MIRA INFORM REPORT

Report No. :	331589
Report Date :	11.07.2015

IDENTIFICATION DETAILS

Name :	OLAM INTERNATIONAL LIMITED
Registered Office :	50, Raffles Place, 32-01, Singapore Land Tower, 048623
Country :	Singapore
Financials (as on) :	30.06.2014
Date of Incorporation :	04.07.1995
Com. Reg. No.:	199504676-H
Legal Form :	Public
Line of Business :	Processing, packaging, and merchandising agricultural products, investment holding.
No. of Employees :	250 [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 :	Exist

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.	:	199504676-H
COMPANY NAME	:	OLAM INTERNATIONAL LIMITED
FORMER NAME	:	N/A
INCORPORATION DATE	:	04/07/1995
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC
LISTED STATUS	:	YES
LISTED DATE	:	11/02/2005
REGISTERED ADDRESS	:	50, RAFFLES PLACE, 32-01, SINGAPORE LAND TOWER, 048623, SINGAPORE.
BUSINESS ADDRESS	:	9, TEMASEK BOULEVARD, 11-02, SUNTEC TOWER 2, 038989, SINGAPORE.
TEL.NO.	:	65-63394100
FAX.NO.	:	65-63399755
EMAIL	:	SINGAPORE@OLAMNET.COM
WEB SITE	:	WWW.OLAMONLINE.COM
CONTACT PERSON	:	SUNNY GEORGE VERGHESE ( MANAGING DIRECTOR )
PRINCIPAL ACTIVITY	:	PROCESSING, PACKAGING, AND MERCHANDISING AGRICULTURAL PRODUCTS, INVESTMENT HOLDING
ISSUED AND PAID UP CAPITAL	:	2,492,917,869.00 ORDINARY SHARE, OF A VALUE OF SGD 2,239,150,154.06 52,196,000.00 TREASURY SHARE, OF A VALUE OF SGD 96,087,676.20
SALES	:	SGD 19,421,802,000 [2014]
NET WORTH	:	SGD 4,222,328,000 [2014]
STAFF STRENGTH	:	250 [2015]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	MATURE

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) processing, packaging, and merchandising agricultural products, investment holding.

The ultimate holding company of the Subject is TEMASEK HOLDINGS (PRIVATE) LIMITED, a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
27/04/2015	SGD 2,335,237,830.26

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
BREEDENS INVESTMENTS PTE. LTD.	60B, ORCHARD ROAD, 06-18, THE ATRIUM @ ORCHARD, 238891, SINGAPORE.	200900787K	1,196,809,904.00	48.01
CITIBANK NOMINEES SINGAPORE PTE LTD	8, MARINA VIEW, 21-00, ASIA SQUARE TOWER 1, 018960, SINGAPORE.	198801936	454,220,452.00	18.22
ARANDA INVESTMENTS PTE. LTD.	60B, ORCHARD ROAD, 06-18, THE ATRIUM @ ORCHARD, 238891, SINGAPORE.	200312481K	228,331,313.00	9.16
HSBC (SINGAPORE) NOMINEES PTE. LTD.	21, COLLYER QUAY, 10-02, HSBC BUILDING, 049320, SINGAPORE.	194600097	124,578,140.00	5.00
DB NOMINEES (SINGAPORE) PTE LTD	1, RAFFLES QUAY, 17-10, 048583, SINGAPORE.	197300322	119,617,587.00	4.80
RAFFLES NOMINEES (PTE) LIMITED	SINGAPORE	011346	95,063,859.00	3.81
DBS NOMINEES (PRIVATE) LIMITED	12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.	196900222	51,471,930.00	2.06
DAIWA CAPITAL MARKETS SINGAPORE LIMITED	6, SHENTON WAY, 26-08, DBS BUILLDING, TOWER TWO, 068809, SINGAPORE.	197200705R	50,000,000.00	2.01
DBSN SERVICES PTE LTD	12, MARINA BOULEVARD, MARINA BAY, FINANCIAL CENTRE, 018982, SINGAPORE.	200602090	41,730,971.00	1.67
UOB KAY HIAN PRIVATE LIMITED	8, ANTHONY ROAD, 01-01, 229957, SINGAPORE.	197000447W	7,658,455.00	0.31
REMAINING SHAREHOLDERS	-	-	123,435,258.00	4.95
			---------------	------
			2,492,917,869.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
201427415N	SINGAPORE	GOLIATH BRANDS PTE. LTD.	100.00	28/01/2015
201212127	SINGAPORE	CARMEL INVESTMENT HOLDINGS PTE. LTD	100.00	28/01/2015
200715104C	SINGAPORE	FAR EAST AGRI PTE. LTD.	100.00	28/01/2015
201003986K	SINGAPORE	INVENIO HOLDINGS PTE. LTD.	88.63	28/01/2015
201107724M	SINGAPORE	OLEA INVESTMENT HOLDINGS PTE. LTD.	80.00	28/01/2015
200305038R	SINGAPORE	CARAWAY PTE. LTD.	75.00	28/01/2015
200721451H	SINGAPORE	NAUVU INVESTMENTS PTE. LTD.	50.00	28/01/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	SANJIV MISRA
Address	:	27, EAST SUSSEX LANE, 279813, SINGAPORE.
IC / PP No	:	S2653345G
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/11/2013

DIRECTOR 2

Name Of Subject	:	RANGAREDDY JAYACHANDRAN
Address	:	3, GRANGE GARDEN, 09-01, 249633, SINGAPORE.
IC / PP No	:	S2220352E
Nationality	:	SINGAPOREAN
Date of Appointment	:	04/07/1995

DIRECTOR 3

Name Of Subject	:	SHEKHAR ANANTHARAMAN
Address	:	754, MOUNTBATTEN ROAD, 437856, SINGAPORE.
IC / PP No	:	S2675139Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/04/1998

DIRECTOR 4

Name Of Subject	:	ROBERT MICHAEL TOMLIN
Address	:	22, SAUNDERS ROAD, 228266, SINGAPORE.
IC / PP No	:	S2624570B
Nationality	:	SINGAPOREAN
Date of Appointment	:	24/09/2004

DIRECTOR 5

Name Of Subject	:	JEAN-PAUL PINARD
Address	:	60, BAYSHORE ROAD, 30-01, BAYSHORE PARK, 469982, SINGAPORE.
IC / PP No	:	S2738913I
Nationality	:	SINGAPOREAN
Date of Appointment	:	29/10/2008

DIRECTOR 6

Name Of Subject	:	KWA CHONG SENG
Address	:	19, VICTORIA PARK ROAD, 266498, SINGAPORE.
IC / PP No	:	S0234644C
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/10/2014

DIRECTOR 7

Name Of Subject	:	MR. SUNNY GEORGE VERGHESE
Address	:	61, GRANGE ROAD, 14-04, BEVERLY HILL APARTMENTS, 249570, SINGAPORE.
IC / PP No	:	S2763335H
Nationality	:	SINGAPOREAN
Date of Appointment	:	11/07/1996

DIRECTOR 8

Name Of Subject	:	NIHAL VIJAYA DEVADAS KAVIRATNE
Address	:	A-5, SEA FACE PARK, 50, BHULABHAI DESAI ROAD, MUMBAI, 400026, INDIA.
IC / PP No	:	S2726390I
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/10/2014

DIRECTOR 9

Name Of Subject	:	NARAIN GIRDHAR CHANRAI
Address	:	9, ARDMORE PARK, 14-02, ARDMORE PARK, 259955, SINGAPORE.
IC / PP No	:	S2584555B
Nationality	:	SINGAPOREAN
Date of Appointment	:	04/07/1995

DIRECTOR 10

Name Of Subject	:	MICHAEL LIM CHOO SAN
Address	:	11, CALDECOTT CLOSE, CALDECOTT HILL ESTATE, 299120, SINGAPORE.
IC / PP No	:	S2539208F
Nationality	:	SINGAPOREAN
Date of Appointment	:	24/09/2004

MANAGEMENT

1)	Name of Subject	:	SUNNY GEORGE VERGHESE
	Position	:	MANAGING DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	YOO LOO PING
	IC / PP No	:	S7278603C
	Address	:	348, BALESTIER ROAD, 14-03, PRESTIGE HEIGHTS, 329778, 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.

LEGAL ACTION

Code No	:	99	Case No	:	991
Year	:	2014	Place	:	SINGAPORE
Court	:	SUPREME COURT
Date Filed	:	12/09/2014
Solicitor	:	GOVINTHARASAH S/O RAMANATHAN
Solicitor Ref	:	RK/BRG/20140060/RS
Solicitor Firm	:	GURBANI & CO.
Plaintiff	:	GLE LOGISTICS (S) PTE LTD
Defendants	:	OLAM INTERNATIONAL LIMITED (199504676)
Amount Claimed	:	62699.50 148113.40 572120.48
Nature of Claim	:	USD SGD USD
Remark	:	PROVISION OF SERVICES EXCLUDING RENOVATION

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	[	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	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

AGRICULTURAL FOOD PRODUCT

Services

:

INVESTMENT HOLDING

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	250	220	233	180	180

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) processing, packaging, and merchandising agricultural products, investment holding.

The Group is a global leader in the supply chain management of commodities agricultural products and food ingredients.

The Group;s products includes coffee,almonds, cashews, cotton, grains, hazelnuts, peanut, rice, sesame and packaged products.

The Group engages in sourcing, processing, packaging, and merchandising agricultural products. The company operates in five segments: Edible Nuts, Spices & Vegetable Ingredients; Confectionery & Beverage Ingredients; Food Staples & Packaged Foods; Industrial Raw Materials; and Commodity Financial Services. The Edible Nuts, Spices & Vegetable Ingredients segment offers cashews, peanuts, almonds, hazelnuts, and sesame, as well as beans, including pulses, lentils, and peas. This segment also provides spices and vegetable ingredients, including pepper, onion, garlic, and tomato.

The Confectionery and Beverage Ingredients segment provides cocoa and coffee products. The Industrial Raw Materials segment offers cotton, wool, wood products, and rubber products, as well as agri inputs, such as fertilizers.

The Food Staples and Packaged Foods segment provides rice, sugar and natural sweeteners, palm and dairy products, and packaged foods, as well as grains, such as wheat, barley, and corn.

The Commodity Financial Services segment offers market making and volatility trading, risk management solutions, and commodity funds management services.

RECENT DEVELOPMENT

19 Nov 2014

Olam International Ltd:Says t it has secured revolving credit and term loan facilities aggregating $2,475 mln.Says the facilities consist of three equal tranches of $825 mln each, a 364-day revolving credit facility, a 2-year revolving credit facility and a 3-year term loan.Says proceeds from the facilities will be applied towards refinancing of existing debt and meeting working capital and general corporate funding requirements of the company.

29 Oct 2014

Olam International Ltd:Says it has incorporated wholly-owned subsidiaries namely, Olam Risk Management DMCC , Goliath Brands Pte. Ltd, Olam Nicaragua S.A.Says Olam Risk Management DMCC is incorporated in Dubai, United Arab Emirates and its principal activities are proprietary trading and marketing of its OTC products.Says Goliath Brands Pte. Ltd is incorporated in Singapore and its principal activities are investment holding.Says Olam Nicaragua S.A is incorporated in Nicaragua and its principal activities are Sourcing, processing, packaging and merchandising of agricultural products and inputs.

1 Sep 2014

Olam International Ltd:Says a sale of its dairy processing plant in Cote d’Ivoire to Royal FrieslandCampina for a cash consideration of $18.7 million, excluding any working capital delivered at the closing of the transaction.In addition, Olam will assign its trademark Pearl for a cash consideration of $6.3 million, providing Friesland the right to use the trademark for sweet condensed and evaporated milk products in certain designated countries in Africa.

27 Jun 2014

Olam International Ltd:Enters into an agreement to sell 20 pct equity stake in Gabon Special Economic Zone SA (GSEZ) to the Republic of Gabon (RoG).Transaction is in line with the Company’s strategy to jointly invest with partners in projects that involve large capital expenditure and long gestation.Post completion, Company will retain joint control of GSEZ.

27 Jun 2014

Olam International Ltd:Enters into agreement to sell 100 pct equity stake in subsidiary Compagnie Forestière des Abeilles SA (CFA) to Transport Bois et Négoce International (TBNI), Gabonese timber company for consideration of $6.0 mln.Price consideration was determined on willing-buyer, willing-seller basis.Transaction is expected to complete by Q1 FY2015.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63394100
Match	:	N/A
Address Provided by Client	:	9 TEMASEK BOULEVARD 11-02 SUNTEC TOWER TWO SINGAPORE 038989
Current Address	:	9, TEMASEK BOULEVARD, 11-02, SUNTEC TOWER 2, 038989, SINGAPORE.
Match	:	YES

Other Investigations

On 23rd April 2015, we contacted one of the staff from the Subject and she provided some information on the Subject.

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	:	Acceptable	[	14.41%	]
Return on Net Assets	:	Acceptable	[	13.59%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Unfavourable	[	88 Days	]
Debtor Ratio	:	Favourable	[	30 Days	]
Creditors Ratio	:	Favourable	[	22 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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	[	0.78 Times	]
Current Ratio	:	Unfavourable	[	1.45 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	:	Unfavourable	[	2.44 Times	]
Gearing Ratio	:	Unfavourable	[	2.21 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 :
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. 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 : LIMITED

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 :	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 1995, the Subject is a Public Listed company, focusing on processing, packaging, and merchandising agricultural products, investment holding. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. The Subject is a large entity with strong capital position of SGD 2,335,237,830. We are confident with the Subject's business and its future growth prospect. With a strong backing from its shareholders, the Subject enjoys timely financial assistance should the needs arise.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 250 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.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. 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 SGD 4,222,328,000, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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.

Financial Year End	2014-06-30	2013-06-30	2012-06-30	2011-06-30	2010-06-30
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	19,421,802,000	20,801,798,000	17,093,751,000	15,803,387,000	10,455,032,000
Other Income	452,391,000	90,284,000	51,473,000	124,751,000	241,240,000
	----------------	----------------	----------------	----------------	----------------
Total Turnover	19,874,193,000	20,892,082,000	17,145,224,000	15,928,138,000	10,696,272,000
Costs of Goods Sold	(17,481,766,000)	(18,913,064,000)	(13,866,578,000)	(13,126,857,000)	(8,465,914,000)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	2,392,427,000	1,979,018,000	3,278,646,000	2,801,281,000	2,230,358,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	745,594,000	476,167,000	400,444,000	482,097,000	407,271,000
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES	2,187,000	20,484,000	37,466,000	28,168,000	12,924,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	747,781,000	496,651,000	437,910,000	510,265,000	420,195,000
Taxation	(106,509,000)	(105,134,000)	(34,085,000)	(65,697,000)	(60,446,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	641,272,000	391,517,000	403,825,000	444,568,000	359,749,000
Minority interests	(32,784,000)	(28,899,000)	(32,917,000)	(14,727,000)	(280,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	608,488,000	362,618,000	370,908,000	429,841,000	359,469,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	608,488,000	362,618,000	370,908,000	429,841,000	359,469,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,673,024,000	1,425,318,000	1,186,026,000	809,324,000	560,023,000
	----------------	----------------	----------------	----------------	----------------
As restated	1,673,024,000	1,425,318,000	1,186,026,000	809,324,000	560,023,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,281,512,000	1,787,936,000	1,556,934,000	1,239,165,000	919,492,000
TRANSFER TO RESERVES - General	(17,994,000)	(19,303,000)	(6,435,000)	-	-
DIVIDENDS - Ordinary (paid & proposed)	(99,302,000)	(95,609,000)	(125,181,000)	(53,139,000)	(110,168,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,164,216,000	1,673,024,000	1,425,318,000	1,186,026,000	809,324,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	21,057,000	17,695,000	12,693,000	20,302,000	13,515,000
Bonds	158,131,000	120,576,000	82,072,000	80,367,000	70,291,000
Term loan / Borrowing	247,849,000	272,203,000	277,991,000	191,508,000	120,963,000
Others	92,203,000	107,879,000	64,794,000	52,181,000	22,706,000
	----------------	----------------	----------------	----------------	----------------
	519,240,000	518,353,000	437,550,000	344,358,000	227,475,000
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	215,577,000	199,312,000	128,691,000	91,471,000	68,530,000
	----------------	----------------	----------------	----------------	----------------
	215,577,000	199,312,000	128,691,000	91,471,000	68,530,000
	=============	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	3,143,886,000	3,427,775,000	2,620,995,000	1,576,715,000	1,054,166,000
Associated companies	835,393,000	557,693,000	482,864,000	411,819,000	467,237,000
Investments	407,685,000	-	-	-	18,752,000
Deferred assets	22,983,000	34,832,000	37,735,000	43,053,000	63,978,000
Others	1,131,310,000	801,998,000	640,502,000	463,172,000	186,044,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	2,397,371,000	1,394,523,000	1,161,101,000	918,044,000	736,011,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	648,758,000	686,516,000	660,157,000	485,938,000	341,586,000
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	648,758,000	686,516,000	660,157,000	485,938,000	341,586,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	6,190,015,000	5,508,814,000	4,442,253,000	2,980,697,000	2,131,763,000
Stocks	4,685,698,000	4,154,271,000	4,410,014,000	3,584,144,000	2,584,046,000
Trade debtors	1,613,223,000	2,372,900,000	1,596,796,000	1,595,446,000	976,781,000
Other debtors, deposits & prepayments	706,652,000	598,470,000	320,556,000	222,207,000	237,784,000
Short term deposits	60,928,000	68,232,000	108,894,000	43,162,000	259,117,000
Cash & bank balances	1,529,147,000	1,522,777,000	1,001,962,000	829,085,000	412,426,000
Others	1,520,930,000	1,158,720,000	1,947,507,000	3,325,395,000	1,202,741,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	10,116,578,000	9,875,370,000	9,385,729,000	9,599,439,000	5,672,895,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	16,306,593,000	15,384,184,000	13,827,982,000	12,580,136,000	7,804,658,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,066,914,000	1,188,242,000	678,331,000	613,112,000	396,153,000
Other creditors & accruals	419,668,000	475,254,000	337,584,000	415,644,000	215,236,000
Bank overdraft	298,179,000	261,147,000	445,664,000	437,169,000	167,611,000
Short term borrowings/Term loans	4,191,410,000	2,424,399,000	2,351,855,000	2,972,006,000	840,087,000
Other borrowings	14,167,000	280,013,000	350,814,000	200,868,000	1,287,870,000
Deposits from customers	67,243,000	59,517,000	113,226,000	61,862,000	30,858,000
Amounts owing to associated companies	2,987,000	-	-	-	-
Provision for taxation	111,027,000	74,678,000	38,245,000	29,747,000	41,064,000
Other liabilities	810,485,000	673,650,000	1,449,379,000	2,399,556,000	706,697,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	6,982,080,000	5,436,900,000	5,765,098,000	7,129,964,000	3,685,576,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	3,134,498,000	4,438,470,000	3,620,631,000	2,469,475,000	1,987,319,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	9,324,513,000	9,947,284,000	8,062,884,000	5,450,172,000	4,119,082,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,162,642,000	2,077,038,000	2,077,038,000	1,577,110,000	1,201,581,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,162,642,000	2,077,038,000	2,077,038,000	1,577,110,000	1,201,581,000
Capital reserve	142,525,000	122,335,000	120,093,000	129,586,000	145,688,000
Exchange equalisation/fluctuation reserve	(450,137,000)	(378,532,000)	(344,781,000)	(378,825,000)	(166,452,000)
General reserve	39,642,000	17,137,000	(52,863,000)	(268,555,000)	(218,212,000)
Retained profit/(loss) carried forward	2,164,216,000	1,673,024,000	1,425,318,000	1,186,026,000	809,324,000
Others	141,298,000	180,858,000	180,805,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,037,544,000	1,614,822,000	1,328,572,000	668,232,000	570,348,000
MINORITY INTEREST	22,142,000	131,868,000	122,152,000	57,020,000	(1,144,000)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,222,328,000	3,823,728,000	3,527,762,000	2,302,362,000	1,770,785,000
Long term loans	1,309,524,000	2,354,192,000	3,106,499,000	1,713,918,000	1,228,312,000
Other long term borrowings	3,474,137,000	3,506,924,000	1,204,823,000	1,235,053,000	979,124,000
Lease obligations	52,489,000	21,563,000	29,729,000	21,556,000	-
Deferred taxation	266,035,000	240,877,000	194,071,000	177,283,000	140,861,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	5,102,185,000	6,123,556,000	4,535,122,000	3,147,810,000	2,348,297,000
	----------------	----------------	----------------	----------------	----------------
	9,324,513,000	9,947,284,000	8,062,884,000	5,450,172,000	4,119,082,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	1,590,075,000	1,591,009,000	1,110,856,000	872,247,000	671,543,000
Net Liquid Funds	1,291,896,000	1,329,862,000	665,192,000	435,078,000	503,932,000
Net Liquid Assets	(1,551,200,000)	284,199,000	(789,383,000)	(1,114,669,000)	(596,727,000)
Net Current Assets/(Liabilities)	3,134,498,000	4,438,470,000	3,620,631,000	2,469,475,000	1,987,319,000
Net Tangible Assets	8,675,755,000	9,260,768,000	7,402,727,000	4,964,234,000	3,777,496,000
Net Monetary Assets	(6,653,385,000)	(5,839,357,000)	(5,324,505,000)	(4,262,479,000)	(2,945,024,000)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	1,267,021,000	1,015,004,000	875,460,000	854,623,000	647,670,000
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	1,482,598,000	1,214,316,000	1,004,151,000	946,094,000	716,200,000
BALANCE SHEET ITEMS
Total Borrowings	9,339,906,000	8,848,238,000	7,489,384,000	6,580,570,000	4,503,004,000
Total Liabilities	12,084,265,000	11,560,456,000	10,300,220,000	10,277,774,000	6,033,873,000
Total Assets	16,306,593,000	15,384,184,000	13,827,982,000	12,580,136,000	7,804,658,000
Net Assets	9,324,513,000	9,947,284,000	8,062,884,000	5,450,172,000	4,119,082,000
Net Assets Backing	4,222,328,000	3,823,728,000	3,527,762,000	2,302,362,000	1,770,785,000
Shareholders' Funds	4,222,328,000	3,823,728,000	3,527,762,000	2,302,362,000	1,770,785,000
Total Share Capital	2,162,642,000	2,077,038,000	2,077,038,000	1,577,110,000	1,201,581,000
Total Reserves	2,037,544,000	1,614,822,000	1,328,572,000	668,232,000	570,348,000
LIQUIDITY (Times)
Cash Ratio	0.23	0.29	0.19	0.12	0.18
Liquid Ratio	0.78	1.05	0.86	0.84	0.84
Current Ratio	1.45	1.82	1.63	1.35	1.54
WORKING CAPITAL CONTROL (Days)
Stock Ratio	88	73	94	83	90
Debtors Ratio	30	42	34	37	34
Creditors Ratio	22	23	18	17	17
SOLVENCY RATIOS (Times)
Gearing Ratio	2.21	2.31	2.12	2.86	2.54
Liabilities Ratio	2.86	3.02	2.92	4.46	3.41
Times Interest Earned Ratio	2.44	1.96	2.00	2.48	2.85
Assets Backing Ratio	4.01	4.46	3.56	3.15	3.14
PERFORMANCE RATIO (%)
Operating Profit Margin	3.85	2.39	2.56	3.23	4.02
Net Profit Margin	3.13	1.74	2.17	2.72	3.44
Return On Net Assets	13.59	10.20	10.86	15.68	15.72
Return On Capital Employed	12.31	9.20	9.42	13.29	14.00
Return On Shareholders' Funds/Equity	14.41	9.48	10.51	18.67	20.30
Dividend Pay Out Ratio (Times)	0.16	0.26	0.34	0.12	0.31
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.38
UK Pound	1	Rs.97.65
Euro	1	Rs.70.43

INFORMATION DETAILS

Analysis Done by :	SUB
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.