MIRA INFORM REPORT

Report No. :	339652
Report Date :	09.09.2015

IDENTIFICATION DETAILS

Name :	ST ELECTRONICS (SATCOM & SENSOR SYSTEMS) PTE. LTD.
Formerly Known As :	AGILIS COMMUNICATION TECHNOLOGIES PTE LTD
Registered Office :	1, Ang Mo Kio Electronics Park Road, 06-02, St Engineering Hub, 567710
Country :	Singapore
Financials (as on) :	31.12.2014
Date of Incorporation :	06.08.1991
Com. Reg. No.:	199103901-W
Legal Form :	Private Limited
Line of Business :	Manufacture of electronic components and boards.
No. of Employee :	400 [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.	:	199103901-W
COMPANY NAME	:	ST ELECTRONICS (SATCOM & SENSOR SYSTEMS) PTE. LTD.
FORMER NAME	:	AGILIS COMMUNICATION TECHNOLOGIES PTE LTD (28/04/2005)
INCORPORATION DATE	:	06/08/1991
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	1, ANG MO KIO ELECTRONICS PARK ROAD, 06-02, ST ENGINEERING HUB, 567710, SINGAPORE.
BUSINESS ADDRESS	:	1, ANG MO KIO ELECTRONICS PARK ROAD, 06-02, ST ENGINEERING HUB, 567710, SINGAPORE.
TEL.NO.	:	65-65217888
FAX.NO.	:	65-65217333
WEB SITE	:	WWW.STEE.STENGG.COM
CONTACT PERSON	:	FONG SAIK HAY ( DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURE OF ELECTRONIC COMPONENTS AND BOARDS
ISSUED AND PAID UP CAPITAL	:	6,610,525.00 ORDINARY SHARE, OF A VALUE OF SGD 6,610,525.00
SALES	:	SGD 180,197,214 [2014]
NET WORTH	:	SGD 15,142,947 [2014]
STAFF STRENGTH	:	400 [2015]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	GOOD
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MATURE

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) manufacture of electronic components and boards.

The immediate holding company of the Subject is SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED, a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
25/08/2015	SGD 6,610,525.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED	24, ANG MO KIO STREET 65, 569061, SINGAPORE.	196900084E	6,610,525.00	100.00
			---------------	------
			6,610,525.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
200807753Z	SINGAPORE	IDIRECT ASIA PTE. LTD.	100.00	25/08/2015
199804120W	SINGAPORE	ORISTEL SYSTEMS PTE. LTD.	51.00	25/08/2015
201009091R	SINGAPORE	ST ELECTRONICS (SATELLITE SYSTEMS) PTE. LTD.	51.00	25/08/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. FONG SAIK HAY
Address	:	28, DALVEY ESTATE, 03-34, DALVEY COURT, 259548, SINGAPORE.
IC / PP No	:	S1159113B
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/08/2002

DIRECTOR 2

Name Of Subject	:	CHRISTOPHER CHIA TECK KHIAM
Address	:	41, EWE BOON ROAD, 03 45, CRYSTAL TOWER, 259335, SINGAPORE.
IC / PP No	:	S0189367Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/03/2015

DIRECTOR 3

Name Of Subject	:	LEE FOOK SUN
Address	:	19A, LENGKONG DUA, 417698, SINGAPORE.
IC / PP No	:	S1191272I
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/07/2005

DIRECTOR 4

Name Of Subject	:	ONG ANN KIAT
Address	:	79D, LORONG N TELOK KURAU, 425228, SINGAPORE.
IC / PP No	:	S7342457G
Nationality	:	SINGAPOREAN
Date of Appointment	:	27/04/2013

MANAGEMENT

1)	Name of Subject	:	FONG SAIK HAY
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	NG KWEE LIAN
	IC / PP No	:	S1604340J
	Address	:	117, POTONG PASIR AVENUE 1, 10-924, 350117, 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	:	4812
Year	:	2010	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	25/02/2010
Solicitor Ref	:	DS/30029/0109/HS
Solicitor Firm	:	DSCT LAW CORPORATION
Plaintiff	:	CAMPAIGN COMPLETE SOLUTIONS PTE LTD (FORMERLY KNOW
Defendants	:	ST ELECTRONICS (SATCOM & SENSOR SYSTEMS) PTE. LTD. (199103901)
Hearing Date	:	N/A
Amount Claimed	:	8132.88
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE (MOTOR ACCIDENTS W/O DEATH/INJURY)

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 CENTRAL ASIA NORTH AMERICA SOUTH AMERICA EUROPE MIDDLE EAST
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

ELECTRONIC COMPONENTS

Total Number of Employees:
YEAR	2015	2014	2013	2012
GROUP	N/A	N/A	N/A	N/A
COMPANY	400	400	400	300

Branch

:

NO

Other Information:

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

The Subject is a leading supplier in very small aperture terminal (vsat) digital microwave radio. its customers are from asia pacific, central asia, north and south america, japan and europe and middle east, to name a few. 

The Subject is engages in the following activities:
* data communications equipment 
* design and manufacturing for satellite communication system, sub systems and components 
* design and manufacture of vsat transceiver, satellite modem, microwave, digital microwave radio transceiver, solid state microwave motion sensor, door sensor, high performance rf/microwave components and sub-assemblies 

Capabilities: 
* satellite communications
- vsat transceivers 
- solid state power amplifier (sspa) 
- redundancy switching equipment 
- block-upconverters 
- low noise amplifier / low noise block
- converters 
- satellite modems 
- accessories 
- satellite networks communication 
- digital broadcast products
* microwave sensors 
* radar surveillances systems 
- 3rd generation surveillance & sensor suite (3g-3s) 
- coastal surveillance system 
- mobile surveillance system
- radar altimeter 
* communications and sensor solutions 
- multi-mode satellite modem 
- phase array antenna 
- enhanced network management system (enms)
- rotman lens-a low cost wideband multibeam antenna array system 
- miniv 
- mobile v-sat system 

Industries served: 
* telecommunication
* industrial 
* enterprise 
* oil and gas 
* maritime 
* financial institutions
* homeland security 
* government and defence markets 
international certifications: 
* agilis aav 628 - ce 0682 marked 
* china telecommunication authority certification 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-65217888
Match	:	N/A
Address Provided by Client	:	1, ANG MO KIO ELECTRONICS PARK ROAD, 06-02, ST ENGINEERING HUB,567710,SINGAPORE
Current Address	:	1, ANG MO KIO ELECTRONICS PARK ROAD, 06-02, ST ENGINEERING HUB, 567710, SINGAPORE.
Match	:	YES

Other Investigations

On 3rd September 2015 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Favourable	[	69.28%	]
Return on Net Assets	:	Acceptable	[	27.03%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. 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	:	Favourable	[	52 Days	]
Debtor Ratio	:	Unfavourable	[	113 Days	]
Creditors Ratio	:	Favourable	[	25 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Acceptable	[	0.80 Times	]
Current Ratio	:	Unfavourable	[	0.99 Times	]
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	19.80 Times	]
Gearing Ratio	:	Unfavourable	[	4.74 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :
Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 :	MANUFACTURING
In the third quarter of 2014, manufacturing output has increased by 1.9%, extending the 1.5% growth in the previous quarter. Growth was largely driven by the biomedical manufacturing and chemicals clusters. Besides, for the whole 2013, the manufacturing sector grew by 1.7%, an uptick from the 0.3% growth recorded in the previous year. All clusters recorded an expansion in 2013, except the biomedical manufacturing cluster.
The chemicals cluster grew by 5.2% in the third quarter of 2014. Growth was led by the petrochemicals and specialty chemicals segments, which expanded by 8.9% and 7.1% respectively. By contrast, the petroleum segment contracted by 4.2% in the third quarter of 2014 due to plant maintenance shutdowns. For the year of 2013, the chemicals cluster grew only by 0.7%.
Besides, output of the biomedical manufacturing cluster expanded by 9.0% in the third quarter of 2014. The medical technology segment posted robust growth of 23% due to higher production of medical instruments and supplies, while the output of the pharmaceuticals segment rose by 6.2%. However, in the whole of 2013, the biomedical manufacturing cluster recorded only a flat growth.
In the third quarter of 2014, the transport engineering cluster contracted by 2.0%, dragged down by the aerospace segment. Output in the aerospace segment plunged by 18% on the back of fewer repair jobs from commercial airlines. This was mitigated by the 4.1% growth in the marine & offshore engineering segment, which was supported by higher contributions from rig building projects. Nonetheless, for the whole of 2013, the transport engineering cluster grew by 5.2%.
Moreover, output of the precision engineering cluster increased by 1.3% in the third quarter of 2014. The machinery & systems segment grew by 6.2%, supported by higher demand for semiconductor-related equipment and mechanical engineering work. This was partly offset by the decline in the output of the precision modules & components segment. Conversely, in the full year of 2013, the precision engineering cluster's output declined by 5.6%.
Furthermore, in the third quarter of 2014, output of the general manufacturing industries declined by 3.0%. The 2.1% growth in the food, beverages & tobacco segment was more than offset by declines in the other two segments. In particular, the miscellaneous industries segment contracted by 4.7% on the back of lower output in construction-related products, such as concrete & cement products and steel structural components. For the full year of 2013, the general manufacturing cluster grew by 2.8%.
Besides, in the third quarter of 2014, the electronics cluster expanded by 0.9%, reversing the 5.0% contraction in the previous quarter. Growth was supported by an expansion in the computer peripherals (6.3%) and data storage (2.6%) segments. Moreover, for the year 2013, the electronics cluster expanded by 3.5%.
OVERALL INDUSTRY OUTLOOK : MATURE

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1991, the Subject is a Private Limited company, focusing on manufacture of electronic components and boards. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of SGD 6,610,525 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. The Subject is a fairly large and rapidly growing company with over 400 staff in its operations The Subject has a good  management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright. 

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. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 SGD 15,142,947, the Subject should be able to maintain its business in the near terms. 

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 has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market. 

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	2014-12-31	2013-12-31	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	180,197,214	142,485,094	151,262,995	134,031,807	115,053,851
Other Income	5,763,794	7,580,976	5,512,769	1,658,486	4,100,987
	----------------	----------------	----------------	----------------	----------------
Total Turnover	185,961,008	150,066,070	156,775,764	135,690,293	119,154,838
Costs of Goods Sold	(138,521,661)	(103,990,172)	(122,475,366)	(105,521,260)	(89,616,436)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	47,439,347	46,075,898	34,300,398	30,169,033	29,538,402
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	12,769,462	8,010,088	5,513,121	7,940,661	8,305,843
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	12,769,462	8,010,088	5,513,121	7,940,661	8,305,843
Taxation	(2,278,823)	(1,345,343)	15,678	1,219,000	(670,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	10,490,639	6,664,745	5,528,799	9,159,661	7,635,843
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	4,811,808	1,647,063	3,318,264	2,458,603	1,322,760
	----------------	----------------	----------------	----------------	----------------
As restated	4,811,808	1,647,063	3,318,264	2,458,603	1,322,760
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	15,302,447	8,311,808	8,847,063	11,618,264	8,958,603
DIVIDENDS - Ordinary (paid & proposed)	(8,500,000)	(3,500,000)	(7,200,000)	(8,300,000)	(6,500,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	6,802,447	4,811,808	1,647,063	3,318,264	2,458,603
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from holding company	-	-	-	-	59,246
Others	679,116	633,000	1,151,021	271,977	890,372
	----------------	----------------	----------------	----------------	----------------
	679,116	633,000	1,151,021	271,977	949,618
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	8,362,657	2,358,510	1,433,698	1,060,293	882,290
	----------------	----------------	----------------	----------------	----------------
	8,362,657	2,358,510	1,433,698	1,060,293	882,290
	=============	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	48,848,196	48,195,567	24,878,234	4,302,951	3,554,850
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	1,520,000	1,520,000	500,000	500,000	300,000
Investments	25,482	632,000	1,265,000	2,265,000	2,265,000
Deferred assets	488,881	845,132	1,081,833	932,833	678,998
Others	51	51	51	51	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	2,034,414	2,997,183	2,846,884	3,697,884	3,243,998
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	50,882,610	51,192,750	27,725,118	8,000,835	6,798,848
Stocks	25,445,229	20,718,783	25,830,785	39,843,628	26,264,590
Trade debtors	55,996,817	39,957,889	17,839,873	13,220,280	30,745,699
Other debtors, deposits & prepayments	2,102,087	2,229,976	1,694,526	801,360	950,305
Short term deposits	35,758,401	28,194,107	26,515,604	90,036	57,400
Short term loans & advances	1,009,695	182,481	422,603	-	-
Loans & advances - current portion	-	-	-	398,683	1,023,209
Interest receivable	-	-	-	-	40,351
Deposits with financial institutions	-	-	-	33,812,677	4,489,995
Amount due from holding company	1,012,211	581,063	-	-	-
Amount due from subsidiary companies	268,546	1,790,044	-	-	-
Amount due from related companies	9,366,783	3,678,620	4,795,193	15,594,941	9,629,187
Cash & bank balances	1,017,821	1,363,828	283,586	54,023	98,224
Others	-	-	3,035	-	368,467
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	131,977,590	98,696,791	77,385,205	103,815,628	73,667,427
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	182,860,200	149,889,541	105,110,323	111,816,463	80,466,275
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	9,558,697	3,020,230	2,989,144	3,680,045	5,342,461
Other creditors & accruals	37,566,870	41,162,709	19,046,232	13,020,831	8,861,328
Short term borrowings/Term loans	-	-	-	-	1,000,000
Deposits from customers	4,346,306	5,053,717	10,366,435	9,467,272	7,072,308
Bill & acceptances payable	71,836,236	49,230,970	41,946,856	-	-
Amounts owing to holding company	-	-	1,059,706	595,163	2,980,322
Amounts owing to subsidiary companies	-	-	228,521	227,644	318,327
Amounts owing to related companies	-	-	8,335,150	6,394,575	2,311,908
Provision for taxation	3,841,340	2,599,435	1,068,501	994,316	1,451,652
Other liabilities	5,962,695	3,897,347	2,685,751	45,176,221	21,334,276
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	133,112,144	104,964,408	87,726,296	79,556,067	50,672,582
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(1,134,554)	(6,267,617)	(10,341,091)	24,259,561	22,994,845
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	49,748,056	44,925,133	17,384,027	32,260,396	29,793,693
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	6,610,525	6,610,525	6,610,525	6,610,525	6,610,525
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	6,610,525	6,610,525	6,610,525	6,610,525	6,610,525
Retained profit/(loss) carried forward	6,802,447	4,811,808	1,647,063	3,318,264	2,458,603
Others	1,729,975	2,950,781	2,648,399	2,214,628	1,817,395
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	8,532,422	7,762,589	4,295,462	5,532,892	4,275,998
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	15,142,947	14,373,114	10,905,987	12,143,417	10,886,523
LONG TERM LIABILITIES
Deposits from customers	26,481,108	27,106,377	6,478,040	20,116,979	18,907,170
Others	8,124,001	3,445,642	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	34,605,109	30,552,019	6,478,040	20,116,979	18,907,170
	----------------	----------------	----------------	----------------	----------------
	49,748,056	44,925,133	17,384,027	32,260,396	29,793,693
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	36,776,222	29,557,935	26,799,190	144,059	155,624
Net Liquid Funds	(35,060,014)	(19,673,035)	(15,147,666)	144,059	155,624
Net Liquid Assets	(26,579,783)	(26,986,400)	(36,171,876)	(15,584,067)	(3,269,745)
Net Current Assets/(Liabilities)	(1,134,554)	(6,267,617)	(10,341,091)	24,259,561	22,994,845
Net Tangible Assets	49,748,056	44,925,133	17,384,027	32,260,396	29,793,693
Net Monetary Assets	(61,184,892)	(57,538,419)	(42,649,916)	(35,701,046)	(22,176,915)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	13,448,578	8,643,088	6,664,142	8,212,638	9,255,461
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	21,811,235	11,001,598	8,097,840	9,272,931	10,137,751
BALANCE SHEET ITEMS
Total Borrowings	71,836,236	49,230,970	41,946,856	0	1,000,000
Total Liabilities	167,717,253	135,516,427	94,204,336	99,673,046	69,579,752
Total Assets	182,860,200	149,889,541	105,110,323	111,816,463	80,466,275
Net Assets	49,748,056	44,925,133	17,384,027	32,260,396	29,793,693
Net Assets Backing	15,142,947	14,373,114	10,905,987	12,143,417	10,886,523
Shareholders' Funds	15,142,947	14,373,114	10,905,987	12,143,417	10,886,523
Total Share Capital	6,610,525	6,610,525	6,610,525	6,610,525	6,610,525
Total Reserves	8,532,422	7,762,589	4,295,462	5,532,892	4,275,998
LIQUIDITY (Times)
Cash Ratio	0.28	0.28	0.31	0	0
Liquid Ratio	0.80	0.74	0.59	0.80	0.94
Current Ratio	0.99	0.94	0.88	1.30	1.45
WORKING CAPITAL CONTROL (Days)
Stock Ratio	52	53	62	109	83
Debtors Ratio	113	102	43	36	98
Creditors Ratio	25	11	9	13	22
SOLVENCY RATIOS (Times)
Gearing Ratio	4.74	3.43	3.85	0	0.09
Liabilities Ratio	11.08	9.43	8.64	8.21	6.39
Times Interest Earned Ratio	19.80	13.65	5.79	30.20	9.75
Assets Backing Ratio	7.53	6.80	2.63	4.88	4.51
PERFORMANCE RATIO (%)
Operating Profit Margin	7.09	5.62	3.64	5.92	7.22
Net Profit Margin	5.82	4.68	3.66	6.83	6.64
Return On Net Assets	27.03	19.24	38.33	25.46	31.07
Return On Capital Employed	27.03	19.24	38.33	25.46	31.07
Return On Shareholders' Funds/Equity	69.28	46.37	50.70	75.43	70.14
Dividend Pay Out Ratio (Times)	0.81	0.53	1.30	0.91	0.85
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.61
UK Pound	1	Rs.102.30
Euro	1	Rs.74.61

INFORMATION DETAILS

Analysis Done by :	TRI
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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