MIRA INFORM REPORT

Report No. :	353404
Report Date :	05.12.2015

IDENTIFICATION DETAILS

Name :	KOTHARI PRODUCTS SINGAPORE PRIVATE LIMITED
Registered Office :	101, Cecil Street, 11-01, Tong Eng Building, 069533
Country :	Singapore
Financials (as on) :	31.03.2015
Date of Incorporation :	21.05.2008
Com. Reg. No.:	200809977-K
Legal Form :	Private Limited
Line of Business :	Subject is engaged in trading of metal, steel, commodity products.
No. of Employee :	6

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	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 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.

:

200809977-K

COMPANY NAME

:

KOTHARI PRODUCTS SINGAPORE PRIVATE LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/05/2008

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

101, CECIL STREET, 11-01, TONG ENG BUILDING, 069533, SINGAPORE.

BUSINESS ADDRESS

:

101, CECIL STREET, 11-01, TONG ENG BUILDING, 069533, SINGAPORE.

TEL.NO.

:

65-62232216

FAX.NO.

:

65-62239921

CONTACT PERSON

:

SENTHILNATHAN VISWANATHAN ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF METAL, STEEL, COMMODITY PRODUCTS

ISSUED AND PAID UP CAPITAL

:

10,000,020.00 ORDINARY SHARE, OF A VALUE OF SGD 10,000,020.00 

SALES

:

USD 150,194,360 [2015]

NET WORTH

:

USD 15,393,901 [2015]

STAFF STRENGTH

:

6 [2015]

BANKER (S)

:

BANK OF INDIA CITIBANK N.A. DBS BANK LTD HABIB BANK LIMITED INDIAN BANK INDIAN OVERSEAS BANK CITIBANK BHD UNITED OVERSEAS BANK LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

SLOW BUT CORRECT

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 metal, steel, commodity products.

Share Capital History

Date	Issue & Paid Up Capital
23/11/2015	SGD 10,000,020.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
SOMESH GANERIWAL +	5, SIMEI STREET 3, 10-03, EASTPOINT GREEN, 529892, SINGAPORE.	S2769756I	20.00	0.00
KOTHARI PRODUCTS LIMITED	24/19, PAN PARAG HOUSE THE MALL, KANPURE-208001	T08UF2112	10,000,000.00	100.00
			---------------	------
			10,000,020.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
201132797G	SINGAPORE	PINEHILLS (SINGAPORE) PTE. LTD.	-	100.00	23/11/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	DEEPAK MANSUKHLAL KOTHARI
Address	:	SUKH DHAM 7/25, TILAK NAGAR, KANPUR NAGAR, PIN 208002, UTTAR PRADESH, INDIA.
IC / PP No	:	Z2450874
Nationality	:	INDIAN
Date of Appointment	:	21/05/2008

DIRECTOR 2

Name Of Subject	:	MR. SENTHILNATHAN VISWANATHAN
Address	:	101, CECIL STREET, 20-11, TONG ENG BUILDING, 069533, SINGAPORE.
IC / PP No	:	S2687325H
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/08/2011

DIRECTOR 3

Name Of Subject	:	SOMESH GANERIWAL
Address	:	5, SIMEI STREET 3, 10-03, EASTPOINT GREEN, 529892, SINGAPORE.
IC / PP No	:	S2769756I
Nationality	:	SINGAPOREAN
Date of Appointment	:	23/09/2010

MANAGEMENT

1)	Name of Subject	:	SENTHILNATHAN VISWANATHAN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	T RAVI & CO.
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	SOMESH GANERIWAL
	IC / PP No	:	S2769756I
	Address	:	5, SIMEI STREET 3, 10-03, EASTPOINT GREEN, 529892, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BANK OF INDIA

2)

Name

:

CITIBANK N.A.

3)

Name

:

DBS BANK LTD

4)

Name

:

HABIB BANK LIMITED

5)

Name

:

INDIAN BANK

6)

Name

:

INDIAN OVERSEAS BANK

7)

Name

:

CITIBANK BHD

8)

Name

:

UNITED OVERSEAS BANK LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200807142	01/08/2008	N/A	BANK OF INDIA	-	Unsatisfied
C201110638	25/08/2011	N/A	INDIAN OVERSEAS BANK	-	Unsatisfied
C201110639	25/08/2011	N/A	INDIAN OVERSEAS BANK	-	Unsatisfied
C201204804	03/05/2012	N/A	INDIAN BANK	-	Unsatisfied
C201205380	17/05/2012	N/A	CITIBANK BHD	-	Unsatisfied
C201205384	17/05/2012	N/A	CITIBANK BHD	-	Unsatisfied
C201206097	05/06/2012	N/A	DBS BANK LTD.	-	Unsatisfied
C201206098	05/06/2012	N/A	DBS BANK LTD.	-	Unsatisfied
C201208148	20/07/2012	N/A	HABIB BANK LIMITED	-	Unsatisfied
C201208154	20/07/2012	N/A	HABIB BANK LIMITED	-	Unsatisfied
C201209625	24/08/2012	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied
C201209627	24/08/2012	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied

LITIGATION 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	:	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	[	]	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

OPERATIONS

Goods Traded

:

METAL, STEEL, COMMODITY PRODUCTS

Total Number of Employees:
YEAR	2015	2012	2011	2010
GROUP	N/A	N/A	N/A	N/A
COMPANY	6	3	3	2

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of metal, steel, commodity products. 

The Subject sells commodity products such as steel, metal, scraps and others. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6562232216
Current Telephone Number	:	65-62232216
Match	:	YES
Address Provided by Client	:	101 CECIL STREET, 11-01 TONG ENG BUILDING,069533,SINGAPORE
Current Address	:	101, CECIL STREET, 11-01, TONG ENG BUILDING, 069533, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2011 - 2015	]
Profit/(Loss) Before Tax	:	Increased	[	2011 - 2015	]
Return on Shareholder Funds	:	Unfavourable	[	9.70%	]
Return on Net Assets	:	Acceptable	[	18.36%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Unfavourable	[	91 Days	]
Creditors Ratio	:	Favourable	[	8 Days	]
As the Subject is a service oriented company, the Subject does not need to keep 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	[	1.52 Times	]
Current Ratio	:	Unfavourable	[	1.52 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	2.76 Times	]
Gearing Ratio	:	Unfavourable	[	1.65 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2010	2011	2012	2013	2014
Population (Million)	5.08	5.18	5.31	5.40	5.47
Gross Domestic Products ( % )	14.5	4.9	1.3	3.7	(3.5)
Consumer Price Index	2.8	5.2	4.6	2.4	2.4
Total Imports (Million)	423,221.8	459,655.1	474,554.0	466,762.0	463,779.1
Total Exports (Million)	478,840.7	514,741.2	510,329.0	513,391.0	518,922.7
Unemployment Rate (%)	2.2	2.1	2.0	1.9	1.9
Tourist Arrival (Million)	11.64	13.17	14.49	15.46	15.01
Hotel Occupancy Rate (%)	85.6	86.5	86.4	86.3	85.5
Cellular Phone Subscriber (Million)	1.43	1.50	1.52	1.97	1.98
Registration of New Companies (No.)	29,798	32,317	31,892	37,288	41,589
Registration of New Companies (%)	12.8	8.5	(1.3)	9.8	11.5
Liquidation of Companies (No.)	15,126	19,005	17,218	17,369	18,767
Liquidation of Companies (%)	(32.5)	25.6	9.4	(5.3)	8.0
Registration of New Businesses (No.)	23,978	23,494	24,788	22,893	35,773
Registration of New Businesses (%)	(10.78)	2.02	5.51	1.70	56.30
Liquidation of Businesses (No.)	24,211	23,005	22,489	22,598	22,098
Liquidation of Businesses (%)	2.8	(5)	(2.2)	0.5	(2.2)
Bankruptcy Orders (No.)	1,537	1,527	1,748	1,992	1,757
Bankruptcy Orders (%)	(25.3)	(0.7)	14.5	14.0	(11.8)
Bankruptcy Discharges (No.)	2,252	1,391	1,881	2,584	3,546
Bankruptcy Discharges (%)	(26.3)	(38.2)	35.2	37.4	37.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(10.5)	12.10	(0.5)	-	2.80
Manufacturing *	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	96.4	100.0	103.5	103.5	105.0
Textiles	122.1	100.0	104.0	87.1	74.9
Wearing Apparel	123.3	100.0	92.1	77.8	49.5
Leather Products & Footwear	81.8	100.0	98.6	109.8	95.9
Wood & Wood Products	104.0	100.0	95.5	107.4	112.0
Paper & Paper Products	106.1	100.0	97.4	103.2	103.4
Printing & Media	103.5	100.0	93.0	86.1	80.3
Crude Oil Refineries	95.6	100.0	99.4	93.5	85.6
Chemical & Chemical Products	97.6	100.0	100.5	104.1	114.0
Pharmaceutical Products	75.3	100.0	109.7	107.2	115.7
Rubber & Plastic Products	112.3	100.0	96.5	92.9	92.8
Non-metallic Mineral	92.5	100.0	98.2	97.6	82.2
Basic Metals	102.2	100.0	90.6	76.5	98.3
Fabricated Metal Products	103.6	100.0	104.3	105.1	105.1
Machinery & Equipment	78.5	100.0	112.9	114.5	124.0
Electrical Machinery	124.1	100.0	99.3	108.5	121.3
Electronic Components	113.6	100.0	90.6	94.3	95.0
Transport Equipment	94.0	100.0	106.3	107.5	103.2
Construction	14.20	20.50	28.70	-	22.00
Real Estate	21.3	25.4	31.9	-	145.1
Services
Electricity, Gas & Water	4.00	7.00	6.30	-
Transport, Storage & Communication	12.80	7.40	5.30	-	14.20
Finance & Insurance	(0.4)	8.90	0.50	-	6.00
Government Services	9.70	6.90	6.00	-
Education Services	(0.9)	(1.4)	0.30	-	5.98
* 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 2008, the Subject is a Private Limited company, focusing on trading of metal, steel, commodity products. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. A paid up capital of SGD 10,000,020 allows the Subject to expand its business more comfortably. With a strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise. 

Investigation revealed, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a small company, the Subject's business operation is supported by 6 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at USD 15,393,901, the Subject should be able to maintain its business in the near terms. 

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.

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.

KOTHARI PRODUCTS SINGAPORE PRIVATE LIMITED

Financial Year End	2015-03-31	2014-03-31	2013-03-31	2012-03-31	2011-03-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	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	FULL
Currency	USD	USD	USD	SGD	USD
TURNOVER	150,194,360	108,886,002	105,116,076	88,026,032	52,773,269
Other Income	74,760	60,070	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	150,269,120	108,946,072	105,116,076	88,026,032	52,773,269
Costs of Goods Sold	(146,828,389)	(106,092,450)	(99,814,750)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	3,440,731	2,853,622	5,301,326	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,802,794	1,383,473	3,711,692	1,427,367	1,005,971
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,802,794	1,383,473	3,711,692	1,427,367	1,005,971
Taxation	(309,621)	(88,514)	(537,528)	(292,324)	(151,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,493,173	1,294,959	3,174,164	1,135,044	854,971
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	6,387,610	5,092,651	1,918,487	1,138,609	148,601
	----------------	----------------	----------------	----------------	----------------
As restated	6,387,610	5,092,651	1,918,487	1,138,609	148,601
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	7,880,783	6,387,610	5,092,651	2,273,653	1,003,572
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	7,880,783	6,387,610	5,092,651	2,273,653	1,003,572
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	1,024,206	780,840	844,870	-	-
	----------------	----------------	----------------	----------------	----------------
	1,024,206	780,840	844,870	-	-
	=============	=============	=============	-	-
DEPRECIATION (as per notes to P&L)	18,668	16,882	8,863	-	7,682
	----------------	----------------	----------------	----------------	----------------
	18,668	16,882	8,863	-	7,682
	=============	=============	=============	=============	=============

BALANCE SHEET

KOTHARI PRODUCTS SINGAPORE PRIVATE LIMITED

ASSETS EMPLOYED:
FIXED ASSETS	36,827	52,066	11,031	23,176,083	17,558
Investment properties	170,274	186,269	92,014	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	170,274	186,269	92,014	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	207,101	238,335	103,045	23,176,083	17,558
Trade debtors	37,642,839	41,970,824	31,718,212	-	9,015,196
Other debtors, deposits & prepayments	87,095	449,702	673,295	-	6,088
Short term deposits	6,096,946	5,826,591	5,355,330	-	1,117,784
Cash & bank balances	338,572	402,070	130,169	-	1,320,408
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	44,165,452	48,649,187	37,877,006	36,646,983	11,459,476
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	44,372,553	48,887,522	37,980,051	59,823,066	11,477,034
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	3,064,742	12,660,215	8,981,028	-	3,825,107
Other creditors & accruals	254,476	105,464	40,495	-	66,397
Short term borrowings/Term loans	-	-	-	-	2,647,212
Other borrowings	17,703,986	13,177,812	8,339,858	-	-
Bill & acceptances payable	7,684,556	8,834,598	7,428,645	-	-
Provision for taxation	270,892	191,567	571,767	-	151,501
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	28,978,652	34,969,656	25,361,793	47,549,393	6,690,217
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	15,186,800	13,679,531	12,515,213	(10,902,410)	4,769,259
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	7,614,662	7,614,662	7,614,662	10,000,020	3,783,245
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	7,614,662	7,614,662	7,614,662	10,000,020	3,783,245
Exchange equalisation/fluctuation reserve	(101,544)	(84,406)	(89,055)	-	-
Retained profit/(loss) carried forward	7,880,783	6,387,610	5,092,651	2,273,653	1,003,572
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	7,779,239	6,303,204	5,003,596	2,273,653	1,003,572
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
	----------------	----------------	----------------	----------------	----------------
	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
	=============	=============	=============	=============	=============

FINANCIAL RATIO

KOTHARI PRODUCTS SINGAPORE PRIVATE LIMITED

TYPES OF FUNDS
Cash	6,435,518	6,228,661	5,485,499	-	2,438,192
Net Liquid Funds	(1,249,038)	(2,605,937)	(1,943,146)	-	2,438,192
Net Liquid Assets	15,186,800	13,679,531	12,515,213	(10,902,410)	4,769,259
Net Current Assets/(Liabilities)	15,186,800	13,679,531	12,515,213	(10,902,410)	4,769,259
Net Tangible Assets	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
Net Monetary Assets	15,186,800	13,679,531	12,515,213	(10,902,410)	4,769,259
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	2,827,000	2,164,313	4,556,562	-	1,005,971
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	2,845,668	2,181,195	4,565,425	-	1,013,653
BALANCE SHEET ITEMS
Total Borrowings	25,388,542	22,012,410	15,768,503	-	2,647,212
Total Liabilities	28,978,652	34,969,656	25,361,793	47,549,393	6,690,217
Total Assets	44,372,553	48,887,522	37,980,051	59,823,066	11,477,034
Net Assets	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
Net Assets Backing	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
Shareholders' Funds	15,393,901	13,917,866	12,618,258	12,273,673	4,786,817
Total Share Capital	7,614,662	7,614,662	7,614,662	10,000,020	3,783,245
Total Reserves	7,779,239	6,303,204	5,003,596	2,273,653	1,003,572
LIQUIDITY (Times)
Cash Ratio	0.22	0.18	0.22	-	0.36
Liquid Ratio	1.52	1.39	1.49	-	1.71
Current Ratio	1.52	1.39	1.49	0.77	1.71
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	0	-	0
Debtors Ratio	91	141	110	-	62
Creditors Ratio	8	44	33	-	26
SOLVENCY RATIOS (Times)
Gearing Ratio	1.65	1.58	1.25	-	0.55
Liabilities Ratio	1.88	2.51	2.01	3.87	1.40
Times Interest Earned Ratio	2.76	2.77	5.39	-	0
Assets Backing Ratio	2.02	1.83	1.66	1.23	1.27
PERFORMANCE RATIO (%)
Operating Profit Margin	1.20	1.27	3.53	1.62	1.91
Net Profit Margin	0.99	1.19	3.02	1.29	1.62
Return On Net Assets	18.36	15.55	36.11	11.63	21.02
Return On Capital Employed	18.36	15.55	36.11	11.63	21.02
Return On Shareholders' Funds/Equity	9.70	9.30	25.16	9.25	17.86
Dividend Pay Out Ratio (Times)	0	0	0	-	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	-	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.84
UK Pound	1	Rs.101.04
Euro	1	Rs.73.05
SGD	1	Rs.47.68

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	HEE
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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