MIRA INFORM REPORT

Report No. :	508496
Report Date :	16.05.2018

IDENTIFICATION DETAILS

Name :	RAVAGO LM PTE. LTD.
Registered Office :	36, Kaki Bukit Place, 05-01, E-Hub One, Ravago Asia Building, 416214,
Country :	Singapore
Financials (as on) :	31.12.2016
Date of Incorporation :	08.07.2014
Com. Reg. No.:	201419986C
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is engaged in the trading of petrochemical and chemical products.
No. of Employees :	13 [2018]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 electronics, petroleum products, chemicals, medical and optical devices, pharmaceuticals, and on Singapore’s 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. Growth from 2012-2017 was slower than during the previous decade, a result of slowing structural growth - as Singapore reached high-income levels - and soft global demand for exports. Growth recovered to 3.6% in 2017 with a strengthening global economy.

The government is attempting to restructure Singapore’s economy to reduce its dependence on foreign labor, raise productivity growth, and increase wages amid slowing labor force growth and an aging population. Singapore has attracted major investments in advanced manufacturing, pharmaceuticals, and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and technology hub. Singapore is a signatory of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and a party to the Regional Comprehensive Economic Partnership (RCEP) negotiations with nine other ASEAN members plus Australia, China, India, Japan, South Korea, and New Zealand. In 2015, Singapore formed, with the other ASEAN members, the ASEAN Economic Community.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

201419986C

COMPANY NAME

:

RAVAGO LM PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

08/07/2014

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

36, KAKI BUKIT PLACE, E-HUB ONE, 416214, SINGAPORE.

BUSINESS ADDRESS

:

36, KAKI BUKIT PLACE, 05-01, E-HUB ONE, RAVAGO ASIA BUILDING, 416214, SINGAPORE.

TEL.NO.

:

65-63030878

FAX.NO.

:

65-63030879

WEB SITE

:

WWW.RAVAGO.COM

CONTACT PERSON

:

CHANG KOK YONG ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF PETROCHEMICAL AND CHEMICAL PRODUCTS

ISSUED AND PAID UP CAPITAL

:

72,000.00 ORDINARY SHARE, OF A VALUE OF EUR 9,000,000.00

SALES

:

USD 1,058,742,563 [2016]

NET WORTH

:

USD 8,640,940 [2016]

STAFF STRENGTH

:

13 [2018]

BANKER (S)

:

KBC BANK N.V. BNP PARIBAS ING BANK N.V. COMMERZBANK AKTIENGESELLSCHAFT SOCIETE GENERALE

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

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

The Subject is principally engaged in the (as a / as an) trading of petrochemical and chemical products.

The immediate holding company of the Subject is RAVAGO LM S.A., a company incorporated in LUXEMBOURG.

The ultimate holding company of the Subject is RAVAGO S.A., a company incorporated in LUXEMBOURG.

Former Address(es)

Address	As At Date
211, WOODLANDS AVENUE, 9, 02-89/90, WOODLANDS SPECTRUM II, 738960	N/A
4009, ANG MO KIO AVENUE 10, 02-30/31 TECH PLACE 1, 569738	N/A

Share Capital History

Date	Issue & Paid Up Capital
15/05/2018	EUR 9,000,000.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
RAVAGO LM S.A.	76-78, RUE DE MERL, L-2146 LUXEMBOURG	T14UF2757	72,000.00	100.00
			---------------	------
			72,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
201714648W	SINGAPORE	WRF TRADING PTE. LTD.	-	51.00	15/05/2018

DIRECTORS

DIRECTOR 1

Name Of Subject	:	PAUL JOZEF GODELIEVE DEPUYDT
Address	:	DELLA FAILLELAAN 29, 2020 ANTWERPEN, BELGIUM.
IC / PP No	:	EJ147385
Nationality	:	BELGIAN
Date of Appointment	:	08/07/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	200003753E	ACUMEN ENGINEERING PTE LTD	Director	25/09/2012	0.00	-	SGD1,462,023.00	2015	-	11/10/2016
2	201419986C	RAVAGO LM PTE. LTD.	Director	08/07/2014	0.00	-	USD7,649,596.00	2016	-	15/05/2018

DIRECTOR 2

Name Of Subject	:	MICHIEL RENE A. ALLAERTS
Address	:	SINT-MICHIELSKAAI 21/61, 2000 ANTWERPEN, BELGIUM.
IC / PP No	:	EK270749
Nationality	:	BELGIAN
Date of Appointment	:	08/07/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	201419986C	RAVAGO LM PTE. LTD.	Director	08/07/2014	0.00	-	USD7,649,596.00	2016	-	15/05/2018

DIRECTOR 3

Name Of Subject	:	MR. CHANG KOK YONG
Address	:	114, SPRINGLEAF AVENUE, DALLA VALE, 788503, SINGAPORE.
Other Address(es)	:	B-15-6 REGAL CROWN TOWER, JLN 3/149E, TM S.ENDAH;SERI PETALING, MALAYSIA.
IC / PP No	:	S7124767H
Nationality	:	SINGAPOREAN
Date of Appointment	:	08/07/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	200003753E	ACUMEN ENGINEERING PTE LTD	Director	30/05/2000	0.00	-	SGD1,462,023.00	2015	-	11/10/2016
2	T10FC0078F	PEGASUS PETROCHEMICAL ASIA LIMITED SINGAPORE BRANCH	Director Secretary	01/07/2016 01/12/2016	0.00	-	USD356,360.00	2016	-	22/11/2017
3	201419986C	RAVAGO LM PTE. LTD.	Director Secretary	08/07/2014 08/07/2014	0.00	-	USD7,649,596.00	2016	-	15/05/2018

DIRECTOR 4

Name Of Subject	:	BENOIT MARIE JOSEPH DE KEIJSER
Address	:	ZOERSELBOSDREEF 35, 2980, ZOERSEL, BELGIUM.
IC / PP No	:	EK100161
Nationality	:	BELGIAN
Date of Appointment	:	08/07/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	201419986C	RAVAGO LM PTE. LTD.	Director	08/07/2014	0.00	-	USD7,649,596.00	2016	-	15/05/2018

MANAGEMENT

1)	Name of Subject	:	CHANG KOK YONG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	MR. CHANG KOK YONG
	IC / PP No	:	S7124767H
	Address	:	114, SPRINGLEAF AVENUE, DALLA VALE, 788503, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

KBC BANK N.V.

2)

Name

:

BNP PARIBAS

3)

Name

:

ING BANK N.V.

4)

Name

:

COMMERZBANK AKTIENGESELLSCHAFT

5)

Name

:

SOCIETE GENERALE

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201413327	26/11/2014	N/A	ING BANK N.V	-	Unsatisfied
C201504287	07/04/2015	N/A	KBC BANK N.V.	-	Unsatisfied
C201505575	13/05/2015	N/A	COOPERATIEVE CENTRALE RAIFFEISEN - BOERENLEENBANK B.A., HONG KONG BRANCH	-	Unsatisfied
C201506106	27/05/2015	N/A	BNP PARIBAS	-	Unsatisfied
C201506477	08/06/2015	N/A	ING BANK N.V.	-	Unsatisfied
C201514655	23/12/2015	N/A	COMMERZBANK AKTIENGESELLSCHAFT	-	Unsatisfied
C201609238	13/09/2016	N/A	UBS SWITZERLAND AG	-	Unsatisfied
C201612449	09/12/2016	N/A	BANQUE CANTONALE DE GENEVE	-	Unsatisfied
C201612456	09/12/2016	N/A	BANQUE CANTONALE DE GENEVE	-	Unsatisfied
C201612457	09/12/2016	N/A	BANQUE CANTONALE DE GENEVE	-	Unsatisfied
C201700534	13/01/2017	N/A	ABN AMRO BANK N.V. AMSTERDAM BRANCH	-	Unsatisfied
C201700536	13/01/2017	N/A	ABN AMRO BANK N.V. AMSTERDAM BRANCH	-	Unsatisfied
C201701365	08/02/2017	N/A	DBS BANK LTD.	-	Unsatisfied
C201703742	22/04/2017	N/A	SOCIETE GENERALE	-	Unsatisfied
C201707935	04/08/2017	N/A	BANQUE CANTONALE DE GENEVE	-	Unsatisfied
C201800353	09/01/2018	N/A	BANQUE CANTONALE DE GENEVE	-	Unsatisfied

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

* A check has been conducted in our databank against 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	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

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

OPERATIONS

Goods Traded

:

PETROCHEMICAL AND CHEMICAL PRODUCTS

Total Number of Employees:
YEAR	2018	2016	2015
GROUP	N/A	N/A	N/A
COMPANY	13	12	30

Branch

:

YES

Other Information:

The Subject is principally engaged in the (as a / as an) trading of petrochemical and chemical products.

The Subject is a Petrochemical trading company.

The Subject sells the products based on customer's demands and requirement.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	65 6303 0878
Current Telephone Number	:	65-63030878
Match	:	YES
Address Provided by Client	:	36 KAKI BUKIT P;ACE E-HUB ONE SINGAPORE 416214
Current Address	:	36, KAKI BUKIT PLACE, 05-01, E-HUB ONE, RAVAGO ASIA BUILDING, 416214, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2014 - 2016	]
Profit/(Loss) Before Tax	:	Increased	[	2014 - 2016	]
Return on Shareholder Funds	:	Favourable	[	88.53%	]
Return on Net Assets	:	Favourable	[	145.69%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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	[	7 Days	]
Debtor Ratio	:	Favourable	[	47 Days	]
Creditors Ratio	:	Favourable	[	21 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in 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	:	Acceptable	[	0.93 Times	]
Current Ratio	:	Unfavourable	[	1.04 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	:	Unfavourable	[	2.55 Times	]
Gearing Ratio	:	Unfavourable	[	4.57 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
The higher turnover had helped to reduce the Subject's losses. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : LIMITED

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2013	2014	2015	2016	2017*
Population (Million)	5.40	5.47	5.54	5.61	5.61
Gross Domestic Products ( % )	5.1	3.9	2.2	2.4	3.6
Consumer Price Index	2.4	1.0	(0.5)	(0.5)	0.6
Total Imports (Million)	466,762.0	463,779.1	407,767.9	398,372.0	403,300.0
Total Exports (Million)	513,391.0	518,922.7	476,285.4	468,552.0	466,900.0
Unemployment Rate (%)	1.9	1.9	1.9	2.1	-
Tourist Arrival (Million)	15.46	15.01	15.23	16.28	-
Hotel Occupancy Rate (%)	86.3	85.5	84.0	83.1	84.7
Cellular Phone Subscriber (Million)	1.97	1.98	1.99	-	-
Registration of New Companies (No.)	37,288	41,589	34,243	35,227	37,395
Registration of New Companies (%)	9.8	11.5	(17.7)	2.9	6.2
Liquidation of Companies (No.)	17,369	18,767	21,384	23,218	22,379
Liquidation of Companies (%)	(5.3)	8.0	13.9	8.6	(3.6)
Registration of New Businesses (No.)	22,893	35,773	28,480	27,120	22,148
Registration of New Businesses (%)	1.70	56.30	(20.39)	(4.78)	(18.33)
Liquidation of Businesses (No.)	22,598	22,098	26,116	35,866	24,344
Liquidation of Businesses (%)	0.5	(2.2)	18.2	37.3	(32.1)
Bankruptcy Orders (No.)	1,992	1,757	1,776	1,797	1,638
Bankruptcy Orders (%)	14.0	(11.8)	1.0	1.2	(8.9)
Bankruptcy Discharges (No.)	2,584	3,546	3,499	4,359	2,030
Bankruptcy Discharges (%)	37.4	37.2	(1.3)	24.6	(53.4)
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	1.78	4.29	3.04	-	-
Fish Supply & Wholesale	(3.8)	(8.6)	(8.5)	(9.9)	-
Manufacturing #
Food, Beverages & Tobacco	97.9	99.4	100.0	103.7	110.3
Textiles	119.5	102.7	100.0	92.4	84.4
Wearing Apparel	334.1	212.6	100.0	83.4	88.2
Leather Products & Footwear	122.0	106.5	100.0	88.8	79.0
Wood & Wood Products	103.0	107.2	100.0	95.0	92.9
Paper & Paper Products	104.4	104.5	100.0	97.3	96.1
Printing & Media	113.8	105.968	100.0	85.1	73.1
Crude Oil Refineries	100.7	92.2	100.0	104.2	113.5
Chemical & Chemical Products	88.4	96.7	100.0	98.9	105.3
Pharmaceutical Products	101.421	109.4	100.0	113.8	96.0
Rubber & Plastic Products	109.497	109.2	100.0	91.4	93.7
Non-metallic Mineral	107.4	90.759	100.0	89.8	72.9
Basic Metals	77.2	99.3	100.0	106.2	108.3
Fabricated Metal Products	107.5	107.757	100.0	93.8	91.3
Machinery & Equipment	109.1	118.2	100.0	80.8	86.1
Electrical Machinery	87.4	97.871	100.0	101.5	111.7
Electronic Components	105.0	105.6	100.0	114.1	151.4
Transport Equipment	111.1	106.68	100.0	101.0	99.5
Construction	25.40	22.00	-	-	-
Real Estate	88.5	145.1	-	-	-
Services
Electricity, Gas & Water	6.70	6.50	-	-	-
Transport, Storage & Communication	9.80	14.20	-	-	-
Finance & Insurance	3.30	6.00	-	7.40	-
Government Services	6.50	6.30	-	-	-
Education Services	3.10	5.98	-	2.40	-
* Estimate / Preliminary
# Based on Index of Industrial Production (2015 = 100)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
According to the Ministry of Trade and Industry, the wholesale & retail trade sector expanded to 3.0% in the fourth quarter of 2017, moderating from the 3.3% growth in the previous quarter. The wholesale trade segment was boosted by an improvement in foreign wholesale sales volume, which more than offset the weakness in domestic wholesale sales volume. For the whole of 2017, the sector expanded by 2.3%, faster than the 1.0% growth in 2016. The improvement in growth can be attributed to the wholesale segment.
The domestic wholesale sales volume fell by 1.1% in the fourth quarter 2017, reversing the 2.0% growth in the preceding quarter. The poorer outturn was led by declines in the sales volume of household equipment & furniture (-27%) and general wholesale merchandise (-19%), which outweighed the increase in the sales volume of telecommunications & computers (20%). For the whole of 2017, the domestic wholesale trade index expanded by 1.0%, a turnaround from the 2.7% decline in 2016.
On the other hand, foreign wholesale sales volume rose to 6.2% in the fourth quarter 2017, a step-up from the 5.1% growth in the preceding quarter. Growth was driven by expansions in the sales of petroleum & petroleum-related products (11%t), telecommunications & computers (19%) and electronic components (16%). However, growth was partly offset by a 20% decline in the sales volume of metals, timber & construction materials. For the full year 2017, the foreign wholesale trade index rose by 3.6%, faster than the increase of 1.5% in the previous year.
Besides, retail sales volume rose by 2.1% in the fourth quarter 2017, improving from the 0.9% growth recorded in the third quarter. Growth was supported by improvements in both motor vehicle and non-motor vehicle sales volumes. While motor vehicle sales benefitted from an on-year increase in COE supply, growth in non-motor vehicle sales came on the back of an improvement in consumer sentiments. Notably, the sales volume of discretionary goods such as recreational goods, computer & telecommunication equipment and wearing apparel & footwear grew by 4.6%, 4.3 % and 3.1% respectively.
For the full year 2017, retail sales volume expanded by 1.3%, similar to the 1.5% growth recorded in 2016. Growth was driven by both motor vehicle sales and non-motor vehicle sales, which the former rising by 1.5% and the latter increasing by 1.3%. The rise in non-motor vehicle sales was underpinned by higher sales of discretionary goods. For instance, the sales volume of recreational goods (3.9%), watches & jewellery (2.4%), computer & telecommunications equipment (1.7%) and wearing apparel & footwear (1.5%) improved in 2017.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2014, the Subject is a Private Limited company, focusing on trading of petrochemical and chemical products. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. Presently, the issued and paid up capital of the Subject stands at EUR 9,000,000. The Subject have a strong support from its holding company.

Investigation revealed, 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's business operation is supported by 13 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its 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 8,640,940, 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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

Financials

PROFIT AND LOSS ACCOUNT

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

RAVAGO LM PTE. LTD.

Financial Year End	2016-12-31	2015-12-31	2014-12-31
Months	12	12	6
Consolidated Account	Company	Company	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	FULL
Currency	USD	USD	USD
TURNOVER	1,058,742,563	631,213,712	61,199,656
Other Income	249,196	20,352	24,449
	----------------	----------------	----------------
Total Turnover	1,058,991,759	631,234,064	61,224,105
Costs of Goods Sold	(1,045,182,734)	(626,766,343)	(60,942,381)
	----------------	----------------	----------------
Gross Profit	13,809,025	4,467,721	281,724
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	7,649,596	(4,563,177)	(4,572,355)
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	7,649,596	(4,563,177)	(4,572,355)
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	7,649,596	(4,563,177)	(4,572,355)
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(9,135,532)	(4,572,355)	0
	----------------	----------------	----------------
As restated	(9,135,532)	(4,572,355)	-
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(1,485,936)	(9,135,532)	(4,572,355)
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(1,485,936)	(9,135,532)	(4,572,355)
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	4,939,186	2,904,467	561,918
	----------------	----------------	----------------
	4,939,186	2,904,467	561,918
	=============	=============	=============
DEPRECIATION (as per notes to P&L)	35,756	21,178	-
	----------------	----------------	----------------
Total Amortization And Depreciation	35,756	21,178	-
	=============	=============

BALANCE SHEET

RAVAGO LM PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	25,079	44,886	-
LONG TERM INVESTMENTS/OTHER ASSETS
Associated companies	32,660	32,660	-
Others	1,063,848	184,188	-
	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	1,096,508	216,848	-
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	1,121,587	261,734	-
CURRENT ASSETS
Stocks	21,416,723	15,122,257	2,240,000
Trade debtors	136,327,364	89,345,414	22,371,594
Other debtors, deposits & prepayments	7,050,640	8,773,411	-
Amount due from related companies	6,889,177	2,718,182	-
Cash & bank balances	14,044,736	7,195,083	10,601,988
Others	11,791,257	1,136,754	-
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	197,519,897	124,291,101	35,213,582
	----------------	----------------	----------------
TOTAL ASSET	198,641,484	124,552,835	35,213,582
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	61,042,994	71,828,982	20,374,273
Other creditors & accruals	18,777,676	4,054,572	1,465,877
Bank overdraft	28,299,825	1,662,503	19
Other borrowings	11,217,093	6,920,000	-
Amounts owing to related companies	62,199,016	47,031,821	16,318,893
Other liabilities	8,323,290	563,614	-
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	189,859,894	132,061,492	38,159,062
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	7,660,003	(7,770,391)	(2,945,480)
	----------------	----------------	----------------
LONG TERM LIABILITIES
Others	140,650	-	-
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	140,650	-	-
	----------------	----------------	----------------
TOTAL NET ASSETS	8,640,940	(7,508,657)	(2,945,480)
	=============	=============	=============
FINANCED BY:
SHARE CAPITAL
Ordinary share capital	10,041,051	1,626,875	1,626,875
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	10,041,051	1,626,875	1,626,875
RESERVES
Capital reserve	85,825	-	-
Retained profit/(loss) carried forward	(1,485,936)	(9,135,532)	(4,572,355)
	----------------	----------------	----------------
TOTAL RESERVES	(1,400,111)	(9,135,532)	(4,572,355)
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	8,640,940	(7,508,657)	(2,945,480)
	=============	=============	=============

FINANCIAL RATIO

RAVAGO LM PTE. LTD.

TYPES OF FUNDS
Cash	14,044,736	7,195,083	10,601,988
Net Liquid Funds	(14,255,089)	5,532,580	10,601,969
Net Liquid Assets	(13,756,720)	(22,892,648)	(5,185,480)
Net Current Assets/(Liabilities)	7,660,003	(7,770,391)	(2,945,480)
Net Tangible Assets	8,640,940	(7,508,657)	(2,945,480)
Net Monetary Assets	(13,897,370)	(22,892,648)	(5,185,480)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	12,588,782	(1,658,710)	(4,010,437)
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	12,624,538	(1,637,532)	(4,010,437)
BALANCE SHEET ITEMS
Total Borrowings	39,516,918	8,582,503	19
Total Liabilities	190,000,544	132,061,492	38,159,062
Total Assets	198,641,484	124,552,835	35,213,582
Net Assets	8,640,940	(7,508,657)	(2,945,480)
Net Assets Backing	8,640,940	(7,508,657)	(2,945,480)
Shareholders' Funds	8,640,940	(7,508,657)	(2,945,480)
Total Share Capital	10,041,051	1,626,875	1,626,875
Total Reserves	(1,400,111)	(9,135,532)	(4,572,355)
GROWTH RATIOS (Year on Year) (%)
Revenue	67.73	931.40	-
Proft/(Loss) Before Tax	267.64	0.20	-
Proft/(Loss) After Tax	267.64	0.20	-
Total Assets	59.48	253.71	-
Total Liabilities	43.87	246.08	-
LIQUIDITY (Times)
Cash Ratio	0.07	0.05	0.28
Liquid Ratio	0.93	0.83	0.86
Current Ratio	1.04	0.94	0.92
WORKING CAPITAL CONTROL (Days)
Stock Ratio	7	9	13
Debtors Ratio	47	52	133
Creditors Ratio	21	42	122
SOLVENCY RATIOS (Times)
Gearing Ratio	4.57	(1.14)	0
Liabilities Ratio	21.99	(17.59)	(12.96)
Times Interest Earned Ratio	2.55	(0.57)	(7.14)
Assets Backing Ratio	0.86	(4.62)	(1.81)
PERFORMANCE RATIO (%)
Operating Profit Margin	0.72	(0.72)	(7.47)
Net Profit Margin	0.72	(0.72)	(7.47)
Return On Net Assets	145.69	22.09	136.16
Return On Capital Employed	33.95	28.37	136.16
Return On Shareholders' Funds/Equity	88.53	60.77	155.23
Dividend Pay Out Ratio (Times)	0	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 60.53
UK Pound	1	INR 91.49
Euro	1	INR 80.53
SGD	1	INR 50.58

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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