MIRA INFORM REPORT

Report Date :

03.08.2007

IDENTIFICATION DETAILS

Name :	NEELAM INTERNATIONAL PTE. LTD.
Registered Office :	10 Jalan Besar, #10-10, Sim Lim Tower, Singapore - 208787
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^19/08/2003
Com. Reg. No.:	^200308049H
Legal Form :	^Pte Ltd
Line of Business :	^General Wholesale Trade (including General Importers & Exporters); Commission and Indenting Agents

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 :	Regular
Litigation :	Clear

Subject Company

NEELAM INTERNATIONAL PTE. LTD.

Line Of Business 

GENERAL IMPORTERS AND EXPORTERS AND GENERAL TRADING

Parent Company

--

Financial Elements

FY2005

COMPANY

Sales : US$11,286,904

Networth : US$ 261,017

Paid-Up Capital : US$ 182,927

Net result : US$ 29,076

Net Margin(%) : 0.26

Return on Equity(%) : 11.14

Leverage Ratio : 3.65 TIMES

COMPANY IDENTIFICATION

^{Subject Company : NEELAM INTERNATIONAL PTE. LTD.}

^{Former Name : -}

^{Business Address : 10 JALAN BESAR}

^#10-10

^{SIM LIM TOWER}

^{Town : SINGAPORE}

^{Postcode : 208787}

^{County : -}

^{Country : Singapore}

^{Telephone : 9788 3110}

^{Fax : 9714 4701}

^{ROC Number : 200308049H}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in : USD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 19/08/2003}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 11,286,904}

^{Net Worth : 261,017}

^{Paid-Up Capital : 182,927}

^{Employees : -}

^{Net Result : 29,076}

^{Auditor : MGI N RAJAN ASSOCIATES}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 19/08/2003}

PRINCIPAL(S)

^{PATEL CHETANKUMAR DHIRUBHAI S1809066Z Director}

DIRECTOR(S)

^{PATEL CHETANKUMAR DHIRUBHAI S1809066Z Director}

^{Appointed on : 19/08/2003}

^{Street : 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town : SINGAPORE}

^{Postcode : 465010}

^{Country : Singapore}

^{SHARMILA CHANDRAKANT PATEL S7271696E Director}

^{Appointed on : 19/08/2003}

^{Street : 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town : SINGAPORE}

^{Postcode : 465010}

^{Country : Singapore}

^{VENKATARAMAIYER SIVARAMAKRISHNAN S0033476F Company Secretary}

^{Appointed on : 08/06/2005}

^{Street : 666 YISHUN AVENUE 4}

^#05-159

^{Town : SINGAPORE}

^{Postcode : 760666}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{R SHANMUGARATNAM S1775936A}

ACTIVITY (IES)

^{COMMISSION MERCHANTS Code: 4990}

^{CHEMICALS Code: 3970}

^{PLASTIC PRODUCTS Code: 16940}

^{TIMBER - WHSLE Code: 21690}

^{IMPORTERS And EXPORTERS Code: 11760}

^{BASED ON ACRA'S RECORD AS AT 30/07/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); COMMISSION AND INDENTING AGENTS}

CHARGES

^{Date : 25/04/2005}

^{Comments : CHARGE NO: C200502430}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

^{Date : 08/11/2004}

^{Comments : CHARGE NO: C200405586}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{INDIAN BANK}

^{INDIAN OVERSEAS BANK}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{PATEL CHETANKUMAR DHIRUBHAI 150,000 Private Person}

^{Street : 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town : SINGAPORE}

^{Postcode : 465010}

^{Country : Singapore}

^{SHARMILA CHANDRAKANT PATEL 150,000 Private Person}

^{Street : 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town : SINGAPORE}

^{Postcode : 465010}

^{Country : Singapore}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in : USD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 12/10/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004}

^{Number of weeks: 52 71}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 212,054 1,524}

^{Total Fixed Assets: 212,054 1,524}

^{Inventories: 505,953 253,620}

^{Receivables: 300,835 190,794}

^{Cash, Banks, Securities: 136,436 291,295}

^{Other current assets: 59,012 7,112}

^{Total Current Assets: 1,002,236 742,821}

^{TOTAL ASSETS: 1,214,290 744,345}

^{--- LIABILITIES ---}

^{Equity capital: 182,927 182,927}

^{Profit & loss Account: 78,090 49,014}

^{Total Equity: 261,017 231,941}

^{Trade Creditors: 278,622 40,413}

^{Advanced payments: 19,960}

^{Due to Bank: 600,731 359,068}

^{Provisions: 1,486 5,730}

^{Other Short term Liab.: 61,190 83,300}

^{Prepay. & Def. charges: 11,244 3,933}

^{Total short term Liab.: 953,273 512,404}

^{TOTAL LIABILITIES: 953,273 512,404}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 11,286,904 6,333,674}

^{Purchases,Sces & Other Goods: 10,942,317 6,067,535}

^{Gross Profit: 344,587 266,139}

^{Result of ordinary operations 70,785 131,770}

^{NET RESULT BEFORE TAX: 29,076 54,744}

^{Tax : 5,730}

^{Net income/loss year: 29,076 49,014}

^{Interest Paid: 41,709 15,552}

^{Depreciation: 5,380 3,289}

^{Directors Emoluments: 74,405 76,220}

RATIOS

^{31/12/2005 31/12/2004}

^{Net result / Turnover(%): 0.00 0.01}

^{Stock / Turnover(%): 0.04 0.04}

^{Net Margin(%): 0.26 0.77}

^{Return on Equity(%): 11.14 21.13}

^{Return on Assets(%): 2.39 6.58}

^{Net Working capital: 48963.00 230417.00}

^{Cash Ratio: 0.14 0.57}

^{Quick Ratio: 0.46 0.94}

^{Current ratio: 1.05 1.45}

^{Receivables Turnover: 9.60 10.84}

^{Leverage Ratio: 3.65 2.21}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets-Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING BY 12.54% AMOUNTING TO USD261,017 (2004: USD231,941). THIS WAS DUE TO HIGHER RETAINED EARNINGS BROUGHT FORWARD OF USD78,090 (2004: USD49,014).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD GONE UP TO 3.65 TIMES (2004: 2.21 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS SURGED BY 5.89 TIMES, TOTALLING USD278,622 (2004: USD40,413).}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY DECLINED BUT REMAINED FAIRLY HEALTHY. NET WORKING CAPITAL REGISTERED LOWER AT USD48,963 (2004: USD230,417).}

^{IN ADDITION, BOTH THE QUICK AND CURRENT RATIOS WERE LACKING AT 0.46 TIMES (2004: 0.94 TIMES) AND 1.05 TIMES (2004: 1.45 TIMES) RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 IMPROVED BY 78.20%, TOTALLING USD11,286,904 (2004: USD6,333,674). HOWEVER, NET INCOME DECLINED BY 40.68%, ACCOUNTING FOR USD29,076 (2004: USD49,014).}

^{THUS, NET MARGIN STOOD LOWER AT 0.26% (2004: 0.77%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE ANTICIPATED IN VIEW OF THE FALLING LIQUIDITY, NET INCOMES AND IF TRADE RECEIVABLES WERE NON FORTHCOMING. AVERAGE COLLECTION PERIOD WAS COMPUTED AT 10 DAYS (2004: 11 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/08/2003 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "NEELAM INTERNATIONAL PTE. LTD.".}

^{AS AT 30/07/2007, THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 300,000 SHARES OF A VALUE OF S$300,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); COMMISSION AND INDENTING AGENTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUSINESS OF GENERAL IMPORTERS AND EXPORTERS AND GENERAL TRADING.}

^{FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT IS A REPRESENTING AGENT/TRADING OF INDUSTRIAL CHEMICALS/SOLVENTS, PLASTIC RESIN/RECYCLED PLASTIC AND RUBBER - SBR/PBR. SUBJECT IMPORTS, EXPORTS, STOCKS AND DISTRIBUTES CHEMICALS AND PVC RESINS TO END USERS. IT REPRESENTS MANUFACTURERS FROM ASIA AS WELL EUROPE.}

^PRODUCTS:

^{* ZINC SULPHATE HEPTA/MONO}

^{* CITRIC ACID BP 93 MONO}

^{* DI ETHYLENE GLYCOL/MONO ETHYLENE GLYCOL}

^{* PVC RESINS}

^{* POLYPROPYLENE RESIN}

^{* POLYETHYLENE RESIN}

^{MAIN MARKET:}

^{* SOUTHEAST ASIA}

^{NO OTHER UPDATED TRADE INFORMATION WAS MADE AVAILABLE ON 03/08/2007.}

^{FROM THE PRIOR TELE-INTERVIEW CONDUCTED ON 09/05/2006, IT WAS REVEALED THAT SUBJECT IS IN THE TRADING OF CHEMICALS, PLASTICS, TEAKWOOD, TIMBER, SCRAP METAL. SUBJECT IMPORTS FROM AND EXPORTS MAINLY TO SOUTH EAST ASIA REGION. SUBJECT EMPLOYS 4 PERSONS IN THE BUSINESS.}

^{TERMS OF PAYMENT:}

^{* CUSTOMERS: L/C AT SIGHT}

^{* SUPPLIERS: DP}

^{NO OTHER TRADE INFORMATION WAS PROVIDED BY SUBJECT'S PERSONNEL.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005/4: NOT AVAILABLE}

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 JALAN BESAR}

^#10-10

^{SIM LIM TOWER}

^{SINGAPORE 208787}

^{DATE OF CHANGE OF ADDRESS: 08/06/2005}

^{YOUR PROVIDED ADDRESS:}

^{111 NORTH BRIDGE ROAD}

^#08-08

^{PENINSULA PLAZA}

^{SINGAPORE 179098}

^{-- FORMER BUSINESS ADDRESS. HOWEVER, PERSONNEL STILL MAINTAINS THE PREMISE AS MAILING ADDRESS AS CONFIRMED VIA TELE-INTERVIEW}

^WEBSITE:

^{* NIL}

^EMAIL:

^{* chemplas@singnet.com.sg}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1) PATEL CHETANKUMAR DHIRUBHAI, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{2) SHARMILA CHANDRAKANT PATEL, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions