MIRA INFORM REPORT

Report No. :	313018
Report Date :	30.03.2015

IDENTIFICATION DETAILS

Name :	AVNET ASIA PTE LTD
Registered Office :	151, Lorong Chuan, 06-03, New Tech Park, 556741
Country :	Singapore
Financials (as on) :	27.06.2014
Date of Incorporation :	18.01.1999
Com. Reg. No.:	199900292-C
Legal Form :	Private Limited Company
Line of Business :	· Engaged as distributor of Electronic Components & Semiconductors. · Subject Supplies Products including Inter-Connectors, Passive and Electro-Mechanical Components.
No of Employees :	300 [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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199900292-C
COMPANY NAME	:	AVNET ASIA PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	18/01/1999
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	151, LORONG CHUAN, 06-03, NEW TECH PARK, 556741, SINGAPORE.
BUSINESS ADDRESS	:	151, LORONG CHUAN, NEW TECH PARK, 06-03, 556741, SINGAPORE.
TEL.NO.	:	65-65806000
FAX.NO.	:	65-65806200
CONTACT PERSON	:	TAN BOON PIN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF ELECTRONIC COMPONENTS
ISSUED AND PAID UP CAPITAL	:	5,474,720.00 ORDINARY SHARE, OF A VALUE OF SGD 466,514,786.40  68,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 68,000,000.00  242,514.00 PREFERENCE SHARE, OF A VALUE OF SGD 242,514,000.00
SALES	:	USD 3,427,549,000 [2014]
NET WORTH	:	USD 812,855,000 [2014]
STAFF STRENGTH	:	300 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	STABLE
PAYMENT	:	No Complaints
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

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

Share Capital History

Date	Issue & Paid Up Capital
19/03/2015	SGD 466,514,786.40 & USD 68,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MEMEC GROUP HOLDINGS LIMITED [ORDINARY SGD= 5474720, ORDINARY USD= 68000000, PREFERENCE SGD= 242514]	AVENT HOUSE, RUTHERFORD CLOSE, MEADWAY, STEVENAGE, HERTFORDSHIRE, SG1 2EF, ENGLAND AND WALES, UNITED KINGDOM.	T14UF0328	73,717,234.00	100.00
			---------------	------
			73,717,234.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
199501472G	SINGAPORE	AVNET TECHNOLOGY SOLUTIONS (ASEAN) PTE. LTD.	100.00	28/06/2013
198905231K	SINGAPORE	AVNET EM JAPAN (ASIA) LIMITED	100.00	28/06/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MICHAEL RYAN MCCOY
Address	:	6125, E, WETHERSFIELD ROAD, SCOTTSDALE, ARIZONA, 85284, UNITED STATES.
IC / PP No	:	445421189
Nationality	:	AMERICAN
Date of Appointment	:	30/01/2013

DIRECTOR 2

Name Of Subject	:	MR. TAN BOON PIN
Address	:	50K, FABER HEIGHTS, 03-72, FABER CREST, 129204, SINGAPORE.
IC / PP No	:	S1605016D
Nationality	:	SINGAPOREAN
Date of Appointment	:	18/10/2011

DIRECTOR 3

Name Of Subject	:	ROBIN KWOK MAN-SING
Address	:	FLAT B-2/F, BLOCK 2, BEVERLEY HEIGHT, 56, CLOUD VIEW ROAD, HONG KONG, HONG KONG.
IC / PP No	:	BA828732
Nationality	:	CANADIAN
Date of Appointment	:	20/06/2013

DIRECTOR 4

Name Of Subject	:	VAIDYANATHAN RADHAKRISHNAN
Address	:	370D, ALEXANDRA ROAD, 02-09, THE ANCHORAGE, 159957, SINGAPORE.
IC / PP No	:	S2696461Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/07/2014

MANAGEMENT

1)	Name of Subject	:	TAN BOON PIN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	PEK LAY PHENG @ BAI LIPING
	IC / PP No	:	S7704449C
	Address	:	318D, ANCHORVALE LINK, 06-229, 544318, SINGAPORE.

2)	Company Secretary	:	TAN BEE SUAN @ CHEN MEIZUAN
	IC / PP No	:	S7124493H
	Address	:	761, CHOA CHU KANG NORTH, 5, 12-179, 680761, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

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

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	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	:	TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2015	2014	2013	2012
GROUP	N/A	N/A	N/A	N/A
COMPANY	300	300	300	300

Branch

:

NO

Other Information:

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

The Subject is the distributor of electronic components & semiconductors.

The Subject supplies products including inter-connectors, passive and electro-mechanical components. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-65806000
Match	:	N/A
Address Provided by Client	:	151 LORONG CHUAN, NEW TECH PARK, 06-03,556741,SINGAPORE
Current Address	:	151, LORONG CHUAN, NEW TECH PARK, 06-03, 556741, 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	:	Decreased	[	2011 - 2014	]
Return on Shareholder Funds	:	Unfavourable	[	7.25%	]
Return on Net Assets	:	Unfavourable	[	9.42%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. 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	:	Favourable	[	30 Days	]
Debtor Ratio	:	Favourable	[	41 Days	]
Creditors Ratio	:	Favourable	[	45 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	[	1.39 Times	]
Current Ratio	:	Unfavourable	[	1.89 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	[	9.07 Times	]
Gearing Ratio	:	Favourable	[	0.01 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 Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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 : STABLE

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

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

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The wholesale and retail trade sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.
The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.
In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.
For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1999, the Subject is a Private Limited company, focusing on trading of electronic components. 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. With an issued and paid up capital exceeding SGD 5,717,234 & USD 68,000,000 and strong shareholders' backing, the Subject has the ability to further expand its business in the future. 

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 300 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. 

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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 812,855,000, 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 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.

AVNET ASIA PTE LTD

Financial Year End	2014-06-27	2013-06-28	2012-06-29	2011-07-01
Months	12	12	12	12
Consolidated Account	Company	Company	Company	Company
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	3,427,549,000	3,022,102,000	2,717,905,000	2,966,118,000
Other Income	13,854,000	12,338,000	11,835,000	30,489,000
	----------------	----------------	----------------	----------------
Total Turnover	3,441,403,000	3,034,440,000	2,729,740,000	2,996,607,000
Costs of Goods Sold	(3,219,420,000)	(2,827,918,000)	(2,527,773,000)	(2,793,025,000)
	----------------	----------------	----------------	----------------
Gross Profit	221,983,000	206,522,000	201,967,000	203,582,000
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	68,133,000	69,234,000	108,102,000	64,332,000
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	68,133,000	69,234,000	108,102,000	64,332,000
Taxation	(9,234,000)	(10,191,000)	(9,503,000)	(8,970,000)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	58,899,000	59,043,000	98,599,000	55,362,000
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	58,899,000	59,043,000	98,599,000	55,362,000
Extraordinary items	-	-	(6,620,000)	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	58,899,000	59,043,000	91,979,000	55,362,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	232,146,000	173,103,000	74,504,000	19,142,000
	----------------	----------------	----------------	----------------
As restated	232,146,000	173,103,000	74,504,000	19,142,000
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	291,045,000	232,146,000	166,483,000	74,504,000
TRANSFER TO RESERVES - General	-	-	6,620,000	-
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	291,045,000	232,146,000	173,103,000	74,504,000
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from holding company	-	-	-	113,000
Others	8,439,000	7,248,000	(8,175,000)	462,000
	----------------	----------------	----------------	----------------
	8,439,000	7,248,000	(8,175,000)	575,000
	=============	=============	=============	=============

BALANCE SHEET

AVNET ASIA PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	2,491,000	4,119,000	6,038,000	3,178,000
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	314,345,000	314,345,000	315,292,000	260,886,000
Deferred assets	1,759,000	429,000	878,000	1,943,000
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	316,104,000	314,774,000	316,170,000	262,829,000
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	318,595,000	318,893,000	322,208,000	266,007,000
Stocks	280,066,000	265,766,000	301,619,000	299,411,000
Trade debtors	383,511,000	363,113,000	311,309,000	372,898,000
Other debtors, deposits & prepayments	13,775,000	14,916,000	23,942,000	22,988,000
Amount due from related companies	246,335,000	214,855,000	239,485,000	154,017,000
Cash & bank balances	122,964,000	125,987,000	72,982,000	55,723,000
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	1,046,651,000	984,637,000	949,337,000	905,037,000
	----------------	----------------	----------------	----------------
TOTAL ASSET	1,365,246,000	1,303,530,000	1,271,545,000	1,171,044,000
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	397,226,000	344,957,000	310,720,000	366,342,000
Other creditors & accruals	42,388,000	45,921,000	30,749,000	32,217,000
Short term borrowings/Term loans	11,770,000	11,770,000	-	-
Amounts owing to related companies	92,882,000	140,160,000	227,852,000	164,142,000
Provision for taxation	8,125,000	7,224,000	7,172,000	5,270,000
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	552,391,000	550,032,000	576,493,000	567,971,000
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	494,260,000	434,605,000	372,844,000	337,066,000
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	812,855,000	753,498,000	695,052,000	603,073,000
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	507,321,000	507,321,000	507,321,000	507,321,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	507,321,000	507,321,000	507,321,000	507,321,000
Exchange equalisation/fluctuation reserve	14,489,000	14,031,000	14,628,000	21,248,000
Retained profit/(loss) carried forward	291,045,000	232,146,000	173,103,000	74,504,000
	----------------	----------------	----------------	----------------
TOTAL RESERVES	305,534,000	246,177,000	187,731,000	95,752,000
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	812,855,000	753,498,000	695,052,000	603,073,000
	----------------	----------------	----------------	----------------
	812,855,000	753,498,000	695,052,000	603,073,000
	=============	=============	=============	=============

FINANCIAL RATIO

AVNET ASIA PTE LTD

TYPES OF FUNDS
Cash	122,964,000	125,987,000	72,982,000	55,723,000
Net Liquid Funds	122,964,000	125,987,000	72,982,000	55,723,000
Net Liquid Assets	214,194,000	168,839,000	71,225,000	37,655,000
Net Current Assets/(Liabilities)	494,260,000	434,605,000	372,844,000	337,066,000
Net Tangible Assets	812,855,000	753,498,000	695,052,000	603,073,000
Net Monetary Assets	214,194,000	168,839,000	71,225,000	37,655,000
BALANCE SHEET ITEMS
Total Borrowings	11,770,000	11,770,000	0	0
Total Liabilities	552,391,000	550,032,000	576,493,000	567,971,000
Total Assets	1,365,246,000	1,303,530,000	1,271,545,000	1,171,044,000
Net Assets	812,855,000	753,498,000	695,052,000	603,073,000
Net Assets Backing	812,855,000	753,498,000	695,052,000	603,073,000
Shareholders' Funds	812,855,000	753,498,000	695,052,000	603,073,000
Total Share Capital	507,321,000	507,321,000	507,321,000	507,321,000
Total Reserves	305,534,000	246,177,000	187,731,000	95,752,000
LIQUIDITY (Times)
Cash Ratio	0.22	0.23	0.13	0.10
Liquid Ratio	1.39	1.31	1.12	1.07
Current Ratio	1.89	1.79	1.65	1.59
WORKING CAPITAL CONTROL (Days)
Stock Ratio	30	32	41	37
Debtors Ratio	41	44	42	46
Creditors Ratio	45	45	45	48
SOLVENCY RATIOS (Times)
Gearing Ratio	0.01	0.02	0.00	0.00
Liabilities Ratio	0.68	0.73	0.83	0.94
Times Interest Earned Ratio	9.07	10.55	(12.22)	112.88
Assets Backing Ratio	1.60	1.49	1.37	1.19
PERFORMANCE RATIO (%)
Operating Profit Margin	1.99	2.29	3.98	2.17
Net Profit Margin	1.72	1.95	3.63	1.87
Return On Net Assets	9.42	10.15	14.38	10.76
Return On Capital Employed	9.42	10.15	14.38	10.76
Return On Shareholders' Funds/Equity	7.25	7.84	14.19	9.18

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.61
UK Pound	1	Rs.92.95
Euro	1	Rs.68.15

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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