MIRA INFORM REPORT

Report No. :	345592
Report Date :	17.10.2015

IDENTIFICATION DETAILS

Name :	DUFERCO ASIA PTE. LTD.
Registered Office :	600, North Bridge Road, 06-03, Parkview Square, 188778
Country :	Singapore
Financials (as on) :	30.09.2014
Date of Incorporation :	10.03.2005
Com. Reg. No.:	200503167-M
Legal Form :	Private Limited
Line of Business :	Wholesale of Metals and Steels.
No. of Employees :	8 [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 – 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.

:

200503167-M

COMPANY NAME

:

DUFERCO ASIA PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/03/2005

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

600, NORTH BRIDGE ROAD, 06-03, PARKVIEW SQUARE, 188778, SINGAPORE.

BUSINESS ADDRESS

:

600, NORTH BRIDGE ROAD, 06-03, PARKVIEW SQUARE, 188778, SINGAPORE.

TEL.NO.

:

65-62962993

FAX.NO.

:

65-62962993

CONTACT PERSON

:

MATTHEW JUSTIN DE MORGAN ( DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF METALS AND STEELS

ISSUED AND PAID UP CAPITAL

:

500.00 ORDINARY SHARE, OF A VALUE OF USD 500,000.00

SALES

:

USD 410,737,972 [2014]

NET WORTH

:

USD 10,870,712 [2014]

STAFF STRENGTH

:

8 [2015]

BANKER (S)

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED UNITED OVERSEAS BANK LIMITED STANDARD CHARTERED BANK SUMITOMO MITSUI BANKING CORPORATION SINGAPORE BRANCH BNP PARIBAS ABN AMRO BANK N.V.

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY/ BACKGROUND

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 metals and steels.

The immediate holding company of the Subject is DUFERCO INTERNATIONAL TRADING HOLDING S.A., a company incorporated in LUXEMBOURG.

The ultimate holding company of the Subject is DUFERCO PARTICIPATIONS HOLDING SA, a company incorporated in LUXEMBOURG.

Share Capital History

Date	Issue & Paid Up Capital
04/06/2015	USD 500,000.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
DUFERCO INTERNATIONAL TRADING HOLDING S.A.	6, RUE GUILLAUME SCHNEIDER, L-2522, LUXEMBOURG.	T05UF1117	500.00	100.00
			---------------	------
			500.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MATTHEW JUSTIN DE MORGAN
Address	:	VIA GERSO 7, 6900, LUGANO TI, SWITZERLAND.
IC / PP No	:	093180644
Nationality	:	BRITISH
Date of Appointment	:	10/03/2005

DIRECTOR 2

Name Of Subject	:	BENEDICT J. SCIORTINO
Address	:	VIA MOTTA 34, 6900, LUGANO TI, SWITZERLAND.
IC / PP No	:	112090964
Nationality	:	AMERICAN
Date of Appointment	:	01/10/2007

DIRECTOR 3

Name Of Subject	:	STEFANO ARANCIO
Address	:	VIA LUCINO 40, CA PRADELLO, 6932 BREGANZONA, SWITZERLAND.
IC / PP No	:	E775810
Nationality	:	ITALIAN
Date of Appointment	:	11/04/2005

DIRECTOR 4

Name Of Subject	:	SUBHENDU BOSE
Address	:	53, GRANGE ROAD, 11-01, SPRING GROVE, 249565, SINGAPORE.
IC / PP No	:	S2766029J
Nationality	:	SINGAPOREAN
Date of Appointment	:	08/10/2009

MANAGEMENT

1)	Name of Subject	:	MATTHEW JUSTIN DE MORGAN
	Position	:	DIRECTOR

2)	Name of Subject	:	SUBHENDU BOSE
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	TEO CHIN KEE
	IC / PP No	:	S2622115C
	Address	:	244, LORONG CHUAN, 07-06, CHUAN PARK, 556745, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

2)

Name

:

UNITED OVERSEAS BANK LIMITED

3)

Name

:

STANDARD CHARTERED BANK

4)

Name

:

SUMITOMO MITSUI BANKING CORPORATION SINGAPORE BRANCH

5)

Name

:

BNP PARIBAS

6)

Name

:

ABN AMRO BANK N.V.

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200507799	16/12/2005	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied
C200702043	15/03/2007	N/A	THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200809140	03/10/2008	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied
C200901419	05/03/2009	N/A	SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)	-	Unsatisfied
C201300602	14/01/2013	N/A	DBS BANK LTD.	-	Unsatisfied
C201315427	18/11/2013	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201404162	25/04/2014	N/A	ABN AMRO BANK N.V.	-	Unsatisfied

LITIGATION CHECK AGAINST SUBJECT

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

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	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	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

METALS AND STEELS

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	8	8	8	10	10

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of metals and steels.

The Subject sells steel, metal and other related products.

The products are used in construction, manufacturing, engineering and others.

The Subject sells the products according to its customers' orders.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62962993
Match	:	N/A
Address Provided by Client	:	600, NORTH BRIDGE ROAD, 06-03, PARKVIEW SQUARE,188778,SINGAPORE
Current Address	:	600, NORTH BRIDGE ROAD, 06-03, PARKVIEW SQUARE, 188778, SINGAPORE.
Match	:	YES

Other Investigations

We contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Favourable	[	46.32%	]
Return on Net Assets	:	Favourable	[	64.45%	]
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. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	14 Days	]
Creditors Ratio	:	Favourable	[	12 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	:	Acceptable	[	4.76 Times	]
Gearing Ratio	:	Unfavourable	[	6.12 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 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. 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'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 : FAIR

SINGAPORE ECONOMIC/ INDUSTRY OUTLOOK

Major Economic Indicators :	2010	2011	2012	2013	2014
Population (Million)	5.08	5.18	5.31	5.40	5.47
Gross Domestic Products ( % )	14.5	4.9	1.3	3.7	(3.5)
Consumer Price Index	2.8	5.2	4.6	2.4	2.4
Total Imports (Million)	423,221.8	459,655.1	474,554.0	466,762.0	463,779.1
Total Exports (Million)	478,840.7	514,741.2	510,329.0	513,391.0	518,922.7
Unemployment Rate (%)	2.2	2.1	2.0	1.9	1.9
Tourist Arrival (Million)	11.64	13.17	14.49	15.46	15.01
Hotel Occupancy Rate (%)	85.6	86.5	86.4	86.3	85.5
Cellular Phone Subscriber (Million)	1.43	1.50	1.52	1.97	1.98
Registration of New Companies (No.)	29,798	32,317	31,892	37,288	41,589
Registration of New Companies (%)	12.8	8.5	(1.3)	9.8	11.5
Liquidation of Companies (No.)	15,126	19,005	17,218	17,369	18,767
Liquidation of Companies (%)	(32.5)	25.6	9.4	(5.3)	8.0
Registration of New Businesses (No.)	23,978	23,494	24,788	22,893	35,773
Registration of New Businesses (%)	(10.78)	2.02	5.51	1.70	56.30
Liquidation of Businesses (No.)	24,211	23,005	22,489	22,598	22,098
Liquidation of Businesses (%)	2.8	(5)	(2.2)	0.5	(2.2)
Bankruptcy Orders (No.)	1,537	1,527	1,748	1,992	1,757
Bankruptcy Orders (%)	(25.3)	(0.7)	14.5	14.0	(11.8)
Bankruptcy Discharges (No.)	2,252	1,391	1,881	2,584	3,546
Bankruptcy Discharges (%)	(26.3)	(38.2)	35.2	37.4	37.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(10.5)	12.10	(0.5)	-	2.80
Manufacturing *	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	96.4	100.0	103.5	103.5	105.0
Textiles	122.1	100.0	104.0	87.1	74.9
Wearing Apparel	123.3	100.0	92.1	77.8	49.5
Leather Products & Footwear	81.8	100.0	98.6	109.8	95.9
Wood & Wood Products	104.0	100.0	95.5	107.4	112.0
Paper & Paper Products	106.1	100.0	97.4	103.2	103.4
Printing & Media	103.5	100.0	93.0	86.1	80.3
Crude Oil Refineries	95.6	100.0	99.4	93.5	85.6
Chemical & Chemical Products	97.6	100.0	100.5	104.1	114.0
Pharmaceutical Products	75.3	100.0	109.7	107.2	115.7
Rubber & Plastic Products	112.3	100.0	96.5	92.9	92.8
Non-metallic Mineral	92.5	100.0	98.2	97.6	82.2
Basic Metals	102.2	100.0	90.6	76.5	98.3
Fabricated Metal Products	103.6	100.0	104.3	105.1	105.1
Machinery & Equipment	78.5	100.0	112.9	114.5	124.0
Electrical Machinery	124.1	100.0	99.3	108.5	121.3
Electronic Components	113.6	100.0	90.6	94.3	95.0
Transport Equipment	94.0	100.0	106.3	107.5	103.2
Construction	14.20	20.50	28.70	-	22.00
Real Estate	21.3	25.4	31.9	-	145.1
Services
Electricity, Gas & Water	4.00	7.00	6.30	-
Transport, Storage & Communication	12.80	7.40	5.30	-	14.20
Finance & Insurance	(0.4)	8.90	0.50	-	6.00
Government Services	9.70	6.90	6.00	-
Education Services	(0.9)	(1.4)	0.30	-	5.98
* 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 2005, the Subject is a Private Limited company, focusing on wholesale of metals and steels. 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. We noted that the issued and paid up capital of the Subject stands at USD 500,000. However, 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 8 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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 10,870,712, 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.

DUFERCO ASIA PTE. LTD.

Financial Year End	2014-09-30	2013-09-30	2012-09-30	2011-09-30	2010-09-30
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	FULL	FULL	FULL
Currency	USD	USD	USD	USD	USD
TURNOVER	410,737,972	361,268,640	351,487,879	341,112,189	186,076,927
Other Income	2,820,389	2,850,338	1,535,927	2,554,827	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	413,558,361	364,118,978	353,023,806	343,667,016	186,076,927
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	5,535,530	4,821,470	3,963,980	5,253,970	4,942,937
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	5,535,530	4,821,470	3,963,980	5,253,970	4,942,937
Taxation	(500,332)	(443,338)	(349,477)	(587,457)	(388,083)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	5,035,198	4,378,132	3,614,503	4,666,513	4,554,854
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	9,335,514	4,957,382	1,342,879	2,376,366	4,821,512
	----------------	----------------	----------------	----------------	----------------
As restated	9,335,514	4,957,382	1,342,879	2,376,366	4,821,512
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	14,370,712	9,335,514	4,957,382	7,042,879	9,376,366
DIVIDENDS - Ordinary (paid & proposed)	(4,000,000)	-	-	(5,700,000)	(7,000,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	10,370,712	9,335,514	4,957,382	1,342,879	2,376,366
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	1,470,979	1,335,172	60,884	42,599	44,249
	----------------	----------------	----------------	----------------	----------------
	1,470,979	1,335,172	60,884	42,599	44,249
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	3,461	9,341	14,521	14,960	8,663
	----------------	----------------	----------------	----------------	----------------
	3,461	9,341	14,521	14,960	8,663
	=============	=============	=============	=============	=============

BALANCE SHEET

DUFERCO ASIA PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	14,819	4,968	11,532	24,735	35,790
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	14,819	4,968	11,532	24,735	35,790
Trade debtors	16,110,494	34,932,624	18,064,762	6,139,545	3,906,929
Other debtors, deposits & prepayments	1,815,679	334,055	905,811	378,426	182,198
Loans & advances - current portion	-	-	-	-	2,405
Amount due from holding company	61,689,578	62,449,951	1,797,552	322,856	-
Amount due from related companies	-	-	-	-	517,201
Cash & bank balances	12,726,727	5,255,030	4,713,748	6,412,344	2,702,234
Others	-	-	-	6,115,594	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	92,342,478	102,971,660	25,481,873	19,368,765	7,310,967
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	92,357,297	102,976,628	25,493,405	19,393,500	7,346,757
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	13,929,538	30,418,624	17,436,691	836,301	2,991,438
Other creditors & accruals	538,761	653,007	469,940	468,626	460,429
Short term borrowings/Term loans	65,000,000	60,000,000	-	-	-
Other borrowings	1,487,520	-	1,455,410	-	-
Other liabilities & accruals	-	-	-	360,708	-
Amounts owing to holding company	-	-	-	3,700,000	-
Amounts owing to related companies	6,750	1,612,192	276,099	-	282,850
Provision for taxation	524,016	455,637	396,229	523,090	491,179
Other liabilities	-	-	-	11,660,242	242,841
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	81,486,585	93,139,460	20,034,369	17,548,967	4,468,737
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	10,855,893	9,832,200	5,447,504	1,819,798	2,842,230
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	10,870,712	9,837,168	5,459,036	1,844,533	2,878,020
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	500,000	500,000	500,000	500,000	500,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	500,000	500,000	500,000	500,000	500,000
Retained profit/(loss) carried forward	10,370,712	9,335,514	4,957,382	1,342,879	2,376,366
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	10,370,712	9,335,514	4,957,382	1,342,879	2,376,366
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	10,870,712	9,835,514	5,457,382	1,842,879	2,876,366
Deferred taxation	-	1,654	1,654	1,654	1,654
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	1,654	1,654	1,654	1,654
	----------------	----------------	----------------	----------------	----------------
	10,870,712	9,837,168	5,459,036	1,844,533	2,878,020
	=============	=============	=============	=============	=============

FINANCIAL RATIO

DUFERCO ASIA PTE. LTD.

TYPES OF FUNDS
Cash	12,726,727	5,255,030	4,713,748	6,412,344	2,702,234
Net Liquid Funds	12,726,727	5,255,030	4,713,748	6,412,344	2,702,234
Net Liquid Assets	10,855,893	9,832,200	5,447,504	1,819,798	2,842,230
Net Current Assets/(Liabilities)	10,855,893	9,832,200	5,447,504	1,819,798	2,842,230
Net Tangible Assets	10,870,712	9,837,168	5,459,036	1,844,533	2,878,020
Net Monetary Assets	10,855,893	9,830,546	5,445,850	1,818,144	2,840,576
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	7,006,509	6,156,642	4,024,864	5,296,569	4,987,186
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	7,009,970	6,165,983	4,039,385	5,311,529	4,995,849
BALANCE SHEET ITEMS
Total Borrowings	66,487,520	60,000,000	1,455,410	0	0
Total Liabilities	81,486,585	93,141,114	20,036,023	17,550,621	4,470,391
Total Assets	92,357,297	102,976,628	25,493,405	19,393,500	7,346,757
Net Assets	10,870,712	9,837,168	5,459,036	1,844,533	2,878,020
Net Assets Backing	10,870,712	9,835,514	5,457,382	1,842,879	2,876,366
Shareholders' Funds	10,870,712	9,835,514	5,457,382	1,842,879	2,876,366
Total Share Capital	500,000	500,000	500,000	500,000	500,000
Total Reserves	10,370,712	9,335,514	4,957,382	1,342,879	2,376,366
LIQUIDITY (Times)
Cash Ratio	0.16	0.06	0.24	0.37	0.60
Liquid Ratio	1.13	1.11	1.27	1.10	1.64
Current Ratio	1.13	1.11	1.27	1.10	1.64
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	0	0	0
Debtors Ratio	14	35	19	7	8
Creditors Ratio	12	31	18	1	6
SOLVENCY RATIOS (Times)
Gearing Ratio	6.12	6.10	0.27	0	0
Liabilities Ratio	7.50	9.47	3.67	9.52	1.55
Times Interest Earned Ratio	4.76	4.61	66.11	124.34	112.71
Assets Backing Ratio	21.74	19.67	10.92	3.69	5.76
PERFORMANCE RATIO (%)
Operating Profit Margin	1.35	1.33	1.13	1.54	2.66
Net Profit Margin	1.23	1.21	1.03	1.37	2.45
Return On Net Assets	64.45	62.59	73.73	287.15	173.29
Return On Capital Employed	64.45	62.59	73.73	287.15	173.29
Return On Shareholders' Funds/Equity	46.32	44.51	66.23	253.22	158.35
Dividend Pay Out Ratio (Times)	0.79	0	0	1.22	1.54
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.97
UK Pound	1	Rs.100.55
Euro	1	Rs.73.99

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	ANK

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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