MIRA INFORM REPORT

Report Date :

21.06.2007

IDENTIFICATION DETAILS

Name :	HENNECKE-MARUKA ASIA PTE LTD
Registered Office :	^63 CHULIA STREET, #14-00^, SINGAPORE – 049514
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^30/07/1994
Com. Reg. No.:	^199405356M
Legal Form :	^Pte Ltd
Line of Business :	Sales, Marketing and Distribution of Plant, Machinery, Tools, Materials, Products and goods of all kinds capable of being used in the Manufacture of Polyurethane Products

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

HENNECKE-MARUKA ASIA PTE LTD

Line Of Business 

SALES, MARKETING AND DISTRIBUTION OF PLANT, MACHINERY, TOOLS, MATERIALS, PRODUCTS AND GOODS OF ALL KINDS CAPABLE OF BEING USED IN THE MANUFACTURE OF POLYURETHANE PRODUCTS

Parent Company

-

Financial Elements

FY2005

COMPANY

Sales : S$1,606,781

Networth : S$ 815,971

Paid-Up Capital : S$ 100,000

Net result : -S$ 240,000

Net Margin(%) : -14.94

Return on Equity(%) : -29.41

Leverage Ratio : 0.39 TIMES

COMPANY IDENTIFICATION

^{Subject Company : HENNECKE-MARUKA ASIA PTE LTD}

^{Former Name : -}

^{Business Address : 63 CHULIA STREET}

^#14-00

^{Town : SINGAPORE}

^{Postcode : 049514}

^{County : -}

^{Country : Singapore}

^{Telephone : 6496 1545}

^{Fax : 6496 1492}

^{ROC Number : 199405356M}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 30/07/1994}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 1,606,781}

^{Net Worth : 815,971}

^{Paid-Up Capital : 100,000}

^{Employees : -}

^{Net Result : -240,000}

^{Auditor : KPMG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 30/07/1994}

PRINCIPAL(S)

^{YIM POON WAH S1344599J Director}

DIRECTOR(S)

^{KODO KATO TE0441290 Director}

^{Appointed on : 11/08/1994}

^{Street : 6-53 KOHAZAMA KUTSUKAKE}

^{TOYOAKE CITY}

^{Town : -}

^{Postcode : -}

^{Country : Japan}

^{YIM POON WAH S1344599J Director}

^{Appointed on : 01/01/2007}

^{Street : 18 SHELFORD ROAD}

^{SHELFORD VALE}

^{Town : SINGAPORE}

^{Postcode : 288407}

^{Country : Singapore}

^{RUDOLF CORNELIUS HEINRICH BRUMUND 5247830540 Director}

^{Appointed on : 01/07/2005}

^{Street : QUETTINGER STRASSE 119}

^{D-51381, LEVERKUSEN}

^{Town : -}

^{Postcode : -}

^{Country : Germany}

^{IGOR CHARLES CROISET BA0308378 Manager}

^{Appointed on : 01/11/2005}

^{Street : WALTER FLEXSTRASSE 17}

^{Town : LEVERKUSEN}

^{Postcode : 51373}

^{Country : Germany}

^{TAN PUAY PUAY AMY S7240297I Company Secretary}

^{Appointed on : 14/10/2005}

^{Street : 10 UPPER SERANGOON VIEW}

^#02-01

^{RIO VISTA}

^{Town : SINGAPORE}

^{Postcode : 534198}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{VEMALA RAJAMANICKAM S0347048B}

^{RUDOLF THIEM KLAUS BRUNO S33090009}

^{LIM JOO JOON S1248311B}

^{HANS JOSEF CREMERS F5534906K}

^{VOLKER BRUNINGHAUS 5367223352}

ACTIVITY (IES)

^{MACHINERY Code: 13260}

^{POLYURETHANE PRODUCTS Code: 17270}

^{BASED ON ACRA'S RECORD AS AT 15/06/2007}

^{1) WHOLESALE OF INDUSTRIAL, AGRICULTURAL, CONSTRUCTION AND RELATED MACHINERY AND EQUIPMENT;}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{MEG-MARUKA KAKOUKI CO LTD 40,000 Company}

^{Street : 12 HARA OAZA AZABU MIYOSHI-CHO}

^{MISHIKAMO-GUN AICHI}

^{Town : -}

^{Postcode : -}

^{Country : Japan}

^{HENNECKE GMBH 40,000 Company}

^{Street : BIRLINGHOVENER STRASSE 30}

^{D-53754 SANKT AUGUSTIN-BIRLINGHOVEN}

^{Town : -}

^{Postcode : -}

^{Country : Germany}

^{BAYER (SOUTH EAST ASIA) PTE LTD 20,000 Company}

^{Street : 63 CHULIA STREET}

^#14-00

^{Town : SINGAPORE}

^{Postcode : 049514}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{BAYER TRADING PTE LTD 20,000}

^{MASCHINENFABRIK HENNECKE GMBH 40,000}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : DOWNWARD}

^{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: 30/06/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Inventories: 104,392 127,236}

^{Receivables: 443,352 239,978}

^{Cash, Banks, Securities: 20,455 970,710}

^{Other current assets: 563,087 4,254}

^{Total Current Assets: 1,131,286 1,342,178}

^{TOTAL ASSETS: 1,131,286 1,342,178}

^{--- LIABILITIES ---}

^{Equity capital: 100,000 100,000}

^{Profit & loss Account: 715,971 955,971}

^{Total Equity: 815,971 1,055,971}

^{Trade Creditors: 12,578 16,180}

^{Provisions: 10,809 50,809}

^{Other Short term Liab.: 209,326 192,094}

^{Prepay. & Def. charges: 82,602 27,124}

^{Total short term Liab.: 315,315 286,207}

^{TOTAL LIABILITIES: 315,315 286,207}

PROFIT & LOSS ACCOUNT

^{Net Sales 1,606,781 1,723,255}

^{Purchases,Sces & Other Goods: 254,833 193,589}

^{Gross Profit: 1,351,948 1,529,666}

^{NET RESULT BEFORE TAX: -240,000 248,778}

^{Tax : 39,960}

^{Net income/loss year: -240,000 208,818}

^{Interest Paid: 15 5,598}

^{Depreciation: - 506}

^{Wages and Salaries: - 125,993}

^{Financial Income: 14,995 2,474}

RATIOS

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

^{Net result / Turnover(%): -0.15 0.12}

^{Stock / Turnover(%): 0.06 0.07}

^{Net Margin(%): -14.94 12.12}

^{Return on Equity(%): -29.41 19.77}

^{Return on Assets(%): -21.21 15.56}

^{Net Working capital: 815971.00 1055971.00}

^{Cash Ratio: 0.06 3.39}

^{Quick Ratio: 1.47 4.23}

^{Current ratio: 3.59 4.69}

^{Receivables Turnover: 99.33 50.13}

^{Leverage Ratio: 0.39 0.27}

^{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 DECREASING BY 22.73% AMOUNTING TO S$815,971 (2004: S$1,055,971). THIS WAS DUE TO LOWER RETAINED EARNINGS BROUGHT FORWARD OF S$715,971 (2004: S$955,971).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD GONE UP TO 0.39 TIMES (2004: 0.27 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS DECREASED BY 22.26%, TOTALLING S$12,578 (2004: S$16,180).}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY BUT HAD DECLINED. BOTH THE QUICK AND CURRENT RATIOS WERE SUFFICIENT AT 1.47 TIMES (2004: 4.23 TIMES) AND 3.59 TIMES (2004: 4.69 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH REGISTERED LOWER AT S$815,971 (2004: S$1,055,971).}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 FELL BY 6.76%, TOTALLING S$1,606,781 (2004: S$1,723,255). IN ADDITION, THE COMPANY INCURRED AN OVERALL NET LOSS IN FY2005 OF S$240,000 (2004: S$208,818).}

^{THUS, NET MARGIN WAS ADVERSE AT -14.94% (2004: 12.12%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE ANTICIPATED IN VIEW OF THE DECLINING LIQUIDITY, REVENUES AND NET INCOMES, AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD HAD LENGTHENED TO 99 DAYS (2004: 50 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 30/07/1994 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "HENNECKE-MARUKA ASIA PTE LTD".}

^{AS AT 15/06/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 100,000 SHARES OF A VALUE OF S$100,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF INDUSTRIAL, AGRICULTURAL, CONSTRUCTION AND RELATED MACHINERY AND EQUIPMENT; SALES, MARKETING, DISTRIBUTION OF GOODS USED FOR MANUFACTURE OF POLYURETHANE PRODUCTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE SALES, MARKETING AND DISTRIBUTION OF PLANT, MACHINERY, TOOLS, MATERIALS, PRODUCTS AND GOODS OF ALL KINDS CAPABLE OF BEING USED IN THE MANUFACTURE OF POLYURETHANE PRODUCTS.}

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

^{MARKETS COVERED:}

^{* AUSTRALIA, BRUNEI, CAMBODIA, LAOS, MALAYSIA, NEW ZEALAND, PHILIPPINES, TAIWAN AND VIETNAM}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 20/06/2007 AS THE SUBJECT COULD NOT BE REACHED FOR A TELE-INTERVIEW.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{63 CHULIA STREET}

^#14-00

^{SINGAPORE 049514}

^{DATE OF CHANGE OF ADDRESS: 04/06/2007}

^{YOUR PROVIDED ADDRESS:}

^{9 BENOI SECTOR}

^{SINGAPORE 629844}

^{-- UNABLE TO VERIFY AS WE WERE UNABLE TO CONTACT THE SUBJECT FOR A TELE-INTERVIEW.}

^WEBSITE:

^{* http://www.hennecke.com}

^EMAIL:

^{* lily.kong@bayermaterialscience.com}

MANAGEMENT

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

^{1) RUDOLF CORNELIUS HEINRICH BRUMUND, A GERMAN}

^{- BASED IN GERMANY}

^{2) YIM POON WAH, A SINGAPOREAN}

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

^{3) KODO KATO, 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.

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%)

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