MIRA INFORM REPORT

Report Date :

31.08.2013

IDENTIFICATION DETAILS

Name :	SEMBCORP TAY PAPER RECYCLING PTE. LTD.
Formerly Known As :	SEMBENVIRO TAY PAPER PTE. LTD.
Registered Office :	30 Hill Street, 05-04, 179360
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	20.07.1989
Com. Reg. No.:	198902963-D
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in the followings:- · Processing of Recyclable Material (Waste Paper) · Shredding of Confidential Documents (On-site And Off-site)
No. of Employees :	100 [2013]

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 :	No complaints
Litigation :	Exists

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Singapore ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	198902963-D
COMPANY NAME	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD.
FORMER NAME	:	SEMBENVIRO TAY PAPER PTE. LTD. (31/03/2008) TAY PAPER RESOURCES PTE LTD (05/05/2003)
INCORPORATION DATE	:	20/07/1989
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	30 HILL STREET, 05-04, 179360, SINGAPORE.
BUSINESS ADDRESS	:	48 GUL AVENUE, 629681, SINGAPORE.
TEL.NO.	:	65-68633230
FAX.NO.	:	65-68633193
WEB SITE	:	WWW.SEMBCORP.COM
CONTACT PERSON	:	NG MENG POH ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WASTE PAPER RECYCLING
ISSUED AND PAID UP CAPITAL	:	3,040,000.00 ORDINARY SHARE, OF A VALUE OF SGD 3,040,000.00
SALES	:	SGD 28,893,993 [2012]
NET WORTH	:	SGD 8,015,940 [2012]
STAFF STRENGTH	:	100 [2013]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MARGINAL GROWTH

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) waste paper recycling.

The immediate holding company of the SC is SEMBENVIRO RECYCLING PTE. LTD., a company incorporated in SINGAPORE.

The ultimate holding company of the SC is SEMBCORP INDUSTRIES LTD, a company incorporated in SINGAPORE.

The intermediate holding company of the SC is SEMBCORP ENVIRONMENT PTE. LTD., a company incorporated in SINGAPORE.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
TAY THIAM SENG +	385 ANG MO KIO AVENUE 2, HORIZON GARDENS, 567848, SINGAPORE.	S1669788E	608,000.00	20.00
TAY TIAN LENG +	41, WESTWOOD DRIVE, 648859, SINGAPORE.	S1614375H	608,000.00	20.00
SEMBENVIRO RECYCLING PTE. LTD.	30 HILL STREET, 05-04, 179360, SINGAPORE.	200002586K	1,824,000.00	60.00
			---------------	------
			3,040,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	LIM LEE YONG
Address	:	41 WESTWOOD DRIVE, 648859, SINGAPORE.
IC / PP No	:	S1695025D
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/05/2003
Remark	:	ALTERNATE DIRECTOR TO TAY TIAN LENG

DIRECTOR 2

Name Of Subject	:	ANDRE TAY YI CHONG
Address	:	41 WESTWOOD DRIVE, 648859, SINGAPORE.
IC / PP No	:	S8423508C
Nationality	:	SINGAPOREAN
Date of Appointment	:	25/11/2009
Remark	:	ALTERNATE DIRECTOR TO TAY THIAM SENG

DIRECTOR 3

Name Of Subject	:	JASON CHAN SIAN CHUAN
Address	:	33 AMBER ROAD, 09-12, SEA VIEW, THE, 439944, SINGAPORE.
IC / PP No	:	S7327737Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/09/2010

DIRECTOR 4

Name Of Subject	:	NG MENG POH
Address	:	2 SURREY ROAD, 08-00, SURREY POINT, 307742, SINGAPORE.
IC / PP No	:	S1176528I
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/09/2010

DIRECTOR 5

Name Of Subject	:	LER SIAH NEO CATHERINA
Address	:	29 WEST COAST CRESCENT, 06-30, BLUE HORIZON, 128049, SINGAPORE.
IC / PP No	:	S7200966E
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/09/2010

DIRECTOR 6

Name Of Subject	:	TAY THIAM SENG
Address	:	385 ANG MO KIO AVENUE 2, HORIZON GARDENS, 567848, SINGAPORE.
IC / PP No	:	S1669788E
Nationality	:	SINGAPOREAN
Date of Appointment	:	05/01/1991

DIRECTOR 7

Name Of Subject	:	TAY TIAN LENG
Address	:	41, WESTWOOD DRIVE, 648859, SINGAPORE.
IC / PP No	:	S1614375H
Nationality	:	SINGAPOREAN
Date of Appointment	:	20/07/1989

MANAGEMENT

1)	Name of Subject	:	NG MENG POH
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	KWONG SOOK MAY
	IC / PP No	:	S1467293A
	Address	:	60 STURDEE ROAD NORTH, 06-01, STURDEE VIEW, 207851, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation.

LEGAL ACTION
Code No	:	99	Case No	:	16885
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	09/07/2008
Solicitor	:	GOPALAN RAMAN
Solicitor Ref	:	GR1186.07.GKN.G D
Solicitor Firm	:	G R LAW CORPORATION
Plaintiff	:	KOH TAT SENG
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	8093.15
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	7388
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	27/03/2008
Solicitor Ref	:	AM-INS-L1-46176-07
Solicitor Firm	:	VISION LAW LLC
Plaintiff	:	NEO KOON YOUNG TRADING AS YONG CHOON DOOR TRADING
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	15650
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	14070
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	09/06/2008
Solicitor	:	CHOO SIEW CHER MABEL TANG CHI LOONG
Solicitor Ref	:	TCL.MC.JW.51020.07.SHMTCL.MC
Solicitor Firm	:	HIN TAT AUGUSTINE & PARTNERS HIN TAT AUG
Plaintiff	:	TAN YONG CHYE
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	7550
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	628
Year	:	2010	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	02/03/2010
Solicitor	:	TOLENTINO ERVITE
Solicitor Ref	:	GLC/P179/08/RS
Solicitor Firm	:	GABRIEL LAW CORPORATION
Plaintiff	:	MARIA JOSEFINA
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	80000
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	6350
Year	:	2010	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	12/03/2010
Solicitor Ref	:	PKK09-5514-PL
Solicitor Firm	:	JAN CHUA & ASSOCIATES
Plaintiff	:	WONG SHUK YAN
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	14831
Year	:	2012	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	05/06/2012
Solicitor Ref	:	2KB02.ACC.LCH.1240.12.CT
Solicitor Firm	:	CHEONGHOH LAW CORPORATION
Plaintiff	:	NG BOON KWANG NG GUAN HUAT ROAST DUCK SUPPLIER
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	27370
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

No winding up petition was found in our databank

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Services

:

WASTE PAPER RECYCLING

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	100

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) waste paper recycling.

The SC is engaged in the followings:

* Processing Of Recyclable Material (Waste Paper)
* Shredding Of Confidential Documents (On-site And Off-site)

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68633230
Match	:	N/A
Address Provided by Client	:	48 GUL AVENUE, SINGAPORE 629681
Current Address	:	48 GUL AVENUE, 629681, SINGAPORE.
Match	:	YES

Other Investigations

we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	21.16%	]
Profit/(Loss) Before Tax	:	Decreased	[	133.99%	]
Return on Shareholder Funds	:	Unfavourable	[	<8.67%>	]
Return on Net Assets	:	Unfavourable	[	<11.77%>	]
The lower turnover could be due to the intense market competition.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	4 Days	]
Debtor Ratio	:	Favourable	[	24 Days	]
Creditors Ratio	:	Favourable	[	4 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	2.25 Times	]
Current Ratio	:	Favourable	[	2.36 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	<105.94 Times>	]
Gearing Ratio	:	Favourable	[	0.04 Times	]
The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
The SC's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : LIMITED

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	<0.8>	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	<2.2>	4.3	12.8	8.5	<1.3>
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	<32.5>	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	<10.78>	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	<0.8>	11.4	2.8	<5>	<2.2>
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	<15.9>	<11.5>	<25.3>	<0.7>	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	<7.7>	103.7	<26.3>	<38.2>	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	<0.32>	3.25	<0.48>	4.25	3.64
Fish Supply & Wholesale	<6.31>	<1.93>	<10.5>	12.10	<0.5>
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	<36.9>	14.20	20.50	28.70
Real Estate	<11.2>	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	<1.3>	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	<5.9>	<16.4>	<0.4>	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	<0.9>	<1.4>	0.30
* Based on Index of Industrial Production (2011 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	ECONOMY
According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.
However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.
Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.
For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.
Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.
For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentagepoints. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.
In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.
Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1989, the SC is a Private Limited company, focusing on waste paper recycling. With its long track record in the industry, the SC should have set up pretty sound supply channels and is able to meet the demands of its customers to a large extent. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a moderate size company, the SC has a total workforce of 100 employees in its business operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

Due to the challenging market conditions, the SC's business performance seems to be deteriorating and losses incurred. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at SGD 8,015,940, the SC should be able to maintain its business in the near terms.

The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.

Based on the above condition, we recommend credit be granted to the SC normally.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

SEMBCORP TAY PAPER RECYCLING PTE. LTD.

Financial Year End	2012-12-31	2011-12-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	SGD	SGD
TURNOVER	28,893,993	36,649,024
	----------------	----------------
Total Turnover	28,893,993	36,649,024
Costs of Goods Sold	<27,770,883>	<31,662,342>
	----------------	----------------
Gross Profit	1,123,110	4,986,682
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	<976,280>	2,871,970
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	<976,280>	2,871,970
Taxation	281,509	<439,362>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	<694,771>	2,432,608
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	6,893,868	6,961,260
	----------------	----------------
As restated	6,893,868	6,961,260
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	6,199,097	9,393,868
DIVIDENDS - Ordinary (paid & proposed)	<1,200,000>	<2,500,000>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	4,999,097	6,893,868
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Lease interest	9,129	12,768
	----------------	----------------
	9,129	12,768

BALANCE SHEET

SEMBCORP TAY PAPER RECYCLING PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	4,199,938	4,340,750
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	13,419	17,888
	----------------	----------------
TOTAL INTANGIBLE ASSETS	13,419	17,888
	----------------	----------------
TOTAL LONG TERM ASSETS	4,213,357	4,358,638
CURRENT ASSETS
Stocks	323,025	284,137
Trade debtors	1,872,763	2,095,428
Other debtors, deposits & prepayments	2,456,707	2,373,883
Amount due from related companies	3,614	10,988
Cash & bank balances	2,294,489	6,156,502
	----------------	----------------
TOTAL CURRENT ASSETS	6,950,598	10,920,938
	----------------	----------------
TOTAL ASSET	11,163,955	15,279,576
	=============	=============
CURRENT LIABILITIES
Trade creditors	299,327	704,301
Other creditors & accruals	2,166,690	3,016,354
Hire purchase & lease creditors	190,027	145,838
Amounts owing to related companies	238,486	475,719
Provision for taxation	51,200	526,393
	----------------	----------------
TOTAL CURRENT LIABILITIES	2,945,730	4,868,605
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	4,004,868	6,052,333
	----------------	----------------
TOTAL NET ASSETS	8,218,225	10,410,971
	=============	=============
SHARE CAPITAL
Ordinary share capital	3,040,000	3,040,000
	----------------	----------------
TOTAL SHARE CAPITAL	3,040,000	3,040,000
RESERVES
Retained profit/(loss) carried forward	4,999,097	6,893,868
Others	<23,157>	51,920
	----------------	----------------
TOTAL RESERVES	4,975,940	6,945,788
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	8,015,940	9,985,788
LONG TERM LIABILITIES
Lease obligations	170,653	159,073
Deferred taxation	31,632	266,110
	----------------	----------------
TOTAL LONG TERM LIABILITIES	202,285	425,183
	----------------	----------------
	8,218,225	10,410,971
	=============	=============

FINANCIAL RATIO

SEMBCORP TAY PAPER RECYCLING PTE. LTD.

TYPES OF FUNDS
Cash	2,294,489	6,156,502
Net Liquid Funds	2,294,489	6,156,502
Net Liquid Assets	3,681,843	5,768,196
Net Current Assets/(Liabilities)	4,004,868	6,052,333
Net Tangible Assets	8,204,806	10,393,083
Net Monetary Assets	3,479,558	5,343,013
BALANCE SHEET ITEMS
Total Borrowings	360,680	304,911
Total Liabilities	3,148,015	5,293,788
Total Assets	11,163,955	15,279,576
Net Assets	8,218,225	10,410,971
Net Assets Backing	8,015,940	9,985,788
Shareholders' Funds	8,015,940	9,985,788
Total Share Capital	3,040,000	3,040,000
Total Reserves	4,975,940	6,945,788
LIQUIDITY (Times)
Cash Ratio	0.78	1.26
Liquid Ratio	2.25	2.18
Current Ratio	2.36	2.24
WORKING CAPITAL CONTROL (Days)
Stock Ratio	4	3
Debtors Ratio	24	21
Creditors Ratio	4	8
SOLVENCY RATIOS (Times)
Gearing Ratio	0.04	0.03
Liabilities Ratio	0.39	0.53
Times Interest Earned Ratio	<105.94>	225.93
Assets Backing Ratio	2.70	3.42
PERFORMANCE RATIO (%)
Operating Profit Margin	<3.38>	7.84
Net Profit Margin	<2.40>	6.64
Return On Net Assets	<11.77>	27.71
Return On Capital Employed	<11.48>	27.28
Return On Shareholders' Funds/Equity	<8.67>	24.36
Dividend Pay Out Ratio (Times)	1.73	1.03
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.57
UK Pound	1	Rs.103.34
Euro	1	Rs.88.16

INFORMATION DETAILS

Report Prepared by :

MNL

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	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
----	NB	New Business	----

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.