MIRA INFORM REPORT

Report No. :	345725
Report Date :	20.10.2015

IDENTIFICATION DETAILS

Name :	COURTS (SINGAPORE) PTE. LTD.
Formerly Known As :	COURTS (SINGAPORE) LIMITED. COURTS (SINGAPORE) PTE LTD
Registered Office :	50, Tampines North Drive 2, 528766
Country :	Singapore
Financials (as on) :	31.03.2015
Date of Incorporation :	25.07.1973
Com. Reg. No.:	197301411-C
Legal Form :	Private Limited
Line of Business :	The Subject is engaged in the retail sale of furnishings (eg curtains, carpets, pillow cases).
No. of Employees :	750

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.

:

197301411-C

COMPANY NAME

:

COURTS (SINGAPORE) PTE. LTD.

FORMER NAME

:

COURTS (SINGAPORE) LIMITED. (09/04/2009)
COURTS (SINGAPORE) PTE LTD (14/10/1992)

INCORPORATION DATE

:

25/07/1973

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

50, TAMPINES NORTH DRIVE 2, 528766, SINGAPORE.

BUSINESS ADDRESS

:

50, TAMPINES NORTH DRIVE 2, 528766, SINGAPORE.

TEL.NO.

:

65-63097888

FAX.NO.

:

65-67848076

EMAIL

:

ECOURTS@COURTS.COM.SG

WEB SITE

:

WWW.COURTS.COM.SG

CONTACT PERSON

:

TERENCE DONALD O'CONNOR ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

RETAIL SALE OF FURNISHINGS (EG CURTAINS, CARPETS, PILLOW CASES)

ISSUED AND PAID UP CAPITAL

:

160,876,000.00 ORDINARY SHARE, OF A VALUE OF SGD 49,528,742.00 

SALES

:

SGD 504,558,000 [2015]

NET WORTH

:

SGD 102,256,000 [2015]

STAFF STRENGTH

:

750 [2015]

BANKER (S)

:

STANDARD BANK ASIA LTD STANDARD CHARTERED BANK THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD UNITED OVERSEAS BANK LTD

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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) retail sale of furnishings (eg curtains, carpets, pillow cases).

The immediate holding company of the Subject is COURTS ASIA PTE LTD, a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
16/10/2015	SGD 49,528,742.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
COURTS ASIA PTE LTD	50, TAMPINES NORTH DRIVE 2, COURTS MEGASTORE, 528766, SINGAPORE.	201001347K	160,876,000.00	100.00
			---------------	------
			160,876,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
200404130K	SINGAPORE	ASSETRUST PTE. LTD.	-	100.00	16/10/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	JACK HENNESSY
Address	:	2, BATTERY ROAD, 23-01, MAYBANK TOWER, 049907, SINGAPORE.
IC / PP No	:	S6963126F
Nationality	:	AUSTRALIAN
Date of Appointment	:	16/07/2007

DIRECTOR 2

Name Of Subject	:	KEE KIM ENG
Address	:	966, DUNEARN ROAD, 05-10, JARDIN, 589488, SINGAPORE.
IC / PP No	:	S1568008C
Nationality	:	SINGAPOREAN
Date of Appointment	:	31/05/2012

DIRECTOR 3

Name Of Subject	:	MR. TERENCE DONALD O'CONNOR
Address	:	22, FARRER ROAD, 08-04, WILSHIRE APARTMENT, 268828, SINGAPORE.
IC / PP No	:	S6869467A
Nationality	:	SINGAPOREAN
Date of Appointment	:	02/01/1995

DIRECTOR 4

Name Of Subject	:	STEVEN WILLIAM CHURCH
Address	:	18/20, EDEN VILLA M.1, SOI BANGWAN, HUAKAUN ROAD KAMALA, KATHU, PHUKET, 83120, PHUKET, THAILAND.
IC / PP No	:	740224858
Nationality	:	BRITISH
Date of Appointment	:	03/01/2000

DIRECTOR 5

Name Of Subject	:	IBRAHIM ABDELAZIM ABOUTALEB
Address	:	SALWA, BLOCK 4, STREET 2, BUILDING 297, APARTMENT 3, KUWAIT.
IC / PP No	:	506047448
Nationality	:	AMERICAN
Date of Appointment	:	30/06/2015

MANAGEMENT

1)	Name of Subject	:	TERENCE DONALD O'CONNOR
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	ANG SIEW KOON
	IC / PP No	:	S1721860C
	Address	:	122, YISHUN STREET 11, 06-463, 760122, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

STANDARD BANK ASIA LTD

2)

Name

:

STANDARD CHARTERED BANK

3)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

4)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

5)

Name

:

UNITED OVERSEAS BANK LTD

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	:	3891
Year	:	2006	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	17/02/2006
Solicitor	:	SIOW JIT THONG
Solicitor Ref	:	DS/110016/0105/PPC 602
Solicitor Firm	:	DAVID SIOW CHUA & TAN LLC
Plaintiff	:	BESON KOH KOK TIONG (BESON XU GUOZHONG)
Defendants	:	COURTS (SINGAPORE) PTE. LTD. (197301411) 50 TAMPINES NORTH DRIVE 2, 528766, SINGAPORE.
Hearing Date	:	N/A
Amount Claimed	:	132
Nature of Claim	:	SGD
Remark	:	TORT - NEGLIGENCE
Code No	:	99	Case No	:	8473
Year	:	2006	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	05/04/2006
Solicitor	:	SIOW JIT THONG
Solicitor Ref	:	DS/110016A/0105/PPC 589
Solicitor Firm	:	DAVID SIOW CHUA & TAN LLC
Plaintiff	:	LIM SHU FEN ANGELIA (LIM SHUFEN ANGELIA)
Defendants	:	COURTS (SINGAPORE) PTE. LTD. (197301411) 50 TAMPINES NORTH DRIVE 2, 528766, SINGAPORE.
Hearing Date	:	N/A
Amount Claimed	:	115
Nature of Claim	:	SGD
Remark	:	TORT - NEGLIGENCE
Code No	:	99	Case No	:	31802
Year	:	2009	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	18/10/2009
Solicitor Ref	:	LLH/GB/1216/0409/ PHB
Solicitor Firm	:	TOMMY CHOO MARK GO & PARTNERS
Plaintiff	:	ABDUL HAMID BIN MOHAMED IBRAHIM
Defendants	:	COURTS (SINGAPORE) PTE. LTD. (197301411)
Hearing Date	:	N/A
Amount Claimed	:	5900
Nature of Claim	:	SGD
Remark	:	TORT - NEGLIGENCE
Code No	:	99	Case No	:	455
Year	:	2015	Place	:	SINGAPORE
Court	:	SESSIONS COURT
Date Filed	:	08/05/2015
Solicitor	:	NG CHEE WENG
Solicitor Ref	:	16556LF160
Solicitor Firm	:	GATEWAY LAW CORPORATION
Plaintiff	:	CHALLENGER TECHNOLOGIES LIMITED
Defendants	:	COURTS (SINGAPORE) PTE. LTD. (197301411)
Hearing Date	:	N/A
Remark	:	TRADE MARKS SERVICE MARKS AND TRADE NAMES

No winding up petition was found in our databank

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES	Percentage	:	45%
Overseas	:	YES	Percentage	:	55%

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	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	SINGAPORE
Overseas	:	NO
Credit Term	:	14-30 DAYS
Payment Mode	:	CASH

OPERATIONS

Goods Traded

:

FURNISHINGS, HOUSEHOLD ELECTRICAL APPLIANCES AND EQUIPMENT

Member(s) / Affiliate(s)

:

BRITISH CHAMBER OF COMMERCE

SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	750	770	770	530	530

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) retail sale of furnishings (eg curtains, carpets, pillow cases). 

The Subject is involved in retailing of furnishings, furnitures, upholstered furniture, electrical appliances, computers and IT, telecommunication products, household goods.
The Subject is one of the leading company in home appliances and furnitures. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63097888
Match	:	N/A
Address Provided by Client	:	50 TAMPINES NORTH DRIVE 2 SINGAPORE 528766
Current Address	:	50, TAMPINES NORTH DRIVE 2, 528766, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2011 - 2015	]
Profit/(Loss) Before Tax	:	Decreased	[	2011 - 2015	]
Return on Shareholder Funds	:	Unfavourable	[	7.23%	]
Return on Net Assets	:	Unfavourable	[	8.06%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.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	[	37 Days	]
Debtor Ratio	:	Acceptable	[	61 Days	]
Creditors Ratio	:	Favourable	[	53 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 management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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	[	1.57 Times	]
Current Ratio	:	Favourable	[	2.08 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	[	1.97 Times	]
Gearing Ratio	:	Favourable	[	0.66 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 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 :
The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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 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 : 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 1973, the Subject is a Private Limited company, focusing on retail sale of furnishings (eg curtains, carpets, pillow cases). The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of SGD 49,528,742. We are confident with the Subject's business and its future growth prospect. The Subject is well backed by a listed holding company which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a large entity, the Subject has a steady workforce of 750 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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 SGD 102,256,000, 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.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

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.

Financial Year End	2015-03-31	2014-03-31	2013-03-31	2012-03-31	2011-03-31
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	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	504,558,000	567,165,000	543,386,000	488,203,000	453,958,000
Other Income	1,982,000	1,703,000	2,016,000	2,187,000	1,800,000
	----------------	----------------	----------------	----------------	----------------
Total Turnover	506,540,000	568,868,000	545,402,000	490,390,000	455,758,000
Costs of Goods Sold	(391,811,000)	(449,688,000)	(419,166,000)	(375,498,000)	(358,766,000)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	114,729,000	119,180,000	126,236,000	114,892,000	96,992,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	8,755,000	10,887,000	27,465,000	22,839,000	15,018,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	8,755,000	10,887,000	27,465,000	22,839,000	15,018,000
Taxation	(1,365,000)	(1,889,000)	(4,418,000)	(3,882,000)	(1,295,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	7,390,000	8,998,000	23,047,000	18,957,000	13,723,000
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	45,337,000	36,339,000	16,292,000	23,387,000	26,918,000
	----------------	----------------	----------------	----------------	----------------
As restated	45,337,000	36,339,000	16,292,000	23,387,000	26,918,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	52,727,000	45,337,000	39,339,000	42,344,000	40,641,000
DIVIDENDS - Ordinary (paid & proposed)	-	-	(3,000,000)	(26,052,000)	(17,254,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	52,727,000	45,337,000	36,339,000	16,292,000	23,387,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	4,442,000	4,835,000	6,939,000	8,648,000	7,241,000
Others	4,588,000	3,375,000	1,145,000	790,000	405,000
	----------------	----------------	----------------	----------------	----------------
	9,030,000	8,210,000	8,084,000	9,438,000	7,646,000
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	6,797,000	6,884,000	5,471,000	4,227,000	4,509,000
AMORTIZATION	(613,000)	(1,362,000)	(2,015,000)	(1,335,000)	(1,130,000)
	----------------	----------------	----------------	----------------	----------------
	6,184,000	5,522,000	3,456,000	2,892,000	3,379,000
	=============	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	9,281,000	12,411,000	11,310,000	7,142,000	6,418,000
Deferred assets	257,000	72,000	773,000	2,158,000	2,259,000
Others	101,228,000	97,527,000	103,790,000	89,639,000	96,363,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	101,485,000	97,599,000	104,563,000	91,797,000	98,622,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	-	-	-	1,656,000	1,366,000
Computer software	1,676,000	1,842,000	1,959,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	1,676,000	1,842,000	1,959,000	1,656,000	1,366,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	112,442,000	111,852,000	117,832,000	100,595,000	106,406,000
Stocks	50,824,000	49,625,000	41,617,000	39,900,000	36,738,000
Trade debtors	83,665,000	86,764,000	69,675,000	56,135,000	49,076,000
Other debtors, deposits & prepayments	32,032,000	37,386,000	30,136,000	16,592,000	18,444,000
Deposits with financial institutions	-	-	951,000	3,626,000	2,699,000
Amount due from holding company	-	-	12,393,000	2,848,000	2,761,000
Amount due from related companies	6,043,000	4,630,000	2,911,000	1,019,000	28,000
Cash & bank balances	34,695,000	21,528,000	23,347,000	31,746,000	38,116,000
Others	1,106,000	1,106,000	1,106,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	208,365,000	201,039,000	182,136,000	151,866,000	147,862,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	320,807,000	312,891,000	299,968,000	252,461,000	254,268,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	57,406,000	59,448,000	62,314,000	57,907,000	56,093,000
Other creditors & accruals	20,397,000	17,625,000	20,225,000	17,096,000	17,422,000
Short term borrowings/Term loans	-	-	5,000,000	10,168,000	9,124,000
Other borrowings	-	-	-	56,135,000	-
Deposits from customers	-	6,521,000	6,943,000	6,188,000	5,129,000
Amounts owing to holding company	19,908,000	19,398,000	2,749,000	-	-
Provision for taxation	1,537,000	1,458,000	3,292,000	3,372,000	3,723,000
Other liabilities	791,000	2,164,000	2,237,000	2,154,000	1,254,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	100,039,000	106,614,000	102,760,000	153,020,000	92,745,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	108,326,000	94,425,000	79,376,000	(1,154,000)	55,117,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	220,768,000	206,277,000	197,208,000	99,441,000	161,523,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	49,529,000	49,529,000	49,529,000	49,529,000	49,529,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	49,529,000	49,529,000	49,529,000	49,529,000	49,529,000
Retained profit/(loss) carried forward	52,727,000	45,337,000	36,339,000	16,292,000	23,387,000
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	52,727,000	45,337,000	36,339,000	16,292,000	23,387,000
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	102,256,000	94,866,000	85,868,000	65,821,000	72,916,000
Long term loans	-	-	8,750,000	18,773,000	17,831,000
Other long term borrowings	67,743,000	60,255,000	100,469,000	12,934,000	69,276,000
Deferred commissions & rebates	609,000	993,000	1,955,000	1,736,000	1,463,000
Others	50,160,000	50,163,000	166,000	177,000	37,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	118,512,000	111,411,000	111,340,000	33,620,000	88,607,000
	----------------	----------------	----------------	----------------	----------------
	220,768,000	206,277,000	197,208,000	99,441,000	161,523,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	34,695,000	21,528,000	23,347,000	31,746,000	38,116,000
Net Liquid Funds	34,695,000	21,528,000	23,347,000	31,746,000	38,116,000
Net Liquid Assets	57,502,000	44,800,000	37,759,000	(41,054,000)	18,379,000
Net Current Assets/(Liabilities)	108,326,000	94,425,000	79,376,000	(1,154,000)	55,117,000
Net Tangible Assets	219,092,000	204,435,000	195,249,000	97,785,000	160,157,000
Net Monetary Assets	(61,010,000)	(66,611,000)	(73,581,000)	(74,674,000)	(70,228,000)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	0	19,097,000	35,549,000	32,277,000	22,664,000
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	23,969,000	24,619,000	39,005,000	35,169,000	26,043,000
BALANCE SHEET ITEMS
Total Borrowings	67,743,000	60,255,000	114,219,000	98,010,000	96,231,000
Total Liabilities	218,551,000	218,025,000	214,100,000	186,640,000	181,352,000
Total Assets	320,807,000	312,891,000	299,968,000	252,461,000	254,268,000
Net Assets	220,768,000	206,277,000	197,208,000	99,441,000	161,523,000
Net Assets Backing	102,256,000	94,866,000	85,868,000	65,821,000	72,916,000
Shareholders' Funds	102,256,000	94,866,000	85,868,000	65,821,000	72,916,000
Total Share Capital	49,529,000	49,529,000	49,529,000	49,529,000	49,529,000
Total Reserves	52,727,000	45,337,000	36,339,000	16,292,000	23,387,000
LIQUIDITY (Times)
Cash Ratio	0.35	0.20	0.23	0.21	0.41
Liquid Ratio	1.57	1.42	1.37	0.73	1.20
Current Ratio	2.08	1.89	1.77	0.99	1.59
WORKING CAPITAL CONTROL (Days)
Stock Ratio	37	32	28	30	30
Debtors Ratio	61	56	47	42	39
Creditors Ratio	53	48	54	56	57
SOLVENCY RATIOS (Times)
Gearing Ratio	0.66	0.64	1.33	1.49	1.32
Liabilities Ratio	2.14	2.30	2.49	2.84	2.49
Times Interest Earned Ratio	1.97	2.33	4.40	3.42	2.96
Assets Backing Ratio	4.42	4.13	3.94	1.97	3.23
PERFORMANCE RATIO (%)
Operating Profit Margin	1.74	1.92	5.05	4.68	3.31
Net Profit Margin	1.46	1.59	4.24	3.88	3.02
Return On Net Assets	8.06	9.26	18.03	32.46	14.03
Return On Capital Employed	8.00	9.18	17.85	31.93	13.91
Return On Shareholders' Funds/Equity	7.23	9.48	26.84	28.80	18.82
Dividend Pay Out Ratio (Times)	0	0	0.13	1.37	1.26
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.82
UK Pound	1	Rs.100.55
Euro	1	Rs.73.75

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.