MIRA INFORM REPORT

Report Date :

15.06.2007

IDENTIFICATION DETAILS

Name :	HARESH PETROCHEM SINGAPORE PTE. LTD.
Registered Office :	^101 Cecil Street, #19^-^01a, Tong Eng Building, Singapore – 069533
Country :	Singapore
Financials (as on) :	31.03.2006
Date of Incorporation :	^07/12/2004
Com. Reg. No.:	^200415768W
Legal Form :	^Pte Ltd
Line of Business :	International Trading and Distribution of Petrochemicals and Solvents

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

HARESH PETROCHEM SINGAPORE PTE. LTD.

Line Of Business 

INTERNATIONAL TRADING AND DISTRIBUTION OF PETROCHEMICALS AND SOLVENTS

Parent Company

HARESH PETROCHEM PVT LTD.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2006

COMPANY

Sales : US$3,212,697

Networth : US$ 502,957

Paid-Up Capital : US$ 429,815

Net result : US$ 73,142

Net Margin(%) : 2.28

Return on Equity(%) : 14.54

Leverage Ratio : 0.92 TIMES

COMPANY IDENTIFICATION

^{Subject Company : HARESH PETROCHEM SINGAPORE PTE. LTD.}

^{Former Name : -}

^{Business Address : 101 CECIL STREET}

^#19-01A

^{TONG ENG BUILDING}

^{Town : SINGAPORE}

^{Postcode : 069533}

^{County : -}

^{Country : Singapore}

^{Telephone : 6223 4955}

^{Fax : 6223 6932}

^{ROC Number : 200415768W}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 07/12/2004}

^{Previous Legal Form : -}

^{Summary year : 31/03/2006}

^{Sales : 3,212,697}

^{Net Worth : 502,957}

^{Paid-Up Capital : 429,815}

^{Employees : -}

^{Net Result : 73,142}

^{Auditor : SRI MURALI & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 07/12/2004}

PRINCIPAL(S)

^{MADHU MADAN S2651203D Director}

DIRECTOR(S)

^{KUNAL K KASAT F3426318 Director}

^{Appointed on : 24/06/2005}

^{Street : C3, KAVERINITA, H.R.}

^{MAHAJANI ROAD, MATUNGA}

^{Town : MUNBAI M.S.}

^{Postcode : 400019}

^{Country : India}

^{MADHU MADAN S2651203D Director}

^{Appointed on : 24/06/2005}

^{Street : 6 ANGKLONG LANE}

^#12-04

^{FABER GARDEN CONDOMINIUM}

^{Town : SINGAPORE}

^{Postcode : 579980}

^{Country : Singapore}

^{MADHU MADAN S2651203D Company Secretary}

^{Appointed on : 02/08/2005}

^{Street : 6 ANGKLONG LANE}

^#12-04

^{FABER GARDEN CONDOMINIUM}

^{Town : SINGAPORE}

^{Postcode : 579980}

^{Country : Singapore}

ACTIVITY (IES)

^{PETROLEUM PRODUCTS Code: 16350}

^{TRADING COMPANIES Code: 22190}

^{CHEMICALS Code: 3970}

^{BASED ON ACRA'S RECORD AS AT 11/06/2007}

^{1) WHOLESALE OF PETROCHEMICAL PRODUCTS; INTERNATIONAL TRADING & DISTRIBUTION OF PETROCHEMICALS AND}

CHARGES

^{Date : 12/02/2007}

^{Comments : CHARGE NO: C200701200}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{HARESH PETROCHEM PVT LTD. 698,002 Company}

^{Street : ACME PLAZA, ANDHERI KRULA ROAD}

^{ANDHERI EAST, 404/405}

^{Town : MUMBAI}

^{Postcode : 400059}

^{Country : India}

HOLDING COMPANY

^{HARESH PETROCHEM PVT LTD. UF39563D % : 100}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UNKNOWN}

^{Financial Situation : AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 31/08/2006}

^{Balance Sheet Date: 31/03/2006}

^{Number of weeks: 68}

^{Consolidation Code: COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 8,423}

^{Total Fixed Assets: 8,423}

^{Inventories: 240,275}

^{Receivables: 538,955}

^{Cash, Banks, Securities: 136,690}

^{Other current assets: 40,452}

^{Total Current Assets: 956,372}

^{TOTAL ASSETS: 964,795}

^{--- LIABILITIES ---}

^{Equity capital: 429,815}

^{Profit & loss Account: 73,142}

^{Total Equity: 502,957}

^{L/T deferred taxes: 400}

^{Total L/T Liabilities: 400}

^{Trade Creditors: 450,796}

^{Provisions: 10,642}

^{Total short term Liab.: 461,438}

^{TOTAL LIABILITIES: 461,838}

PROFIT & LOSS ACCOUNT

^{Net Sales 3,212,697}

^{Purchases,Sces & Other Goods: 3,061,075}

^{Gross Profit: 151,622}

^{Result of ordinary operations 84,901}

^{NET RESULT BEFORE TAX: 84,184}

^{Tax : 11,042}

^{Net income/loss year: 73,142}

^{Depreciation: 4,211}

^{Directors Emoluments: 5,042}

^{Wages and Salaries: 63,221}

^{Financial Income: 93}

RATIOS

^31/03/2006

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

^{Stock / Turnover(%): 0.07}

^{Net Margin(%): 2.28}

^{Return on Equity(%): 14.54}

^{Return on Assets(%): 7.58}

^{Net Working capital: 494934.00}

^{Cash Ratio: 0.30}

^{Quick Ratio: 1.46}

^{Current ratio: 2.07}

^{Receivables Turnover: 60.39}

^{Leverage Ratio: 0.92}

^{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 BALANCESHEET WAS PASSABLE WITH TOTAL EQUITY REGISTERING AT USD502,957. THIS WAS CONTRIBUTED BY RETAINED EARNINGS BROUGHT FORWARD OF USD73,142.}

^LEVERAGE:

^{THE LEVERAGE RATIO WAS CONSERVATIVE AT 0.92 TIMES, INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE NON-SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS ACCOUNTED FOR 97.69% OF THE TOTAL CURRENT LIABILITIES, TOTALLING USD450,796.}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE SUFFICIENT AT 1.46 TIMES AND 2.07 TIMES RESPECTIVELY. THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH POSTED AT USD494,934.}

^{PROFITABILITY:}

^{REVENUE FOR FY2006 AMOUNTD TO USD3,212,697, WHILE NET INCOME ACCOUNTED FOR USD73,142. THUS, NET MARGIN WAS COMPUTED AT 2.28%.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT LIQUIDITY, IF REVENUES AND NET INCOMES CONTINUED TO BE GENERATED AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD WAS COMPUTED AT 60 DAYS.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{COMPARATIVE FIGURES}

^{THE FINANCIAL STATEMENTS COVER THE PERIOD SINCE INCORPORATION ON 7TH DECEMBER 2004 TO 31ST MARCH 2006. THIS BEING THE FIRST SET OF FINANCIAL STATEMENTS, THERE ARE NO COMPARATIVE FIGURES.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 07/12/2004 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "HARESH PETROCHEM SINGAPORE PTE. LTD.".}

^{AS AT 11/06/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 698,002 SHARES OF A VALUE OF S$698,002.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF PETROCHEMICAL PRODUCTS; INTERNATIONAL TRADING & DISTRIBUTION OF PETROCHEMICALS AND SOLVENTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUSINESS AS INTERNATIONAL TRADING AND DISTRIBUTION OF PETROCHEMICALS AND SOLVENTS.}

^{THE COMPANY IS A SUBSIDIARY OF HARESH PETROCHEM PVT LTD, A COMPANY INCORPORATED IN INDIA WHICH IS ALSO THE CORPORATION REGARDED BY THE DIRECTORS AS BEING THE COMPANY'S ULTIMATE HOLDING COMPANY.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: PETROCHEMICAL.}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 15/06/2007 AS A TELE-INTERVIEW REQUEST WAS NOT GRANTED.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{101 CECIL STREET}

^#19-01A

^{TONG ENG BUILDING}

^{SINGAPORE 069533}

^{DATE OF CHANGE OF ADDRESS: 18/08/2005}

^WEBSITE:

^{* NA}

^EMAIL:

^{* NA}

MANAGEMENT

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

^{1) KUNAL K KASAT, AN INDIAN}

^{- BASED IN INDIA}

^{2) MADHU MADAN, AN INDIAN}

^{- BASED IN SINGAPORE}

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.

RETAIL TRADE

IN GENERAL, RETAIL SALES GREW BY 7.9% IN 4Q 2006, UP FROM THE 5.2% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL YEAR GROWTH FOR 2006 TO 6.9%, DOWN FROM 9.0% IN 2005. EXCLUDING MOTOR VEHICLE SALES, RETAIL SALES ROSE 4.1%, SLOWING FROM THE 7.2% GAIN IN THE PREVIOUS YEAR.

MOST RETAIL SECTORS REPORTED BRISK BUSINESS IN DEC. 2006. SALES OF RECREATIONAL GOODS, DEPARTMENT STORES, WEARING APPAREL AND FOOTWEAR, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY CLIMBED BY 36.6% TO 44.2% IN DEC. 2006 COMPARED TO THE PREVIOUS MONTH.

LIKEWISE, RETAILERS OF OPTICAL GOODS AND BOOKS, TELECOMMUNICATIONS APPARATUS AND COMPUTERS, FOOD AND BEVERAGES, MEDICAL GOODS AND TOILETRIES AND SUPERMARKETS ENJOYED GROWTH BETWEEN 12.7% TO 26.0%.

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.

FOR RETAILERS, A NET WEIGHTED BALANCE OF 8%, FORECAST THE BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS. DEPARTMENT STORES OWNERS AND RETAILERS OF FURNITURE AND FURNISHINGS ARE OPTIMISTIC ABOUT THE BUSINESS PROSPECTS.

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%)

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