MIRA INFORM REPORT

Report No. :	319398
Report Date :	29.04.2015

IDENTIFICATION DETAILS

Name :	SEMBCORP TAY PAPER RECYCLING PTE. LTD.
Formerly Known As :	SEMBENVIRO TAY PAPER PTE. LTD. (31/03/2008) TAY PAPER RESOURCES PTE LTD (05/05/2003)
Registered Office :	30, Hill Street, 05-04, 179360
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	20.07.1989
Com. Reg. No.:	198902963-D
Legal Form :	Private Limited
Line of Business :	Wholesale of scrap, junk and waste, recycling of paper
No of Employees :	100 [2015]

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 :	Exist

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. Unemployment is very low. 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. Growth in 2014 was slower at 13.9%, 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. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	198902963-D
COMPANY NAME	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD.
FORMER NAME	:	SEMBENVIRO TAY PAPER PTE. LTD. (31/03/2008) TAY PAPER RESOURCES PTE LTD (05/05/2003)
INCORPORATION DATE	:	20/07/1989
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	30, HILL STREET, 05-04, 179360, SINGAPORE.
BUSINESS ADDRESS	:	48, GUL AVENUE, 629681, SINGAPORE.
TEL.NO.	:	65-68633230
FAX.NO.	:	65-68633193
WEB SITE	:	WWW.SEMBCORP.COM
CONTACT PERSON	:	NG MENG POH ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF SCRAP, JUNK AND WASTE, RECYCLING OF PAPER
ISSUED AND PAID UP CAPITAL	:	3,040,000.00 ORDINARY SHARE, OF A VALUE OF SGD 3,040,000.00
SALES	:	SGD 26,546,295 [2013]
NET WORTH	:	SGD 7,018,290 [2013]
STAFF STRENGTH	:	100 [2015]
LITIGATION	:	TRACED
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MARGINAL GROWTH

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) wholesale of scrap, junk and waste, recycling of paper.

The immediate holding company of the Subject is SEMBENVIRO RECYCLING PTE. LTD., a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
27/04/2015	SGD 3,040,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
TAY THIAM SENG +	385, ANG MO KIO AVENUE, 2, HORIZON GARDENS, 567848, SINGAPORE.	S1669788E	608,000.00	20.00
TAY TIAN LENG +	41, WESTWOOD DRIVE, 648859, SINGAPORE.	S1614375H	608,000.00	20.00
SEMBENVIRO RECYCLING PTE. LTD.	30, HILL STREET, 05-04, 179360, SINGAPORE.	200002586K	1,824,000.00	60.00
			---------------	------
			3,040,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	NG MENG POH
Address	:	2, SURREY ROAD, 08-00, SURREY POINT, 307742, SINGAPORE.
IC / PP No	:	S1176528I
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/09/2010

DIRECTOR 2

Name Of Subject	:	LER SIAH NEO CATHERINA
Address	:	29, WEST COAST CRESCENT, 06-30, BLUE HORIZON, 128049, SINGAPORE.
IC / PP No	:	S7200966E
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/09/2010

DIRECTOR 3

Name Of Subject	:	MS. LIM LEE YONG
Address	:	41, WESTWOOD DRIVE, 648859, SINGAPORE.
IC / PP No	:	S1695025D
Nationality	:	SINGAPOREAN
Date of Appointment	:	19/05/2003
Remark	:	ALTERNATE DIRECTOR TO TAY TIAN LENG

DIRECTOR 4

Name Of Subject	:	ANDRE TAY YI CHONG
Address	:	41, WESTWOOD DRIVE, 648859, SINGAPORE.
IC / PP No	:	S8423508C
Nationality	:	SINGAPOREAN
Date of Appointment	:	25/11/2009
Remark	:	ALTERNATE DIRECTOR TO TAY THIAM SENG

DIRECTOR 5

Name Of Subject	:	JASON CHAN SIAN CHUAN
Address	:	33, AMBER ROAD, 09-12, SEA VIEW, THE, 439944, SINGAPORE.
IC / PP No	:	S7327737Z
Nationality	:	SINGAPOREAN
Date of Appointment	:	30/09/2010

DIRECTOR 6

Name Of Subject	:	TAY THIAM SENG
Address	:	385, ANG MO KIO AVENUE, 2, HORIZON GARDENS, 567848, SINGAPORE.
IC / PP No	:	S1669788E
Nationality	:	SINGAPOREAN
Date of Appointment	:	05/01/1991

DIRECTOR 7

Name Of Subject	:	TAY TIAN LENG
Address	:	41, WESTWOOD DRIVE, 648859, SINGAPORE.
IC / PP No	:	S1614375H
Nationality	:	SINGAPOREAN
Date of Appointment	:	20/07/1989

MANAGEMENT

1)	Name of Subject	:	NG MENG POH
	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.

LITIGATION 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	:	16885
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	09/07/2008
Solicitor	:	GOPALAN RAMAN
Solicitor Ref	:	GR1186.07.GKN.G D
Solicitor Firm	:	G R LAW CORPORATION
Plaintiff	:	KOH TAT SENG
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	8093.15
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	7388
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	27/03/2008
Solicitor Ref	:	AM-INS-L1-46176-07
Solicitor Firm	:	VISION LAW LLC
Plaintiff	:	NEO KOON YOUNG TRADING AS YONG CHOON DOOR TRADING
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	15650
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	14070
Year	:	2008	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	09/06/2008
Solicitor	:	CHOO SIEW CHER MABEL TANG CHI LOONG
Solicitor Ref	:	TCL.MC.JW.51020.07.SHMTCL.MC
Solicitor Firm	:	HIN TAT AUGUSTINE & PARTNERS HIN TAT AUG
Plaintiff	:	TAN YONG CHYE
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	7550
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	628
Year	:	2010	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	02/03/2010
Solicitor Ref	:	GLC/P179/08/RS
Solicitor Firm	:	GABRIEL LAW CORPORATION
Plaintiff	:	MARIA JOSEFINA TOLENTINO ERVITE
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	80000
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	6350
Year	:	2010	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	12/03/2010
Solicitor Ref	:	PKK09-5514-PL
Solicitor Firm	:	JAN CHUA & ASSOCIATES
Plaintiff	:	WONG SHUK YAN
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Remark	:	TORT-NEGLIGENCE
Code No	:	99	Case No	:	14831
Year	:	2012	Place	:	SINGAPORE
Court	:	MAGISTRATE COURT
Date Filed	:	05/06/2012
Solicitor Ref	:	2KB02.ACC.LCH.1240.12.CT
Solicitor Firm	:	CHEONGHOH LAW CORPORATION
Plaintiff	:	NG BOON KWANG NG GUAN HUAT ROAST DUCK SUPPLIER
Defendants	:	SEMBCORP TAY PAPER RECYCLING PTE. LTD. (198902963)
Amount Claimed	:	27370
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE

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

CLIENTELE

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

OPERATIONS

Goods Traded

:

SCRAP, JUNK AND WASTE

Services

:

WASTE PAPER RECYCLING

Total Number of Employees:
YEAR	2015	2013
GROUP	N/A	N/A
COMPANY	100	100

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of scrap, junk and waste, recycling of paper.

The Subject is engaged in the followings:

* Processing Of Recyclable Material (Waste Paper)

* Shredding Of Confidential Documents (On-site And Off-site)

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68633230
Match	:	N/A
Address Provided by Client	:	48 GUL AVENUE, SINGAPORE 629681
Current Address	:	48, GUL AVENUE, 629681, SINGAPORE.
Match	:	YES

Other Investigations

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

The Subject refused to disclose its bankers.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Increased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	(13.73%)	]
Return on Net Assets	:	Unfavourable	[	(16.88%)	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services. Higher losses before tax during the year could be due to the higher operating costs incurred. 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	[	5 Days	]
Debtor Ratio	:	Favourable	[	39 Days	]
Creditors Ratio	:	Favourable	[	7 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.77 Times	]
Current Ratio	:	Unfavourable	[	1.89 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	(105.35 Times)	]
Gearing Ratio	:	Favourable	[	0.02 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 lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. 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 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 : LIMITED

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 :	ECONOMY
The Ministry of Trade and Industry (MTI) announced that it expects the Singapore economy to grow by around 3.0% in 2014, and by 2.0 to 4.0% in 2015. Besides that in 2013, the economy grew by 4.1%, higher than the 1.9% growth in 2012. This was mainly due to strong growth in the services producing industries, particularly the finance & insurance, as well as wholesale & retail trade sectors.
In 2013, all sectors contributed positively to growth. Finance & insurance was the largest contributor (1.2 percentage-points), followed by wholesale & retail trade (0.8 percentage-points) and business services (0.6 percentage-points). Growth in the manufacturing sector was improved by 1.7%, on the back of strong growth in the electronics and transport engineering clusters. By contrast, growth in the construction sector moderated to 5.9%, from 8.6% in 2012.
Growth in the services producing industries picked up to 5.3% in 2013, from 2.0% in 2012. This was mainly due to stronger growth in the finance & insurance and wholesale & retail trade sectors. The finance & insurance sector grew by 11%, up from 1.3% in the previous year. The wholesale & retail trade sector has expanded by 5.0%, after declining by 1.4% the year before.
For the whole of 2013, growth in total demand was 3.1%, similar to the pace of growth in 2012. External demand was the key contributor to total demand growth, accounting for 2.7 percentage-points, or almost 90%, of the increase. External demand grew at a faster pace of 3.6%, compared to the 1.4% growth in 2012. This was supported mainly by growth in the exports of machinery & transport equipment, miscellaneous manufactures, and transport services. Total domestic demand rose by a modest 1.7%, following the 8.6% increase in 2012. The slower growth in total domestic demand was primarily due to the decline in gross fixed capital formation (GFCF).
For the full year, total consumption expenditure grew by 4.4% in 2013, faster than the 2.8% growth in 2012. Public consumption expenditure increased by 11%, a strong rebound from the 1.9% decline in 2012. Private consumption expenditure recorded gains of 2.7%, moderating from the 4.1% increase in the preceding year.
Furthermore, in the first three quarters of 2014, the Singapore economy grew by 3.3% on a year-on-year basis. For the rest of the year, growth is expected to ease slightly on a year-on-year basis, in line with a projected slowdown in the global economy. Externally-oriented sectors such as the manufacturing and transportation & storage sectors are likely to slow, whereas growth in the construction sector will continue to be weighed down by the weakness in private sector construction activities. On the other hand, domestically-oriented sectors like business services are likely to remain resilient.
Additionally, the labour market in Singapore is expected to remain tight in 2015, with low unemployment and rising vacancy rates. Against this global and domestic backdrop, the growth outlook for the Singapore economy remains modest. In tandem with the expected pick-up in external demand, externally-oriented sectors such as manufacturing, wholesale trade and finance & insurance are likely to provide support to growth. While some domestically-oriented sectors such as businesses services are expected to remain resilient, labour-intensive ones like construction, retail and food services may see their growth weighed down by labour constraints.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1989, the Subject is a Private Limited company, focusing on wholesale of scrap, junk and waste, recycling of paper. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of SGD 3,040,000 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise

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.

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. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at SGD 7,018,290, 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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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 TAY PAPER RECYCLING PTE. 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	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	SUMMARY	SUMMARY
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	26,546,295	28,893,993	36,649,024	34,982,629	24,584,046
	----------------	----------------	----------------	----------------	----------------
Total Turnover	26,546,295	28,893,993	36,649,024	34,982,629	24,584,046
Costs of Goods Sold	(25,847,191)	(27,770,883)	(31,662,342)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	699,104	1,123,110	4,986,682	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(1,205,319)	(976,280)	2,871,970	3,721,953	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(1,205,319)	(976,280)	2,871,970	3,721,953	-
Taxation	241,536	281,509	(439,362)	(660,266)	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(963,783)	(694,771)	2,432,608	3,061,687	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	4,999,097	6,893,868	6,961,260	5,649,573	5,649,573
	----------------	----------------	----------------	----------------	----------------
As restated	4,999,097	6,893,868	6,961,260	5,649,573	5,649,573
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	4,035,314	6,199,097	9,393,868	8,711,260	5,649,573
DIVIDENDS - Ordinary (paid & proposed)	-	(1,200,000)	(2,500,000)	(1,750,000)	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	4,035,314	4,999,097	6,893,868	6,961,260	5,649,573
	=============	=============	=============	=============	=============
Lease interest	11,333	9,129	12,768	-	-
	----------------	----------------	----------------	----------------	----------------
	11,333	9,129	12,768	-	-
	=============	=============	=============	-	-
DEPRECIATION (as per notes to P&L)	702,388	709,651	720,369	-	-
AMORTIZATION	18,886	7,569	2,311	-	-
	----------------	----------------	----------------	----------------	----------------
	721,274	717,220	722,680	-	-
	=============	=============	=============

BALANCE SHEET

SEMBCORP TAY PAPER RECYCLING PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	4,055,901	4,199,938	4,340,750	4,341,821	4,850,459
Deferred assets	204,904	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	204,904	-	-	-	-
INTANGIBLE ASSETS
Deferred/Expenditure carried forward	27,893	13,419	17,888	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	27,893	13,419	17,888	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	4,288,698	4,213,357	4,358,638	4,341,821	4,850,459
Stocks	370,765	323,025	284,137	-	-
Trade debtors	2,838,291	1,872,763	2,095,428	-	-
Other debtors, deposits & prepayments	2,175,725	2,456,707	2,373,883	-	-
Amount due from related companies	19,982	3,614	10,988	-	-
Cash & bank balances	525,013	2,294,489	6,156,502	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	5,929,776	6,950,598	10,920,938	10,047,781	6,577,153
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	10,218,474	11,163,955	15,279,576	14,389,602	11,427,612
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	526,241	299,327	704,301	-	-
Other creditors & accruals	2,177,854	2,160,801	3,016,354	-	-
Hire purchase & lease creditors	105,407	190,027	145,838	-	-
Other liabilities & accruals	45,947	5,889	-	-	-
Amounts owing to related companies	254,907	238,486	475,719	-	-
Provision for taxation	34,829	51,200	526,393	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	3,145,185	2,945,730	4,868,605	3,867,543	2,383,090
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	2,784,591	4,004,868	6,052,333	6,180,238	4,194,063
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	7,073,289	8,218,225	10,410,971	10,522,059	9,044,522
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	3,040,000	3,040,000	3,040,000	3,040,000	3,040,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	3,040,000	3,040,000	3,040,000	3,040,000	3,040,000
Retained profit/(loss) carried forward	4,035,314	4,999,097	6,893,868	6,961,260	5,649,573
Employee share option reserve	(57,024)	(23,157)	-	-	-
Others	-	-	51,920	155,872	269,379
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	3,978,290	4,975,940	6,945,788	7,117,132	5,918,952
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	7,018,290	8,015,940	9,985,788	10,157,132	8,958,952
Lease obligations	54,999	170,653	159,073	-	-
Deferred taxation	-	31,632	266,110	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	54,999	202,285	425,183	364,927	85,570
	----------------	----------------	----------------	----------------	----------------
	7,073,289	8,218,225	10,410,971	10,522,059	9,044,522
	=============	=============	=============	=============	=============

FINANCIAL RATIO

SEMBCORP TAY PAPER RECYCLING PTE. LTD.

TYPES OF FUNDS
Cash	525,013	2,294,489	6,156,502	-	-
Net Liquid Funds	525,013	2,294,489	6,156,502	-	-
Net Liquid Assets	2,413,826	3,681,843	5,768,196	6,180,238	4,194,063
Net Current Assets/(Liabilities)	2,784,591	4,004,868	6,052,333	6,180,238	4,194,063
Net Tangible Assets	7,045,396	8,204,806	10,393,083	10,522,059	9,044,522
Net Monetary Assets	2,358,827	3,479,558	5,343,013	5,815,311	4,108,493
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	(1,193,986)	(967,151)	2,884,738	-	-
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	(472,712)	(249,931)	3,607,418	-	-
BALANCE SHEET ITEMS
Total Borrowings	160,406	360,680	304,911	-	-
Total Liabilities	3,200,184	3,148,015	5,293,788	4,232,470	2,468,660
Total Assets	10,218,474	11,163,955	15,279,576	14,389,602	11,427,612
Net Assets	7,073,289	8,218,225	10,410,971	10,522,059	9,044,522
Net Assets Backing	7,018,290	8,015,940	9,985,788	10,157,132	8,958,952
Shareholders' Funds	7,018,290	8,015,940	9,985,788	10,157,132	8,958,952
Total Share Capital	3,040,000	3,040,000	3,040,000	3,040,000	3,040,000
Total Reserves	3,978,290	4,975,940	6,945,788	7,117,132	5,918,952
LIQUIDITY (Times)
Cash Ratio	0.17	0.78	1.26	-	-
Liquid Ratio	1.77	2.25	2.18	-	-
Current Ratio	1.89	2.36	2.24	2.60	2.76
WORKING CAPITAL CONTROL (Days)
Stock Ratio	5	4	3	-	-
Debtors Ratio	39	24	21	-	-
Creditors Ratio	7	4	8	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.02	0.04	0.03	-	-
Liabilities Ratio	0.46	0.39	0.53	0.42	0.28
Times Interest Earned Ratio	(105.35)	(105.94)	225.93	-	-
Assets Backing Ratio	2.32	2.70	3.42	3.46	2.98
PERFORMANCE RATIO (%)
Operating Profit Margin	(4.54)	(3.38)	7.84	10.64	-
Net Profit Margin	(3.63)	(2.40)	6.64	8.75	-
Return On Net Assets	(16.88)	(11.77)	27.71	35.37	-
Return On Capital Employed	(16.57)	(11.48)	27.28	35.37	-
Return On Shareholders' Funds/Equity	(13.73)	(8.67)	24.36	30.14	-
Dividend Pay Out Ratio (Times)	0.00	1.73	1.03	0.57	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.33
UK Pound	1	Rs. 96.51
Euro	1	Rs. 68.92

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	DPT

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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