MIRA INFORM REPORT

Report No. :	330349
Report Date :	10.07.2015

IDENTIFICATION DETAILS

Name :	KCTEX INTERNATIONAL LIMITED
Registered Office :	6, Shenton Way, 24-09, Oue Downtown, 068809
Country :	Singapore
Financials (as on) :	30.06.2014
Date of Incorporation :	19.07.2006
Com. Reg. No.:	200610550-N
Legal Form :	Public
Line of Business :	Subject is engaged in the Trading of Fabrics, Fibre, Polyster Chips and Yarn.
No. of Employees :	20 [2015]

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
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.	:	200610550-N
COMPANY NAME	:	KCTEX INTERNATIONAL LIMITED
FORMER NAME	:	N/A
INCORPORATION DATE	:	19/07/2006
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	6, SHENTON WAY, 24-09, OUE DOWNTOWN, 068809, SINGAPORE.
BUSINESS ADDRESS	:	6, SHENTON WAY, 24-09, OUE DOWNTOWN 2, 068809, SINGAPORE.
TEL.NO.	:	65-63255755
FAX.NO.	:	65-63254232
WEB SITE	:	WWW.KCTEXINTERNATIONAL.COM
CONTACT PERSON	:	RANGAREDDY JAYACHANDRAN ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF FABRICS, FIBRE, POLYSTER CHIPS AND YARN
ISSUED AND PAID UP CAPITAL	:	9,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 9,000,000.00
SALES	:	USD 489,354,743 [2014]
NET WORTH	:	USD 46,389,805 [2014]
STAFF STRENGTH	:	20 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of fabrics, fibre, polyster chips and yarn.

The immediate holding company of the Subject is PATTERSON INVESTMENTS LIMITED, a company incorporated in MAURITIUS.

Share Capital History

Date	Issue & Paid Up Capital
03/07/2015	USD 9,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
PATTERSON INVESTMENTS LIMITED	IFS COURT, TWENTYEIGHT CYBERCITY, EBENE, MAURITIUS.	T06UF1948	9,000,000.00	100.00
			---------------	------
			9,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	UNITED STATES	KC TEX INC	100.00	30/06/2012
	MAURITIUS	ELEGANT INTERNATIONAL	100.00	30/06/2013
	UNITED ARAB EMIRATES	SUPREME GLOBAL	100.00	30/06/2013
	CHINA	KCTEX CHINA	100.00	30/06/2013
	INDONESIA	KCTEX MALAYSIA	100.00	30/06/2013
	BRAZIL	KCTEX BRASIL ASSESSORIAL LTD	100.00	30/06/2012
	UNITED STATES	KC FABRICS INC	100.00	30/06/2012
	BANGLADESH	TEXGLOBAL BD	100.00	30/06/2013
	SOUTH AFRICA	KCTEX SOUTH AFRICA PTY LTD	100.00	30/06/2012
	DENMARK	KCTEX DENMARK	100.00	30/06/2012
	INDONESIA	PT KARYA INDO ENERGI	99.00	30/06/2012
	CANADA	KCTEX CANADA PTY LTD	98.00	30/06/2012
	INDIA	KEWALRAM TEXTILES PVT LTD	96.00	30/06/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	RANGAREDDY JAYACHANDRAN
Address	:	3, GRAND GARDEN, 09-01, 249633, SINGAPORE.
IC / PP No	:	S2220352E
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/07/2006

DIRECTOR 2

Name Of Subject	:	PARASURAMAN RAMESH
Address	:	1, TANJONG RHU ROAD, 20-01, WATERSIDE, THE, 436879, SINGAPORE.
IC / PP No	:	S2683858D
Nationality	:	SINGAPOREAN
Date of Appointment	:	03/06/2010

DIRECTOR 3

Name Of Subject	:	THIYAGARAJAN ANAIYAMPATTI SIVASWAMY
Address	:	335, BUKIT TIMAH ROAD, 05-01, WING ON LIFE GARDEN, 259718, SINGAPORE.
IC / PP No	:	S2680972Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/07/2006

MANAGEMENT

1)	Name of Subject	:	RANGAREDDY JAYACHANDRAN
	Position	:	MANAGING DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	NATHANIEL CHELVARAJAH VANNIASINGHAM
	IC / PP No	:	S0158629G
	Address	:	501D, WELLINGTON CIRCLE, 10-80, 754501, 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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers. 

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

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

CLIENTELE

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

OPERATIONS

Goods Traded

:

FABRICS, FIBRE, POLYSTER CHIPS AND YARN

Total Number of Employees:
YEAR	2015	2014	2013	2010
GROUP	N/A	N/A	N/A	N/A
COMPANY	20	20	20	17

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of fabrics, fibre, polyster chips and yarn. 

The Subject's strategy begins with a passion for the products they provide and a deep understanding of their customers.

Fast and flexible, the Subject is able to leverage their highly diversified global supply chain as we continually expand our reach around the world.

The Subject import and export the following products:

* Yarn
* Fabric
* Embroidery
* Home textiles 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6563255755
Current Telephone Number	:	65-63255755
Match	:	YES
Address Provided by Client	:	6, SHENTON WAY, 24-09, OUE DOWNTOWN 2,068809,SINGAPORE
Current Address	:	6, SHENTON WAY, 24-09, OUE DOWNTOWN 2, 068809, 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	:	Increased	[	2011 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2011 - 2014	]
Return on Shareholder Funds	:	Acceptable	[	26.38%	]
Return on Net Assets	:	Favourable	[	33.47%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	26 Days	]
Debtor Ratio	:	Favourable	[	51 Days	]
Creditors Ratio	:	Favourable	[	12 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	:	Favourable	[	1.10 Times	]
Current Ratio	:	Unfavourable	[	1.49 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	[	8.65 Times	]
Gearing Ratio	:	Favourable	[	0.00 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 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 :
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. 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 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 : 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)
(Source : Department of Statistics)

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 2006, the Subject is a Public Limited Company company, focusing on trading of fabrics, fibre, polyster chips and yarn. 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 USD 9,000,000 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise. 

From the 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 20 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. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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 46,389,805, 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. 

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 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.

KCTEX INTERNATIONAL LIMITED

Financial Year End	2014-06-30	2013-06-30	2012-06-30	2011-06-30
Months	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	USD	USD	USD	USD
TURNOVER	489,354,743	380,281,352	349,513,543	358,496,066
Other Income	214,948	136,897	28,830	6,233
	----------------	----------------	----------------	----------------
Total Turnover	489,569,691	380,418,249	349,542,373	358,502,299
Costs of Goods Sold	(463,285,714)	(358,994,613)	(329,206,529)	(335,554,969)
	----------------	----------------	----------------	----------------
Gross Profit	26,283,977	21,423,636	20,335,844	22,947,330
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	13,730,316	11,632,786	11,504,974	14,379,315
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	13,730,316	11,632,786	11,504,974	14,379,315
Taxation	(1,473,369)	(1,136,133)	(1,487,254)	(1,731,792)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	12,256,947	10,496,653	10,017,720	12,647,523
Minority interests	(18,960)	(14,974)	(12,803)	(7,942)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	12,237,987	10,481,679	10,004,917	12,639,581
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	12,237,987	10,481,679	10,004,917	12,639,581
TRANSFER FROM RESERVES	(4,273)	-	-	-
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	30,571,181	24,089,502	22,084,585	12,445,004
	----------------	----------------	----------------	----------------
As restated	30,571,181	24,089,502	22,084,585	12,445,004
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	42,804,895	34,571,181	32,089,502	25,084,585
DIVIDENDS - Preference	(5,000,000)	(4,000,000)	(8,000,000)	(3,000,000)
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	37,804,895	30,571,181	24,089,502	22,084,585
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	1,795,225	1,283,512	1,276,344	1,322,983
	----------------	----------------	----------------	----------------
	1,795,225	1,283,512	1,276,344	1,322,983
	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	131,911	347,992	135,171	88,282
	----------------	----------------	----------------	----------------
	131,911	347,992	135,171	88,282
	=============	=============	=============	=============

BALANCE SHEET

KCTEX INTERNATIONAL LIMITED

ASSETS EMPLOYED:
FIXED ASSETS	2,340,529	1,694,360	671,719	630,381
Investments	1,739	1,912	2,004	2,137
Deferred assets	207,035	171,365	129,097	312,427
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	208,774	173,277	131,101	314,564
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	2,549,303	1,867,637	802,820	944,945
Stocks	34,983,762	19,353,902	20,324,643	32,511,243
Trade debtors	68,202,330	74,481,326	49,606,758	48,285,799
Other debtors, deposits & prepayments	7,453,580	10,733,775	1,087,831	4,108,866
Cash & bank balances	23,351,074	23,292,334	22,232,486	21,426,197
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	133,990,746	127,861,337	93,251,718	106,332,105
	----------------	----------------	----------------	----------------
TOTAL ASSET	136,540,049	129,728,974	94,054,538	107,277,050
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	15,795,096	13,306,264	11,707,829	26,394,258
Other creditors & accruals	6,445,169	7,134,409	4,789,478	5,985,277
Provision for taxation	894,921	765,353	965,775	1,429,022
Other liabilities	67,015,058	69,301,424	43,828,592	42,549,230
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	90,150,244	90,507,450	61,291,674	76,357,787
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	43,840,502	37,353,887	31,960,044	29,974,318
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	46,389,805	39,221,524	32,762,864	30,919,263
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	9,000,000	9,000,000	9,000,000	9,000,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	9,000,000	9,000,000	9,000,000	9,000,000
Exchange equalisation/fluctuation reserve	(485,577)	(401,184)	(364,930)	(195,485)
Retained profit/(loss) carried forward	37,804,895	30,571,181	24,089,502	22,084,585
	----------------	----------------	----------------	----------------
TOTAL RESERVES	37,319,318	30,169,997	23,724,572	21,889,100
MINORITY INTEREST	70,487	51,527	38,292	30,163
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	46,389,805	39,221,524	32,762,864	30,919,263
	----------------	----------------	----------------	----------------
	46,389,805	39,221,524	32,762,864	30,919,263
	=============	=============	=============	=============

FINANCIAL RATIO

KCTEX INTERNATIONAL LIMITED

TYPES OF FUNDS
Cash	23,351,074	23,292,334	22,232,486	21,426,197
Net Liquid Funds	23,351,074	23,292,334	22,232,486	21,426,197
Net Liquid Assets	8,856,740	17,999,985	11,635,401	(2,536,925)
Net Current Assets/(Liabilities)	43,840,502	37,353,887	31,960,044	29,974,318
Net Tangible Assets	46,389,805	39,221,524	32,762,864	30,919,263
Net Monetary Assets	8,856,740	17,999,985	11,635,401	(2,536,925)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	15,525,541	12,916,298	12,781,318	15,702,298
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	15,657,452	13,264,290	12,916,489	15,790,580
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	0
Total Liabilities	90,150,244	90,507,450	61,291,674	76,357,787
Total Assets	136,540,049	129,728,974	94,054,538	107,277,050
Net Assets	46,389,805	39,221,524	32,762,864	30,919,263
Net Assets Backing	46,389,805	39,221,524	32,762,864	30,919,263
Shareholders' Funds	46,389,805	39,221,524	32,762,864	30,919,263
Total Share Capital	9,000,000	9,000,000	9,000,000	9,000,000
Total Reserves	37,319,318	30,169,997	23,724,572	21,889,100
LIQUIDITY (Times)
Cash Ratio	0.26	0.26	0.36	0.28
Liquid Ratio	1.10	1.20	1.19	0.97
Current Ratio	1.49	1.41	1.52	1.39
WORKING CAPITAL CONTROL (Days)
Stock Ratio	26	19	21	33
Debtors Ratio	51	71	52	49
Creditors Ratio	12	14	13	29
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00	0.00
Liabilities Ratio	1.94	2.31	1.87	2.47
Times Interest Earned Ratio	8.65	10.06	10.01	11.87
Assets Backing Ratio	5.15	4.36	3.64	3.44
PERFORMANCE RATIO (%)
Operating Profit Margin	2.81	3.06	3.29	4.01
Net Profit Margin	2.50	2.76	2.86	3.53
Return On Net Assets	33.47	32.93	39.01	50.78
Return On Capital Employed	33.42	32.89	38.97	50.74
Return On Shareholders' Funds/Equity	26.38	26.72	30.54	40.88
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.51
UK Pound	1	Rs.97.85
Euro	1	Rs.70.50

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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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