MIRA INFORM REPORT

Report Date :

26.07.2014

IDENTIFICATION DETAILS

Name :	SEMBCORP INDUSTRIES LTD
Formerly Known as :	MINARET LIMITED
Registered Office :	30, Hill Street, 05-04, 179360
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	20.05.1998
Com. Reg. No.:	199802418-D
Legal Form :	Public (Limited By Share)
Line of Business :	· Subject is an investment holding company, is engaged in the utilities, marine, and urban development businesses worldwide.  Subject Utilities segment provides energy, water, on-site logistics, and solid waste management services to industrial and municipal customers. Its activities in the energy sector include power generation and retail, and process steam production and supply, as well as natural gas import, supply, and retail; and water sector comprise wastewater treatment, and the production and supply of reclaimed, desalinated, and potable water. · Subject also offer onsite logistics and services, such as service corridor, chemical storage, and terminalling facilities, as well as asset protection, hazardous waste, incineration, and industrial gases supply services; and solid waste management services comprising municipal, commercial, industrial, construction, demolition, and bio-hazardous waste collection services, as well as post-collection treatment and waste-to-resource services
No of Employees :	Not Available

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, 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

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

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199802418-D
COMPANY NAME	:	SEMBCORP INDUSTRIES LTD
FORMER NAME	:	MINARET LIMITED (22/07/1998)
INCORPORATION DATE	:	20/05/1998
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC (LIMITED BY SHARE)
LISTED STATUS	:	YES
LISTED DATE	:	05/10/2011
REGISTERED ADDRESS	:	30, HILL STREET, 05-04, 179360, SINGAPORE.
BUSINESS ADDRESS	:	30 HILL STREET #05-04, 179360, SINGAPORE.
TEL.NO.	:	65-67233113
FAX.NO.	:	65-68223254
EMAIL	:	GCR@SEMBCORP.COM
WEB SITE	:	WWW.SEMBCORP.COM
CONTACT PERSON	:	MOHD HASSAN BIN MARICAN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	UTILITIES, MARINE, AND URBAN DEVELOPMENT AND INVESTMENT HOLDING COMPANIES
ISSUED AND PAID UP CAPITAL	:	1,787,547,732.00 ORDINARY SHARE, OF A VALUE OF SGD 565,209,780.88
SALES	:	SGD 10,797,622,000 [2013]
NET WORTH	:	SGD 6,529,994,000 [2013]
STAFF STRENGTH	:	N/A
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	MARGINAL GROWTH

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) utilities, marine, and urban development and investment holding companies.

Share Capital History

Date	Issue & Paid Up Capital
22/07/2014	SGD 565,209,780.88

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
TEMASEK HOLDINGS (PRIVATE) LIMITED	60B, ORCHARD ROAD, 06 - 18, ATRIUM @ ORCHARD, 238891, SINGAPORE.	197401143	871,200,328.00	48.74
DBS NOMINEES (PRIVATE) LIMITED	12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.	196900222	216,963,365.00	12.14
CITIBANK NOMINEES SINGAPORE PTE LTD	8, MARINA VIEW, 21-00, ASIA SQUARE TOWER 1, 018960, SINGAPORE.	198801936	205,082,505.00	11.47
DBSN SERVICES PTE. LTD.	12, MARINA BOULEVARD, MARINA BAY, FINANCIAL CENTRE, 018982, SINGAPORE.	200602090	120,835,245.00	6.76
HSBC (SINGAPORE) NOMINEES PTE LTD	21, COLLYER QUAY, 10-02, HSBC BUILDING, 049320, SINGAPORE.	194600097	77,080,052.00	4.31
UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED	80, RAFFLES PLACE, UOB PLAZA, 048624, SINGAPORE.	196800520	73,649,104.00	4.12
RAFFLES NOMINEES (PTE.) LTD	7, CHANGI BUSINESS PARK CRESCENT, 03-00, STANDARD CHARTERED @ CHANGI, SINGAPORE.	193700032	14,714,439.00	0.82
BNP PARIBAS SECURITIES SERVICES	-	T11UF2695	9,547,098.00	0.53
STARTREE INVESTMENTS PTE. LTD.	-	200208606	9,400,000.00	0.53
OCBC NOMINEES SINGAPORE PRIVATE LIMITED	65, CHULIA STREET, 28-01, OCBC CENTRE, 049513, SINGAPORE.	197400645	5,519,473.00	0.31
TANG KIN FEI +	31, MARGOLIOUTH ROAD, MARGOLIOUTH VILLAS, 258557, SINGAPORE.	S0017721J	4,776,546.00	0.27
REMAINING SHAREHOLDERS	-	-	178,779,577.00	10.00
			---------------	------
			1,787,547,732.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	UNITED KINGDOM	SEMBCORP BOURNEMOUTH WATER LIMITED	100.00	31/12/2013
197600209C	SINGAPORE	SEMBCORP DEVELOPMENT LTD.	100.00	31/12/2013
011427	UNITED KINGDOM	SEMBCORP UTILITIES (UK) LIMITED	100.00	31/12/2013
199507280G	SINGAPORE	SEMBWASTE PTE. LTD.	100.00	31/12/2013
	CAYMAN ISLANDS	THE CHINA WATER COMPANY LIMITED	100.00	31/12/2013
011430	SINGAPORE	SINGAPORE TECHNOLOGIES INDUSTRIAL CORP LTD	100.00	31/12/2013
011429	CAYMAN ISLANDS	SEMBCORP YANGCHENG POWER CO PTE. LTD.	100.00	31/12/2013
199704333H	SINGAPORE	SEMBCORP GAS PTE LTD	100.00	31/12/2013
011428	NETHERLANDS	SEMBCORP UTILITIES(NETHERLANDS) N.V.	100.00	31/12/2013
199503447R	SINGAPORE	SEMBCORP ENVIRONMENT PTE. LTD.	100.00	31/12/2013
199707556E	SINGAPORE	SEMBCORP COGEN PTE LTD	100.00	31/12/2013
196800254M	SINGAPORE	SEMBAWANG CORPORATION LIMITED	100.00	31/12/2013
200613199N	SINGAPORE	SEMBCORP CAPTIVE INSURANCE PTE. LTD.	100.00	31/12/2013
200302373G	SINGAPORE	SEMBCORP FINANCIAL SERVICES PTE. LTD.	100.00	31/12/2013
197300648H	SINGAPORE	SEMBCORP UTILITIES PTE LTD	100.00	31/12/2013
199501988W	SINGAPORE	VIETNAM SINGAPORE INDUSTRIAL PARK PTE LTD	92.88	31/12/2013
198701800R	SINGAPORE	SMOE PTE LTD	60.60	31/12/2013
199606058N	SINGAPORE	SEMBAWANG SHIPYARD PTE LTD	60.60	31/12/2013
196300098Z	SINGAPORE	SEMBCORP MARINE LTD	60.60	31/12/2013
199908265G	SINGAPORE	JURONG SHIPYARD PTE LTD	60.60	31/12/2013
199708012N	SINGAPORE	PPL SHIPYARD PTE LTD	51.51	31/12/2013
199901080N	SINGAPORE	SEMBCORP PARKS MANAGEMENT PTE LTD	51.00	31/12/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	TEH KOK PENG
Address	:	25, BIN TONG PARK, BIN TONG PARK, 269806, SINGAPORE.
IC / PP No	:	S2507542J
Nationality	:	SINGAPOREAN
Date of Appointment	:	15/10/2012

DIRECTOR 2

Name Of Subject	:	ANG KONG HUA
Address	:	6, SWETTENHAM CLOSE, 248135, SINGAPORE.
IC / PP No	:	S0820599Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	26/02/2010

DIRECTOR 3

Name Of Subject	:	CHIN YOKE CHOONG
Address	:	7, MAPLE LANE, EDEN PARK, 277551, SINGAPORE.
IC / PP No	:	S2554339D
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/12/2008

DIRECTOR 4

Name Of Subject	:	THAM KUI SENG
Address	:	3, FOURTH STREET, EAST COAST PARK, 458257, SINGAPORE.
IC / PP No	:	S1230846I
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/06/2011

DIRECTOR 5

Name Of Subject	:	EVERT HENKES
Address	:	CEDAR LODGE, WARRNE ROAD, KINGSTON-UPON-THAMES, SURREY KT2, 7HN
IC / PP No	:	BDB7629K9
Nationality	:	DUTCH
Date of Appointment	:	30/04/2004

DIRECTOR 6

Name Of Subject	:	MOHD HASSAN BIN MARICAN
Address	:	134, JALAN TERATAI, TAMAN UDA JAYA, 68000 AMPANG, SELANGOR, MALAYSIA.
IC / PP No	:	A20660011
Nationality	:	MALAYSIAN
Date of Appointment	:	16/06/2010

DIRECTOR 7

Name Of Subject	:	CHAN ANN SOO
Address	:	20, JALAN KAKATUA, JURONG PARK, 598538, SINGAPORE.
IC / PP No	:	S1347947Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/06/2010

DIRECTOR 8

Name Of Subject	:	GOH GEOK LING
Address	:	37, JALAN KAMPONG CHANTEK, 588615, SINGAPORE.
IC / PP No	:	S0040556F
Nationality	:	SINGAPOREAN
Date of Appointment	:	03/05/2000

DIRECTOR 9

Name Of Subject	:	AJAIB HARI DASS
Address	:	17, JALAN INSAF, THOMSAN RISE ESTATE, 578013, SINGAPORE.
IC / PP No	:	S0889104D
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/05/2014

DIRECTOR 10

Name Of Subject	:	MCGREGOR NEIL GARRY
Address	:	193, OCEAN DRIVE, 098455, SINGAPORE.
IC / PP No	:	S2691822G
Nationality	:	NEW ZEALANDER
Date of Appointment	:	01/05/2014

DIRECTOR 11

Name Of Subject	:	TANG KIN FEI
Address	:	31, MARGOLIOUTH ROAD, MARGOLIOUTH VILLAS, 258557, SINGAPORE.
IC / PP No	:	S0017721J
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/05/2005

MANAGEMENT

1)	Name of Subject	:	MOHD HASSAN BIN MARICAN
	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 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	:	604
Year	:	2008	Place	:	SINGAPORE
Court	:	SUPREME COURT
Date Filed	:	28/08/2008
Solicitor	:	EDWIN LEE PENG KHOON
Solicitor Ref	:	ELK/301739/2
Solicitor Firm	:	RAJAH & TANN LLP
Plaintiff	:	PUNJ LLOYD PTE LTD
Defendants	:	SEMBCORP INDUSTRIES LTD (199802418)
Amount Claimed	:	3020000
Nature of Claim	:	SGD
Remark	:	OTHERS/MISCELLANEOUS

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
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	[	]	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	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Services

:

UTILITIES, MARINE, AND URBAN DEVELOPMENT AND INVESTMENT HOLDING COMPANIES

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) utilities, marine, and urban development and investment holding companies. 

The Subject, an investment holding company, is engaged in the utilities, marine, and urban development businesses worldwide. 

Its Utilities segment provides energy, water, on-site logistics, and solid waste management services to industrial and municipal customers. Its activities in the energy sector include power generation and retail, and process steam production and supply, as well as natural gas import, supply, and retail; and water sector comprise wastewater treatment, and the production and supply of reclaimed, desalinated, and potable water. 

This segment has approximately 7,200 megawatts of power capacity installed and under development. 

It also offer onsite logistics and services, such as service corridor, chemical storage, and terminalling facilities, as well as asset protection, hazardous waste, incineration, and industrial gases supply services; and solid waste management services comprising municipal, commercial, industrial, construction, demolition, and bio-hazardous waste collection services, as well as post-collection treatment and waste-to-resource services

The Group’s Marine segment provides various services, including repairing, building, and conversion of ships and rigs; and offshore engineering and construction services. Its Urban Development segment owns, develops, markets, and manages integrated urban development projects comprising industrial parks, as well as business, commercial, and residential spaces in Asia. 

The Group’s Others/Corporate segment includes businesses primarily relating to minting, design, and construction activities.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-67233113
Match	:	N/A
Address Provided by Client	:	51 SARKA AVENUE 627894
Current Address	:	30 HILL STREET #05-04, 179360, SINGAPORE.
Match	:	NO

Other Investigations

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

The address provided belongs to the Subject's power plant location.

She refused to disclose the number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	12.56%	]
Return on Net Assets	:	Acceptable	[	15.03%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Unfavourable	[	76 Days	]
Debtor Ratio	:	Favourable	[	16 Days	]
Creditors Ratio	:	Unfavourable	[	71 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.70 Times	]
Current Ratio	:	Unfavourable	[	1.16 Times	]
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Favourable	[	11.48 Times	]
Gearing Ratio	:	Favourable	[	0.33 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 :
Generally, the Subject's performance has improved with higher turnover and profit. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. 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)
(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 1998, the Subject is a Public Listed company, focusing on utilities, marine, and urban development and investment holding. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company 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. 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. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 6,529,994,000, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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 maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject'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 Subject normally.

PROFIT AND LOSS ACCOUNT

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

SEMBCORP INDUSTRIES LTD

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
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	10,797,622,000	10,189,058,000	9,047,066,000	8,763,614,000	9,572,408,000
Other Income	213,092,000	67,298,000	47,492,000	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	11,010,714,000	10,256,356,000	9,094,558,000	8,763,614,000	9,572,408,000
Costs of Goods Sold	(9,510,359,000)	(8,808,796,000)	(7,692,621,000)	(7,242,974,000)	(8,222,294,000)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	1,500,355,000	1,447,560,000	1,401,937,000	1,520,640,000	1,350,114,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,059,335,000	991,505,000	1,100,006,000	1,367,329,000	1,218,284,000
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES	155,024,000	163,251,000	170,573,000	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,214,359,000	1,154,756,000	1,270,579,000	1,367,329,000	1,218,284,000
Taxation	(117,154,000)	(121,698,000)	(124,769,000)	(194,378,000)	(202,981,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,097,205,000	1,033,058,000	1,145,810,000	1,172,951,000	1,015,303,000
Minority interests	(276,757,000)	(279,775,000)	(336,528,000)	(380,080,000)	(332,639,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	820,448,000	753,283,000	809,282,000	792,871,000	682,664,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	820,448,000	753,283,000	809,282,000	792,871,000	682,664,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	4,040,081,000	3,595,266,000	3,087,523,000	2,562,352,000	2,082,541,000
Prior year adjustment	-	-	(301,539,000)	(151,000)	(218,000)
	----------------	----------------	----------------	----------------	----------------
As restated	4,040,081,000	3,595,266,000	2,785,984,000	2,562,201,000	2,082,323,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	4,860,529,000	4,348,549,000	3,595,266,000	3,355,072,000	2,764,987,000
TRANSFER TO RESERVES - Statutory	-	-	-	58,000	(6,919,000)
TRANSFER TO RESERVES - General	(29,358,000)	(4,827,000)	-	-	-
DIVIDENDS - Ordinary (paid & proposed)	(268,035,000)	(303,641,000)	-	(267,607,000)	(195,716,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	4,563,136,000	4,040,081,000	3,595,266,000	3,087,523,000	2,562,352,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	115,820,000	119,224,000	60,977,000	61,129,000	41,186,000
	----------------	----------------	----------------	----------------	----------------
	115,820,000	119,224,000	60,977,000	61,129,000	41,186,000
	=============	=============	=============	=============	=============

BALANCE SHEET

SEMBCORP INDUSTRIES LTD

ASSETS EMPLOYED:
FIXED ASSETS	5,126,650,000	5,158,266,000	4,249,575,000	3,438,579,000	2,694,076,000
Associated companies	1,852,249,000	1,505,609,000	1,344,700,000	-	-
Investment properties	20,954,000	21,684,000	23,007,000	24,112,000	26,603,000
Deferred assets	51,170,000	56,955,000	60,655,000	48,162,000	27,525,000
Others	705,151,000	626,318,000	525,744,000	1,722,622,000	1,474,028,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	2,629,524,000	2,210,566,000	1,954,106,000	1,794,896,000	1,528,156,000
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	-	-	-	311,834,000	114,239,000
Goodwill on consolidation	135,759,000	137,821,000	139,806,000	-	-
Intellectual property and license rights	24,162,000	27,518,000	30,874,000	-	-
Others	148,302,000	155,937,000	161,203,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	308,223,000	321,276,000	331,883,000	311,834,000	114,239,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	8,064,397,000	7,690,108,000	6,535,564,000	5,545,309,000	4,336,471,000
Stocks	2,240,655,000	1,886,546,000	1,078,269,000	173,492,000	178,917,000
Contract work-in-progress	-	-	-	742,441,000	1,236,338,000
Trade debtors	482,006,000	577,049,000	543,077,000	294,734,000	310,367,000
Other debtors, deposits & prepayments	537,982,000	512,271,000	521,751,000	427,966,000	400,938,000
Short term deposits	253,127,000	884,979,000	2,135,152,000	2,846,963,000	-
Deposits with financial institutions	-	-	-	-	1,778,995,000
Amount due from related companies	120,185,000	86,181,000	25,431,000	12,772,000	8,403,000
Cash & bank balances	2,002,738,000	1,174,821,000	860,326,000	640,913,000	818,517,000
Others	52,796,000	72,900,000	53,055,000	206,951,000	261,432,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	5,689,489,000	5,194,747,000	5,217,061,000	5,346,232,000	4,993,907,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	13,753,886,000	12,884,855,000	11,752,625,000	10,891,541,000	9,330,378,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,854,858,000	1,767,406,000	1,888,872,000	1,377,298,000	1,594,791,000
Other creditors & accruals	830,612,000	937,008,000	815,893,000	879,772,000	801,674,000
Hire purchase & lease creditors	-	-	2,655,000	-	-
Short term borrowings/Term loans	413,993,000	115,061,000	183,418,000	46,311,000	284,119,000
Other liabilities & accruals	92,347,000	83,078,000	117,522,000	19,743,000	30,322,000
Amounts owing to related companies	6,492,000	128,110,000	41,508,000	11,046,000	18,011,000
Provision for taxation	236,254,000	233,100,000	269,822,000	343,340,000	380,598,000
Other liabilities	1,467,196,000	902,303,000	377,809,000	786,979,000	823,365,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	4,901,752,000	4,166,066,000	3,697,499,000	3,464,489,000	3,932,880,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	787,737,000	1,028,681,000	1,519,562,000	1,881,743,000	1,061,027,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	8,852,134,000	8,718,789,000	8,055,126,000	7,427,052,000	5,397,498,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	565,572,000	565,572,000	565,572,000	571,099,000	554,037,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	565,572,000	565,572,000	565,572,000	571,099,000	554,037,000
Capital reserve	313,875,000	338,337,000	334,585,000	-	-
Exchange equalisation/fluctuation reserve	(333,798,000)	(331,720,000)	(229,340,000)	-	-
General reserve	121,663,000	(108,939,000)	(151,567,000)	-	-
Retained profit/(loss) carried forward	4,563,136,000	4,040,081,000	3,595,266,000	3,087,523,000	2,562,352,000
Others	-	-	-	156,588,000	203,569,000
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	4,664,876,000	3,937,759,000	3,548,944,000	3,244,111,000	2,765,921,000
MINORITY INTEREST	1,299,546,000	1,141,096,000	1,126,144,000	1,205,050,000	915,577,000
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	6,529,994,000	5,644,427,000	5,240,660,000	5,020,260,000	4,235,535,000
Long term loans	1,485,011,000	2,204,785,000	1,849,252,000	1,543,773,000	594,911,000
Other long term borrowings	276,144,000	235,186,000	7,113,000	375,626,000	229,133,000
Deferred taxation	371,596,000	410,796,000	387,651,000	419,539,000	315,505,000
Retirement benefits provision	30,910,000	11,454,000	17,740,000	19,973,000	12,516,000
Others	158,479,000	212,141,000	552,710,000	47,881,000	9,898,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	2,322,140,000	3,074,362,000	2,814,466,000	2,406,792,000	1,161,963,000
	----------------	----------------	----------------	----------------	----------------
	8,852,134,000	8,718,789,000	8,055,126,000	7,427,052,000	5,397,498,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

SEMBCORP INDUSTRIES LTD

TYPES OF FUNDS
Cash	2,255,865,000	2,059,800,000	2,995,478,000	3,487,876,000	818,517,000
Net Liquid Funds	2,255,865,000	2,059,800,000	2,995,478,000	3,487,876,000	818,517,000
Net Liquid Assets	(1,452,918,000)	(857,865,000)	441,293,000	1,708,251,000	882,110,000
Net Current Assets/(Liabilities)	787,737,000	1,028,681,000	1,519,562,000	1,881,743,000	1,061,027,000
Net Tangible Assets	8,543,911,000	8,397,513,000	7,723,243,000	7,115,218,000	5,283,259,000
Net Monetary Assets	(3,775,058,000)	(3,932,227,000)	(2,373,173,000)	(698,541,000)	(279,853,000)
BALANCE SHEET ITEMS
Total Borrowings	2,175,148,000	2,555,032,000	2,042,438,000	1,965,710,000	1,108,163,000
Total Liabilities	7,223,892,000	7,240,428,000	6,511,965,000	5,871,281,000	5,094,843,000
Total Assets	13,753,886,000	12,884,855,000	11,752,625,000	10,891,541,000	9,330,378,000
Net Assets	8,852,134,000	8,718,789,000	8,055,126,000	7,427,052,000	5,397,498,000
Net Assets Backing	6,529,994,000	5,644,427,000	5,240,660,000	5,020,260,000	4,235,535,000
Shareholders' Funds	6,529,994,000	5,644,427,000	5,240,660,000	5,020,260,000	4,235,535,000
Total Share Capital	565,572,000	565,572,000	565,572,000	571,099,000	554,037,000
Total Reserves	4,664,876,000	3,937,759,000	3,548,944,000	3,244,111,000	2,765,921,000
LIQUIDITY (Times)
Cash Ratio	0.46	0.49	0.81	1.01	0.21
Liquid Ratio	0.70	0.79	1.12	1.49	1.22
Current Ratio	1.16	1.25	1.41	1.54	1.27
WORKING CAPITAL CONTROL (Days)
Stock Ratio	76	68	44	38	54
Debtors Ratio	16	21	22	12	12
Creditors Ratio	71	73	90	69	71
SOLVENCY RATIOS (Times)
Gearing Ratio	0.33	0.45	0.39	0.39	0.26
Liabilities Ratio	1.11	1.28	1.24	1.17	1.20
Times Interest Earned Ratio	11.48	10.69	21.84	23.37	30.58
Assets Backing Ratio	15.11	14.85	13.66	12.46	9.54
PERFORMANCE RATIO (%)
Operating Profit Margin	11.25	11.33	14.04	15.60	12.73
Net Profit Margin	7.60	7.39	8.95	9.05	7.13
Return On Net Assets	15.03	14.61	16.53	19.23	23.33
Return On Capital Employed	12.72	12.51	13.99	15.97	19.60
Return On Shareholders' Funds/Equity	12.56	13.35	15.44	15.79	16.12
Dividend Pay Out Ratio (Times)	0.33	0.40	0.00	0.34	0.29
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.14
UK Pound	1	Rs.102.22
Euro	1	Rs.81.02

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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