MIRA INFORM REPORT

Report Date :

26.11.2008

IDENTIFICATION DETAILS

Name :	TRELLEBORG HERCULES PTE LTD
Formerly Known As :	HERCULES RUBBER & CHEMICAL INDUSTRIES (PRIVATE) LIMITED
Registered Office :	4 Jalan Pesawat Jurong Town 619362
Country :	Singapore
Financials (as on) :	31.12.2007
Date of Incorporation :	08.04.1972
Com. Reg. No.:	197200418W
Legal Form :	Exempt Pte Ltd
Line of Business :	Manufacturing and Sale of Rubber and 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 :	Exists

Subject Company

TRELLEBORG HERCULES PTE LTD

Line Of Business 

 
MANUFACUTRING AND SALE OF RUBBER AND CHEMICAL PRODUCTS. 

Parent Company

TRELLEBORG HOLDINGS AB

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2007

COMPANY

Sales : S$42,903,000

Networth : S$35,166,000

Paid-Up Capital : S$ 4,054,000

Net result : S$ 4,554,000

Net Margin(%) : 10.61

Return on Equity(%) : 12.95

Leverage Ratio : 0.29

COMPANY IDENTIFICATION

Subject Company :	TRELLEBORG HERCULES PTE LTD
Former Name :	HERCULES RUBBER & CHEMICAL INDUSTRIES (PRIVATE) LIMITED DATE OF CHANGE OF NAME: 18/06/2001
Business Address:	4 JALAN PESAWAT JURONG TOWN
Town:	SINGAPORE
Postcode:	619362
Country:	Singapore
Telephone:	6265 0955
Fax:	6265 9853
ROC Number:	197200418W

PREVIOUS IDENTIFICATION

HERCULES RUBBER & CHEMICAL INDUSTRIES (PRIVATE) LIMITED DATE OF CHANGE OF NAME: 18/06/2001

SUMMARY

Legal Form:	Exempt Pte Ltd
Date Inc.:	08/04/1972
Previous Legal Form:	Pte Ltd
Summary year :	31/12/2007
All amounts in this report are in :	SGD
Sales:	42,903,000
Networth :	35,166,000
Capital:	10,000,000
Paid-Up Capital:	4,054,000
Employees:	180
Net result :	4,554,000
Share value:	100

 
AUDITOR: PRICEWATERHOUSECOOPERS 
  
BASED ON ACRA'S RECORD 
  NO OF SHARES CURRENCY   AMOUNT 
ISSUED ORDINARY 40,541  SGD   4,054,100.00
PAID-UP ORDINARY -  SGD  4,054,100.00

REFERENCES

Litigation:	YES
Company status :	TRADING
Started :	08/04/1972

PRINCIPAL(S)

WEE JULIAN @ QUAH JULIAN

S6843649D

Managing Director

DIRECTOR(S)

ONG SIEW HONG	S1369170C	Company Secretary
Appointed on :	16/09/1983
Street :	470 JURONG WEST STREET 41 #14-437
Town:	SINGAPORE
Postcode:	640470
Country:	Singapore
LARS EVALD OLSSON	34537833	Director
Appointed on :	30/04/2001
Street :	RUDBECKSGATAN 10A
Town:	MALMO
Postcode:	21617
Country:	Sweden
TAN KAY JIN	S7575624J	Director
Appointed on :	01/01/2005
Street :	19 ST. NICHOLAS VIEW
Town:	SINGAPORE
Postcode:	567982
Country:	Singapore
LENNART KARL RAGNAR JOHANSSSON	45011881	Director
Appointed on :	17/11/2005
Street :	HALSOVAGEN 9, SE-252 21 HELSINGBORG
Town:	SWEDEN
Country:	Sweden
GERRIT SMIT	BVFH11DR0	Director
Appointed on :	17/11/2005
Street :	PAULUS POTTERSTRAAT 7 ARNHEM
Town:	ARNHEM 6814 KT
Country:	Netherlands
WEE JULIAN @ QUAH JULIAN	S6843649D	Director
Appointed on :	01/10/2008
Street :	32 LORONG MYDIN #09-05 ASTORIA PARK
Town:	SINGAPORE
Postcode:	416826
Country:	Singapore
WEE JULIAN @ QUAH JULIAN	S6843649D	Managing Director
Appointed on :	01/10/2008
Street :	32 LORONG MYDIN #09-05 ASTORIA PARK
Town:	SINGAPORE
Postcode:	416826
Country:	Singapore

FORMER DIRECTOR(S)

LAU CHIN KIA	S1094320E
LAU CHIN TECK	S0661974F
SIMON SUPARMAN	S2192029J
GEORG BRUNSTAM	76215409
PETER LENNART NILSSON	98865368

ACTIVITY(IES)

Activity Code:	18720	RUBBER PRODUCTS
Activity Code:	3970	CHEMICALS

 
BASED ON ACRA'S RECORD 
1) MANUFACTURE OF POLYMERS  
2) MIXED CONSTRUCTION ACTIVITIES

CHARGES

	NOT AVAILABLE
Date:	06/07/1996
Amount:	0
Comments :	CHARGE NO: 9603824 (DISCHARGED) SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): ABN AMRO BANK N.K.

	NOT AVAILABLE
Date:	05/07/1996
Amount:	0
Comments :	CHARGE NO: 9603777 (DISCHARGED) SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): ABN AMRO BANK N.V.

	NOT AVAILABLE
Date:	10/04/1997
Amount:	0
Comments :	CHARGE NO: 199702108/199702110 (DISCHARGED) SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): BANQUE NATIONALE DE PARIS

	NOT AVAILABLE
Date:	13/03/1995
Amount:	0
Comments :	CHARGE NO: 9501411 (DISCHARGED) SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): UNITED OVERSEAS BANK LIMITED

	NOT AVAILABLE
Date:	10/02/1988
Amount:	0
Comments :	CHARGE NO: 8800499 (DISCHARGED) SECURED: 0.00 AND ALL MONIES OWING CHARGEE(s): UNITED OVERSEAS BANK LIMITED

	NOT AVAILABLE
Date:	10/04/1997
Amount:	0
Comments :	CHARGE NO: 199702110 (DISCHARGED) SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): BANQUE NATIONALE DE PARIS

PREMISES/PROPERTY INFORMATIONS

	AVAILABLE
Date:	26/11/2008
Tax rate:	10
Site Address :	4 JALAN PESAWAT JURONG TOWN SINGAPORE 619362 Singapore
Annual Value:	887,000

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

DBS BANK LTD.

UNITED OVERSEAS BANK LIMITED

SHAREHOLDERS(S)

TRELLEBORG HOLDINGS AB

40,541

Company

Street :	P.O BOX 153 SE-231 22 TRELLEBORG
Country:	Sweden

FORMER SHAREHOLDER(S)

LAU CHIN KIA

19,157

LAU CHIN TECK

19,157

LAU KIM KEE

4

LAU ING HWEE

2,227

HOLDING COMPANY

TRELLEBORG HOLDINGS AB

UF24476N

100%

SUBSIDIARY(IES)

TRELLEBORG MARINE SYSTEMS ASIA PTE.LTD.

TRELLEBORG ENGINEERED SYSTEMS INDIA PVT LTD

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	SUFFICIANT
Payments :	REGULAR
Trend :	UPWARD
Financial Situation:	AVERAGE

LITIGATION(S)

Type Of Case:	District Court - W/S
Case Number:	DCS05268/1999
Defendant	TRELLEBORG HERCULES PTE LTD	ROC # : 197200418W

Type Of Case:	Magistrate Court - W/S
Case Number:	MCS00602/1995
Defendant	TRELLEBORG HERCULES PTE LTD	ROC # : 197200418W

Type Of Case:	High Court - W/S
Case Number:	HWS01361/1985
Defendant	TRELLEBORG HERCULES PTE LTD	ROC # : 197200418W

Type Of Case:	District Court - W/S
Case Number:	DCS02577/2007
Defendant	TRELLEBORG HERCULES PTE LTD	ROC # : 197200418W

Type Of Case:	District Court - W/S
Case Number:	DCS01535/2004
Defendant	TRELLEBORG HERCULES PTE LTD	ROC # : 197200418W

Type Of Case:	District Court - W/S
Case Number:	DCS03636/2003
Defendant	TRELLEBORG HERCULES PTE LTD	ROC # : 197200418W

FINANCIAL ELEMENTS

All amounts in this report are in :

SGD

Audit Qualification:	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	10/06/2008
Balance Sheet Date:	31/12/2007	31/12/2006	31/12/2005
Number of weeks:	52	52	52
Consolidation Code:	COMPANY	COMPANY	COMPANY

--- ASSETS
Tangible Fixed Assets:	7,447,000	8,517,000	8,809,000
Investments	323,000	321,000	321,000
Total Fixed Assets:	7,770,000	8,838,000	9,130,000
Inventories:	5,079,000	6,180,000	3,427,000
Receivables:	8,558,000	9,220,000	8,759,000
Cash,Banks, Securitis:	1,150,000	418,000	411,000
Other current assets:	22,679,000	15,752,000	12,822,000
Total Current Assets:	37,466,000	31,570,000	25,419,000
TOTAL ASSETS:	45,236,000	40,408,000	34,549,000
--- LIABILITIES
Equity capital:	4,054,000	4,054,000	4,054,000
Profit & lost Account:	31,112,000	26,558,000	22,628,000
Total Equity:	35,166,000	30,612,000	26,682,000
L/T deffered taxes:	380,000	738,000	780,000
Total L/T Liabilities:	380,000	738,000	780,000
Trade Creditors:	2,917,000	3,475,000	2,637,000
Due to Bank:	117,000	185,000	385,000
Provisions:	3,697,000	1,945,000	1,470,000
Other Short term Liab.:	1,287,000	1,508,000	808,000
Total short term Liab.:	9,690,000	9,058,000	7,087,000
Prepay. & Def. charges:	1,672,000	1,945,000	1,787,000
TOTAL LIABILITIES:	10,070,000	9,796,000	7,867,000
--- PROFIT & LOSS ACCOUNT
Net Sales	42,903,000	36,794,000	30,975,000
Gross Profit:	12,144,000	9,854,000	8,820,000
NET RESULT BEFORE TAX:	5,745,000	4,860,000	4,733,000
Tax :	1,191,000	930,000	897,000
Net income/loss year:	4,554,000	3,930,000	3,836,000
Interest Paid:	4,000	6,000	12,000
Depreciation:	1,625,000	1,148,000	1,038,000
Directors Emoluments:	334,000	315,000	314,000
Purchases,Sces & Other Goods:	30,759,000	26,940,000	22,155,000
Wages and Salaries:	8,242,000	7,760,000	7,124,000
Financial Income:			126,000

RATIOS

Date Account Lodged:	31/12/2007	31/12/2006	31/12/2005
Turnover per employee:	238350	204411.11	172083.33
Net result / Turnover(%):	0.11	0.11	0.12
Fin. Charges / Turnover(%):	0	0	0
Stock / Turnover(%):	0.12	0.17	0.11
Net Margin(%):	10.61	10.68	12.38
Return on Equity(%):	12.95	12.84	14.38
Return on Assets(%):	10.07	9.73	11.1
Net Working capital:	27776000	22512000	18332000
Cash Ratio:	0.12	0.05	0.06
Quick Ratio:	1	1.06	1.29
Current ratio:	3.87	3.49	3.59
Receivables Turnover:	71.81	90.21	101.8
Leverage Ratio:	0.29	0.32

^{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)/1000}

^{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 14.88% FROM S$30,612,000 IN FY 2006 TO S$35,166,000 IN FY 2007. THIS WAS DUE TO A RISE IN ACCUMULATED PROFIT BY 17.15% TO S$31,112,000 (2006: S$26,558,000).
 
LEVERAGE:  
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY PROVISIONS WHICH MADE UP 38.15% (2006: 21.47%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$3,697,000 (2006: S$1,945,000). BREAKDOWN WAS AS FOLLOWS:
* PROVISION FOR WARRANTIES - 2007: S$2,078,000 (2006: S$ 920,000) 
* CURRENT INCOME TAX - 2007: S$1,619,000 (2006: S$1,025,000) 
 
TRADE CREDITORS FELL BY 16.06% AND AMOUNTED TO S$2,917,000 (2006:
S$3,475,000). BREAKDOWN WAS AS FOLLOWS: 
 
* THIRD PARTIES (TRADE) - 2007: S$2,441,000 (2006: S$3,096,000) 
* RELATED CORPORATIONS (TRADE) - 2007: S$476,000 (2006: S$379,000)
 
THE BANK OVERDRAFT WHICH CLASSIFIED AS DUE TO BANKS FELL BY 36.76% AND AMOUNTED TO S$117,000 (2006: S$185,000). 
 
OVERALL, THE LEVERAGE RATIO HAD IMPROVED TO 0.29 TIMES (2006: 0.32 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.
 
LIQUIDITY: 
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION HAD IMPROVED AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 23.38% TO S$27,776,000 (2006:S$22,512,000).
  
HOWEVER, CURRENT RATIO POSTED ROSE TO 3.87 TIMES (2006: 3.49 TIMES) WHILE QUICK RATIO FELL TO 1.00 TIMES (2006: 1.06 TIMES). 
 
ALSO, CASH AND CASH EQUIVALENTS ROSE BY 1.75 TIMES TO S$1,150,000 (2006: S$418,000). 
 
  
PROFITABILITY: 
REVENUE ROSE BY 16.60% FROM S$36,794,000 IN FY 2006 TO S$42,903,000 IN FY 2007. SIMILARLY, NET PROFIT ROSE BY 15.88% TO S$4,554,000 (2006:S$3,930,000). HENCE, NET MARGIN FELL TO 10.61% IN FY 2007 AS COMPARED TO NET MARGIN OF 10.68% IN FY 2006.
 
 
 
DEBT SERVICING: 
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. 
 
IN ADDITION, IT WAS NOTED THAT AVERAGE COLLECTION PERIOD WAS COMPUTED AT 72 DAYS (2006: 90 DAYS). 
  
 
NOTES TO THE FINANCIAL STATEMENTS: 
* BORROWINGS:
THE BANK OVERDRAFT IS UNSECURED AND REPAYABLE ON DEMAND. 
 
THE WEIGHTED AVERAGE EFFECTIVE INTEREST RATE OF BANK OVERDRAFT AT THE 
BALANCE SHEET DATE IS 5.5% (2006: 5.5%) PER ANNUM. THE INTEREST RATES 
IS REPRICED MONTHLY.
  
CONTINGENT LIABILITIES: 
* GUARANTEE TO THIRD PARTIES - 2007: S$160,000 (2006: S$128,000) 
* PERFORMANCE BONDS - 2007: S$115,000 (2006: S$95,000)
 
 
CAPITAL COMMITMENTS: 
* CAPITAL EXPENDITURE CONTRACTED FOR AT THE BALANCE SHEET DATE BUT 
 
NOT RECOGNISED IN THE FINANCIAL STATMENTS ARE AS FOLLOWS: 
  
PROPERTY, PLANT AND EQUIPMENT - 2007: S$840,000 (2006: S$1,262,000)
 
EXEMPT PRIVATE COMPANY 
WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE 
BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS 
KNOWN AS AN EXEMPT PRIVATE COMPANY.
 
AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A 
PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE 
REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS 
DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:
1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY. 
2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS 
AT THE ANNUAL GENERAL MEETING.  
3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.
THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE 
COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND 
APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY. 
 
A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL 
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION. 
 
EXEMPT FROM AUDIT 
AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE
STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 
2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 
MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE 
TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL 
REQUIRED TO MAINTAIN PROPER ACCOUNTING.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 08/04/1972 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "HERCULES RUBBER & CHEMICAL INDUSTRIES (PRIVATE) LIMITED".
 
SUBSEQUENTLY ON 18/06/2001, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "TRELLEBORG HERCULES PTE LTD". 
 
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 40,541 SHARES OF A VALUE OF S$4,054,100. 
 
PRINCIPAL ACTIVITIES:  
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: 
1) MANUFACTURE OF POLYMERS 
2) MIXED CONSTRUCTION ACTIVITIES
 
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: RUBBER PRODUCTS 
  
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE MANUFACUTRING AND SALE OF RUBBER AND CHEMICAL PRODUCTS. 
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
 
ACTIVITIES: 
* SUBJECT IS A MANUFACTURER OF BOATS AND WHARFS FENDERS, PRINTING AND 
 INDUSTRIAL ROLLERS, TANK LINING, INNER TUBES, RISER PIPE CORROSION 
 PROTECTION.
 
 
PRODUCTS/SERVICES: 
* INFRASTRUCTURE AND CONSTRUCTION APPLICATIONS 
 - PRODUCT RANGE CONSISTS OF: MARINE FENDERS, DREDGING HOSES AND 
 INFRASTRUCTURE CONSTRUCTION SEALS.
* OFFSHORE OIL AND GAS APPLICATIONS 
 - PRODUCT RANGE CONSISTS OF:  
 CORROSION PROTECTION, FIRE PROTECTION, SUBSEA THERMAL INSULATION, 
 LOAD TRANSFER PRODUCTS/BEARINGS, BOAT LANDING SYSTEMS, SPRINKLER 
 AND DELUGE SYSTEMS, AND DIAPHRAGM CLOSURES, GROUT PACKERS AND
 GROUT SEALS. 
* LOCAL AND SPECIAL APPLICATIONS 
 - PRODUCT RANGE CONSISTS OF: INDUSTRIAL AND PRINTING ROLLERS, IMPACT
 PROTECTION SYSTEMS, LPG TUBINGS, INTERNAL & EXTERNAL RUBBER LINING
 WORK, GENERAL EXTRUDED PRODUCTS, MOULDED PRODUCTS AND POLYURETHANE
 PRODUCTS. 
 
  
TRADE NAMES:  
* FENTEK--MARINE FENDERING SYSTEMS (SG)
 
  
MARKET PRESENCE: 
* WORLDWIDE
 
 
INDUSTRIES SERVED: 
* INFRASTRUCTURE AND CONSTRUCTION  
* THE OFFSHORE OIL AND GAS INDUSTRIES 
 
 
QUALITY ASSESSMENT:
* ISO 9002 
* ISO 14001  
* ISO 9001
 
NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL 
 
THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING CORPORATIONS ARE TRELLEBORG HOLDING AB AND TELLEBORG AB (PUBL) RESPECTIVELY, BOT INCORPORARTED IN SWEDEN. 
 
 
NUMBER OF EMPLOYEES: 
* 180 (AS OF 2006)  
 
REGISTERED AND BUSINESS ADDRESS: 
4 JALAN PESAWAT  
JURONG TOWN
SINGAPORE 619362 
DATE OF CHANGE OF ADDRESS: - 
- OWNED PREMISE
 
WEBSITE: www.trelleborg.com/hercules/ 
EMAIL : hercules@trelleborg.com

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
 
1) LARS EVALD OLSSON, A SWEDISH 
 - BASED IN SWEDEN
 
2) LENNART KARL RAGNAR JOHANSSSON, A SWEDISH 
 - BASED IN SWEDEN 
 
3) GERRIT SMIT, A DUTCH  
 - BASED IN THE NETHERLANDS.
 
4) WEE JULIAN @ QUAH JULIAN, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE. 
 
5) TAN KAY JIN, A SINGAPORE PERMANENT RESIDENT
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

GENERAL COMMENTS

SINGAPORE'S COUNTRY RATING 2008 
 
INVESTMENT GRADE
  
IN SINGAPORE, THE POLITICAL AND ECONOMIC SITUATION IS VERY GOOD. A QUALITY 
BUSINESS ENVIRONMENT HAS A POSITIVE INFLUENCE ON CORPORATE PAYMENT BEHAVIOUR. 
CORPORATE DEFAULT PROBABILITY IS VERY LOW ON AVERAGE. 
ECONOMIC GROWTH REMAINED STRONG IN 2007 AND IN Q1 2008 (6.7%) THANKS TO A SHARP
INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REAL 
WAGES, AND A POSITIVE WEALTH EFFECT PRODUCED BY RISING PROPERTY PRICES. IN THIS 
CONTEXT, BANKRUPTCIES CONTINUE TO DECLINE, AS REFLECTED BY THE FAVOURABLE COFACE
PAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN 
ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIAL
TRANSPARENCY. 
HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTH
IN THE UNITED STATES, SINGAPORE'S NUMBER TWO TRADING PARTNER. THE FOREIGN TRADE 
CONTRIBUTION TO GROWTH WILL THUS DECLINE ESPECIALLY WITH EXPORTS REPRESENTING 
210 PER CENT OF GDP.
INFLATION ACCELERATED IN 2007 AND REACHED 7.5% IN MAY 2008 BECAUSE OF RISING RAW
MATERIAL PRICES. INDEED, SINGAPORE IMPORTS ALMOST ALL ITS ENERGY AND FOOD. 
HOWEVER, FOR THE ENTIRE YEAR, INFLATION SHOULD MODERATE AND REACH 2.8%. 
THE FINANCIAL SITUATION HAS REMAINED ROBUST AS THE EQUILIBRIUM OF PUBLIC SECTOR 
FINANCES AND THE SOLIDITY OF A BANKING SYSTEM POISED TO ADOPT BASEL II
PRUDENTIAL STANDARDS ATTEST. EXTERNAL ACCOUNTS CONTINUE MOREOVER TO SHOW LARGE 
SURPLUSES THANKS TO GOOD PERFORMANCE IN A RANGE OF SECTORS INCLUDING 
ELECTRONICS, TRANSPORT, CONSTRUCTION, TOURISM, AND FINANCIAL SERVICES. THE 
DECLINE EXPECTED IN THE CURRENT ACCOUNT SURPLUS IN 2008 SHOULD NOT JEOPARDISE 
SINGAPORE'S EXCEPTIONAL FINANCIAL SOLIDITY.
UNDERPINNED BY SUBSTANTIAL FISCAL RESERVES AND A LARGE MAJORITY IN PARLIAMENT, 
THE PEOPLE'S ACTION PARTY OF PRIME MINISTER LEE HSIEN LOONG HAS SOUGHT AT ONCE 
TO MAKE THE CITY-STATE MORE ATTRACTIVE TO FOREIGN INVESTORS AND TO BOLSTER THE 
SPECIALISATION IN HIGH-VALUE ADDED SECTORS TO MEET THE GROWING COMPETITION FROM 
LOW-COST ASIAN ECONOMIES. BESIDES REDUCTIONS IN CORPORATE INCOME TAX AND TAX
INCENTIVES FOR COMPANIES SETTING UP OPERATIONS IN SINGAPORE, THE GOVERNMENT 
CONTINUES TO PURSUE ITS INFRASTRUCTURE AND R&D INVESTMENT POLICY. 
 
ASSETS  
" THE COUNTRY HAS BEEN PURSUING AMBITIOUS DIVERSIFICATION STRATEGY,
ESPECIALLY TO HIGH VALUE-ADDED SECTORS LIKE CHEMICALS, PHARMACEUTICALS, AND 
FINANCE.  
" IT IS AMONG THE MOST ADVANCED COUNTRIES OF ASIA IN QUALITY 
COMPETITIVENESS TERMS. 
" SINGAPORE HAS BECOME A MAJOR EXPORTER OF CAPITAL IN ASIA IN MANY ECONOMIC
SECTORS -SUCH AS FINANCE, TELECOMMUNICATIONS, TRANSPORT - NOTABLY VIA THE STATE-
OWNED TEMASEK HOLDING COMPANY 
" THE ECONOMY HAS BENEFITED FROM THE COUNTRY'S POLITICAL STABILITY AND 
EXCELLENT BUSINESS CLIMATE.
WEAKNESSES 
" SKILLED LABOUR IS IN SHORT SUPPLY IN THE SECTORS THE COUNTRY WISHES TO 
DEVELOP.  
" THE AGEING POPULATION COULD ULTIMATELY UNDERMINE ECONOMIC PERFORMANCE. 
" GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE
LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.  
" THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN. 
 
  
OVERVIEW OF SINGAPORE 
 
PAST PERFORMANCE
  
THE SINGAPORE ECONOMY GREW AT A MODERATE PACE OF 2.1% IN 2Q 2008. ON AN 
ANNUALISED QUARTER-ON-QUARTER BASIS, GROWTH FELL BY 6.0%, IN CONTRAST TO THE 
15.7% GROWTH IN THE PREVIOUS QUARTER.
THE MANUFACTURING SECTOR FELL BY 5.2% IN 2Q 2008, COMPARED TO 2Q 2007. THE 
DECLINE WAS MAINLY DRIVEN BY THE BIOMEDICAL MANUFACTURING CLUSTER WHICH FELL BY 
28.0%.  
 
THE FINANCIAL SERVICES SECTOR ROSE BY A SMALLER 10.2% IN 1Q 2008, FOLLOWING A
13% GAIN IN 1Q 2008. GROWTH WAS ACROSS THE BOARD, SUPPORTED BY ROBUST EXPANSIONS
IN BOTH THE DOMESTIC AND OFFSHORE BANKING SEGMENTS. 
 
THE CONSTRUCTION SECTOR RECORDED HIGH GROWTH, RISING BY 17.4%, FOLLOWING THE 
ROBUST 15% GROWTH IN 1Q 2008.
 
THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 2Q 2008, FASTER THAN THE 
5.5% GROWTH IN 1Q 2008. NON-OIL RE-EXPORTS GREW BY 14.0% IN 1Q 2008, HIGHER THAN
THE 11.0% GROWTH IN 1Q 2008. EXCLUDING MOTOR VEHICLES, RETAIL SALES FELL BY 1.4%
IN 2Q 2008, COMPARED TO 1Q 2008.
 
THE TRANSPORT AND STORAGE SECTOR ROSE BY 5.7% IN 2Q 2008, MARGINALLY HIGHER THAN
5.4% IN 1Q 2008. THIS WAS ATTRIBUTED TO THE DOUBLE-DIGIT GROWTH FOR CONTAINER 
THROUGHPUT.
THE HOTELS AND RESTAURANTS SECTOR GREW BY A SLIGHTLY SMALLER 2.1% IN 2Q 2008, 
FOLLOWING THE 2.4% GROWTH IN 1Q 2008. 
 
THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 7.6% IN 2Q 2008, HIGHER THAN THE 
6.8% IN 1Q 2008.
 
THE BUSINESS SERVICES SECTOR EXPANDED BY 7.5%, SLOWER THAN THE 8.3% GAIN IN 1Q 
2008. 
  
NEWS
 
IT'S RECESSION WATCH 2009 
  
THE GLOOM WAS NOT JUST IN THE OFFICIAL NEWS - THAT SINGAPORE HAS SLIPPED INTO 
TECHNICAL RECESSION, THE FIRST TIME SINCE 2002, AND THAT THIS YEAR'S ECONOMIC
GROWTH MIGHT ONLY HIT 3.0%.  
 
IT WAS EVEN MORE VISIBLE IN THE OPINION OF SEVERAL ECONOMISTS: NEXT YEAR COULD 
BE WORSE.
CITIGROUP ECONOMIST KIT WEI ZHENG EXPECTS 2009 GROWTH TO BE "SLOWER, OR EVEN 
NEGATIVE". THE LAST TIME SINGAPORE EXPERIENCED A FULL-SCALE RECESSION WAS IN 
2001, WHEN THE ECONOMY CONTRACTED BY 2.4% DURING THE YEAR. 
  
IN FACT, SOME ECONOMISTS FELT THE CURRRENT CRISIS COULD SURPASS THE 1997 ASIAN
FINANCIAL CRISIS, ECLIPSING THE POST-911 AND SARS SLUMPS IN RECENT YEARS. OR 
EVEN THE RECESSIONS TRIGGERED BY THE 1985 PAN ELECTRIC COLLAPSE AND 1973 OIL 
SHOCK. 
 

AND HOW QUICKLY SINGAPORE - THE FIRST ASIAN ECONOMY TO SLIP INTO RECESSION -
RECOVERS HINGES ON WHETHER WESTERN GOVERNMENTS AND CENTRAL BANKS CAN RESOLVE THE
CREDIT CRISIS IN THE COMING MONTHS. 
  
"IN THE WORST-CASE SCENARIOS, IT WILL BE FAR WORSE THAN ANYTHING WE'VE SEEN 
BEFORE BECAUSE WE ARE TALKING ABOUT JOB LOSSES WHICH WILL CUT ACROSS ALL
INDUSTRIES," SAID CIMB-GK REGIONAL ECONOMIST SONG SENG WUN. 
 
AND WHILE THE GOVERNMENT IS EXPECTED TO DIP INTO ITS COFFERS, THE ABILITY TO 
STIMULATE THE ECONOMY COULD BE HINDERED BY THE RESOURCE CRUNCH IN THE 
CONSTRUCTION SECTOR.
 
SAID SINGAPORE MANAGEMENT UNIVERSITY ECONOMICS PROFESSOR DAVIN CHOR:"THE 
CONSTRUCTION SECTOR HAS RELATIVELY LIMITED CAPACITY TO EXPAND IN THE SHORT 
TERM."
BUT MR SONG ARGUED THAT THE CONSTRUCTION CRUNCH COULD BE A BLESSING IN DISGUISE,
GIVEN THAT BUILDING COSTS WOULD "TUMBLE QUICKLY" BY THE FIRST QUARTER OF NEXT 
YEAR. SAID MR SONG: "PROJECTS, WHICH HAVE BEEN PUT ON THE BACKBURNER, CAN BE 
BROUGHT FORWARD."
AND WHILE MUCH HOPES ARE PINNED ON THE UPCOMING MARINA BAY SANDS INTEGRATED 
RESORT - SLATED TO OPEN ITS DOORS NEXT YEAR - EXPERTS ARE CAUTIOUS ABOUT ITS 
IMPACT, ESPECIALLY LAS VEGAS SANDS - WHICH CLINCHED THE LICENCE TO BUILD THE IR 
- HAS SEEN GAMING EARNINGS FALL IN ITS CHIEF MARKETS IN THE US AND MACAU.
SAID FORECAST ECONOMIST VISHNU VARATHAN: "FROM THE OPERATORS' POINT OF VIEW, 
THEY MAY BE FACING THEIR OWN FINANCIAL DIFFICULTIES. AND A SLOWING ECONOMY MEANS
FEWER VISITORS, LESS SPENDING POWER." 
 
WHEN CONTACTED, MARINA BAY SANDS GENERAL MANAGER GEORGE TANASIJEVICH SAID THE
GROUP "REMAINS 100% COMMITTED TO SINGAPORE AND TO HELPING SINGAPORE ACHIEVE ITS 
TOURISM GOALS". 
 
PRIME MINISTER LEE HSIEN LOONG REITERATED ON FRIDAY THAT SINGAPORE IS WELL- 
PLACED TO RIDE THROUGH THE "FINANCIAL STORM", BUOYED BY THE MOMENTUM FROM
PROJECTS SUCH AS THE RECENT SINGAPORE GRAND PRIX. SAID MR LEE:"OUR FINANCIAL 
SYSTEM IS SOUND, AND OUR ECONOMY REMAINS COMPETITIVE. 
 
"OVER THE LAST FEW YEARS, WHEN CONDITIONS WERE GOOD, WE HAD CONSCIOUSLY DECIDED 
TO MAKE THE BEST OF THE GOOD TIMES AND PRESSED ON WITH UPGRADING AND
DIVERSIFYING OUR ECONOMY. THIS WILL MEAN NEW AND BETTER JOBS, 
EVEN IF SOME OLD ONES ARE LOST." 
  
MR VARATHAN EXPECTS THE ECONOMY TO GROW 3.0% NEXT YEAR - MATCHING THE OFFICIAL 
FORECAST FOR GROWTH THIS YEAR.
 
UOB ECONOMIST HO WOEI CHEN FEELS THAT THE WORST IS YET TO COME. 
 
SAID MD HO: "THE BANKS ARE THE ONES WHO HAVE BEEN HURT… WE WILL SEE THE CRISIS 
TRANSLATING INTO THE REAL SECTORS OF THE ECONOMY."
  
MANUFACTURING WILL CONTINUE TO BE A DRAG ON THE ECONOMY, WITH THE RETAIL AND 
SERVICES INDUSTRY POISED FOR A HIT. BUT SINGAPORE, WHERE THE BANKING SCENE IS 
DOMINATED BY PRIVATE BANKING, WOULD LIKELY BE HURT LESS THAN ITS RIVAL HONG 
KONG, ASIA'S CENTRE FOR INVESTMENT BANKING, SAID MS HO.
 
MR VARATHAN EXPECTS INDUSTRIES DEALING IN ENERGY, FOOD AND WATER - WHICH ARE NOT
KEY DRIVERS OF SINGAPORE'S ECONOMY - TO BE SHIELDED FROM THE DOWNTURN. 
 
OUTLOOK
  
THE COMPOSITE LEADING INDEX (CLI) ROSE MARGINALLY BY 0.5% IN 2Q 2008, FOLLOWING 
THE 2.8% DECLINE IN 1Q 2008. OF THE NINE COMPONENTS WITHIN THE INDEX, THREE 
COMPONENTS RECORDED DECLINES WHILE THE REMAINING SIX COMPONENTS ROSE MARGINALLY.
THE SIX INDICATORS THAT REGISTERED IMPROVEMENTS ARE THE
MONEY SUPPLY, NON-OIL SEA CARGO HANDLED, STOCK PRICE, US PURCHASING MANAGER'S 
INDEX, STOCK OF FINISHED GOODS AND DOMESTIC LIQUIDITY. 
  
 
OVERALL, THE SINGAPORE ECONOMY REMAINED RESILENT IN 1ST HALF OF 2008, DESPITE
THE SLOWDOWNS IN MAJOR EXTERNAL ECONOMIES AND GLOBAL INFLATION CONCERNS. THE 
ECONOMY GREW BY 4.5% IN 1ST HALF OF 2008. 
 
LOOKING AHEAD, THE GLOBAL ECONOMIC ENVIRONMENT WILL REMAIN WEAK FOR THE REST OF 
THE YEAR AND WELL INTO 2009. THE DEVELOPED ECONOMIES ARE EXPERIENCING A BROAD
SLOWDOWN IN ECONOMIC ACTIVITY. SLUGGISH GROWTH IS EXPECTED OVER THE NEXT SIX TO 
TWELVE MONTHS, AS THE EFFECTS OF THE US FINANCIAL AND HOUSING SLUMPS RIPPLE ITS 
EFFECT THROUGHOUT THE WORLD. THESE WILL HAVE AN ADVERSE IMPACT ON EMPLOYMENT, 
BUSINESS CONFIDENCE, CONSUMER SPENDING AND OVERALL DEMAND. EMERGING ECONOMIES 
PARTICULARY THOSE IN ASIA, HAVE CONTINUED TO GROW,
PROVIDING SOME SUPPORT TO GLOBAL DEMAND AND GROWTH. HOWEVER, THE US AND EUROPE 
SLOWDOWN WILL HAVE A DOWNSIDE IMPACT ON THE ASIAN ECONOMIES. AT THE SAME TIME, 
INFLATION CONTINUES TO PERSIST AND POSES A CHALLENGES FOR POLICY MAKERS IN 
COUNTRIES SUCH AS CHINA, INDIA, INDONESIA AND VIETNAM.
THE PACE OF GROWTH OF SINGAPORE'S ECONOMY HAS SLOWED DOWN, ATTRIBUTED MAINLY TO 
WEAKNESSES IN DOMESTIC AND EXTERNAL DEMAND. WHILE THE COMPOSITE LEADING 
INDICATOR POINTS TOWARDS A SLIGHT PICKUP, BUSINESS PERFORMANCE OF PERFORMANCE 
ACROSS THE SECTORS ARE MIXED.
IN VIEW OF THE OUTLOOK FOR THE MAJOR SECTORS AND A SLOWDOWN IN THE GLOBAL 
ECONOMIC ENVIRONMENT, THE MINISTRY OF TRADE AND INDUSTRY LOWERED THE 2008 GDP 
GROWTH FORECAST FROM 4.0-6.0% IN THE LAST QUARTER, TO 4.0-5.0%.  
 
IN THE FINANCIAL SERVICES INDUSTRY, MAJORITY OF THE BANKS AND FINANCE COMPANIES
FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME FOR THE 2ND HALF OF 2008 OVER THE 
1ST HALF OF 2008. BANKS AND FINANCE COMPANIES ARE MORE OPTIMISTIC WHILE STOCK, 
SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES FORECAST SLOWER 
BUSINESS ACTIVITY IN THE COMING MONTHS, MAINLY DUE TO UNCERTAINTY IN THE 
INVESTMENT CLIMATE AND GLOBAL ECONOMY.
 
IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS PREDICTS 
A SLOWER BUSINESS CLIMATE FOR THE COMING MONTHS.  
 
IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 24% OF FIRMS, EXPECT
BUSINESS TO BE BRISK FOR THE COMING MONTHS WHILE A WEIGHTED 22% OF FIRMS 
PROJECTS LESS FAVOURABLE BUSINESS CONDITIONS. MAJORITY OF THE FIRMS (A WEIGHTED 
54%) EXPECT BUSINESS ACTIVITIES TO REMAIN STABLE FOR THE COMING MONTHS. THIS 
RESULTS IN A NET WEIGHTED BALANCE OF 2% OF FIRMS EXPECTING A POSITIVE BUSINESS 
OUTLOOK. THIS MAGNITUDE IS SMALLER THAN THE NET WEIGHTED BALANCE OF 28%
REGISTERED IN THE SAME PERIOD FOR 2007 (IE JUL - DEC 2007) AND COMPARABLE TO THE
NET WEIGHTED BALANCE OF 3% RECORDED FOR APR-SEP 2008 IN THE PREVIOUS QUARTER. 
  
GENERALLY, THE MAJORITY OF WHOLESALERS, WITH A NET WEIGHTED BALANCE OF 55% OF 
FIRMS, FORECASTS BUSINESS ACTIVITIES IN THE COMING MONTHS, TO REMAIN AT SIMILAR
LEVELS. FOR THE REMAINING WHOLESALE FIRMS, A WEIGHTED 22% OF THEM EXPECTS BETTER
BUSINESS CONDITIONS TO IMPROVE. THESE FIRMS ARE MAINLY IN THE BUSINESS OF 
WHOLESALE TRADE OF INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, 
AND COMPUTER AND ACCESSORIES. ON THE OTHER HAND, A WEIGHTED 23% OF WHOLESALERS, 
MAINLY FROM FOOD AND BEVERAGES, AND PETROLEUM AND PETROLEUM PRODUCTS, FORECAST
BUSINESS CONDITIONS TO DETERIORATE IN THE COMING MONTHS. ON THE WHOLE, A NET 
WEIGHTED BALANCE OF 1% OF FIRMS EXPECTS GENERAL BUSINESS OUTLOOK TO REMAIN LESS 
FAVOURABLE. 
 
A NET WEIGHTED BALANCE OF 20% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS
CONDITIONS FOR THE PERIOD ENDING DECEMBER 2008. MOTOR VEHICLES RETAILERS, AND 
JEWWELLERY AND WATCHES CONTINUE TO PREDICT SLOWER SALES IN THE MONTHS AHEAD. 
  
IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 8% OF FIRMS 
FORECASTS BETTER FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS. THE
SEGMENTS EXPECTING HIGHER BUSINESS ACTIVITIES ARE LAND TRANSPORT AND 
SHIPPING LINES. 
 
  
HOTELIERS REMAIN CONFIDENT ABOUT THE BUSINESS CLIMATE IN THE MONTHS AHEAD, WITH
A NET WEIGHTED BALANCE OF 37% OF HOTELIERS EXPECTING THEIR BUSINESSES TO 
IMPROVE. IN THE CATERING TRADE INDUSTRY, BUSINESS CONDITIONS ARE EXPECTED TO BE 
LESS OPTIMISTIC. IN PARTICULAR, CONVENTIONAL RESTAURANTS AND FOOD CATERERS 
MENTIONED HIGH OPERATING COSTS AS THE REASON FOR THE LESS POSITIVE OUTLOOK.
IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 12% OF
FIRMS PREDICTS BETTER BUSINESS. 
 
IN THE BUSINESS SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS 
PREDICTS POSITIVE SENTIMENTS. THESE INCLUDE THOSE ENGAGED IN ENGINEERING,
INDUSTRIAL DESIGN, TECHNICAL TESTING AND ANALYSIS, AND INVESTIGATION AND 
SECURITY ACTIVITIES. 
  
EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE 
 SINGAPORE DEPARTMENT OF STATISTICS
 TODAY 
  
  

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

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.	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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