MIRA INFORM REPORT

Report No. :	508951
Report Date :	17.05.2018

IDENTIFICATION DETAILS

Name :	HOWCO METALS MANAGEMENT PTE. LTD.
Formerly Known As :	HOWCO WHITHAM PTE LTD (01/10/2004) ENERGY METALS PTE LTD (23/08/2001) ENERGY ALLOY PTE LTD (15/01/1999)
Registered Office :	21, Tuas South Street 5, 637384
Country :	Singapore
Financials (as on) :	01.04.2017
Date of Incorporation :	06.08.1997
Com. Reg. No.:	199705465Z
Legal Form :	Private Limited (Limited By Share)
Line of Business :	Fabrication of Metal Products.
No. of Employees :	100 [2018]

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
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.	:	199705465Z
COMPANY NAME	:	HOWCO METALS MANAGEMENT PTE. LTD.
FORMER NAME	:	HOWCO WHITHAM PTE LTD (01/10/2004) ENERGY METALS PTE LTD (23/08/2001) ENERGY ALLOY PTE LTD (15/01/1999)
INCORPORATION DATE	:	06/08/1997
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED (LIMITED BY SHARE)
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	21, TUAS SOUTH STREET 5, 637384, SINGAPORE.
BUSINESS ADDRESS	:	21, TUAS SOUTH STREET 5,, 637384, SINGAPORE.
TEL.NO.	:	65-68613885
FAX.NO.	:	N/A
CONTACT PERSON	:	IAN HORSBURGH GRANT ( DIRECTOR )
PRINCIPAL ACTIVITY	:	FABRICATION OF METAL PRODUCTS
ISSUED AND PAID UP CAPITAL	:	500,100.00 ORDINARY SHARE, OF A VALUE OF SGD 500,100.00
SALES	:	USD 36,075,000 [2017]
NET WORTH	:	USD 76,090,000 [2017]
STAFF STRENGTH	:	100 [2018]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
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) fabrication of metal products.

The immediate holding company of the Subject is ERYNGIUM LIMITED, a company incorporated in UNITED KINGDOM.

The ultimate holding company of the Subject is SUMITOMO CORPORATION, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
15/05/2018	SGD 500,100.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
ERYNGIUM LIMITED	1-3, WOODSIDE CRESCENT, GLASGOW, UNITED KINGDOM, G3 7UL UNITED KINGDOM	T06UF0348	500,100.00	100.00
			---------------	------
			500,100.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	IAN HORSBURGH GRANT
Address	:	33, JALAN MUTIARA, 12 - 03, LATITUDE, 249208, SINGAPORE.
IC / PP No	:	G5105006T
Nationality	:	BRITISH
Date of Appointment	:	15/02/2012

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	199705465Z	HOWCO METALS MANAGEMENT PTE. LTD.	Director	15/02/2012	0.00	-	USD(114,000.00)	2017	-	15/05/2018

DIRECTOR 2

Name Of Subject	:	KENNETH MACKENZIE NESS
Address	:	35, PLAYER BEND DR THE WOODLANDS TX 77382-2755, UNITED STATES.
IC / PP No	:	513937718
Nationality	:	BRITISH
Date of Appointment	:	08/08/2016

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	1055633U	HOWCO METALS MANAGEMENT MALAYSIA SDN. BHD.	Director	24/07/2013	0.00	-	MYR(9,357,626.00)	2017	-	23/04/2018
2	199705465Z	HOWCO METALS MANAGEMENT PTE. LTD.	Director	08/08/2016	0.00	-	USD(114,000.00)	2017	-	15/05/2018

DIRECTOR 3

Name Of Subject	:	DAVID ALEXANDER DAVIDSON
Address	:	FERNLEA LYNE OF SKENE WESTHILL AB32 7 BQ, UNITED KINGDOM.
IC / PP No	:	801039890
Nationality	:	BRITISH
Date of Appointment	:	08/08/2016

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	1055633U	HOWCO METALS MANAGEMENT MALAYSIA SDN. BHD.	Director	08/08/2016	0.00	-	MYR(9,357,626.00)	2017	-	23/04/2018
2	199705465Z	HOWCO METALS MANAGEMENT PTE. LTD.	Director	08/08/2016	0.00	-	USD(114,000.00)	2017	-	15/05/2018

MANAGEMENT

1)	Name of Subject	:	IAN HORSBURGH GRANT
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LOH LI PING
	IC / PP No	:	S7625605E
	Address	:	50, RAFFLES PLACE, 32-01, SINGAPORE LAND TOWER, 048623, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

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	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

METAL PRODUCTS

Total Number of Employees:
YEAR	2018
GROUP	N/A
COMPANY	100

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) fabrication of metal products.

The Subject is a processor of steel, chrome, duplex, stainless, and nickel based alloys for the oil and gas industry.

It also offers specialist material solutions for wellhead, downhole drilling, completion tools, tubular crossovers, and safety valves.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68613885
Match	:	N/A
Address Provided by Client	:	21 TUAS SOUTH STREET, 5, 637384
Current Address	:	21, TUAS SOUTH STREET 5,, 637384, SINGAPORE.
Match	:	YES

Other Investigations

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

He refused to disclose the fax number.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2011 - 2017	]
Profit/(Loss) Before Tax	:	Decreased	[	2011 - 2017	]
Return on Shareholder Funds	:	Unfavourable	[	(0.15%)	]
Return on Net Assets	:	Unfavourable	[	(0.82%)	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject incurred losses during the year due to the inefficient control of its operating costs. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	196 Days	]
Debtor Ratio	:	Acceptable	[	55 Days	]
Creditors Ratio	:	Favourable	[	20 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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	[	6.49 Times	]
Current Ratio	:	Favourable	[	8.86 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	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : FAIR

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 :	MANUFACTURING
The manufacturing sector expanded by 4.8% in the fourth quarter, supported largely by robust output growth in the electronics and precision engineering clusters. For the whole of 2017, the manufacturing sector grew by 10%, accelerating from the 3.7% expansion in 2016. Growth was largely driven by the electronics and precision engineering clusters, even as the biomedical manufacturing, transport engineering and general manufacturing industries clusters contracted.
The electronics cluster grew by 24% in the fourth quarter 2017, largely due to the semiconductors segment, which expanded by 35%. Specifically, the semiconductors segment benefitted from robust global semiconductors demand, which was in turn driven by key end markets such as the smartphone market. At the same time, the computer peripherals segment registered healthy growth of 9.5%, supported by buoyant demand for printer-related products. On the other hand, the data storage and other electronic modules & components segments contracted by 25% and 7.5% respectively. For the full year, the electronics cluster expanded by 34% as the healthy performance of the semiconductors and computer peripherals segments more than offset the weakness in the data storage segment.
In fourth quarter 2017, the precision engineering cluster expanded to 20%, supported by both the precision modules & components (PMC) and machinery & systems (M&S) segments. Output in the PMC segment rose by 40% due to an increase in the production of dies, moulds, tools, jigs & fixture, optical instruments and metal precision components. Meanwhile, the M&S segment grew by 8.9% in tandem with healthy export demand for semiconductor manufacturing equipment. For the whole of 2017, the output of the precision engineering cluster rose by 18% on account of robust expansions in both segments.
The chemicals cluster grew by 12% in the fourth quarter 2017, with all segments recording growth. In particular, the petrochemicals segment grew by 23% on the back of production capacity expansions, while the petroleum segment expanded by 13% supported by higher refining margins. At the same time, the other chemicals and specialties segments posted growth of 8.1% and 6.2%respectively. For 2017 as a whole, the chemicals cluster expanded by 6.2%, supported by growth in all segments.
Besides, output of the general manufacturing industries cluster increased to 6.6% in the fourth quarter 2017, primarily due to the strong performance of the food, beverages & tobacco (FBT) segment, which grew by 18% on the back of a surge in the production of beverages products. On the other hand, the printing segment shrank by 11% due to weak demand for commercial printing, while output in the miscellaneous industries segment declined by 0.6% on account of a lower production of construction-related materials. For the whole of 2017, the general manufacturing industries cluster contracted by 1.6%, as output declines in the printing and miscellaneous industries segments outweighed output gains in the FBT segment.
Moreover, output of the transport engineering cluster fell by 7.8% in the fourth quarter 2017. The aerospace segment recorded robust growth of 13% due to a higher volume of repair and maintenance work from commercial airlines. However, this was more than offset by output declines in the marine & offshore engineering (M&OE) and land transport segments of 22% and 11% respectively. In particular, the M&OE segment remained weak on account of low levels of rig-building, shipbuilding and repair activities. For the full year 2017, the transport engineering cluster shrank by 6.9%, dragged down mainly by the M&OE segment.
The biomedical manufacturing cluster contracted by 28% in the fourth quarter 2017, weighed down by the pharmaceuticals segment (-37%) on the back of a drop in the production of active pharmaceutical ingredients and biological products. However, the medical technology segment, which grew at a healthy pace of 3.3%, provided some support to the cluster. For 2017 as a whole, output in the biomedical manufacturing cluster fell by 9.3%, led by the output decline in the pharmaceuticals segment.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1997, the Subject is a Private Limited company, focusing on fabrication of metal products. 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. Presently, the issued and paid up capital of the Subject stands at SGD 500,100. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. 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.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. 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 zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 76,090,000, 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 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.

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.

HOWCO METALS MANAGEMENT PTE. LTD.

Financial Year End	2017-04-01	2016-04-01
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	36,075,000	63,922,000
Other Income	1,277,000	74,000
	----------------	----------------
Total Turnover	37,352,000	63,996,000
Costs of Goods Sold	(32,047,000)	(52,160,000)
	----------------	----------------
Gross Profit	5,305,000	11,836,000
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(621,000)	5,291,000
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(621,000)	5,291,000
Taxation	507,000	(691,000)
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(114,000)	4,600,000
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	75,917,000	71,317,000
	----------------	----------------
As restated	75,917,000	71,317,000
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	75,803,000	75,917,000
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	75,803,000	75,917,000
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
DEPRECIATION (as per notes to P&L)	1,073,000	1,108,000
	----------------	----------------
Total Amortization And Depreciation	1,073,000	1,108,000
	=============	=============

BALANCE SHEET

HOWCO METALS MANAGEMENT PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	5,871,000	6,936,000
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	6,500,000	6,500,000
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	6,500,000	6,500,000
	----------------	----------------
TOTAL LONG TERM ASSETS	12,371,000	13,436,000
CURRENT ASSETS
Stocks	19,332,000	23,270,000
Trade debtors	5,485,000	9,049,000
Other debtors, deposits & prepayments	57,000	107,000
Amount due from related companies	436,000	-
Cash & bank balances	46,898,000	38,415,000
	----------------	----------------
TOTAL CURRENT ASSETS	72,208,000	70,841,000
	----------------	----------------
TOTAL ASSET	84,579,000	84,277,000
	=============	=============
CURRENT LIABILITIES
Trade creditors	1,770,000	3,046,000
Other creditors & accruals	47,000	85,000
Amounts owing to related companies	6,331,000	3,288,000
Provision for taxation	-	908,000
	----------------	----------------
TOTAL CURRENT LIABILITIES	8,148,000	7,327,000
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	64,060,000	63,514,000
	----------------	----------------
LONG TERM LIABILITIES
Deferred taxation	341,000	746,000
	----------------	----------------
TOTAL LONG TERM LIABILITIES	341,000	746,000
	----------------	----------------
TOTAL NET ASSETS	76,090,000	76,204,000
	=============	=============
SHARE CAPITAL
Ordinary share capital	287,000	287,000
	----------------	----------------
TOTAL SHARE CAPITAL	287,000	287,000
RESERVES
Retained profit/(loss) carried forward	75,803,000	75,917,000
	----------------	----------------
TOTAL RESERVES	75,803,000	75,917,000
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	76,090,000	76,204,000
	=============	=============

FINANCIAL RATIO

HOWCO METALS MANAGEMENT PTE. LTD.

TYPES OF FUNDS
Cash	46,898,000	38,415,000
Net Liquid Funds	46,898,000	38,415,000
Net Liquid Assets	44,728,000	40,244,000
Net Current Assets/(Liabilities)	64,060,000	63,514,000
Net Tangible Assets	76,090,000	76,204,000
Net Monetary Assets	44,387,000	39,498,000
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	(621,000)	5,291,000
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	452,000	6,399,000
BALANCE SHEET ITEMS
Total Liabilities	8,489,000	8,073,000
Total Assets	84,579,000	84,277,000
Net Assets	76,090,000	76,204,000
Net Assets Backing	76,090,000	76,204,000
Shareholders' Funds	76,090,000	76,204,000
Total Share Capital	287,000	287,000
Total Reserves	75,803,000	75,917,000
GROWTH RATIOS (Year on Year) (%)
Revenue	(43.56)	(54.86)
Proft/(Loss) Before Tax	(111.74)	(78.36)
Proft/(Loss) After Tax	(102.48)	(77.78)
Total Assets	0.36	(16.74)
Total Liabilities	5.15	(69.58)
LIQUIDITY (Times)
Cash Ratio	5.76	5.24
Liquid Ratio	6.49	6.49
Current Ratio	8.86	9.67
WORKING CAPITAL CONTROL (Days)
Stock Ratio	196	133
Debtors Ratio	55	52
Creditors Ratio	20	21
SOLVENCY RATIOS (Times)
Liabilities Ratio	0.11	0.11
Assets Backing Ratio	265.12	265.52
PERFORMANCE RATIO (%)
Operating Profit Margin	(1.72)	8.28
Net Profit Margin	(0.32)	7.20
Return On Net Assets	(0.82)	6.94
Return On Capital Employed	(0.81)	6.88
Return On Shareholders' Funds/Equity	(0.15)	6.04

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.83
UK Pound	1	INR 91.68
Euro	1	INR 80.29
SGD	1	INR 50.50

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

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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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