MIRA INFORM REPORT

 

 

Report No. :

350806

Report Date :

17.11.2015

 

IDENTIFICATION DETAILS

 

Name :

BAOSTEEL SINGAPORE PTE LTD

 

 

Registered Office :

7, Temasek Boulevard, 40-02/03, Suntec Tower One, 038987

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

25.02.1997

 

 

Com. Reg. No.:

199701206-Z

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of steel and steel-related products.

 

 

No. of Employees :

25 [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.

:

199701206-Z

COMPANY NAME

:

BAOSTEEL SINGAPORE PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/02/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE, 038987, SINGAPORE.

BUSINESS ADDRESS

:

7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE, 038987, SINGAPORE.

TEL.NO.

:

65-63336818

FAX.NO.

:

65-63336819

WEB SITE

:

WWW.BAOSTEEL.SG

CONTACT PERSON

:

HU HONG ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF STEEL AND STEEL-RELATED PRODUCTS

ISSUED AND PAID UP CAPITAL

:

1,419,036.00 ORDINARY SHARE, OF A VALUE OF SGD 1,419,036.00

SALES

:

USD 2,151,045,221 [2014]

NET WORTH

:

USD 131,015,427 [2014]

STAFF STRENGTH

:

25 [2015]

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

SATISFACTORY

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

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) trading of steel and steel-related products.


The ultimate holding company of the Subject is BAOSTEEL COMPANY CORPORATION LIMITED, a company incorporated in CHINA.

The intermediate holding company of the Subject is BAOSHAN IRON & STEEL CO. LTD., a company incorporated in CHINA.

 

Share Capital History

Date

Issue & Paid Up Capital

08/07/2015

SGD 1,419,036.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

BAOSHAN IRON & STEEL CO., LTD.

885, FUJIN ROAD, BAOSHAN DISTRICT, 201900, SHANGHAI, CHINA.

T10UF4045

1,419,036.00

100.00

---------------

------

1,419,036.00

100.00

============

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

INDIA

BAOSTEEL INDIA CO PRIVATE LTD

100.00

31/12/2014

 

 

DIRECTORS

DIRECTOR 1

Name Of Subject

:

QIU CHENGZHI

Address

:

62, BAYSHORE ROAD, 08-03, PEARL TOWER, 469983, SINGAPORE.

IC / PP No

:

F5522963P

Nationality

:

CHINESE

Date of Appointment

:

25/02/1997

DIRECTOR 2

Name Of Subject

:

WANG JING

Address

:

ROOM 202, 71 BAOSHAN JIUCUN, BAOSHAN DISTRICT, SHANGHAI, CHINA.

IC / PP No

:

PE0417766

Nationality

:

CHINESE

Date of Appointment

:

19/12/2014

DIRECTOR 3

Name Of Subject

:

HU HONG

Address

:

ROOM 1602, 66-4, QINGDAO ROAD, HUANGPU DISTRICT, SHANGHAI, PRC, CHINA.

IC / PP No

:

PE0347888

Nationality

:

CHINESE

Date of Appointment

:

19/12/2014

 

 

MANAGEMENT

 

1)

Name of Subject

:

HU HONG

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG LLP

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

TEO HUI YONG

IC / PP No

:

S0214050J

Address

:

28, KIM TIAN ROAD, 35-08, TWIN REGENCY, 169278, 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

:

4421

Year

:

2009

Place

:

SINGAPORE

Court

:

DISTRICT COURT

Date Filed

:

18/12/2009

Solicitor

:

LEE SHERGILL LLP

Solicitor Ref

:

LSP/RSS/3152/09/V C

Solicitor Firm

:

LEE SHERGILL LLP

Plaintiff

:

DANIEL TAN YU MENG

Defendants

:

BAOSTEEL SINGAPORE PTE LTD (199701206)

7 TEMASEK BOULEVARD, 04-02/03 SUNTEC TOWER ONE, 038987, SINGAPORE.

Amount Claimed

:

2084

320

5000

Nature of Claim

:

SGD

SGD

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.

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

:

ASIA PACIFIC

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

STEEL AND STEEL-RELATED PRODUCTS

 

Total Number of Employees:

YEAR

2015

GROUP

N/A

COMPANY

25

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of steel and steel-related products.

The Subject is engaged in the supply high-tech and high value-added steel products, including carbon steel, stainless steel and special steel, in the series of cold rolled sheets or coils, hot rolled plates or coils, long products and tubular products.

They are widely used in industries as automobile, household appliances, oil exploration, oil and gas transmission, shipbuilding, boiler and pressure vessel, electrical equipments, food and beverage packaging, construction.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

6563336818

Current Telephone Number

:

65-63336818

Match

:

YES

Address Provided by Client

:

7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE,038987,

Current Address

:

7, TEMASEK BOULEVARD, 40-02/03, SUNTEC TOWER ONE, 038987, 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

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

11.05%

]

Return on Net Assets

:

Acceptable

[

19.08%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

11 Days

]

Creditors Ratio

:

Favourable

[

9 Days

]

As the Subject is a service oriented company, the Subject does not need to keep 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

[

1.13 Times

]

Current Ratio

:

Unfavourable

[

1.13 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

:

Unfavourable

[

2.19 Times

]

Gearing Ratio

:

Unfavourable

[

6.75 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 :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. 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 :

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 1997, the Subject is a Private Limited company, focusing on trading of steel and steel-related products. 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 1,419,036 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise.

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 25 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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. 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. 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 USD 131,015,427, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

12

Consolidated Account

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

USD

USD

USD

USD

USD

TURNOVER

2,151,045,221

1,527,989,407

747,170,283

672,165,668

490,197,614

Other Income

2,030,023

7,033,321

3,199,449

1,693,826

70,031

----------------

----------------

----------------

----------------

----------------

Total Turnover

2,153,075,244

1,535,022,728

750,369,732

673,859,494

490,267,645

Costs of Goods Sold

(2,091,420,244)

(1,497,240,952)

(714,436,687)

(636,217,274)

(458,398,804)

----------------

----------------

----------------

----------------

----------------

Gross Profit

61,655,000

37,781,776

35,933,045

37,642,220

31,868,841

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

15,151,508

13,836,340

13,648,674

17,051,919

14,028,808

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

15,151,508

13,836,340

13,648,674

17,051,919

14,028,808

Taxation

(668,848)

(1,040,874)

(1,141,623)

(1,299,384)

(853,340)

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

14,482,660

12,795,466

12,507,051

15,752,535

13,175,468

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

113,559,928

100,764,462

88,257,411

72,504,876

59,329,408

Prior year adjustment

297,641

-

-

-

-

----------------

----------------

----------------

----------------

----------------

As restated

113,857,569

100,764,462

88,257,411

72,504,876

59,329,408

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

128,340,229

113,559,928

100,764,462

88,257,411

72,504,876

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

128,340,229

113,559,928

100,764,462

88,257,411

72,504,876

=============

=============

=============

=============

=============

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

-

-

254,077

-

Others

12,708,869

3,519,038

1,496,675

-

-

----------------

----------------

----------------

----------------

----------------

12,708,869

3,519,038

1,496,675

254,077

-

=============

=============

=============

=============

-

DEPRECIATION (as per notes to P&L)

209,908

200,341

193,598

255,877

257,316

AMORTIZATION

3,356

3,356

-

-

-

----------------

----------------

----------------

----------------

----------------

213,264

203,697

193,598

255,877

257,316

=============

=============

=============

=============

=============

 

 

BALANCE SHEET

 

ASSETS EMPLOYED:

FIXED ASSETS

12,743,382

7,026,580

3,797,406

3,953,444

4,105,623

Investments

10,365,115

10,552,830

10,766,712

4,000,000

-

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

10,365,115

10,552,830

10,766,712

4,000,000

-

Others

20,138

23,494

26,850

30,206

33,562

----------------

----------------

----------------

----------------

----------------

TOTAL INTANGIBLE ASSETS

20,138

23,494

26,850

30,206

33,562

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

23,128,635

17,602,904

14,590,968

7,983,650

4,139,185

Trade debtors

65,866,642

133,255,775

65,427,810

38,275,781

23,960,941

Other debtors, deposits & prepayments

14,574,911

231,751

316,404

928,945

760,140

Short term deposits

97,933,580

38,224,287

18,273,009

49,838,006

-

Loans & advances - current portion

37,531,852

15,068,074

16,188,872

-

-

Amount due from holding company

798,069,205

723,919,763

83,935,672

-

-

Amount due from related companies

58,382,356

135,487,602

-

-

-

Cash & bank balances

27,528,620

12,969,667

19,211,425

14,315,560

65,148,048

Others

477,892

470,379

1,248,596

2,633,081

-

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

1,100,365,058

1,059,627,298

204,601,788

105,991,373

89,869,129

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

1,123,493,693

1,077,230,202

219,192,756

113,975,023

94,008,314

=============

=============

=============

=============

=============

CURRENT LIABILITIES

Trade creditors

51,785,224

44,638,496

21,735,512

19,494,975

1,874,824

Other creditors & accruals

35,676,170

1,316,577

1,108,865

4,128,937

7,432,269

Short term borrowings/Term loans

869,190,475

894,167,079

85,240,792

-

-

Amounts owing to holding company

6,742,878

12,680,903

3,341,786

-

9,745,190

Amounts owing to related companies

8,433,526

4,909,939

2,541,336

-

692,355

Provision for taxation

830,500

1,052,000

1,080,000

1,072,700

737,800

Other liabilities

4,778,494

4,425,444

2,359,003

-

-

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

977,437,267

963,190,438

117,407,294

24,696,612

20,482,438

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

122,927,791

96,436,860

87,194,494

81,294,761

69,386,691

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

146,056,426

114,039,764

101,785,462

89,278,411

73,525,876

=============

=============

=============

=============

=============

SHARE CAPITAL

Ordinary share capital

980,001

980,001

980,001

980,001

980,001

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

980,001

980,001

980,001

980,001

980,001

Exchange equalisation/fluctuation reserve

(1,007,162)

(541,164)

-

-

-

Retained profit/(loss) carried forward

128,340,229

113,559,928

100,764,462

88,257,411

72,504,876

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

127,333,067

113,018,764

100,764,462

88,257,411

72,504,876

MINORITY INTEREST

2,702,359

-

-

-

-

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

131,015,427

113,998,765

101,744,463

89,237,412

73,484,877

Long term loans

15,000,000

-

-

-

-

Deferred taxation

40,999

40,999

40,999

40,999

40,999

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

15,040,999

40,999

40,999

40,999

40,999

----------------

----------------

----------------

----------------

----------------

146,056,426

114,039,764

101,785,462

89,278,411

73,525,876

=============

=============

=============

=============

=============

 

 

FINANCIAL RATIO

 

TYPES OF FUNDS

Cash

125,462,200

51,193,954

37,484,434

64,153,566

65,148,048

Net Liquid Funds

125,462,200

51,193,954

37,484,434

64,153,566

65,148,048

Net Liquid Assets

122,927,791

96,436,860

87,194,494

81,294,761

69,386,691

Net Current Assets/(Liabilities)

122,927,791

96,436,860

87,194,494

81,294,761

69,386,691

Net Tangible Assets

146,036,288

114,016,270

101,758,612

89,248,205

73,492,314

Net Monetary Assets

107,886,792

96,395,861

87,153,495

81,253,762

69,345,692

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

27,860,377

17,355,378

15,145,349

17,305,996

14,028,808

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

28,073,641

17,559,075

15,338,947

17,561,873

14,286,124

BALANCE SHEET ITEMS

Total Borrowings

884,190,475

894,167,079

85,240,792

0

0

Total Liabilities

992,478,266

963,231,437

117,448,293

24,737,611

20,523,437

Total Assets

1,123,493,693

1,077,230,202

219,192,756

113,975,023

94,008,314

Net Assets

146,056,426

114,039,764

101,785,462

89,278,411

73,525,876

Net Assets Backing

131,015,427

113,998,765

101,744,463

89,237,412

73,484,877

Shareholders' Funds

131,015,427

113,998,765

101,744,463

89,237,412

73,484,877

Total Share Capital

980,001

980,001

980,001

980,001

980,001

Total Reserves

127,333,067

113,018,764

100,764,462

88,257,411

72,504,876

LIQUIDITY (Times)

Cash Ratio

0.13

0.05

0.32

2.60

3.18

Liquid Ratio

1.13

1.10

1.74

4.29

4.39

Current Ratio

1.13

1.10

1.74

4.29

4.39

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

0

0

0

Debtors Ratio

11

32

32

21

18

Creditors Ratio

9

11

11

11

1

SOLVENCY RATIOS (Times)

Gearing Ratio

6.75

7.84

0.84

0.00

0.00

Liabilities Ratio

7.58

8.45

1.15

0.28

0.28

Times Interest Earned Ratio

2.19

4.93

10.12

68.11

0.00

Assets Backing Ratio

149.02

116.34

103.84

91.07

74.99

PERFORMANCE RATIO (%)

Operating Profit Margin

0.70

0.91

1.83

2.54

2.86

Net Profit Margin

0.67

0.84

1.67

2.34

2.69

Return On Net Assets

19.08

15.22

14.88

19.38

19.08

Return On Capital Employed

18.73

15.22

14.88

19.38

19.07

Return On Shareholders' Funds/Equity

11.05

11.22

12.29

17.65

17.93

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.17

UK Pound

1

Rs.100.65

Euro

1

Rs.70.97

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

 

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.