MIRA INFORM REPORT

Report No. :	356543
Report Date :	29.12.2015

IDENTIFICATION DETAILS

Name :	KAWARIN ENTERPRISE PTE LTD.
Registered Office :	144, Gul Circle, 629603
Country :	Singapore
Financials (as on) :	31.12.2014
Date of Incorporation :	21.04.1975
Com. Reg. No.:	197500631-G
Legal Form :	Private Limited
Line of Business :	Manufacture of ferrous and non- ferrous slit coils
No. of Employee :	108 [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 :	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

Company name

KAWARIN ENTERPRISE PTE LTD.

EXECUTIVE SUMMARY

REGISTRATION NO.	:	197500631-G
COMPANY NAME	:	KAWARIN ENTERPRISE PTE LTD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	21/04/1975
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	144, GUL CIRCLE, 629603, SINGAPORE.
BUSINESS ADDRESS	:	144, GUL CIRCLE JURONG, 629603, SINGAPORE.
TEL.NO.	:	65-68615508
FAX.NO.	:	65-68613141
WEB SITE	:	WWW.KAWARIN.COM.SG
CONTACT PERSON	:	LIN LI HAO ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURE OF FERROUS AND NON- FERROUS SLIT COILS
ISSUED AND PAID UP CAPITAL	:	100,000.00 ORDINARY SHARE, OF A VALUE OF SGD 10,000,000.00
SALES	:	USD 80,270,123 [2014]
NET WORTH	:	USD 21,294,047 [2014]
STAFF STRENGTH	:	108 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	NO COMPLAINTS
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	HIGH
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MATURE

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) manufacture of ferrous and non- ferrous slit coils.

The immediate and ultimate holding company of the Subject is JACKRIN INVESTMENTS PTE LTD, a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
18/12/2015	SGD 10,000,000.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
JACKRIN INVESTMENTS PTE LTD	144, GUL CIRCLE 629603 ,SINGAPORE	198202451K	51,000.00	51.00
JFE SHOJI TRADE CORPORATION	2-7-, OTEMACHI, CYIYODA-KU, TOKYO 100-807 ,JAPAN	T03UF1501	45,812.00	45.81
JFE ELECTRICAL STEEL CO.,LTD	6-20, DOJIMA 1-CHOME, KITA-KU, OSAKA 530-0003 ,JAPAN	T05UF0321	3,188.00	3.19
			---------------	------
			100,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	JUNJI YAMADA
Address	:	MARINE CITY E-302, 391, SHIBA-CHO, KANAZAWA-KU, YOKOHAMA, JAPAN.
IC / PP No	:	TZ0685760
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2015

DIRECTOR 2

Name Of Subject	:	LIN SHEN -SHAN
Address	:	166, WATTEN ESTATE ROAD, WATTEN ESTATE, 287613, SINGAPORE.
IC / PP No	:	S2223383A
Nationality	:	SINGAPOREAN
Date of Appointment	:	12/10/1984

DIRECTOR 3

Name Of Subject	:	LIN LI HAO
Address	:	17B, HILLCREST ROAD, HILLCREST VILLA, 286772, SINGAPORE.
IC / PP No	:	S7370094I
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/06/2004

DIRECTOR 4

Name Of Subject	:	SHIINA HIROYUKI
Address	:	3-14, ARIAKE I-CHOME, KOTO-KU, TOKYO, 135-0063, JAPAN.
IC / PP No	:	MS9383614
Nationality	:	JAPANESE
Date of Appointment	:	01/07/2013

DIRECTOR 5

Name Of Subject	:	MDM. RIN CHEN SU TSEN
Address	:	109, GALLOP PARK ROAD, GALLOP VILLAS, 259002, SINGAPORE.
IC / PP No	:	S2165267I
Nationality	:	SINGAPOREAN
Date of Appointment	:	14/07/1975

MANAGEMENT

1)	Name of Subject	:	LIN LI HAO
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	BAKER TILLY TFW LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	ROBIN LIM BOON CHENG
	IC / PP No	:	S1249098D
	Address	:	121, BUKIT BATOK CENTRAL, 16-439, 650121, 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 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	Percentage	:	60%
Overseas	:	YES	Percentage	:	40%
Import Countries	:	TAIWAN,JAPAN,CHINA

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

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

CLIENTELE

Local	:	YES	Percentage	:	30%
Domestic Markets	:	SINGAPORE
Overseas	:	YES	Percentage	:	70%
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

FERROUS AND NON- FERROUS SLIT COILS

Award

:

1 ) ISO 9001: 2000 Year :0
2 ) ISO 14000 Year :0

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2015	2014	2013	2011
GROUP	N/A	N/A	N/A	N/A
COMPANY	108	108	108	110

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture of ferrous and non- ferrous slit coils. 

The Subject is slitting and shearing of prime steel silicon and non-silicon flat rolled products ( coils and sheets ) steel company.

The Subject's products includes silicon steel, tin plate,electro galvanized, galvanized iron,cold rolled and stainless steel.

The Subject is also providing metal slitting and shearing services.

The Subject focuses in managing its operation to protect the health and safety of employees, customers, contractors, the public and the environment, and reduce use of energy and improve resource in our manufacturing facilities.

The Subject's silicon steel has uniform magnetic and mechanical properties produce by advance technology and equipment. It is smooth and has extreme dimensional accuracy which are suitable for high-speed continuous punching and automatic stacking such as motor core. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68615508
Match	:	N/A
Address Provided by Client	:	144 GUL CIRCLE JURONG,629603,SINGAPORE
Current Address	:	144, GUL CIRCLE JURONG, 629603, SINGAPORE.
Match	:	YES

Other Investigations

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

The Subject refused to disclose its bankers.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Unfavourable	[	5.63%	]
Return on Net Assets	:	Unfavourable	[	6.55%	]
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 unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Acceptable	[	61 Days	]
Debtor Ratio	:	Unfavourable	[	88 Days	]
Creditors Ratio	:	Favourable	[	29 Days	]
The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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	[	1.20 Times	]
Current Ratio	:	Unfavourable	[	1.94 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	[	7.16 Times	]
Gearing Ratio	:	Favourable	[	0.52 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 lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies 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. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the Subject : LIMITED

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 :	MANUFACTURING
In the third quarter of 2014, manufacturing output has increased by 1.9%, extending the 1.5% growth in the previous quarter. Growth was largely driven by the biomedical manufacturing and chemicals clusters. Besides, for the whole 2013, the manufacturing sector grew by 1.7%, an uptick from the 0.3% growth recorded in the previous year. All clusters recorded an expansion in 2013, except the biomedical manufacturing cluster.
The chemicals cluster grew by 5.2% in the third quarter of 2014. Growth was led by the petrochemicals and specialty chemicals segments, which expanded by 8.9% and 7.1% respectively. By contrast, the petroleum segment contracted by 4.2% in the third quarter of 2014 due to plant maintenance shutdowns. For the year of 2013, the chemicals cluster grew only by 0.7%.
Besides, output of the biomedical manufacturing cluster expanded by 9.0% in the third quarter of 2014. The medical technology segment posted robust growth of 23% due to higher production of medical instruments and supplies, while the output of the pharmaceuticals segment rose by 6.2%. However, in the whole of 2013, the biomedical manufacturing cluster recorded only a flat growth.
In the third quarter of 2014, the transport engineering cluster contracted by 2.0%, dragged down by the aerospace segment. Output in the aerospace segment plunged by 18% on the back of fewer repair jobs from commercial airlines. This was mitigated by the 4.1% growth in the marine & offshore engineering segment, which was supported by higher contributions from rig building projects. Nonetheless, for the whole of 2013, the transport engineering cluster grew by 5.2%.
Moreover, output of the precision engineering cluster increased by 1.3% in the third quarter of 2014. The machinery & systems segment grew by 6.2%, supported by higher demand for semiconductor-related equipment and mechanical engineering work. This was partly offset by the decline in the output of the precision modules & components segment. Conversely, in the full year of 2013, the precision engineering cluster's output declined by 5.6%.
Furthermore, in the third quarter of 2014, output of the general manufacturing industries declined by 3.0%. The 2.1% growth in the food, beverages & tobacco segment was more than offset by declines in the other two segments. In particular, the miscellaneous industries segment contracted by 4.7% on the back of lower output in construction-related products, such as concrete & cement products and steel structural components. For the full year of 2013, the general manufacturing cluster grew by 2.8%.
Besides, in the third quarter of 2014, the electronics cluster expanded by 0.9%, reversing the 5.0% contraction in the previous quarter. Growth was supported by an expansion in the computer peripherals (6.3%) and data storage (2.6%) segments. Moreover, for the year 2013, the electronics cluster expanded by 3.5%.
OVERALL INDUSTRY OUTLOOK : MATURE

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1975, the Subject is a Private Limited company, focusing on manufacture of ferrous and non- ferrous slit coils. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of SGD 10,000,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 

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 a fairly large and rapidly growing company with over 108 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to 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. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at USD 21,294,047, 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. 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market. 

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.

KAWARIN ENTERPRISE PTE LTD.

Financial Year End	2014-12-31	2013-12-31	2012-12-31	2011-12-31	2010-12-31
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	FULL	FULL
Currency	USD	USD	USD	USD	SGD
TURNOVER	80,270,123	77,500,353	82,834,313	85,520,145	119,785,466
Other Income	547,356	408,901	-	213,478	296,839
	----------------	----------------	----------------	----------------	----------------
Total Turnover	80,817,479	77,909,254	82,834,313	85,733,623	120,082,305
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,199,205	348,558	(1,839,832)	640,191	3,425,197
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,199,205	348,558	(1,839,832)	640,191	3,425,197
Taxation	-	-	244,207	(192,074)	(265,982)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,199,205	348,558	(1,595,625)	448,117	3,159,215
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	13,582,415	13,233,857	14,829,482	15,150,951	18,727,932
	----------------	----------------	----------------	----------------	----------------
As restated	13,582,415	13,233,857	14,829,482	15,150,951	18,727,932
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	14,781,620	13,582,415	13,233,857	15,599,068	21,887,147
DIVIDENDS - Ordinary (paid & proposed)	(1,183,433)	-	-	(769,586)	(2,200,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	13,598,187	13,582,415	13,233,857	14,829,482	19,687,147
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	181	288	80	87	152
Hire purchase	-	-	-	-	2,808
Lease interest	-	-	345	2,161	-
Term loan / Borrowing	57,402	63,647	74,452	70,965	82,996
Others	137,188	140,495	186,201	143,608	195,294
	----------------	----------------	----------------	----------------	----------------
	194,771	204,430	261,078	216,821	281,250
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	697,835	929,754	980,939	946,168	1,229,450
	----------------	----------------	----------------	----------------	----------------
	697,835	929,754	980,939	946,168	1,229,450
	=============	=============	=============	=============	=============

BALANCE SHEET

KAWARIN ENTERPRISE PTE LTD.

ASSETS EMPLOYED:
FIXED ASSETS	1,886,496	2,117,233	1,770,700	2,362,633	3,247,393
Others	2,687,882	2,687,882	2,044,982	2,044,982	2,657,250
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	2,687,882	2,687,882	2,044,982	2,044,982	2,657,250
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	4,574,378	4,805,115	3,815,682	4,407,615	5,904,643
Stocks	13,183,189	11,521,643	18,701,297	18,631,686	26,442,282
Contract work-in-progress	308,595	459,560	499,842	-	-
Trade debtors	19,285,051	17,046,969	16,974,247	16,644,242	17,235,257
Other debtors, deposits & prepayments	504,587	391,603	1,403,676	326,158	732,591
Short term deposits	-	-	-	-	551,307
Cash & bank balances	1,159,267	1,028,054	479,678	325,930	1,609,407
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	34,440,689	30,447,829	38,058,740	35,928,016	46,570,844
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	39,015,067	35,252,944	41,874,422	40,335,631	52,475,487
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	6,272,604	4,676,606	8,841,356	4,415,005	7,528,484
Other creditors & accruals	367,339	531,932	280,530	813,004	1,341,320
Hire purchase & lease creditors	-	-	-	4,270	-
Short term borrowings/Term loans	11,078,686	8,763,343	11,819,127	12,159,818	13,282,775
Other liabilities & accruals	-	-	-	-	38,884
Interest payable	2,391	2,788	3,692	14,366	-
Provision for taxation	-	-	-	188,342	316,877
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	17,721,020	13,974,669	20,944,705	17,594,805	22,508,340
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	16,719,669	16,473,160	17,114,035	18,333,211	24,062,504
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	21,294,047	21,278,275	20,929,717	22,740,826	29,967,147
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	7,695,860	7,695,860	7,695,860	7,695,860	10,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	7,695,860	7,695,860	7,695,860	7,695,860	10,000,000
Retained profit/(loss) carried forward	13,598,187	13,582,415	13,233,857	14,829,482	19,687,147
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	13,598,187	13,582,415	13,233,857	14,829,482	19,687,147
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	21,294,047	21,278,275	20,929,717	22,525,342	29,687,147
Deferred taxation	-	-	-	215,484	280,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	-	-	215,484	280,000
	----------------	----------------	----------------	----------------	----------------
	21,294,047	21,278,275	20,929,717	22,740,826	29,967,147
	=============	=============	=============	=============	=============

FINANCIAL RATIO

KAWARIN ENTERPRISE PTE LTD.

TYPES OF FUNDS
Cash	1,159,267	1,028,054	479,678	325,930	2,160,714
Net Liquid Funds	1,159,267	1,028,054	479,678	325,930	2,160,714
Net Liquid Assets	3,536,480	4,951,517	(1,587,262)	(298,475)	(2,379,778)
Net Current Assets/(Liabilities)	16,719,669	16,473,160	17,114,035	18,333,211	24,062,504
Net Tangible Assets	21,294,047	21,278,275	20,929,717	22,740,826	29,967,147
Net Monetary Assets	3,536,480	4,951,517	(1,587,262)	(513,959)	(2,659,778)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	1,393,976	552,988	(1,578,754)	857,012	3,706,447
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	2,091,811	1,482,742	(597,815)	1,803,180	4,935,897
BALANCE SHEET ITEMS
Total Borrowings	11,078,686	8,763,343	11,819,127	12,164,088	13,282,775
Total Liabilities	17,721,020	13,974,669	20,944,705	17,810,289	22,788,340
Total Assets	39,015,067	35,252,944	41,874,422	40,335,631	52,475,487
Net Assets	21,294,047	21,278,275	20,929,717	22,740,826	29,967,147
Net Assets Backing	21,294,047	21,278,275	20,929,717	22,525,342	29,687,147
Shareholders' Funds	21,294,047	21,278,275	20,929,717	22,525,342	29,687,147
Total Share Capital	7,695,860	7,695,860	7,695,860	7,695,860	10,000,000
Total Reserves	13,598,187	13,582,415	13,233,857	14,829,482	19,687,147
LIQUIDITY (Times)
Cash Ratio	0.07	0.07	0.02	0.02	0.10
Liquid Ratio	1.20	1.35	0.92	0.98	0.89
Current Ratio	1.94	2.18	1.82	2.04	2.07
WORKING CAPITAL CONTROL (Days)
Stock Ratio	61	56	85	80	81
Debtors Ratio	88	80	75	71	53
Creditors Ratio	29	22	39	19	23
SOLVENCY RATIOS (Times)
Gearing Ratio	0.52	0.41	0.56	0.54	0.45
Liabilities Ratio	0.83	0.66	1.00	0.79	0.77
Times Interest Earned Ratio	7.16	2.71	(6.05)	3.95	13.18
Assets Backing Ratio	2.77	2.76	2.72	2.95	3.00
PERFORMANCE RATIO (%)
Operating Profit Margin	1.49	0.45	(2.22)	0.75	2.86
Net Profit Margin	1.49	0.45	(1.93)	0.52	2.64
Return On Net Assets	6.55	2.60	(7.54)	3.77	12.37
Return On Capital Employed	6.55	2.60	(7.54)	3.77	12.37
Return On Shareholders' Funds/Equity	5.63	1.64	(7.62)	1.99	10.64
Dividend Pay Out Ratio (Times)	0.99	0	0	1.72	0.70
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.14
UK Pound	1	Rs.98.69
Euro	1	Rs.72.55
SGD	1	Rs. 47.07

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

INFORMATION DETAILS

Analysis Done by :	AMR
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%)

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