MIRA INFORM REPORT

Report Date :

12.07.2007

IDENTIFICATION DETAILS

Name :	VINYL CHEM PTE LTD
Registered Office :	^10 Ubi Crescent, #07^-^21, Ubi Tech Park, Singapore – 408564
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^03/08/1999
Com. Reg. No.:	^199904546K
Legal Form :	^Pte Ltd
Line of Business :	Traders of Chemical Products

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

VINYL CHEM PTE LTD

Line Of Business 

TRADERS OF CHEMICAL PRODUCTS

Parent Company

--

Financial Elements

FY 2005

COMPANY

Sales : S$2,939,407

Networth : S$439,600

Paid-Up Capital : S$250,000

Net result : S$63,088

Net Margin(%) : 2.15

Return on Equity(%) : 14.35

Leverage Ratio : 1.13

COMPANY IDENTIFICATION

^{Subject Company : VINYL CHEM PTE LTD}

^{Former Name : -}

^{Business Address: 10 UBI CRESCENT}

^#07-21

^{UBI TECH PARK}

^{Town: SINGAPORE}

^{Postcode: 408564}

^{County: -}

^{Country: Singapore}

^{Telephone: 6749 4404}

^{Fax: 6742 4404}

^{ROC Number: 199904546K}

^{Reg. Town: -}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 03/08/1999}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 2,939,407}

^{Networth : 439,600}

^{Capital: 500,000}

^{Paid-Up Capital: 250,000}

^{Employees: 4}

^{Net result : 63,088}

^{Share value: 1}

^{AUDITOR : SAMUEL SEOW & CO}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 03/08/1999}

PRINCIPAL(S)

^{TAN BOON HONG S0989803D Director}

DIRECTOR(S)

^{TAN BOON HONG S0989803D Director}

^{Appointed on : 03/08/1999}

^{Street : 171 BUKIT BATOK WEST AVENUE 8}

^#21-357

^{Town: SINGAPORE}

^{Postcode: 650171}

^{Country: Singapore}

^{TANG SIEW LAN ALICE S1687911H Company Secretary}

^{Appointed on : 18/09/1999}

^{Street : 125 PENDING ROAD}

^#10-14

^{Town: SINGAPORE}

^{Postcode: 670125}

^{Country: Singapore}

^{CHAN SZE HOI H00392914 Director}

^{Appointed on : 18/09/1999}

^{Street : RM 1307 TSUEN WAN INDUSTRIAL}

^{CTR 220-248}

^{TEXACO ROAD TSUEN WAN}

^{Town: N.T HONGKONG}

^Postcode:

^{Country: Hong Kong}

^{TYO ENG SER S1536213H Director}

^{Appointed on : 18/05/2001}

^{Street : 119 BEDOK NORTH ROAD}

^#12-185

^{Town: SINGAPORE}

^{Postcode: 460119}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{SAKPICHAIMONGKOL SAWITTREE S7082039J}

ACTIVITY(IES)

^{CHEMICALS Code:3970}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 14/06/2007}

^{1. WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS NEC}

^{2. GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS}

CHARGES

^{Date: 12/06/2003}

^{Comments : CHARGE NO: C200302710}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

SHAREHOLDERS(S)

^{TAN BOON HONG 62,500 Private Person}

^{Street : 171 BUKIT BATOK WEST AVENUE 8}

^#21-357

^{Town: SINGAPORE}

^{Postcode: 650171}

^{Country: Singapore}

^{WONDERFUL DELIGHT LIMITED 112,500 Company}

^{Street : 1307 TSUEN WAN INDUSTRIAL CTR}

^{220-248 TEXACE ROAD TSUEN}

^{WAN NEW TERRITORIES}

^Town:

^Postcode:

^{Country: Hong Kong}

^{TYO ENG SER 75,000 Private Person}

^{Street : 119 BEDOK NORTH ROAD}

^#12-185

^{Town: SINGAPORE}

^{Postcode: 460119}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{SAKPICHAIMONGKOL SAWITTREE 30,000}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 21/11/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Investments 6,243 6,243}

^{Total Fixed Assets: 6,243 6,243}

^{Inventories: 277,325 315,083}

^{Receivables: 349,591 354,301}

^{Cash,Banks, Securitis: 297,896 292,900}

^{Other current assets: 5,301 2,916}

^{Total Current Assets: 930,113 965,200}

^{TOTAL ASSETS: 936,356 971,443}

^{--- LIABILITIES}

^{Equity capital: 250,000 250,000}

^{Profit & loss Account: 189,600 126,512}

^{TOTAL EQUITY: 439,600 376,512}

^{Trade Creditors: 116,306 155,571}

^{Prepay. & Def. charges: 29,805 31,495}

^{Due to Bank: 64,718 31,225}

^{Provisions: 14,180 8,573}

^{Other Short term Liab.: 271,747 368,067}

^{Total short term Liab.: 496,756 594,931}

^{TOTAL LIABILITIES: 496,756 594,931}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 2,939,407 3,953,333}

^{NET RESULT BEFORE TAX: 69,938 33,521}

^{Tax : 6,850 3,300}

^{Net income/loss year: 63,088 30,221}

^{Depreciation: 1,390 -}

^{Directors Emoluments: 90,350 90,785}

^{Wages and Salaries: 106,524 117,029}

^{Financial Income: 8,376 3,367}

RATIOS

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

^{Turnover per employee: 734851.75 988333.25}

^{Net result / Turnover(%): 0.02 0.01}

^{Stock / Turnover(%): 0.09 0.08}

^{Net Margin(%): 2.15 0.76}

^{Return on Equity(%): 14.35 8.03}

^{Return on Assets(%): 6.74 3.11}

^{Net Working capital: 433357.00 370269.00}

^{Cash Ratio: 0.60 0.49}

^{Quick Ratio: 1.30 1.09}

^{Current ratio: 1.87 1.62}

^{Receivables Turnover: 42.82 32.26}

^{Leverage Ratio: 1.13 1.58}

^{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 SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 16.76% FROM S$376,512 IN FY 2004 TO S$439,600 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$189,600 (2004: S$126,512); A RISE OF 49.87% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM LIABILITIES WHICH MADE UP 54.70% (2004: 61.87%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$271,747 (2004: S$368,067). THE BREAKDOWN IS AS FOLLOWS:}

^{-DIRECTOR - 2005: S$1,670 (2004: S$16,990)}

^{-FORMER DIRECTOR - 2005: - (2004: S$1,000)}

^{-ADVANCE FROM A BUSINESS ASSOCIATE - 2005: S$200,077 (2004: S$200,077)}

^{-SHAREHOLDER - 2005: S$150,000 (2004: S$150,000)}

^{AMOUNT DUE TO BANKS OF S$64,718 (2004: S$31,225) CONSISTED OF:}

^{-TRUST RECEIPTS - 2005: S$54,330 (2004: -)}

^{-BANK OVERDRAFT UNSECURED - 2005: S$10,388 (2004: S$31,225)}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.58 TIMES TO 1.13 TIMES AS A RESULT OF A DECLINE IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.87 TIMES, UP FROM 1.62 TIMES AND QUICK RATIO IMPROVED TO 1.30 TIMES FROM 1.09 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 17.04% FROM S$370,269 IN FY 2004 TO S$433,357.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-FIXED DEPOSITS - 2005: S$290,769 (2004: S$281,407)}

^{-CASH AT BANK - 2005: S$7,127 (2004: S$11,493)}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 25.65% FROM S$3,953,333 IN FY 2004 TO S$2,939,407 BUT NET PROFIT ROSE BY 1.09 TIMES TO S$63,088 (2004: S$30,221). THIS COULD BE DUE TO LOWER STAFF COSTS OF S$106,524 IN FY 2005 (2004: S$117,029). HENCE, NET MARGIN ROSE TO 2.15% (2004: 0.76%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. AVERAGE COLLECTION PERIOD HAS INCREASED FROM 32.26 DAYS TO 42.82 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/08/1999 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "VINYL CHEM PTE LTD".}

^{AS AT 14/06/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 250,000 SHARES OF A VALUE OF S$250,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1. WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS NEC}

^{2. GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF TRADERS OF CHEMICAL PRODUCTS.}

^{AS THE SUBJECT IS NOT LISTED IN THE LOCAL DIRECTORIES AND INTERNET, NO OTHER INFORMATION IS AVAILABLE. FROM THE TELE-INTERVIEW CONDUCTED ON 11/07/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 4}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 11/07/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: NOT AVAILABLE)}

^{* GROUP - 2005: - (2004: - )}

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 UBI CRESCENT}

^{#07-21 UBI TECH PARK}

^{SINGAPORE 408564}

^{- RENTED PREMISE}

^{- OWNED BY KEOK HAN HWEE, HENG HOCK PEOW}

^{- DATE OF CHANGE OF ADDRESS: 26/09/2001}

^WEBSITE:

^-

^EMAIL:

^{vinylchm@singnet.com.sg}

MANAGEMENT

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

^{1) CHAN SZE HOI, A HONG KONG RESIDENT}

^{- BASED IN HONG KONG.}

^{2) TAN BOON HONG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{3) TYO ENG SER, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP 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