MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	DENKA SINGAPORE PRIVATE LIMITED
Registered Office :	80, Raffles Place, 32-01, Uob Plaza, 048624
Country :	Singapore
Financials (as on) :	20.09.1980
Date of Incorporation :	198003424-N
Com. Reg. No.:	198003424-N
Legal Form :	Private Limited
Line of Business :	Manufacturing of Polymers, Petrochemical Intermediates
No. of Employees :	100

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 :	Slow but correct
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Singapore	A1	A1

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

SINGAPORE - ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. 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.	:	198003424-N
COMPANY NAME	:	DENKA SINGAPORE PRIVATE LIMITED
FORMER NAME	:	N/A
INCORPORATION DATE	:	20/09/1980
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	80, RAFFLES PLACE, 32-01, UOB PLAZA, 048624, SINGAPORE.
BUSINESS ADDRESS	:	4 SHENTON WAY #29-02 SGX CENTRE 2, 068807, SINGAPORE.
TEL.NO.	:	65-62241305
FAX.NO.	:	65-62243840
CONTACT PERSON	:	TOSHIO IMAI ( DIRECTOR )
PRINCIPAL ACTIVITY	:	MANUFACTURING OF POLYMERS, PETROCHEMICAL INTERMEDIATES
ISSUED AND PAID UP CAPITAL	:	69,414,500.00 ORDINARY SHARE, OF A VALUE OF SGD 69,414,500.00
SALES	:	USD 519,853,692 [2013]
NET WORTH	:	USD 77,172,928 [2013]
STAFF STRENGTH	:	100 [2014]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	POOR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	MATURE

HISTORY / BACKGROUND

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

The Subject is principally engaged in the (as a / as an) manufacturing of polymers, petrochemical intermediates.

The immediate holding company of the Subject is DENKA CHEMICALS HOLDINGS ASIA PACIFIC PRIVATE LIMITED, a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
24/09/2014	SGD 69,414,500.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
DENKA CHEMICALS HOLDINGS ASIA PACIFIC PRIVATE LIMITED	PACIFIC PRIVATE LIMITED, 80, RAFFLES PLACE, 32-01, UOB PLAZA, 048624, SINGAPORE.	200906762H	69,414,500.00	100.00
			---------------	------
			69,414,500.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	TOSHIO IMAI
Address	:	7-31-2, HIGASHIRINKAN, MINAMI WARD, SAGAMIHARA-SHI, KANAGAWA PREFECTURE, JAPAN.
IC / PP No	:	TZ0264689
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2013

DIRECTOR 2

Name Of Subject	:	KEN KOIZUMI
Address	:	4-25-2, OYUMINOMINAMI, MIDORI WARD, CHIBA PREFECTURE, JAPAN.
IC / PP No	:	TH1354180
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2013

DIRECTOR 3

Name Of Subject	:	MASAHARU SUZUKI
Address	:	10, GOPENG STREET 41-15, ICON, 078878, SINGAPORE.
IC / PP No	:	G5119210P
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2011

DIRECTOR 4

Name Of Subject	:	SHINJI SUGIYAMA
Address	:	FRONTCITY 1205, 1-2-1, KAMIKIZAKI, URAWA-WARD, SAITAMA CITY, SAITAMA PREFECTURE, JAPAN.
IC / PP No	:	TH0559129
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2013

DIRECTOR 5

Name Of Subject	:	TOSHIHARU KANO
Address	:	ROOM 1507, EVERLIFE OMUTA, 2-9-24, SHIRANUHI-MACHI OMUTA CITY, FUKUOKA PREFECTURE, 15TH FLOOR, JAPAN.
IC / PP No	:	TH8221042
Nationality	:	JAPANESE
Date of Appointment	:	01/04/2013

MANAGEMENT

1)	Name of Subject	:	MASAHARU SUZUKI
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	TOSHIO IMAI
	Position	:	DIRECTOR

AUDITOR

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

COMPANY SECRETARIES

1)	Company Secretary	:	GERALD BALENDRAN SINGHAM
	IC / PP No	:	S1503623J
	Address	:	100, CLEMENCEAU AVENUE NORTH, 14-111, CAVENAGH HOUSE, 229491, SINGAPORE.

2)	Company Secretary	:	M SIVAANANTHAN
	IC / PP No	:	S0181790F
	Address	:	101B, LORONG 2, TOA PAYOH, 06-09, 311101, 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 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	[	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

Products manufactured

:

POLYMERS, PETROCHEMICAL INTERMEDIATES

Total Number of Employees:
YEAR	2014
GROUP	N/A
COMPANY	100

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of polymers, petrochemical intermediates.

The Subject refused to disclose any information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62241305
Match	:	N/A
Address Provided by Client	:	4, SHENTON WAY, #29-02 SGX CENTRE-2 SINGAPORE 068807
Current Address	:	4 SHENTON WAY #29-02 SGX CENTRE 2, 068807, SINGAPORE.
Match	:	YES

Other Investigations

On 23rd September 2014 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2011 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2011 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	3.46%	]
Return on Net Assets	:	Unfavourable	[	5.74%	]
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 profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	36 Days	]
Debtor Ratio	:	Favourable	[	30 Days	]
Creditors Ratio	:	Favourable	[	34 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	[	0.40 Times	]
Current Ratio	:	Unfavourable	[	0.73 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	:	Acceptable	[	4.79 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
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)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

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

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1980, the Subject is a Private Limited company, focusing on manufacturing of polymers, petrochemical intermediates. The Subject has been in business for over two 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 holding company 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. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 77,172,928, the Subject should be able to maintain its business in the near terms.

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

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

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

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

PROFIT AND LOSS ACCOUNT

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

DENKA SINGAPORE PRIVATE LIMITED

Financial Year End	2013-12-31	2012-12-31	2011-12-31
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	USD	USD	USD
TURNOVER	519,853,692	458,221,559	443,181,459
Other Income	56,920	19,269	227,111
	----------------	----------------	----------------
Total Turnover	519,910,612	458,240,828	443,408,570
Costs of Goods Sold	(486,848,712)	(424,968,185)	(405,676,736)
	----------------	----------------	----------------
Gross Profit	33,061,900	33,272,643	37,731,834
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	3,508,765	5,807,046	13,388,915
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	3,508,765	5,807,046	13,388,915
Taxation	(835,581)	(1,119,789)	(1,038,814)
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	2,673,184	4,687,257	12,350,101
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	31,809,790	27,122,533	14,772,432
	----------------	----------------	----------------
As restated	31,809,790	27,122,533	14,772,432
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	34,482,974	31,809,790	27,122,533
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	34,482,974	31,809,790	27,122,533
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from holding company	867,253	492,685	308,107
Term loan / Borrowing	111	154	229
Others	59,010	48,012	17,896
	----------------	----------------	----------------
	926,374	540,851	326,232
	=============	=============	=============

BALANCE SHEET

DENKA SINGAPORE PRIVATE LIMITED

ASSETS EMPLOYED:
FIXED ASSETS	119,595,194	111,460,917	96,380,931
Others	1,416,419	1,720,507	705,740
	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	1,416,419	1,720,507	705,740
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	121,011,613	113,181,424	97,086,671
Stocks	51,738,720	64,828,005	44,591,116
Trade debtors	42,265,080	35,483,179	26,102,435
Other debtors, deposits & prepayments	232,702	234,609	182,328
Amount due from holding company	1,386,707	281,502	1,199,263
Amount due from subsidiary companies	11,795,727	11,270,099	11,251,298
Cash & bank balances	9,170,190	5,827,016	4,511,857
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	116,589,126	117,924,410	87,838,297
	----------------	----------------	----------------
TOTAL ASSET	237,600,739	231,105,834	184,924,968
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	45,270,740	44,644,446	36,211,051
Other creditors & accruals	2,815,487	4,338,683	-
Deposits from customers	1,382,955	1,779,862	723,736
Amounts owing to holding company	109,380,645	104,481,848	77,200,000
Amounts owing to subsidiary companies	431,628	187,324	-
Provision for taxation	1,044,161	1,173,927	977,694
Other liabilities	-	-	17,968
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	160,325,616	156,606,090	115,130,449
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(43,736,490)	(38,681,680)	(27,292,152)
	----------------	----------------	----------------
TOTAL NET ASSETS	77,275,123	74,499,744	69,794,519
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	42,689,954	42,689,954	42,689,954
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	42,689,954	42,689,954	42,689,954
Retained profit/(loss) carried forward	34,482,974	31,809,790	27,122,533
Others	-	-	(17,968)
	----------------	----------------	----------------
TOTAL RESERVES	34,482,974	31,809,790	27,104,565
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	77,172,928	74,499,744	69,794,519
Deferred taxation	102,195	-	-
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	102,195	-	-
	----------------	----------------	----------------
	77,275,123	74,499,744	69,794,519
	=============	=============	=============

FINANCIAL RATIO

DENKA SINGAPORE PRIVATE LIMITED

TYPES OF FUNDS
Cash	9,170,190	5,827,016	4,511,857
Net Liquid Funds	9,170,190	5,827,016	4,511,857
Net Liquid Assets	(95,475,210)	(103,509,685)	(71,883,268)
Net Current Assets/(Liabilities)	(43,736,490)	(38,681,680)	(27,292,152)
Net Tangible Assets	75,858,704	72,779,237	69,088,779
Net Monetary Assets	(95,577,405)	(103,509,685)	(71,883,268)
BALANCE SHEET ITEMS
Total Borrowings	0	0	0
Total Liabilities	160,427,811	156,606,090	115,130,449
Total Assets	237,600,739	231,105,834	184,924,968
Net Assets	77,275,123	74,499,744	69,794,519
Net Assets Backing	77,172,928	74,499,744	69,794,519
Shareholders' Funds	77,172,928	74,499,744	69,794,519
Total Share Capital	42,689,954	42,689,954	42,689,954
Total Reserves	34,482,974	31,809,790	27,104,565
LIQUIDITY (Times)
Cash Ratio	0.06	0.04	0.04
Liquid Ratio	0.40	0.34	0.38
Current Ratio	0.73	0.75	0.76
WORKING CAPITAL CONTROL (Days)
Stock Ratio	36	52	37
Debtors Ratio	30	28	21
Creditors Ratio	34	38	33
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	0.00
Liabilities Ratio	2.08	2.10	1.65
Times Interest Earned Ratio	4.79	11.74	42.04
Assets Backing Ratio	1.78	1.70	1.62
PERFORMANCE RATIO (%)
Operating Profit Margin	0.67	1.27	3.02
Net Profit Margin	0.51	1.02	2.79
Return On Net Assets	5.74	8.52	19.65
Return On Capital Employed	5.64	8.33	19.45
Return On Shareholders' Funds/Equity	3.46	6.29	17.69
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.61.02
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	PDT

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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