MIRA INFORM REPORT

Report No. :	321024
Report Date :	06.05.2015

IDENTIFICATION DETAILS

Name :	NICHIA CHEMICAL PTE LTD
Registered Office :	78, Shenton Way, 26-03, 079120
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	15.06.2000
Com. Reg. No.:	200005228-C
Legal Form :	Private Limited
Line of Business :	Subject is engaged in the wholesale of led lightings, electronic components.
No. of Employees :	6 [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 :	Slow but correct
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 – 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.	:	200005228-C
COMPANY NAME	:	NICHIA CHEMICAL PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	15/06/2000
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	78, SHENTON WAY, 26-03, 079120, SINGAPORE.
BUSINESS ADDRESS	:	78, SHENTON WAY, 26-03, 079120, SINGAPORE.
TEL.NO.	:	65-63248218
FAX.NO.	:	65-63245756
CONTACT PERSON	:	SATOSHI SUZUKI ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF LED LIGHTINGS, ELECTRONIC COMPONENTS
ISSUED AND PAID UP CAPITAL	:	1,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,000,000.00
SALES	:	USD 29,750,046 [2013]
NET WORTH	:	USD 6,875,790 [2013]
STAFF STRENGTH	:	6 [2015]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	SLOW BUT CORRECT
MANAGEMENT CAPABILITY	:	WEAK
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

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

The Subject is principally engaged in the (as a / as an) wholesale of led lightings, electronic components.

Share Capital History

Date	Issue & Paid Up Capital
25/02/2015	SGD 1,000,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
NICHIA CORPORATION	491, OKA KAMINAKA, ANAN TOKUSHIMAKEN, 774, JAPAN.	T00UF0485J	1,000,000.00	100.00
			---------------	------
			1,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MAKOTO TAKENAKA
Address	:	66, MAIOKA-CHO, TOTSUKA-KU YOKOHAMA-SHI, KANAGAWA, 244-0813, JAPAN.
IC / PP No	:	TZ0650115
Nationality	:	JAPANESE
Date of Appointment	:	16/03/2009

DIRECTOR 2

Name Of Subject	:	SATOSHI SUZUKI
Address	:	6, MOUNT SOPHIA, 06-03, 8, @ MOUNT SOPHIA, 228457, SINGAPORE.
IC / PP No	:	G5470870Q
Nationality	:	JAPANESE
Date of Appointment	:	01/09/2013

DIRECTOR 3

Name Of Subject	:	MR. MASAHIRO NISHIJIMA
Address	:	99, ROBERTSON QUAY, 16-14, RIVERGATE, 238258, SINGAPORE.
IC / PP No	:	G3069643W
Nationality	:	JAPANESE
Date of Appointment	:	01/07/2014

MANAGEMENT

1)	Name of Subject	:	MASAHIRO NISHIJIMA
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	SATOSHI SUZUKI
	Position	:	DIRECTOR

AUDITOR

Auditor	:	K K CHUA & CO
Auditor' Address	:	N/A

Auditor	:	K K CHUA & CO
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	TEH KWANG HWEE
	IC / PP No	:	S1153921A /00975
	Address	:	74, TELOK BLANGAH HEIGHTS, 05-305, 100074, 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	:	30520
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	21/11/2008
Solicitor	:	SYED AHMED JAMAL CHISHTY
Solicitor Ref	:	ACS.7768.08
Solicitor Firm	:	A C SYED & PARTNERS
Plaintiff	:	TAN YANG HONG @ LIM YANG HONG
Defendants	:	NICHIA CHEMICAL PTE LTD (200005228)
Amount Claimed	:	60000
Nature of Claim	:	SGD
Remark	:	TORT - NEGLIGENCE

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. 

CLIENTELE

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

OPERATIONS

Goods Traded

:

LED LIGHTINGS, ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2015
GROUP	N/A
COMPANY	6

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of led lightings, electronic components. 

The Subject engaged in the trading of light emitting diodes (LED), laser diodes, optical semiconductor devices and electronics materials. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63248218
Match	:	N/A
Address Provided by Client	:	78 SHENTON WAY #26-03, SINGAPORE 079120
Current Address	:	78, SHENTON WAY, 26-03, 079120, SINGAPORE.
Match	:	YES

Other Investigations

We contacted one of the staff form the Subject and he provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	(4.68%)	]
Return on Net Assets	:	Unfavourable	[	(4.68%)	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services. Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	7 Days	]
Debtor Ratio	:	Unfavourable	[	88 Days	]
Creditors Ratio	:	Favourable	[	0 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.79 Times	]
Current Ratio	:	Unfavourable	[	1.87 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	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. 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 :
The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. 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 did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. 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)

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 2000, the Subject is a Private Limited company, focusing on wholesale of led lightings, electronic components. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. A paid up capital of SGD 1,000,000 allows the Subject to expand its business more comfortably. With a strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise.

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. Being a small company, the Subject's business operation is supported by 6 employees. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business. 

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. 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 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 6,875,790, 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 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.

NICHIA CHEMICAL PTE LTD

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	SUMMARY	SUMMARY	SUMMARY
Currency	USD	USD	USD	USD	USD
TURNOVER	29,750,046	37,044,228	80,302,165	32,023,231	20,347,348
	----------------	----------------	----------------	----------------	----------------
Total Turnover	29,750,046	37,044,228	80,302,165	32,023,231	20,347,348
Costs of Goods Sold	(28,191,590)	(35,272,756)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	1,558,456	1,771,472	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(322,029)	(231,311)	3,763,851	1,040,311	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(322,029)	(231,311)	3,763,851	1,040,311	-
Taxation	-	4,114	5,000	6,000	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(322,029)	(227,197)	3,768,851	1,046,311	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	6,375,045	10,716,114	9,255,514	8,209,203	8,209,203
Prior year adjustment	-	-	(2,308,251)	-	-
	----------------	----------------	----------------	----------------	----------------
As restated	6,375,045	10,716,114	6,947,263	8,209,203	8,209,203
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	6,053,016	10,488,917	10,716,114	9,255,514	8,209,203
DIVIDENDS - Ordinary (paid & proposed)	-	(4,113,872)	-	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	6,053,016	6,375,045	10,716,114	9,255,514	8,209,203
	=============	=============	=============	=============	=============

BALANCE SHEET

NICHIA CHEMICAL PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	13,912	20,896	392,565	362,851	367,883
Associated companies	242,337	242,337	-	-	-
Others	49,366	49,366	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	291,703	291,703	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	305,615	312,599	392,565	362,851	367,883
Stocks	580,697	1,109,779	-	-	-
Trade debtors	7,161,406	6,963,139	-	-	-
Other debtors, deposits & prepayments	73,961	104,954	-	-	-
Short term deposits	3,800,000	-	-	-	-
Cash & bank balances	2,514,147	3,291,223	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	14,130,211	11,469,095	25,821,907	22,812,109	18,281,108
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	14,435,826	11,781,694	26,214,472	23,174,960	18,648,991
	=============	=============	=============	=============	=============
Other creditors & accruals	66,706	136,334	-	-	-
Amounts owing to holding company	7,438,517	4,415,627	-	-	-
Amounts owing to associated companies	54,813	31,914	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	7,560,036	4,583,875	12,190,107	12,919,446	9,439,788
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	6,570,175	6,885,220	13,631,800	9,892,663	8,841,320
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	822,774	822,774	1,000,000	1,000,000	1,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	822,774	822,774	1,000,000	1,000,000	1,000,000
Retained profit/(loss) carried forward	6,053,016	6,375,045	10,716,114	9,255,514	8,209,203
Others	-	-	-	0	0
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	6,053,016	6,375,045	13,024,365	9,255,514	8,209,203
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
TOTAL LONG TERM LIABILITIES	-	-	-	0	0
	----------------	----------------	----------------	----------------	----------------
	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
	=============	=============	=============	=============	=============

FINANCIAL RATIO

NICHIA CHEMICAL PTE LTD

TYPES OF FUNDS
Cash	6,314,147	3,291,223	-	-	-
Net Liquid Funds	6,314,147	3,291,223	-	-	-
Net Liquid Assets	5,989,478	5,775,441	13,631,800	9,892,663	8,841,320
Net Current Assets/(Liabilities)	6,570,175	6,885,220	13,631,800	9,892,663	8,841,320
Net Tangible Assets	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
Net Monetary Assets	5,989,478	5,775,441	13,631,800	9,892,663	8,841,320
BALANCE SHEET ITEMS
Total Borrowings	0	0	-	-	-
Total Liabilities	7,560,036	4,583,875	12,190,107	12,919,446	9,439,788
Total Assets	14,435,826	11,781,694	26,214,472	23,174,960	18,648,991
Net Assets	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
Net Assets Backing	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
Shareholders' Funds	6,875,790	7,197,819	14,024,365	10,255,514	9,209,203
Total Share Capital	822,774	822,774	1,000,000	1,000,000	1,000,000
Total Reserves	6,053,016	6,375,045	13,024,365	9,255,514	8,209,203
LIQUIDITY (Times)
Cash Ratio	0.84	0.72	-	-	-
Liquid Ratio	1.79	2.26	-	-	-
Current Ratio	1.87	2.50	2.12	1.77	1.94
WORKING CAPITAL CONTROL (Days)
Stock Ratio	7	11	-	-	-
Debtors Ratio	88	69	-	-	-
Creditors Ratio	0	0	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	-	-	-
Liabilities Ratio	1.10	0.64	0.87	1.26	1.03
Times Interest Earned Ratio	0.00	0.00	-	-	-
Assets Backing Ratio	8.36	8.75	14.02	10.26	9.21
PERFORMANCE RATIO (%)
Operating Profit Margin	(1.08)	(0.62)	4.69	3.25	-
Net Profit Margin	(1.08)	(0.61)	4.69	3.27	-
Return On Net Assets	(4.68)	(3.21)	26.84	10.14	-
Return On Capital Employed	(4.68)	(3.21)	26.84	10.14	-
Return On Shareholders' Funds/Equity	(4.68)	(3.16)	26.87	10.20	-
Dividend Pay Out Ratio (Times)	0.00	18.11	-	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.51
UK Pound	1	Rs.95.95
Euro	1	Rs.70.53

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	DPT

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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