MIRA INFORM REPORT

Report Date :

27.06.2014

IDENTIFICATION DETAILS

Name :	CHEVRON PHILLIPS SINGAPORE CHEMICALS (PRIVATE) LIMITED

Formerly Known As :	PHILLIPS PETROLEUM SINGAPORE CHEMICALS (PRIVATE) LIMITED

Registered Office :	5 Temasek Boulevard, 05-01 Suntec Tower 5, 038985

Country :	Singapore

Financials (as on) :	31.12.2012

Date of Incorporation :	24.04.1980

Com. Reg. No.:	198001367-K

Legal Form :	Private Limited

Line of Business :	Manufacturing of High Density Polyethylene (HDPE)

No. of Employees :	140 [2014]

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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

EXECUTIVE SUMMARY

REGISTRATION NO.

198001367-K

COMPANY NAME

CHEVRON PHILLIPS SINGAPORE CHEMICALS (PRIVATE) LIMITED

FORMER NAME

PHILLIPS PETROLEUM SINGAPORE CHEMICALS (PRIVATE) LIMITED (08/08/2000)

INCORPORATION DATE

24/04/1980

COMPANY STATUS

EXIST

LEGAL FORM

PRIVATE LIMITED

LISTED STATUS

REGISTERED ADDRESS

5 TEMASEK BOULEVARD, 05-01 SUNTEC TOWER 5, 038985, SINGAPORE.

BUSINESS ADDRESS

5 TEMASEK BOULEVARD, 05-01, SUNTEC TOWER 5,, 038985, SINGAPORE.

TEL.NO.

65-65173186

FAX.NO.

65-65173276

CONTACT PERSON

DAVID STEWART SMITH ( DIRECTOR )

PRINCIPAL ACTIVITY

MANUFACTURING OF HIGH DENSITY POLYETHYLENE (HDPE)

ISSUED AND PAID UP CAPITAL

282,857,144.00 ORDINARY SHARE, OF A VALUE OF SGD 286,268,144.00

SALES

SGD 593,493,000 [2012]

NET WORTH

SGD 58,778,000 [2012]

STAFF STRENGTH

140 [2014]

BANKER (S)

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

CLEAR

FINANCIAL CONDITION

POOR

PAYMENT

SLOW

MANAGEMENT CAPABILITY

AVERAGE

COMMERCIAL RISK

MODERATE

CURRENCY EXPOSURE

MODERATE

GENERAL REPUTATION

SATISFACTORY

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 of high density polyethylene (hdpe).

Share Capital History

Date	Issue & Paid Up Capital
26/06/2014	SGD 286,268,144.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHEVRON PHILLIPS CHEMICAL INTERNATIONAL HOLDINGS	NORTH MARKET, ST WILMINGTON, NEW CASTLE, COUNTRY DELAWARE, 19801, UNITED STATES.	S80UF0388	141,428,572.00	50.00
EDB INVESTMENTS PTE LTD	250, NORTH BRIDGE ROAD, 20-03, RAFFLES CITY TOWER, 179101, SINGAPORE.	199102957K	84,857,143.00	30.00
SUMITOMO CHEMICAL COMPANY, LIMITED	27-1, SHINKAWA 2-CHOME, CHUO-KU, TOKYO, 104-82, JAPAN.	S80UF0203	56,571,429.00	20.00
			---------------	------
			282,857,144.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	KAZUYUKI SAITO
Address	:	2 MARINA BOULEVARD, 43-08, SAIL @ MARINA BAY, THE, 018987, SINGAPORE.
IC / PP No	:	G5680829P



Nationality	:	AMERICAN
Date of Appointment	:	31/10/2011

DIRECTOR 2

Name Of Subject	:	ROBERT ALLEN RHOADES
Address	:	32A, CAIRNHILL ROAD, 16-03, URBAN RESORT CONDOMINIUM, 229720, SINGAPORE.
IC / PP No	:	G5489244L



Nationality	:	AMERICAN
Date of Appointment	:	01/02/2014

DIRECTOR 3

Name Of Subject	:	MR. DAVID STEWART SMITH
Address	:	10001 SIX PINES DRIVE, WOODLANS, TX, 77380, UNITED STATES.
IC / PP No	:	425095135



Nationality	:	AMERICAN
Date of Appointment	:	01/10/2009

DIRECTOR 4

Name Of Subject	:	DARREN LEE ERCOLANI
Address	:	23, CLAYMORE ROAD, 07-03, THE TATE RESIDENCES, 229546, SINGAPORE.
IC / PP No	:	G5098154T



Nationality	:	AMERICAN
Date of Appointment	:	01/03/2011

DIRECTOR 5

Name Of Subject	:	DIRK ALDON PERRIN
Address	:	9 ARDMORE PARK, 14-01, ARDMORE PARK, 259955, SINGAPORE.
IC / PP No	:	G5342972L



Nationality	:	AMERICAN
Date of Appointment	:	01/02/2014

MANAGEMENT

1)	Name of Subject	:	DAVID STEWART SMITH
	Position	:	DIRECTOR

2)	Name of Subject	:	ROBERT ALLEN RHOADES
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LEONG YUKE CHUN
	IC / PP No	:	S0153670B

	Address	:	310, SERANGOON AVENUE 2, 03-170, 550310, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)	Name	:	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201005044	17/06/2010	N/A	THE HONG KONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 80,000,000.00	Unsatisfied
C201005045	17/06/2010	N/A	THE HONG KONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 80,000,000.00	Unsatisfied
C201005049	17/06/2010	N/A	THE HONG KONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 80,000,000.00	Unsatisfied
C201115291	05/12/2011	N/A	THE HONG KONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 80,000,000.00	Unsatisfied
C201405776	10/06/2014	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 76,000,000.00	Unsatisfied
C201405778	10/06/2014	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 76,000,000.00	Unsatisfied
C201405780	10/06/2014	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	USD 76,000,000.00	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

[

]

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

HIGH DENSITY POLYETHYLENE (HDPE)

Total Number of Employees:
YEAR	2014	2013

GROUP	N/A	N/A
COMPANY	140	140

Branch

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of high density polyethylene (hdpe).

The staff from the registered office refused to disclose any information on the Subject's operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	65173100
Current Telephone Number	:	65-65173186
Match	:	NO

Address Provided by Client	:	5 SUNTEC TOWER FIVE REFFLES CITY P O BPX 3058 SINGAPORE 911799
Current Address	:	5 TEMASEK BOULEVARD, 05-01, SUNTEC TOWER 5,, 038985, SINGAPORE.
Match	:	NO

Other Investigations

On 24th June 2014 we contacted one of the staff from the Subject's registered office and she only provided limited information.

The address provided belongs to the PO Box address.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2010 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2010 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	(56.93%)	]
Return on Net Assets	:	Unfavourable	[	(35.71%)	]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control
Stock Ratio	:	Favourable	[	27 Days	]
Debtor Ratio	:	Favourable	[	44 Days	]
Creditors Ratio	:	Favourable	[	3 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	:	Unfavourable	[	0.55 Times	]
Current Ratio	:	Unfavourable	[	0.80 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	:	Unfavourable	[	(9.15 Times)	]
Gearing Ratio	:	Unfavourable	[	2.10 Times	]

The Subject incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.


Overall Assessment :
Although the Subject's turnover decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. 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. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : POOR

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 1980, the Subject is a Private Limited company, focusing on manufacturing of high density polyethylene (hdpe). With its long presence in the industry coupled with its vast experiences in the business, the Subject should have built up certain goodwill with its clients over times. Having strong support from its shareholders has enabled the Subject to remain competitive despite the challenging business environment.

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 140 staff in its operations Overall, we regard that the Subject's management capability is average.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. The Subject suffered huge accumulated losses.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth. 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.

The Subject's payment record regarded as fair. With poor financial condition, the Subject may unable to pay its creditors on the given period of time.

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.

In view of its poor financial performance, we only recommend credit be proceeded to the Subject with guarantee.

PROFIT AND LOSS ACCOUNT

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

Financial Year End	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12
Consolidated Account	Company	Company	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	FULL
Currency	SGD	SGD	SGD

TURNOVER	593,493,000	625,070,000	670,819,000
	----------------	----------------	----------------
Total Turnover	593,493,000	625,070,000	670,819,000
	----------------	----------------	----------------

PROFIT/(LOSS) FROM OPERATIONS	(33,465,000)	(52,498,000)	(21,453,000)
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(33,465,000)	(52,498,000)	(21,453,000)
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(33,465,000)	(52,498,000)	(21,453,000)
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(194,025,000)	(141,527,000)	(120,074,000)
	----------------	----------------	----------------
As restated	(194,025,000)	(141,527,000)	(120,074,000)
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(227,490,000)	(194,025,000)	(141,527,000)
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(227,490,000)	(194,025,000)	(141,527,000)
	=============	=============	=============

INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	-	-	1,348,000
Others	3,298,000	2,624,000	354,000
	----------------	----------------	----------------
	3,298,000	2,624,000	1,702,000
	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	120,020,000	129,130,000	138,345,000

	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	120,020,000	129,130,000	138,345,000

Stocks	43,360,000	38,130,000	53,563,000
Trade debtors	72,262,000	77,595,000	76,798,000
Other debtors, deposits & prepayments	38,000	26,000	45,000
Short term deposits	-	-	15,519,000
Amount due from related companies	8,701,000	10,319,000	12,849,000
Cash & bank balances	14,498,000	19,718,000	6,275,000
Others	435,000	301,000	341,000
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	139,294,000	146,089,000	165,390,000
	----------------	----------------	----------------
TOTAL ASSET	259,314,000	275,219,000	303,735,000
	=============	=============	=============

CURRENT LIABILITIES
Trade creditors	5,212,000	6,327,000	10,344,000
Short term borrowings/Term loans	97,517,000	33,800,000	-
Other borrowings	-	-	19,140,000
Other liabilities & accruals	53,377,000	52,847,000	56,141,000
Other liabilities	18,731,000	25,002,000	8,707,000
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	174,837,000	117,976,000	94,332,000
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(35,543,000)	28,113,000	71,058,000
	----------------	----------------	----------------
TOTAL NET ASSETS	84,477,000	157,243,000	209,403,000
	=============	=============	=============

SHARE CAPITAL
Ordinary share capital	286,268,000	286,268,000	286,268,000
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	286,268,000	286,268,000	286,268,000

Retained profit/(loss) carried forward	(227,490,000)	(194,025,000)	(141,527,000)
	----------------	----------------	----------------
TOTAL RESERVES	(227,490,000)	(194,025,000)	(141,527,000)

	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	58,778,000	92,243,000	144,741,000

Long term loans	25,699,000	65,000,000	64,662,000
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	25,699,000	65,000,000	64,662,000
	----------------	----------------	----------------
	84,477,000	157,243,000	209,403,000
	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	14,498,000	19,718,000	21,794,000
Net Liquid Funds	14,498,000	19,718,000	21,794,000
Net Liquid Assets	(78,903,000)	(10,017,000)	17,495,000
Net Current Assets/(Liabilities)	(35,543,000)	28,113,000	71,058,000
Net Tangible Assets	84,477,000	157,243,000	209,403,000
Net Monetary Assets	(104,602,000)	(75,017,000)	(47,167,000)
BALANCE SHEET ITEMS
Total Borrowings	123,216,000	98,800,000	83,802,000
Total Liabilities	200,536,000	182,976,000	158,994,000
Total Assets	259,314,000	275,219,000	303,735,000
Net Assets	84,477,000	157,243,000	209,403,000
Net Assets Backing	58,778,000	92,243,000	144,741,000
Shareholders' Funds	58,778,000	92,243,000	144,741,000
Total Share Capital	286,268,000	286,268,000	286,268,000
Total Reserves	(227,490,000)	(194,025,000)	(141,527,000)
LIQUIDITY (Times)
Cash Ratio	0.08	0.17	0.23
Liquid Ratio	0.55	0.92	1.19
Current Ratio	0.80	1.24	1.75
WORKING CAPITAL CONTROL (Days)
Stock Ratio	27	22	29
Debtors Ratio	44	45	42
Creditors Ratio	3	4	6
SOLVENCY RATIOS (Times)
Gearing Ratio	2.10	1.07	0.58
Liabilities Ratio	3.41	1.98	1.10
Times Interest Earned Ratio	(9.15)	(19.01)	(11.60)
Assets Backing Ratio	0.30	0.55	0.73
PERFORMANCE RATIO (%)
Operating Profit Margin	(5.64)	(8.40)	(3.20)
Net Profit Margin	(5.64)	(8.40)	(3.20)
Return On Net Assets	(35.71)	(31.72)	(9.43)
Return On Capital Employed	(35.71)	(31.72)	(9.43)
Return On Shareholders' Funds/Equity	(56.93)	(56.91)	(14.82)
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.16
UK Pound	1	Rs.102.23
Euro	1	Rs.82.04

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NNA

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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