MIRA INFORM REPORT

Report Date :

07.06.2007

IDENTIFICATION DETAILS

Name :	DAICEL CHEMICAL (ASIA) PTE LTD
Registered Office :	^20 Collyer Quay, #21-05, Tung Centre, Singapore – 049319
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^02/02/1989
Com. Reg. No.:	^198900436M
Legal Form :	^Pte Ltd
Line of Business :	Trade in 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

DAICEL CHEMICAL (ASIA) PTE LTD

Line Of Business 

TRADE IN CHEMICAL PRODUCTS

Parent Company

DAICEL CHEMICAL INDUSTRIES LTD

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : S$150,507,377

Networth : S$18,295,605

Paid-Up Capital : S$9,586,666

Net result : S$2,145,878

Net Margin(%) : 1.43

Return on Equity(%) : 11.73

Leverage Ratio : 1.58

COMPANY IDENTIFICATION

^{Subject Company : DAICEL CHEMICAL (ASIA) PTE LTD}

^{Former Name : DAICEL TRADING SINGAPORE PTE. LTD.}

^{Business Address: 20 COLLYER QUAY}

^#21-05

^{TUNG CENTRE}

^{Town: SINGAPORE}

^{Postcode: 049319}

^{County: -}

^{Country: Singapore}

^{Telephone: 6327 2038}

^{Fax: 6327 2048}

^{ROC Number: 198900436M}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{DAICEL TRADING SINGAPORE PTE. LTD.}

^{DATE OF CHANGE OF NAME: 03/05/1989}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 02/02/1989}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 150,507,377}

^{Networth : 18,295,605}

^{Capital: 10,000,000}

^{Paid-Up Capital: 9,586,666}

^{Employees: 9}

^{Net result : 2,145,878}

^{Share value: 1}

^{AUDITOR: PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 02/02/1989}

PRINCIPAL(S)

^{TAKESHI KOBAYASHI G5699331U Director}

DIRECTOR(S)

^{SUSAN TAN IE SU S2176508B Company Secretary}

^{Appointed on : 01/06/1993}

^{Street : 16 AMBER GARDENS}

^#15-04

^{AMBER PARK}

^{Town: SINGAPORE}

^{Postcode: 439961}

^{Country: Singapore}

^{TAKESHI KOBAYASHI G5699331U Director}

^{Appointed on : 22/08/2005}

^{Street : 18 NEWTON ROAD}

^#22-02

^{NEWTON 18}

^{Town: SINGAPORE}

^{Postcode: 307989}

^{Country: Singapore}

^{TAKAYUKI ISHIHARA TF4700537 Director}

^{Appointed on : 01/07/2006}

^{Street : 1-21-2-902}

^{KAMIOOKAHIGASHI}

^{KONAN-KU, YOKOHAMA}

^{Town: KANAGAWA}

^Postcode:

^{Country: Japan}

FORMER DIRECTOR(S)

^{MIZUTA TAKASHI SK1567565}

^{SUZUKI JURO H5130899}

^{ARAI TOSHIHIKO K0062947}

^{SHINICHI ASANO F5632873N}

^{MASAYUKI MAEHARA MP1754393}

^{MIKIO KITAGAWA MP4736707}

^{YUJI IGUCHI TF3564806}

^{YOSHIRO YAMAMOTO G5510246K}

ACTIVITY(IES)

^{CHEMICALS Code:3970}

^{IMPORTERS And EXPORTERS Code:11760}

^{COMMISSION MERCHANTS Code:4990}

^{BASED ON ACRA'S RECORD AS AT 28/05/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);}

^{PROVIDE MANAGEMENT AND ADMIN SERVICES TO ITS HOLDINGS CORPORATION}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{MITSUBISHI TRUST & BANKING CO}

^{UFJ BANK LIMITED}

SHAREHOLDERS(S)

^{DAICEL CHEMICAL INDUSTRIES LTD 9,586,666 Company}

^{Street : TEPPO-CHO SAKAI}

^{Town: OSAKA}

^{Postcode: 590}

^{Country: Japan}

HOLDING COMPANY

^{DAICEL CHEMICAL INDUSTRIES LTD UF03997K % : 100}

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) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 04/07/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 34,000 34,000 -}

^{Tangible Fixed Assets: 117,615 53,822 4,076,202}

^{Investments 9,483,534 6,940,700 1,699,606}

^{Total Fixed Assets: 9,635,149 7,028,522 5,775,808}

^{Inventories: 3,954,257 5,334,324 872,585}

^{Receivables: 20,368,469 16,153,103 13,493,696}

^{Cash,Banks, Securitis: 13,153,492 8,910,586 5,644,049}

^{Other current assets: 118,091 1,055,383 84,524}

^{Total Current Assets: 37,594,309 31,453,396 20,094,854}

^{TOTAL ASSETS: 47,229,458 38,481,918 25,870,662}

^{--- LIABILITIES}

^{Equity capital: 9,586,666 9,586,666 9,586,666}

^{Reserves: 2,542,834 - -}

^{Profit & loss Account: 6,166,105 4,020,227 251,629}

^{TOTAL EQUITY: 18,295,605 13,606,893 9,838,295}

^{Trade Creditors: 26,200,893 23,609,149 14,845,875}

^{Prepay. & Def. charges: 150,115 257,853 365,872}

^{Provisions: 970,753 909,211 797,701}

^{Other Short term Liab.: 1,612,092 98,812 22,919}

^{Total short term Liab.: 28,933,853 24,875,025 16,032,367}

^{TOTAL LIABILITIES: 28,933,853 24,875,025 16,032,367}

PROFIT & LOSS ACCOUNT

^{Net Sales 150,507,377 145,887,602 122,576,438}

^{Gross Profit: 4,656,605 4,198,065 -}

^{Result of ordinary operations - - 885,002}

^{NET RESULT BEFORE TAX: 2,657,347 4,144,598 937,073}

^{Tax : 511,469 376,000 250,000}

^{Net income/loss year: 2,145,878 3,768,598 687,073}

^{Interest Paid:}

^{Depreciation: 42,807 342,778 387,150}

^{Directors Emoluments: 190,425 172,812 167,567}

^{Purchases,Sces & Other Goods145,850,772 141,689,537 -}

^{Wages and Salaries: 1,159,668 1,000,458 1,209,173}

^{Financial Income: 202,175 58,967 52,071}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

^{Turnover per employee: 16723041.89 16209733.56 13619604.22}

^{Net result / Turnover(%): 0.01 0.03 0.01}

^{Stock / Turnover(%): 0.03 0.04 0.01}

^{Net Margin(%): 1.43 2.58 0.56}

^{Return on Equity(%): 11.73 27.70 6.98}

^{Return on Assets(%): 4.54 9.79 2.66}

^{Net Working capital: 8660456.00 6578371.00 4062487.00}

^{Cash Ratio: 0.45 0.36 0.35}

^{Quick Ratio: 1.16 1.01 1.19}

^{Current ratio: 1.30 1.26 1.25}

^{Receivables Turnover: 48.72 39.86 39.63}

^{Leverage Ratio: 1.58 1.83 1.63}

^{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 34.46% FROM S$13,606,893 IN FY 2004 TO S$18,295,605 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$6,166,105 (2004: S$4,020,227); A RISE OF 53.38% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 90.55% (2004: 94.91%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$26,200,893 (2004: S$23,609,149). THE BREAKDOWN IS AS FOLLOWS:}

^{-THIRD PARTIES - 2005: S$9,776,414 (2004: S$8,775,585)}

^{-A RELATED CORPORATION - 2005: S$1,333,164 (2004: S$1,450,723)}

^{-HOLDING COPPORATION - 2005: S$15,091,315 (2004: S$13,382,841)}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.83 TIMES TO 1.58 TIMES AS A RESULT OF A GREATER RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES.}

^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 1.30 TIMES, UP FROM 1.26 TIMES AND QUICK RATIO IMPROVED TO 1.16 TIMES FROM 1.01 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 31.65% FROM S$6,578,371 IN FY 2004 TO S$8,660,456.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AT BANK AND ON HAND - 2005: S$5,253,202 (2004: S$1,371,566)}

^{-FIXED DEPOSIT WITH FINANCIAL INSTITUTIONS - 2005: S$7,900,290 (2004:S$7,539,020)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 3.17% FROM S$145,887,602 IN FY 2004 TO S$150,507,377 BUT NET PROFIT DROPPED BY 43.06% TO S$2,145,878 (2004: S$3,768,598). THIS COULD BE DUE TO THE NON-AVAILABILITY OF ALLOWANCE FOR DIMINUTION IN VALUE OF INVESTMENT WRITTEN BACK OF - IN FY 2005 (2004: S$5,275,094). HENCE, NET MARGIN FELL TO 1.43% (2004: 2.58%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-CLUB MEMBERSHIP - 2005: S$34,000 (2004: S$34,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 02/02/1989 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "DAICEL TRADING SINGAPORE PTE. LTD.".}

^{SUBSEQUENTLY, ON 03/05/1989, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "DAICEL CHEMICAL (ASIA) PTE LTD".}

^{AS AT 28/05/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 9,586,666 SHARES OF A VALUE OF S$9,586,666.}

^{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); PROVIDE MANAGEMENT AND ADMIN SERVICES TO ITS HOLDINGS CORPORATION}

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES); TO TRADE IN CHEMICALS PRODUCTS}

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

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* IMPORTER, EXPORTER AND WHOLESALER OF ORGANIC CHEMICAL PRODUCTS, CELLULOSE, PLASTIC MATERIALS CHIRAL HPLC COLUMN AND ETC.}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{* SINGAPORE INTERNATIONAL CHAMBER OF COMMERCE}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 05/06/2007, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* JAPAN}

^{EXPORT COUNTRIES:}

^{* SOUTH EAST ASIA}

^{THE SUBJECT MAINLY EXPORTS AND DOES SELL LOCALLY.}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 9}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 05/06/2007.}

^{THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING CORPORATION IS DAICEL CHEMICAL INDUSTRIES LTD, A CORPORATION INCORPORATED IN JAPAN.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 10; 2003: 10; 2002: 8; 2001: 8)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{20 COLLYER QUAY}

^{#21-05 TUNG CENTRE}

^{SINGAPORE 049319}

^{- DATE OF CHANGE OF ADDRESS: 14/03/2005}

^WEBSITE:

^{http://www.daicel.co.jp/indexe.html (HOLDING COMPANY'S)}

^EMAIL:

^{asanodca@singnet.com.sg}

MANAGEMENT

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

^{1) TAKESHI KOBAYASHI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) TAKAYUKI ISHIHARA, A JAPANESE}

- BASED IN JAPAN.

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

DOMESTIC WHOLESALE TRADE IN 4Q 2006 HAS DECLINED BY 6.9%. EXCLUDING PETROLEUM, DOMESTIC SALES REMAINED AT SIMILAR LEVEL COMPARED TO THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE POSTED THE LARGEST SALES DECREASE OF 16.6%, FOLLOWED BY THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS OF 15.7% AND HOUSEHOLD EQUIPMENT AND FURNITURE OF 13.2%.

SECTORS OF INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED GROWTHS OF 17.0% AND 12.3%, RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

ON A QUARTER-TO-QUARTER BASIS, OVERALL FOREIGN WHOLESALE TRADE CONTRACTED BY 7.9% IN 4Q 2006 AFTER TWO QUARTERS OF POSITIVE GROWTH. FOREIGN SALES WENT DOWN BY 1.6%, EXCLUDING PETROLEUM.

THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS AND ELECTRONIC COMPONENTS MARKED LOWER OVERSEAS SALE OF 14.2% AND 11.6% RESPECTIVELY IN 4Q 2006 OVER 3Q 2006.

OUTLOOK

FOR WHOLESALE TRADE, A NET WEIGHTED BALANCE OF 11% OF FIRMS ANTICIPATES BUSINESS TO BE LESS BRISK FOR COMING MONTHS. THOSE DEALING IN JEWELLERY AND WATCHES, INDUSTRIAL MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE AMONG THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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