very low. The economy depends heavily on exports, particularly of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199402706-W
COMPANY NAME	:	SERIAL MICROELECTRONICS PTE LTD
FORMER NAME	:	SERIAL SEMICONDUCTOR PTE LTD (07/06/1994)
INCORPORATION DATE	:	16/04/1994
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	8, UBI VIEW, 05-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.
BUSINESS ADDRESS	:	8, UBI VIEW, 04-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.
TEL.NO.	:	65-65102408
FAX.NO.	:	65-65102447
WEB SITE	:	WWW.SERIALSYSTEM.COM
CONTACT PERSON	:	GOH BAK HENG ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF ELECTRONIC COMPONENTS
ISSUED AND PAID UP CAPITAL	:	22,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 22,500,000.00
SALES	:	USD 209,756,620 [2013]
NET WORTH	:	USD 24,331,742 [2013]
STAFF STRENGTH	:	100 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	AVERAGE
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) wholesale of electronic components.

The immediate holding company of the Subject is SERIAL SYSTEM LTD, a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
07/04/2015	SGD 22,500,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
SERIAL SYSTEM LTD	8, UBI VIEW, 05-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.	199202071D	22,500,000.00	100.00
			---------------	------
			22,500,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
198205060D	SINGAPORE	SERIAL TECHNOLOGY PTE. LTD.	100.00	03/04/2015
201416564G	SINGAPORE	SERIAL GIS PTE. LTD.	70.00	03/04/2015
201329934K	SINGAPORE	NIPPON DENKA SERIAL PTE. LTD.	60.00	03/04/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	GOH BAK HENG
Address	:	20D, QUEEN ASTRID PARK, 266848, SINGAPORE.
IC / PP No	:	S1536872A
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/04/1994

DIRECTOR 2

Name Of Subject	:	KIM SANG YEOL
Address	:	101-608, SAMSUNG CHEREVILLE, 199-18, GUUI-DONG, GWANGJIN GU, SEOUL, KOREA.
IC / PP No	:	JR3649269
Nationality	:	KOREAN
Date of Appointment	:	22/05/2006

DIRECTOR 3

Name Of Subject	:	GOH SU TENG
Address	:	143, RIVERVALE DRIVE, 08-549, 540143, SINGAPORE.
IC / PP No	:	S7921488D
Nationality	:	SINGAPOREAN
Date of Appointment	:	23/04/2011

MANAGEMENT

1)	Name of Subject	:	GOH BAK HENG
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	MOORE STEPHENS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	WUI HECK KOON
	IC / PP No	:	S6901668E
	Address	:	543, BEDOK NORTH STREET, 3, 04-1316, 460543, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank against 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 information.

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

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2015	2014	2013
GROUP	N/A	N/A	N/A
COMPANY	100	100	60

Branch

:

NO

Other Information:

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

The Subject belongs to the Serial group of companies.

The Subject focuses on the distribution of semiconductor and electronic components.

The Subject is also committed in providing technical, logistics and service excellence to the electronics manufacturing base by providing local sales and marketing support, value-added and design-in services to their customers and maintain supplier brand focus and market share for their franchise partners.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6565102408
Current Telephone Number	:	65-65102408
Match	:	YES
Address Provided by Client	:	8 UBL VIEW, #04-01 SERIAL SYSTEM BUILDING SINGAPORE 408554
Current Address	:	8, UBI VIEW, 04-01, SERIAL SYSTEM BUILDING, 408554, SINGAPORE.
Match	:	NO

Other Investigations

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

The address is as per stated in the report.

The Subject refused to disclose its bankers.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	15.65%	]
Return on Net Assets	:	Acceptable	[	21.69%	]
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	[	23 Days	]
Debtor Ratio	:	Favourable	[	55 Days	]
Creditors Ratio	:	Favourable	[	39 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.80 Times	]
Current Ratio	:	Unfavourable	[	1.01 Times	]
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Acceptable	[	5.28 Times	]
Gearing Ratio	:	Unfavourable	[	1.59 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. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

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

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 1994, the Subject is a Private Limited company, focusing on wholesale of electronic components. 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. With an issued and paid up capital of SGD 22,500,000 and strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players.

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 moderate size company, the Subject has a total workforce of 100 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. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 24,331,742, the Subject should be able to maintain its business in the near terms.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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.

SERIAL MICROELECTRONICS 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	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	SUMMARY	SUMMARY
Currency	USD	USD	SGD	SGD	SGD
TURNOVER	209,756,620	162,043,310	163,910,312	180,623,486	156,447,509
	----------------	----------------	----------------	----------------	----------------
Total Turnover	209,756,620	162,043,310	163,910,312	180,623,486	156,447,509
Costs of Goods Sold	(192,066,264)	(147,084,748)	(148,112,086)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	17,690,356	14,958,562	15,798,226	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	4,277,039	2,163,846	5,462,297	9,489,362	3,016,614
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	4,277,039	2,163,846	5,462,297	9,489,362	3,016,614
Taxation	(470,142)	81,600	156,087	(749,736)	(10)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	3,806,897	2,245,446	5,618,384	8,739,626	3,016,604
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	4,753,977	3,308,403	(905,350)	(14,644,976)	(17,661,580)
	----------------	----------------	----------------	----------------	----------------
As restated	4,753,977	3,308,403	(905,350)	(14,644,976)	(17,661,580)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	8,560,874	5,553,849	4,713,034	(5,905,350)	(14,644,976)
TRANSFER TO RESERVES - General	-	-	-	5,000,000	-
DIVIDENDS - Ordinary (paid & proposed)	(705,346)	(799,872)	(3,075,146)	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	7,855,528	4,753,977	1,637,888	(905,350)	(14,644,976)
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from holding company	136,192	117,045	28,298	-	-
Term loan / Borrowing	863,902	763,275	837,136	-	-
	----------------	----------------	----------------	----------------	----------------
	1,000,094	880,320	865,434	-	-
	=============	=============	=============	-	-
DEPRECIATION (as per notes to P&L)	168,633	164,776	167,244	-	-
AMORTIZATION	-	-	58,068	-	-
	----------------	----------------	----------------	----------------	----------------
	168,633	164,776	225,312	-	-
	=============	=============	=============

BALANCE SHEET

SERIAL MICROELECTRONICS PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	183,049	297,604	414,780	25,945,313	21,352,959
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	20,699,253	18,855,125	24,653,103	-	-
Loans & advances - non-current	2,665,600	2,947,955	-	-	-
Others	299,928	299,928	366,722	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	23,664,781	22,103,008	25,019,825	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	23,847,830	22,400,612	25,434,605	25,945,313	21,352,959
Stocks	13,340,719	13,565,698	14,475,654	-	-
Trade debtors	31,555,855	32,980,656	34,688,183	-	-
Other debtors, deposits & prepayments	99,778	306,155	765,165	-	-
Short term deposits	209,040	-	-	-	-
Amount due from subsidiary companies	5,955,328	1,407,079	1,138,471	-	-
Amount due from related companies	1,003,446	13,469	45,686	-	-
Cash & bank balances	12,335,268	9,599,374	3,076,686	-	-
Others	-	-	184,800	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	64,499,434	57,872,431	54,374,645	42,119,911	41,811,578
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	88,347,264	80,273,043	79,809,250	68,065,224	63,164,537
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	20,352,846	18,666,044	17,726,307	-	-
Other creditors & accruals	2,355,122	2,990,896	2,007,498	-	-
Short term borrowings/Term loans	8,005,710	3,189,662	4,600,000	-	-
Other borrowings	26,691,399	21,016,011	17,845,241	-	-
Bill & acceptances payable	3,943,876	4,949,665	5,395,092	-	-
Other liabilities & accruals	410,056	-	-	-	-
Amounts owing to holding company	1,593,195	1,375,453	1,787,127	-	-
Amounts owing to subsidiary companies	97,125	3,222,057	2,251,222	-	-
Amounts owing to related companies	99,659	260,736	129,419	-	-
Provision for taxation	466,534	55,947	368,232	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	64,015,522	55,726,471	52,110,138	45,674,148	34,676,005
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	483,912	2,145,960	2,264,507	(3,554,237)	7,135,573
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	24,331,742	24,546,572	27,699,112	22,391,076	28,488,532
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	15,615,564	15,615,564	22,500,000	22,500,000	22,500,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	15,615,564	15,615,564	22,500,000	22,500,000	22,500,000
Exchange equalisation/fluctuation reserve	860,650	860,650	-	-	-
Retained profit/(loss) carried forward	7,855,528	4,753,977	1,637,888	(905,350)	(14,644,976)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	8,716,178	5,614,627	1,637,888	(905,350)	(14,644,976)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	24,331,742	21,230,191	24,137,888	21,594,650	7,855,024
Other long term borrowings	-	3,316,381	3,561,224	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	3,316,381	3,561,224	796,426	20,633,508
	----------------	----------------	----------------	----------------	----------------
	24,331,742	24,546,572	27,699,112	22,391,076	28,488,532
	=============	=============	=============	=============	=============

FINANCIAL RATIO

SERIAL MICROELECTRONICS PTE LTD

TYPES OF FUNDS
Cash	12,544,308	9,599,374	3,076,686	-	-
Net Liquid Funds	8,600,432	4,649,709	(2,318,406)	-	-
Net Liquid Assets	(12,856,807)	(11,419,738)	(12,211,147)	(3,554,237)	7,135,573
Net Current Assets/(Liabilities)	483,912	2,145,960	2,264,507	(3,554,237)	7,135,573
Net Tangible Assets	24,331,742	24,546,572	27,699,112	22,391,076	28,488,532
Net Monetary Assets	(12,856,807)	(14,736,119)	(15,772,371)	(4,350,663)	(13,497,935)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	5,277,133	3,044,166	6,327,731	-	-
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	5,445,766	3,208,942	6,553,043	-	-
BALANCE SHEET ITEMS
Total Borrowings	38,640,985	32,471,719	31,401,557	-	-
Total Liabilities	64,015,522	59,042,852	55,671,362	46,470,574	55,309,513
Total Assets	88,347,264	80,273,043	79,809,250	68,065,224	63,164,537
Net Assets	24,331,742	24,546,572	27,699,112	22,391,076	28,488,532
Net Assets Backing	24,331,742	21,230,191	24,137,888	21,594,650	7,855,024
Shareholders' Funds	24,331,742	21,230,191	24,137,888	21,594,650	7,855,024
Total Share Capital	15,615,564	15,615,564	22,500,000	22,500,000	22,500,000
Total Reserves	8,716,178	5,614,627	1,637,888	(905,350)	(14,644,976)
LIQUIDITY (Times)
Cash Ratio	0.20	0.17	0.06	-	-
Liquid Ratio	0.80	0.80	0.77	-	-
Current Ratio	1.01	1.04	1.04	0.92	1.21
WORKING CAPITAL CONTROL (Days)
Stock Ratio	23	31	32	-	-
Debtors Ratio	55	74	77	-	-
Creditors Ratio	39	46	44	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	1.59	1.53	1.30	-	-
Liabilities Ratio	2.63	2.78	2.31	2.15	7.04
Times Interest Earned Ratio	5.28	3.46	7.31	-	-
Assets Backing Ratio	1.56	1.57	1.23	1.00	1.27
PERFORMANCE RATIO (%)
Operating Profit Margin	2.04	1.34	3.33	5.25	1.93
Net Profit Margin	1.81	1.39	3.43	4.84	1.93
Return On Net Assets	21.69	12.40	22.84	42.38	10.59
Return On Capital Employed	21.69	12.40	22.84	42.38	10.59
Return On Shareholders' Funds/Equity	15.65	10.58	23.28	40.47	38.40
Dividend Pay Out Ratio (Times)	0.19	0.36	0.55	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 64.01
UK Pound	1	Rs. 99.84
Euro	1	Rs. 70.16

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ASH

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.