MIRA INFORM REPORT

Report Date :

09.01.2014

IDENTIFICATION DETAILS

Name :	CHUGOKU MARINE PAINTS (SINGAPORE) PTE LTD
Registered Office :	21, Tuas Street, 638458
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	10.03.1980
Com. Reg. No.:	198000761-G
Legal Form :	Private Limited Company
Line of Business :	Engaged in manufacturing & merchandising of marine industrial & container paints
No. of Employees :	85 [2014]

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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.

:

198000761-G

COMPANY NAME

:

CHUGOKU MARINE PAINTS (SINGAPORE) PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/03/1980

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

21, TUAS STREET, 638458, SINGAPORE.

BUSINESS ADDRESS

:

22 TUAS STREET, 638459, SINGAPORE.

TEL.NO.

:

65-68616500

FAX.NO.

:

65-68613002

EMAIL

:

SALESMARINE@CMPSIN.COM.SG

WEB SITE

:

WWW.CMP.CO.JP/EN

CONTACT PERSON

:

YOSHIHIKO NISHIMURA ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

MANUFACTURING & MERCHANDISING OF MARINE INDUSTRIAL & CONTAINER PAINTS

ISSUED AND PAID UP CAPITAL

:

26,516,000.00 ORDINARY SHARE, OF A VALUE OF SGD 26,516,000.00 

SALES

:

SGD 119,413,313 [2012]

NET WORTH

:

SGD 51,384,660 [2012]

STAFF STRENGTH

:

85 [2014]

BANKER (S)

:

DBS BANK LTD THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MATURE

HISTORY / BACKGROUND

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacturing & merchandising of marine industrial & container paints.

The immediate holding company of the Subject is CHUGOKU MARINE PAINTS, LTD, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
31/12/2011	SGD 26,516,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHUGOKU MARINE PAINTS, LTD	TOKYO CLUB BUILDING, (12F, 13F), 2-6, KASUMIGASEKI 3-CHOME, CHIYODA-KU, 100-0013, TOKYO, JAPAN.	S80UF0195	26,516,000.00	100.00
			---------------	------
			26,516,000.00	100.00
			============	=====

+ Also Director

The Subject interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
	INDIA	CHUGOKU PAINTS ( INDIA ) PVT. INDIA LTD	95.00	31/12/2011

DIRECTORS

DIRECTOR 1

Name Of Subject	:	YOSHIHIKO NISHIMURA
Address	:	152, PRINCE CHARLES CRESCENT 19-12, TANGLIN VIEW, 159013, SINGAPORE.
IC / PP No	:	F1821640W
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2013

DIRECTOR 2

Name Of Subject	:	KOBAYASHI KATSUNORI
Address	:	N-HOUSE 101, 14-5, RYOUKE 1-CHOME, URAWA-KU, SAITAMA-SHI, SAITAMA-KEN, 330-0072, JAPAN.
IC / PP No	:	TZ0440573
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2012

DIRECTOR 3

Name Of Subject	:	MASATAKA UETAKE
Address	:	104, 28-14, CHITOSEDAI 3-CHOME, SETAGAYA-KU, TOKYO, 157-0071, JAPAN.
IC / PP No	:	TH0032839
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2009

DIRECTOR 4

Name Of Subject	:	JUNJI TOMOCHIKA
Address	:	2-2-801, HONCHO 1-CHOME, KAWASAKI-KU, KAWASAKI-SHI, KANAGAWA 210-001, JAPAN.
IC / PP No	:	TH2437495
Nationality	:	JAPANESE
Date of Appointment	:	26/06/2013

MANAGEMENT

1)	Name of Subject	:	YOSHIHIKO NISHIMURA
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG LLP
Auditor' Address	:	1, RAFFLES QUAY #18- 01, 048583, SINGAPORE

COMPANY SECRETARIES

1)	Company Secretary	:	CHONG KIM FOO
	IC / PP No	:	S0183647A
	Address	:	444, JURONG WEST, AVENUE 1, 07-768, 640444, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

2)

Name

:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

ENCUMBRANCE (S)

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

LEGAL CHECK AGAINST SUBJECT

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

LEGAL ACTION
Code No	:	99	Case No	:	27249
Year	:	2011	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	10/11/2011
Solicitor Firm	:	LAWRENCE LEE & CO
Plaintiff	:	WONG TZE HONG
Defendants	:	CHUGOKU MARINE PAINTS (SINGAPORE) PTE LTD (198000761) 21, TUAS STREET, 638458, SINGAPORE.
Amount Claimed	:	10000
Nature of Claim	:	SGD
Remark	:	NEGLIGENCE

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person who 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	Percentage	:	40%
Overseas	:	YES	Percentage	:	60%
Import Countries	:	JAPAN

The Subject 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	Percentage	:	40%
Domestic Markets	:	SINGAPORE
Overseas	:	YES	Percentage	:	60%
Export Market	:	ASIA PACIFIC
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

MARINE INDUSTRIAL & CONTAINER PAINTS

Total Number of Employees:
YEAR	2014
GROUP	N/A
COMPANY	85

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing & merchandising of marine industrial & container paints. 

The Subject was having started its career in the business of marine coatings and has put the greatest focus on developing a system that can always offer its service all over the world.

The Subject has established a worldwide network, which can provide its services such as manufacture, supply, sale and technical cooperation for marine paints, paints for container, wood, etc. at about 80 places in 30 countries.

The Subject aims to improve itself as a global company and upgrade its service through gathering a wide range of information, information analysis and information service and also by exchanging information among its organic coalition with group companies and partners and expanding its factories.

The Subject product Brand Names are:
BANNOH
CERABOND
CMP BIOCLEAN
NOVA
PERMASTAR
SEA GRANDPRIX
SEAJET
TFA/SEATENDER
THERMOTAC

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6568616500
Current Telephone Number	:	65-68616500
Match	:	YES
Address Provided by Client	:	22 TUAS STREET, SINGAPORE 638459
Current Address	:	22 TUAS STREET, 638459, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2009 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	7.80%	]
Return on Net Assets	:	Unfavourable	[	9.41%	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	47 Days	]
Debtor Ratio	:	Unfavourable	[	96 Days	]
Creditors Ratio	:	Favourable	[	53 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	2.51 Times	]
Current Ratio	:	Favourable	[	3.26 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	318.49 Times	]
Gearing Ratio	:	Favourable	[	0.04 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject 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 Subject's performance deteriorated over the years with lower turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject 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 Subject : STRONG

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 :	MANUFACTURING
The manufacturing sector contracted by 1.1% in the fourth quarter of 2012, led by declines in the electronics and precision engineering clusters. These clusters were weighed down by weak global demand for semiconductors and semiconductor-related equipment. For the whole year of 2012, the manufacturing sector grew by 0.1%, significantly lower than the 7.8% recorded in 2011 when the sector was boosted by a surge in the growth of the biomedical manufacturing cluster.
Output of the biomedical manufacturing cluster grew by 2.4% in the fourth quarter. The expansion was driven by the medical technology segment which grew by a healthy 9.2%, benefitting from robust export demand for medical devices. The pharmaceuticals segment also grew by a modest 1.1%. For 2012, the biomedical manufacturing cluster expanded by 9.9%.
Output of the transport engineering cluster expanded by 4.9% in the fourth quarter. The aerospace segment grew by 6.2%, supported by higher demand for repair jobs from commercial airlines. Similarly, the marine & offshore engineering segment expanded by 5.0%, on the back of higher contributions from oil rig projects and oilfield equipment components. In the year 2012, the transport engineering cluster surged by 11%.
The output of the precision engineering cluster shrank by 1.3% in the fourth quarter. The decline was led by the 5.3% contraction in the machinery & systems segment, which saw weak export demand for semiconductor-related equipment. On the other hand, the precision modules & components segment grew by 2.9%, supported by higher production of optical instruments & photographic equipment and electronic connectors. In 2012, the precision engineering cluster expanded by 1.3%.
The general manufacturing cluster's output grew by 1.2% in the fourth quarter, driven by the 6.4% growth in the miscellaneous industries segment. The segment's growth was supported by higher production of batteries and constructionrelated materials. By contrast, the printing and food, beverages & tobacco segments declined by 6.4% and 1.3% respectively. For 2012, the general manufacturing cluster grew by 2.0%.
The chemicals cluster's output grew by 7.7% in the fourth quarter. The petrochemicals and petroleum segments registered growth of 9.3% and 6.3% respectively, partly due to the low base from plant shutdowns in end of 2011. The specialty chemicals segment also expanded by 8.0% on the back of higher regional demand. For the year 2012, the chemicals cluster declined by 0.4%, primarily due to weak regional demand for specialty chemicals in the second and third quarter of 2012.
Output of the electronics cluster contracted by 10% in the fourth quarter, led by the semiconductors and computer peripherals segments which contracted by 13% and 15% respectively. By contrast, the data storage segment grew by 7.8%, mainly due to the low base in end of 2011 when floods in Thailand had disrupted the supply chain for data storage products. For the whole of 2012, the electronics cluster contracted by 11%.
OVERALL INDUSTRY OUTLOOK : MATURE

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1980, the Subject is a Private Limited company, focusing on manufacturing & merchandising of marine industrial & container paints. The SC has been in business for over 3 decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC has strong capital position. 

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a moderate size company, the Subject has a total workforce of 85 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject 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 Subject 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 51,384,660, the Subject should be able to maintain its business in the near terms. 

The Subject'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 Subject has a good control over its resources. 

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

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market. 

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

PROFIT AND LOSS ACCOUNT

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

CHUGOKU MARINE PAINTS (SINGAPORE) PTE LTD

Financial Year End	2012-12-31	2011-12-31	2010-12-31	2009-12-31
Months	12	12	12	12
Consolidated Account	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD
TURNOVER	119,413,313	122,708,388	123,843,783	106,623,204
Other Income	1,331,166	1,318,767	1,375,262	-
	----------------	----------------	----------------	----------------
Total Turnover	120,744,479	124,027,155	125,219,045	106,623,204
Costs of Goods Sold	(102,145,479)	(104,830,500)	(105,465,730)	-
	----------------	----------------	----------------	----------------
Gross Profit	18,599,000	19,196,655	19,753,315	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	4,870,287	5,888,207	6,560,890	4,820,763
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	4,870,287	5,888,207	6,560,890	4,820,763
Taxation	(863,269)	(1,036,392)	(1,187,108)	(792,768)
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	4,007,018	4,851,815	5,373,782	4,027,995
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	31,461,642	28,809,827	23,436,045	20,808,050
	----------------	----------------	----------------	----------------
As restated	31,461,642	28,809,827	23,436,045	20,808,050
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	35,468,660	33,661,642	28,809,827	24,836,045
DIVIDENDS - Ordinary (paid & proposed)	(10,600,000)	(2,200,000)	-	(1,400,000)
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	24,868,660	31,461,642	28,809,827	23,436,045
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	9,648	11,484	12,286	13,149
Term loan / Borrowing	5,692	20,244	21,124	20,544
	----------------	----------------	----------------	----------------
	15,340	31,728	33,410	33,693
	=============	=============	=============	=============

BALANCE SHEET

CHUGOKU MARINE PAINTS (SINGAPORE) PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	4,571,445	4,905,738	5,579,768	6,315,036
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	466,331	466,331	-	-
Investments	275,252	298,506	321,760	361,812
Others	18,833	18,833	18,833	18,833
	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	760,416	783,670	340,593	380,645
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	-	-	-	386,750
Others	250,250	295,750	341,250	-
	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	250,250	295,750	341,250	386,750
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	5,582,111	5,985,158	6,261,611	7,082,431
CURRENT ASSETS
Stocks	15,435,217	17,198,176	17,376,499	15,680,733
Trade debtors	31,540,097	33,777,324	30,109,702	11,010,109
Other debtors, deposits & prepayments	582,466	746,216	575,637	500,206
Short term deposits	-	-	-	19,507,223
Deposits with financial institutions	17,582,861	20,834,400	23,750,216	-
Amount due from holding company	139,294	-	-	915,446
Amount due from subsidiary companies	441	-	-	-
Amount due from related companies	339,655	273,898	191,746	9,969,781
Cash & bank balances	1,162,812	1,301,864	2,102,223	1,808,179
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	66,782,843	74,131,878	74,106,023	59,391,677
	----------------	----------------	----------------	----------------
TOTAL ASSET	72,364,954	80,117,036	80,367,634	66,474,108
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	14,889,650	14,886,461	19,459,531	6,381,519
Other creditors & accruals	1,245,359	718,142	540,829	540,836
Bank overdraft	1,816,672	1,742,770	1,532,394	1,764,761
Short term borrowings/Term loans	-	1,436,351	-	185,460
Other liabilities & accruals	1,036,145	1,215,433	1,218,387	889,958
Amounts owing to holding company	179,237	171,569	146,898	104,531
Amounts owing to subsidiary companies	104,735	67,447	-	-
Amounts owing to related companies	149,974	208,233	428,010	5,250,745
Provision for taxation	1,038,629	1,173,095	1,195,865	884,360
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	20,460,401	21,619,501	24,521,914	16,002,170
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	46,322,442	52,512,377	49,584,109	43,389,507
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	51,904,553	58,497,535	55,845,720	50,471,938
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	26,516,000	26,516,000	26,516,000	26,516,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	26,516,000	26,516,000	26,516,000	26,516,000
RESERVES
Retained profit/(loss) carried forward	24,868,660	31,461,642	28,809,827	23,436,045
	----------------	----------------	----------------	----------------
TOTAL RESERVES	24,868,660	31,461,642	28,809,827	23,436,045
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	51,384,660	57,977,642	55,325,827	49,952,045
LONG TERM LIABILITIES
Deferred taxation	519,893	519,893	519,893	519,893
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	519,893	519,893	519,893	519,893
	----------------	----------------	----------------	----------------
	51,904,553	58,497,535	55,845,720	50,471,938
	=============	=============	=============	=============

FINANCIAL RATIO

CHUGOKU MARINE PAINTS (SINGAPORE) PTE LTD

TYPES OF FUNDS
Cash	1,162,812	1,301,864	2,102,223	21,315,402
Net Liquid Funds	(653,860)	(440,906)	569,829	19,550,641
Net Liquid Assets	30,887,225	35,314,201	32,207,610	27,708,774
Net Current Assets/(Liabilities)	46,322,442	52,512,377	49,584,109	43,389,507
Net Tangible Assets	51,654,303	58,201,785	55,504,470	50,085,188
Net Monetary Assets	30,367,332	34,794,308	31,687,717	27,188,881
BALANCE SHEET ITEMS
Total Borrowings	1,816,672	3,179,121	1,532,394	1,950,221
Total Liabilities	20,980,294	22,139,394	25,041,807	16,522,063
Total Assets	72,364,954	80,117,036	80,367,634	66,474,108
Net Assets	51,904,553	58,497,535	55,845,720	50,471,938
Net Assets Backing	51,384,660	57,977,642	55,325,827	49,952,045
Shareholders' Funds	51,384,660	57,977,642	55,325,827	49,952,045
Total Share Capital	26,516,000	26,516,000	26,516,000	26,516,000
Total Reserves	24,868,660	31,461,642	28,809,827	23,436,045
LIQUIDITY (Times)
Cash Ratio	0.06	0.06	0.09	1.33
Liquid Ratio	2.51	2.63	2.31	2.73
Current Ratio	3.26	3.43	3.02	3.71
WORKING CAPITAL CONTROL (Days)
Stock Ratio	47	51	51	54
Debtors Ratio	96	100	89	38
Creditors Ratio	53	52	67	22
SOLVENCY RATIOS (Times)
Gearing Ratio	0.04	0.05	0.03	0.04
Liabilities Ratio	0.41	0.38	0.45	0.33
Times Interest Earned Ratio	318.49	186.58	197.38	144.08
Assets Backing Ratio	1.95	2.19	2.09	1.89
PERFORMANCE RATIO (%)
Operating Profit Margin	4.08	4.80	5.30	4.52
Net Profit Margin	3.36	3.95	4.34	3.78
Return On Net Assets	9.41	10.12	11.81	9.62
Return On Capital Employed	9.05	9.78	11.42	9.22
Return On Shareholders' Funds/Equity	7.80	8.37	9.71	8.06
Dividend Pay Out Ratio (Times)	2.65	0.45	0.00	0.35
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.24
UK Pound	1	Rs.102.17
Euro	1	Rs.84.82

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.