MIRA INFORM REPORT

Report Date :

25.07.2014

IDENTIFICATION DETAILS

Name :	CHEMICAL INDUSTRIES (FAR EAST) LIMITED.
Registered Office :	3, Jalan Samulun, 629127
Country :	Singapore
Financials (as on) :	31.03.2014
Date of Incorporation :	16.03.1962
Com. Reg. No.:	196200046-K
Legal Form :	Public (Limited By Share)
Line of Business :	Manufacture of petrochemical products.
No. of Employees	130 [2014]

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No complaints
Litigation :	Clear

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. 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

Company name and address

REGISTRATION NO.

:

196200046-K

COMPANY NAME

:

CHEMICAL INDUSTRIES (FAR EAST) LIMITED.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/03/1962

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

YES

LISTED DATE

:

17/12/1973

REGISTERED ADDRESS

:

3, JALAN SAMULUN, 629127, SINGAPORE.

BUSINESS ADDRESS

:

3, JALAN SAMULUN, 629127, SINGAPORE.

TEL.NO.

:

65-62650411

FAX.NO.

:

65-62656690

CONTACT PERSON

:

LIM SOO PENG ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

MANUFACTURE OF MANUFACTURE OF PETROCHEMICAL PRODUCTS

ISSUED AND PAID UP CAPITAL

:

75,945,399.00 ORDINARY SHARE, OF A VALUE OF SGD 75,945,399.00

SALES

:

SGD 100,162,000 [2014]

NET WORTH

:

SGD 90,637,000 [2014]

STAFF STRENGTH

:

130 [2014]

BANKER (S)

:

DBS BANK LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MATURE

HISTORY / BACKGROUND

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacture of manufacture of petrochemical products.

Share Capital History

Date	Issue & Paid Up Capital
22/07/2014	SGD 75,945,399.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
S. P. LIM & COMPANY PRIVATE LIMITED	58, BOAT QUAY, 049847, SINGAPORE.	196100088Z	30,293,500.00	39.89
UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED	80, RAFFLES PLACE, UOB PLAZA, 048624, SINGAPORE.	196800520	13,823,137.00	18.20
UOB KAY HIAN PRIVATE LIMITED	8, ANTHONY ROAD, 01-01, 229957, SINGAPORE.	197000447W	5,038,000.00	6.63
DBS NOMINEES (PRIVATE) LIMITED	12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.	196900222	3,712,469.00	4.89
LIM SOO PENG +	63, BIN TONG PARK, BIN TONG PARK, 269833, SINGAPORE.	S0329638E	2,764,250.00	3.64
HSBC (SINGAPORE) NOMINEES PTE LTD	21, COLLYER QUAY, 10-02, HSBC BUILDING, 049320, SINGAPORE.	194600097	1,136,750.00	1.50
LAU GEOK CHENG	-	-	1,013,668.00	1.33
LUM SHIHUI @ LIN SHIHUI	-	-	829,000.00	1.09
DBS VICKERS SECURITIES (SINGAPORE) PTE LTD	12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.	198600294G	780,500.00	1.03
CHIA KEE KOON	82, LIMA AH WOO ROAD, SINGAPORE.	S2006401C	673,000.00	0.89
LIN DAOJI MICHAEL	-	-	611,000.00	0.80
REMAINING SHAREHOLDERS	-	-	15,270,125.00	20.11
			---------------	------
			75,945,399.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
197902156C	SINGAPORE	KIMIA TRADING PTE. LTD.	100.00	31/03/2013
197201064R	SINGAPORE	JUTA PROPERTIES PTE.LTD.	100.00	31/03/2013
199105484M	SINGAPORE	CHEM TRANSPORT PTE LTD	100.00	31/03/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	TAY KAH CHYE
Address	:	91, JALAN MAS PUTEH, PASIR PANJANG GARDENS, 128663, SINGAPORE.
IC / PP No	:	S0198467E
Nationality	:	SINGAPOREAN
Date of Appointment	:	02/01/2008

DIRECTOR 2

Name Of Subject	:	ERIC LIM YEW TOU
Address	:	39, CHANCERY LANE, 01-05, VILLA CHANCERY, 309568, SINGAPORE.
IC / PP No	:	S0139100C
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/06/1981

DIRECTOR 3

Name Of Subject	:	CHUA SUI LENG
Address	:	27, BALMORAL ROAD, 10-27, BALMORAL TOWER, 259808, SINGAPORE.
IC / PP No	:	S0944916G
Nationality	:	SINGAPOREAN
Date of Appointment	:	17/03/2000

DIRECTOR 4

Name Of Subject	:	VALERIE ONG CHOO LIN
Address	:	55, SERENADE WALK, THOMSON HILLS ESTATE, 575801, SINGAPORE.
IC / PP No	:	S2187448E
Nationality	:	SINGAPOREAN
Date of Appointment	:	25/01/2006

DIRECTOR 5

Name Of Subject	:	DR WAN SOON BEE
Address	:	329, RIVER VALLEY ROAD, 22-02, YONG AN PARK, 238361, SINGAPORE.
IC / PP No	:	S1147702Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	03/07/2000

DIRECTOR 6

Name Of Subject	:	LIM SOO PENG
Address	:	63, BIN TONG PARK, BIN TONG PARK, 269833, SINGAPORE.
IC / PP No	:	S0329638E
Nationality	:	SINGAPOREAN
Date of Appointment	:	16/03/1962

MANAGEMENT

1)	Name of Subject	:	LIM SOO PENG
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	DELOITTE & TOUCHE LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	FOO SOON SOO
	IC / PP No	:	S1310912E
	Address	:	63, TAVISTOCK AVENUE, SERANGOON GARDEN ESTATE, 555161, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201114865	25/11/2011	N/A	DBS BANK LTD.	-	Unsatisfied
C201114866	25/11/2011	N/A	DBS BANK LTD.	-	Unsatisfied
C201114868	25/11/2011	N/A	DBS BANK LTD.	-	Unsatisfied

LEGAL CHECK AGAINST SUBJECT

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

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

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	[	X	]	Good 31-60 Days	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[		]	Poor >120 Days	[	]

CLIENTELE

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

OPERATIONS

Products manufactured

:

PETROCHEMICAL PRODUCTS

Total Number of Employees:
YEAR	2014
GROUP	N/A
COMPANY	130

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture of manufacture of petrochemical products.

The Subject being an investment holding company, its Group is engages in the manufacture and sale of chemicals primarily in Singapore. The company operates in two segments, Industrial Chemicals and Properties.

The Group also operates as a general carrier; general merchant, importer, and exporter of chemicals; and proprietor of commercial buildings, as well as is involved in managing and renting commercial properties.

RECENT DEVELOPMENT

Apr 25 2014

The Board of Directors of Chemical Industries (Far East) Limited announced the appointment of Ms. Foo Soon Soo as Company Secretary with effect from 25 April 2014 and the resignation of Ms. Lee Ai Hian as Assistant Secretary with immediate effect.

Nov 1 2013

Chemical Industries Far East Ltd. reported unaudited group earnings results for the half year ended September 30, 2013. For the half year, the company reported revenue of SGD 54,431,000 against SGD 63,567,000 a year ago. Profit before tax was SGD 1,958,000 against SGD 1,813,000 a year ago. Profit was SGD 1,497,000 or 1.97 cents per fully diluted share against SGD 1,369,000 or 1.80 cents per fully diluted share a year ago. Net cash from operating activities was SGD 5,541,000 against SGD 4,454,000 a year ago. Purchase of property, plant and equipment was SGD 1,561,000 against SGD 4,149,000 a year ago. The revenue decrease was attributed mainly to lower revenue from the chemical business as a result of lower off-take by a major customer due to their shut down maintenance. Pre-tax profit of the group was 6% higher than the previous period. This was attributed mainly to the overall improved gross profit margin for the current period.

Aug 5 2013

The Board of Directors of Chemical Industries Far East Ltd. announced that Mr. Tay Kah Chye has been appointed as Chairman of the Audit Committee with effect from 1 August 2013.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62650411
Match	:	N/A
Address Provided by Client	:	3 JALAN SAMULUN 629127
Current Address	:	3, JALAN SAMULUN, 629127, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Acceptable	[	11.41%	]
Return on Net Assets	:	Acceptable	[	10.34%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	20 Days	]
Debtor Ratio	:	Favourable	[	38 Days	]
Creditors Ratio	:	Favourable	[	14 Days	]
The Subject'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 Subject. 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	[	1.08 Times	]
Current Ratio	:	Unfavourable	[	1.25 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	[	13.46 Times	]
Gearing Ratio	:	Favourable	[	0.44 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 :
Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2009	2010	2011	2012	2013
Population (Million)	4.98	5.08	5.18	5.31	5.40
Gross Domestic Products ( % )	(0.8)	14.5	4.9	1.3	3.7
Consumer Price Index	0.6	2.8	5.2	4.6	2.4
Total Imports (Million)	356,299.3	423,221.8	459,655.1	474,554.0	466,762.0
Total Exports (Million)	391,118.1	478,840.7	514,741.2	510,329.0	513,391.0
Unemployment Rate (%)	3.2	2.2	2.1	2.0	1.9
Tourist Arrival (Million)	9.68	11.64	13.17	14.49	15.46
Hotel Occupancy Rate (%)	75.8	85.6	86.5	86.4	86.3
Cellular Phone Subscriber (Million)	1.37	1.43	1.50	1.52	1.97
Registration of New Companies (No.)	26,414	29,798	32,317	31,892	37,288
Registration of New Companies (%)	4.3	12.8	8.5	(1.3)	9.8
Liquidation of Companies (No.)	22,393	15,126	19,005	17,218	17,369
Liquidation of Companies (%)	113.4	(32.5)	25.6	9.4	(5.3)
Registration of New Businesses (No.)	26,876	23,978	23,494	24,788	22,893
Registration of New Businesses (%)	8.15	(10.78)	2.02	5.51	1.70
Liquidation of Businesses (No.)	23,552	24,211	23,005	22,489	22,598
Liquidation of Businesses (%)	11.4	2.8	(5)	(2.2)	0.5
Bankruptcy Orders (No.)	2,058	1,537	1,527	1,748	1,992
Bankruptcy Orders (%)	(11.5)	(25.3)	(0.7)	14.5	14.0
Bankruptcy Discharges (No.)	3,056	2,252	1,391	1,881	2,584
Bankruptcy Discharges (%)	103.7	(26.3)	(38.2)	35.2	37.4
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	3.25	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(1.93)	(10.5)	12.10	(0.5)	-
Manufacturing *	71.5	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	90.4	96.4	100.0	103.5	103.5
Textiles	145.9	122.1	100.0	104.0	87.1
Wearing Apparel	211.0	123.3	100.0	92.1	77.8
Leather Products & Footwear	79.5	81.8	100.0	98.6	109.8
Wood & Wood Products	101.4	104.0	100.0	95.5	107.4
Paper & Paper Products	95.4	106.1	100.0	97.4	103.2
Printing & Media	100.9	103.5	100.0	93.0	86.1
Crude Oil Refineries	96.4	95.6	100.0	99.4	93.5
Chemical & Chemical Products	80.3	97.6	100.0	100.5	104.1
Pharmaceutical Products	49.1	75.3	100.0	109.7	107.2
Rubber & Plastic Products	101.2	112.3	100.0	96.5	92.9
Non-metallic Mineral	91.9	92.5	100.0	98.2	97.6
Basic Metals	92.6	102.2	100.0	90.6	76.5
Fabricated Metal Products	90.8	103.6	100.0	104.3	105.1
Machinery & Equipment	57.3	78.5	100.0	112.9	114.5
Electrical Machinery	86.8	124.1	100.0	99.3	108.5
Electronic Components	85.2	113.6	100.0	90.6	94.3
Transport Equipment	96.0	94.0	100.0	106.3	107.5
Construction	(36.9)	14.20	20.50	28.70	-
Real Estate	1.4	21.3	25.4	31.9	-
Services
Electricity, Gas & Water	1.70	4.00	7.00	6.30	-
Transport, Storage & Communication	3.90	12.80	7.40	5.30	-
Finance & Insurance	(16.4)	(0.4)	8.90	0.50	-
Government Services	4.50	9.70	6.90	6.00	-
Education Services	0.10	(0.9)	(1.4)	0.30	-
* Based on Index of Industrial Production (2011 = 100)

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 1962, the Subject is a Public Listed company, focusing on manufacture of manufacture of petrochemical products. The Subject has been in business for over 4 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 130 staff in its 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.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 90,637,000, 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.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. In spite of the difficult and challenging business environment, the Subject's competitive capability is strong and it is adapting well to meet the challenges of this sector.

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.

CHEMICAL INDUSTRIES (FAR EAST) LIMITED.

Financial Year End	2014-03-31	2013-03-31	2012-03-31	2011-03-31	2010-03-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	100,162,000	111,841,000	107,009,000	109,472,000	92,996,000
Other Income	5,972,000	2,648,000	(484,000)	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	106,134,000	114,489,000	106,525,000	109,472,000	92,996,000
Costs of Goods Sold	(84,522,000)	(102,515,000)	(95,735,000)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	21,612,000	11,974,000	10,790,000	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	10,999,000	1,402,000	2,234,000	6,303,000	1,840,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	10,999,000	1,402,000	2,234,000	6,303,000	1,840,000
Taxation	(654,000)	262,000	612,000	(85,000)	(56,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	10,345,000	1,664,000	2,846,000	6,218,000	1,784,000
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,746,000	1,841,000	(3,001,000)	(8,839,000)	(9,484,000)
Prior year adjustment	-	-	3,135,000	-	-
	----------------	----------------	----------------	----------------	----------------
As restated	2,746,000	1,841,000	134,000	(8,839,000)	(9,484,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	13,091,000	3,505,000	2,980,000	(2,621,000)	(7,700,000)
DIVIDENDS - Ordinary (paid & proposed)	(759,000)	(759,000)	(1,139,000)	(380,000)	(1,139,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	12,332,000	2,746,000	1,841,000	(3,001,000)	(8,839,000)
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Lease interest	19,000	22,000	14,000	8,000	13,000
Term loan / Borrowing	864,000	1,170,000	1,146,000	1,291,000	1,667,000
	----------------	----------------	----------------	----------------	----------------
	883,000	1,192,000	1,160,000	1,299,000	1,680,000
	=============	=============	=============	=============	=============

BALANCE SHEET

CHEMICAL INDUSTRIES (FAR EAST) LIMITED.

ASSETS EMPLOYED:
FIXED ASSETS	67,811,000	76,728,000	73,473,000	67,386,000	72,399,000
Investment properties	38,400,000	32,400,000	29,500,000	28,230,000	27,150,000
Others	626,000	623,000	527,000	778,000	506,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	39,026,000	33,023,000	30,027,000	29,008,000	27,656,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	106,837,000	109,751,000	103,500,000	96,394,000	100,055,000
Stocks	5,530,000	7,392,000	8,566,000	8,167,000	7,001,000
Trade debtors	10,394,000	11,160,000	14,041,000	12,602,000	11,766,000
Other debtors, deposits & prepayments	843,000	694,000	480,000	811,000	826,000
Short term deposits	2,024,000	2,020,000	2,016,000	2,012,000	2,008,000
Cash & bank balances	21,875,000	13,049,000	13,612,000	11,654,000	14,500,000
Others	-	-	252,000	2,943,000	1,186,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	40,666,000	34,315,000	38,967,000	38,189,000	37,287,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	147,503,000	144,066,000	142,467,000	134,583,000	137,342,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	3,160,000	4,328,000	2,668,000	7,582,000	2,704,000
Other creditors & accruals	4,654,000	5,490,000	7,234,000	4,453,000	5,548,000
Hire purchase & lease creditors	154,000	156,000	115,000	104,000	94,000
Bank overdraft	3,017,000	1,171,000	-	292,000	6,765,000
Short term borrowings/Term loans	15,547,000	16,771,000	13,103,000	14,077,000	11,775,000
Other borrowings	5,425,000	5,425,000	3,425,000	14,756,000	8,256,000
Provision for taxation	593,000	347,000	854,000	2,011,000	1,887,000
Other liabilities	28,000	-	-	372,000	557,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	32,578,000	33,688,000	27,399,000	43,647,000	37,586,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	8,088,000	627,000	11,568,000	(5,458,000)	(299,000)
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	114,925,000	110,378,000	115,068,000	90,936,000	99,756,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	75,945,000	75,945,000	75,945,000	75,945,000	75,945,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	75,945,000	75,945,000	75,945,000	75,945,000	75,945,000
Revaluation reserve	497,000	494,000	398,000	415,000	399,000
Exchange equalisation/fluctuation reserve	1,863,000	1,885,000	1,872,000	1,869,000	1,861,000
Retained profit/(loss) carried forward	12,332,000	2,746,000	1,841,000	(3,001,000)	(8,839,000)
Others	-	-	-	(371,000)	(765,000)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	14,692,000	5,125,000	4,111,000	(1,088,000)	(7,344,000)
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	90,637,000	81,070,000	80,056,000	74,857,000	68,601,000
Long term loans	15,377,000	20,803,000	26,228,000	3,889,000	18,644,000
Lease obligations	319,000	472,000	369,000	239,000	125,000
Deferred taxation	8,592,000	8,033,000	8,415,000	11,951,000	12,146,000
Others	-	-	-	-	240,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	24,288,000	29,308,000	35,012,000	16,079,000	31,155,000
	----------------	----------------	----------------	----------------	----------------
	114,925,000	110,378,000	115,068,000	90,936,000	99,756,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

CHEMICAL INDUSTRIES (FAR EAST) LIMITED.

TYPES OF FUNDS
Cash	23,899,000	15,069,000	15,628,000	13,666,000	16,508,000
Net Liquid Funds	20,882,000	13,898,000	15,628,000	13,374,000	9,743,000
Net Liquid Assets	2,558,000	(6,765,000)	3,002,000	(13,625,000)	(7,300,000)
Net Current Assets/(Liabilities)	8,088,000	627,000	11,568,000	(5,458,000)	(299,000)
Net Tangible Assets	114,925,000	110,378,000	115,068,000	90,936,000	99,756,000
Net Monetary Assets	(21,730,000)	(36,073,000)	(32,010,000)	(29,704,000)	(38,455,000)
BALANCE SHEET ITEMS
Total Borrowings	39,839,000	44,798,000	43,240,000	33,357,000	45,659,000
Total Liabilities	56,866,000	62,996,000	62,411,000	59,726,000	68,741,000
Total Assets	147,503,000	144,066,000	142,467,000	134,583,000	137,342,000
Net Assets	114,925,000	110,378,000	115,068,000	90,936,000	99,756,000
Net Assets Backing	90,637,000	81,070,000	80,056,000	74,857,000	68,601,000
Shareholders' Funds	90,637,000	81,070,000	80,056,000	74,857,000	68,601,000
Total Share Capital	75,945,000	75,945,000	75,945,000	75,945,000	75,945,000
Total Reserves	14,692,000	5,125,000	4,111,000	(1,088,000)	(7,344,000)
LIQUIDITY (Times)
Cash Ratio	0.73	0.45	0.57	0.31	0.44
Liquid Ratio	1.08	0.80	1.11	0.69	0.81
Current Ratio	1.25	1.02	1.42	0.87	0.99
WORKING CAPITAL CONTROL (Days)
Stock Ratio	20	24	29	27	27
Debtors Ratio	38	36	48	42	46
Creditors Ratio	14	15	10	25	11
SOLVENCY RATIOS (Times)
Gearing Ratio	0.44	0.55	0.54	0.45	0.67
Liabilities Ratio	0.63	0.78	0.78	0.80	1.00
Times Interest Earned Ratio	13.46	2.18	2.93	5.85	2.10
Assets Backing Ratio	1.51	1.45	1.52	1.20	1.31
PERFORMANCE RATIO (%)
Operating Profit Margin	10.98	1.25	2.09	5.76	1.98
Net Profit Margin	10.33	1.49	2.66	5.68	1.92
Return On Net Assets	10.34	2.35	2.95	8.36	3.53
Return On Capital Employed	10.06	2.32	2.95	8.32	3.30
Return On Shareholders' Funds/Equity	11.41	2.05	3.56	8.31	2.60
Dividend Pay Out Ratio (Times)	0.07	0.46	0.40	0.06	0.64
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.00
UK Pound	1	Rs.102.19
Euro	1	Rs.80.68

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIS

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%)

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