MIRA INFORM REPORT

Report No. :	319743
Report Date :	30.04.2015

IDENTIFICATION DETAILS

Name :	NSL CHEMICALS LTD.
Formerly Known As :	NATSTEEL CHEMICALS LTD JURONG INDUSTRIES LIMITED
Registered Office :	77, Robinson Road, 27-00, Robinson 77, 068896
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	01.06.1968
Com. Reg. No.:	196800220-K
Legal Form :	Public
Line of Business :	Trading of Chemicals.
No. of Employees :	70 [2015]

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
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 – 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	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. 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.	:	196800220-K
COMPANY NAME	:	NSL CHEMICALS LTD.
FORMER NAME	:	NATSTEEL CHEMICALS LTD (16/02/2005) JURONG INDUSTRIES LIMITED (08/05/1990)
INCORPORATION DATE	:	01/06/1968
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	77, ROBINSON ROAD, 27-00, ROBINSON 77, 068896, SINGAPORE.
BUSINESS ADDRESS	:	26, TANJONG KLING ROAD, 628051, SINGAPORE.
TEL.NO.	:	65-65136900
FAX.NO.	:	65-62659942
WEB SITE	:	WWW.NSLCHEMICALS.COM.SG
CONTACT PERSON	:	SEE SOO LOI ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF CHEMICALS
ISSUED AND PAID UP CAPITAL	:	23,305,500.00 ORDINARY SHARE, OF A VALUE OF SGD 23,305,500.00
SALES	:	SGD 21,858,000 [2013]
NET WORTH	:	SGD 41,129,000 [2013]
STAFF STRENGTH	:	70 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	PROMPT
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	AVERAGE 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) trading of chemicals.

The immediate holding company of the Subject is NSL LTD., a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
28/04/2015	SGD 23,305,500.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
NSL LTD.	77, ROBINSON ROAD, 27-00, ROBINSON 77, 068896, SINGAPORE.	196100107C	23,305,500.00	100.00
			---------------	------
			23,305,500.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
199206343R	SINGAPORE	NSL RESOURCES PTE. LTD.	100.00	05/03/2015
360798D	MALAYSIA	RST TEKNOLOGI SDN. BHD.	100.00	31/12/2013
198701701M	SINGAPORE	EASTECH STEEL MILL SERVICES PTE. LTD.	100.00	05/03/2015
451115U	MALAYSIA	EASTECH STEEL MILL SERVICES (MALAYSIA) SDN. BHD.	100.00	31/12/2013
198305151Z	SINGAPORE	NSL ENVIROTECH PTE. LTD.	100.00	05/03/2015
196300466W	SINGAPORE	NSL SHIPBREAKERS PTE. LTD.	100.00	05/03/2015
522070K	MALAYSIA	KEMBOJA SEJAHTERA SDN. BHD.	80.00	31/12/2013
115066M	MALAYSIA	LIMETREAT (M) SDN.BHD.	80.00	31/12/2013
181792A	MALAYSIA	NSL CHEMICALS (M) SDN. BHD.	80.00	31/12/2013
151725A	MALAYSIA	LIMETREAT TRADING CO. SDN. BHD.	80.00	31/12/2013
199701183N	SINGAPORE	NSL OILCHEM WASTE MANAGEMENT PTE. LTD.	67.60	05/03/2015
152285K	MALAYSIA	KUARI ATRAH SDN. BERHAD	56.00	31/12/2013
803718X	MALAYSIA	BOLD HILL TRADING SDN. BHD.	56.00	31/12/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	SEE SOO LOI
Address	:	58I, JALAN CHOONG LYE HOCK, TANJONG TOKONG, 10470 PULAU PINANG, PULAU PINANG, MALAYSIA.
IC / PP No	:	A28998439
Nationality	:	MALAYSIAN
Date of Appointment	:	23/09/2011

DIRECTOR 2

Name Of Subject	:	CHIA TONG HEE
Address	:	263, RIVER VALLEY ROAD, 11-11, ASPEN HEIGHTS, 238309, SINGAPORE.
IC / PP No	:	S2594479H
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/06/2007

DIRECTOR 3

Name Of Subject	:	LOW LIAN HUP
Address	:	90, CORPORATION ROAD, 17-20, LAKEHOLMZ, 649824, SINGAPORE.
IC / PP No	:	S1438410C
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/06/2007

DIRECTOR 4

Name Of Subject	:	LOW CHIN NAM
Address	:	28, JALAN BUKIT MERAH, 15-4468, 152028, SINGAPORE.
IC / PP No	:	G6017198Q
Nationality	:	AUSTRALIAN
Date of Appointment	:	24/03/2015

MANAGEMENT

1)	Name of Subject	:	SEE SOO LOI
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	SIAW CHEE HUAT
	IC / PP No	:	S2633395D
	Address	:	31, BISHAN STREET, 11, 24-03, BISHAN LOFT, 579819, 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 againt the Subject whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that:

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	X	]	Good 31-60 Days	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[		]	Poor >120 Days	[	]

CLIENTELE

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

OPERATIONS

Goods Traded

:

CHEMICALS

Total Number of Employees:
YEAR	2015
GROUP	N/A
COMPANY	70

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of chemicals.

The Subject refused to disclose its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6513 6900 DID 6513 6934
Current Telephone Number	:	65-65136900
Match	:	YES
Address Provided by Client	:	26 TANJONG KLING ROAD, SINGAPORE 628051
Current Address	:	26, TANJONG KLING ROAD, 628051, SINGAPORE.
Match	:	YES

Other Investigations

We contacted one of the staff from the Subject and he only provided limited information.

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	:	Favourable	[	813.29%	]
Return on Net Assets	:	Favourable	[	812.41%	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's management have been efficient in controlling its operating costs. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	17 Days	]
Debtor Ratio	:	Unfavourable	[	70 Days	]
Creditors Ratio	:	Favourable	[	24 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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	[	2.40 Times	]
Current Ratio	:	Favourable	[	2.49 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	13,936.25 Times	]
Gearing Ratio	:	Favourable	[	0.00 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 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 :
Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject 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 : STRONG

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 :	TRADING
The wholesale and retail trade sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.
The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.
In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.
For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1968, the Subject is a Public Limited Company company, focusing on trading of chemicals. 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. A paid up capital of SGD 23,305,500 allows the Subject to expand its business more comfortably and the Subject is well backed by a listed holding company which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive.

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 70 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.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a 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 SGD 41,129,000, the Subject should be able to maintain its business in the near terms.

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

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

PROFIT AND LOSS ACCOUNT

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

NSL CHEMICALS 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	SUMMARY	SUMMARY	SUMMARY
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	21,858,000	22,159,000	24,929,000	23,266,000	21,607,000
Other Income	12,975,000	17,674,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	34,833,000	39,833,000	24,929,000	23,266,000	21,607,000
Costs of Goods Sold	(16,292,000)	(15,976,000)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	18,541,000	23,857,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	334,446,000	19,922,000	32,773,000	18,315,000	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	334,446,000	19,922,000	32,773,000	18,315,000	-
Taxation	54,000	(179,000)	(63,000)	(124,000)	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	334,500,000	19,743,000	32,710,000	18,191,000	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	22,153,000	20,281,500	(12,428,500)	(30,619,500)	(30,619,500)
Prior year adjustment	-	(70,500)	-	-	-
	----------------	----------------	----------------	----------------	----------------
As restated	22,153,000	20,211,000	(12,428,500)	(30,619,500)	(30,619,500)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	356,653,000	39,954,000	20,281,500	(12,428,500)	(30,619,500)
DIVIDENDS - Ordinary (paid & proposed)	(338,900,000)	(17,801,000)	-	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	17,753,000	22,153,000	20,281,500	(12,428,500)	(30,619,500)
	=============	=============	=============	=============	=============
Loan from subsidiary companies	24,000	24,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
	24,000	24,000	-	-	-
	=============	=============	-	-	-
DEPRECIATION (as per notes to P&L)	206,000	184,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
	206,000	184,000	-	-	-
	=============	=============

BALANCE SHEET

NSL CHEMICALS LTD.

ASSETS EMPLOYED:
FIXED ASSETS	989,000	801,000	31,153,000	31,370,000	32,619,000
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	20,770,000	27,940,000	-	-	-
Associated companies	2,530,000	2,530,000	-	-	-
Others	12,000	12,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	23,312,000	30,482,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	24,301,000	31,283,000	31,153,000	31,370,000	32,619,000
Stocks	1,026,000	1,164,000	-	-	-
Trade debtors	4,216,000	2,603,000	-	-	-
Other debtors, deposits & prepayments	365,000	753,000	-	-	-
Short term deposits	3,019,000	3,004,000	-	-	-
Amount due from subsidiary companies	2,981,000	2,508,000	-	-	-
Amount due from related companies	340,000	291,000	-	-	-
Amount due from associated companies	370,000	-	-	-	-
Cash & bank balances	15,888,000	9,170,000	-	-	-
Others	13,000	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	28,218,000	19,493,000	17,594,000	20,778,000	17,395,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	52,519,000	50,776,000	48,747,000	52,148,000	50,014,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,082,000	805,000	-	-	-
Other creditors & accruals	2,283,000	1,652,000	-	-	-
Amounts owing to holding company	3,875,000	271,000	-	-	-
Amounts owing to subsidiary companies	4,109,000	2,357,000	-	-	-
Amounts owing to related companies	-	24,000	-	-	-
Provision for taxation	-	109,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	11,349,000	5,218,000	5,160,000	11,616,000	6,972,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	16,869,000	14,275,000	12,434,000	9,162,000	10,423,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	41,170,000	45,558,000	43,587,000	40,532,000	43,042,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	23,376,000	23,376,000	23,305,500	23,305,500	23,305,500
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	23,376,000	23,376,000	23,305,500	23,305,500	23,305,500
Retained profit/(loss) carried forward	17,753,000	22,153,000	20,281,500	(12,428,500)	(30,619,500)
Others	-	-	-	29,641,000	50,341,000
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	17,753,000	22,153,000	20,281,500	17,212,500	19,721,500
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	41,129,000	45,529,000	43,587,000	40,518,000	43,027,000
Deferred taxation	41,000	29,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	41,000	29,000	-	14,000	15,000
	----------------	----------------	----------------	----------------	----------------
	41,170,000	45,558,000	43,587,000	40,532,000	43,042,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

NSL CHEMICALS LTD.

TYPES OF FUNDS
Cash	18,907,000	12,174,000	-	-	-
Net Liquid Funds	18,907,000	12,174,000	-	-	-
Net Liquid Assets	15,843,000	13,111,000	12,434,000	9,162,000	10,423,000
Net Current Assets/(Liabilities)	16,869,000	14,275,000	12,434,000	9,162,000	10,423,000
Net Tangible Assets	41,170,000	45,558,000	43,587,000	40,532,000	43,042,000
Net Monetary Assets	15,802,000	13,082,000	12,434,000	9,148,000	10,408,000
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	334,470,000	19,946,000	-	-	-
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	334,676,000	20,130,000	-	-	-
BALANCE SHEET ITEMS
Total Borrowings	0	0	-	-	-
Total Liabilities	11,390,000	5,247,000	5,160,000	11,630,000	6,987,000
Total Assets	52,519,000	50,776,000	48,747,000	52,148,000	50,014,000
Net Assets	41,170,000	45,558,000	43,587,000	40,532,000	43,042,000
Net Assets Backing	41,129,000	45,529,000	43,587,000	40,518,000	43,027,000
Shareholders' Funds	41,129,000	45,529,000	43,587,000	40,518,000	43,027,000
Total Share Capital	23,376,000	23,376,000	23,305,500	23,305,500	23,305,500
Total Reserves	17,753,000	22,153,000	20,281,500	17,212,500	19,721,500
LIQUIDITY (Times)
Cash Ratio	1.67	2.33	-	-	-
Liquid Ratio	2.40	3.51	-	-	-
Current Ratio	2.49	3.74	3.41	1.79	2.49
WORKING CAPITAL CONTROL (Days)
Stock Ratio	17	19	-	-	-
Debtors Ratio	70	43	-	-	-
Creditors Ratio	24	18	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	-	-	-
Liabilities Ratio	0.28	0.12	0.12	0.29	0.16
Times Interest Earned Ratio	13,936.25	831.08	-	-	-
Assets Backing Ratio	1.76	1.95	1.87	1.74	1.85
PERFORMANCE RATIO (%)
Operating Profit Margin	1,530.09	89.90	131.47	78.72	-
Net Profit Margin	1,530.33	89.10	131.21	78.19	-
Return On Net Assets	812.41	43.78	75.19	45.19	-
Return On Capital Employed	812.41	43.78	75.19	45.19	-
Return On Shareholders' Funds/Equity	813.29	43.36	75.05	44.90	-
Dividend Pay Out Ratio (Times)	1.01	0.90	-	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.20
UK Pound	1	Rs.97.01
Euro	1	Rs.69.34

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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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