MIRA INFORM REPORT

Report No. :	304235
Report Date :	23.01.2015

IDENTIFICATION DETAILS

Name :	INTERCHEM PTE. LTD.
Formerly Known As :	INTERCHEM CHEMICALS PTE LTD
Registered Office :	40, Bukit Pasoh Road, 089854
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	22.08.2000
Com. Reg. No.:	200007296-C
Legal Form :	Private Limited
Line of Business :	Wholesale of Petrochemical Products.
No. of Employees :	20 [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 :	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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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.

:

200007296-C

COMPANY NAME

:

INTERCHEM PTE. LTD.

FORMER NAME

:

INTERCHEM CHEMICALS PTE LTD (03/01/2007)

INCORPORATION DATE

:

22/08/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

40, BUKIT PASOH ROAD, 089854, SINGAPORE.

BUSINESS ADDRESS

:

40 BUKIT PASOH ROAD, 089854, SINGAPORE.

TEL.NO.

:

65-63254666

FAX.NO.

:

65-63254555

WEB SITE

:

WWW.INTERCHEM.SG

CONTACT PERSON

:

YEAP CHOON YAM ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF PETROCHEMICAL PRODUCTS

ISSUED AND PAID UP CAPITAL

:

24,536,600.00 ORDINARY SHARE, OF A VALUE OF SGD 24,536,600.00

SALES

:

USD 4,647,509,740 [2013]

NET WORTH

:

USD 42,354,608 [2013]

STAFF STRENGTH

:

20 [2015]

BANKER (S)

:

ABN AMRO BANK N.V. BANQUE ARTESIA NEDERLAND N.V. BNP PARIBAS FORTIS BANK S.A./N.V. INDUSTRIAL & COMMERCIAL BANK OF CHINA (SINGAPORE BRANCH) ING BANK N. V. SOCIETE GENERALE STANDARD CHARTERED BANK DBS BANK LTD THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED ING BANK N.V. ING BANK N.V., ROTTERDAM BRANCH

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE 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 petrochemical products.

The immediate holding company of the Subject is INTERCHEM HOLDING A.V.V., a company incorporated in ARUBA.

Share Capital History

Date	Issue & Paid Up Capital
04/12/2014	SGD 24,536,600.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
INTERCHEM HOLDING A.V.V.	L.G. SMITH BOULEVARD, 62, ORANJESTAD, ARUBA.	T04UF2344	24,536,600.00	100.00
			---------------	------
			24,536,600.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
201109390M	SINGAPORE	INTERCHEM LOGISTICS PTE. LTD.	100.00	20/01/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	GAY SHYR YAN
Address	:	717, HOUGANG AVENUE, 2, 03-419, HOUGANG N7, (HUDC), 530717, SINGAPORE.
IC / PP No	:	S7539073D
Nationality	:	SINGAPOREAN
Date of Appointment	:	22/06/2012

DIRECTOR 2

Name Of Subject	:	YEAP CHOON YAM
Address	:	5, DUBSFOLD DRIVE, BRADDELL HEIGHTS ESTATE, 359368, SINGAPORE.
IC / PP No	:	S1283396B
Nationality	:	SINGAPOREAN
Date of Appointment	:	27/09/2000

MANAGEMENT

1)	Name of Subject	:	YEAP CHOON YAM
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	MAZARS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	SUSAN LIM WIE
	IC / PP No	:	S1837208H
	Address	:	26, LIMAU RISE, LIMAU VILLAS, 465851, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

ABN AMRO BANK N.V.

2)

Name

:

BANQUE ARTESIA NEDERLAND N.V.

3)

Name

:

BNP PARIBAS

4)

Name

:

FORTIS BANK S.A./N.V.

5)

Name

:

INDUSTRIAL & COMMERCIAL BANK OF CHINA (SINGAPORE BRANCH)

6)

Name

:

ING BANK N. V.

7)

Name

:

SOCIETE GENERALE

8)

Name

:

STANDARD CHARTERED BANK

9)

Name

:

DBS BANK LTD

10)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

11)

Name

:

ING BANK N.V.

12)

Name

:

ING BANK N.V., ROTTERDAM BRANCH

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
200201394	22/03/2002	N/A	BNP PARIBAS	-	Unsatisfied
200204300	27/09/2002	N/A	FORTIS BANK S.A./N.V.	-	Unsatisfied
C200300821	26/02/2003	N/A	SOCIETE GENERALE	-	Unsatisfied
C200300830	27/02/2003	N/A	SOCIETE GENERALE	-	Unsatisfied
C200300879	27/02/2003	N/A	SOCIETE GENERALE	-	Unsatisfied
C200305960	10/12/2003	N/A	FORTIS BANK S.A./N.V.	-	Unsatisfied
C200400902	25/02/2004	N/A	FORTIS BANK S.A./N.V.	-	Unsatisfied
C200501487	14/03/2005	N/A	ING BANK B.V.	-	Unsatisfied
C200504053	13/07/2005	N/A	BANQUE ARTESIA NEDERLAND N.V.	-	Unsatisfied
C200602595	21/04/2006	N/A	ING BANK N.V., ROTTERDAM BRANCH	-	Unsatisfied
C200705477	12/07/2007	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C200705482	12/07/2007	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C200800044	02/01/2008	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A.	-	Unsatisfied
C200800045	02/01/2008	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A.	-	Unsatisfied
C200800046	02/01/2008	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A.	-	Unsatisfied
C200800105	03/01/2008	N/A	ING BANK N.V.	-	Unsatisfied
C200806646	18/07/2008	N/A	COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK BA	-	Unsatisfied
C201001594	22/02/2010	N/A	FORTIS BANK (NEDERLAND) N.V.	-	Unsatisfied
C201107119	14/06/2011	N/A	ABN AMRO BANK N.V.	-	Unsatisfied
C201115597	12/12/2011	N/A	INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED	-	Unsatisfied
C201200321	06/01/2012	N/A	ING BANK N. V.	-	Unsatisfied
C201203756	09/04/2012	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A.	-	Unsatisfied
C20127197	29/06/2012	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A.	-	Unsatisfied
C201212213	23/10/2012	N/A	DBS BANK LTD	-	Unsatisfied
C201212702	05/11/2012	N/A	BANQUE ARTESIA NEDERLAND N.V.	USD 25,000,000.00	Unsatisfied
C201214683	13/12/2012	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201214685	13/12/2012	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION BERHAD	-	Unsatisfied
C201400584	14/01/2014	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C201400590	14/01/2014	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C201405507	03/06/2014	N/A	COOPERATIEVE CENTRALE RAIFFEISENBOERENLEENBANK B.A.	-	Unsatisfied
C201410117	17/09/2014	N/A	ING BANK N.V.	-	Unsatisfied
C201410319	23/09/2014	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C201410324	23/09/2014	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C201413881	08/12/2014	N/A	COOPERATIEVE CENTRALE RAIFFEISENBOERENLEENBANK B.A.	-	Unsatisfied
C201413922	09/12/2014	N/A	COOPERATIEVE CENTRALE RAIFFEISENBOERENLEENBANK B.A.	-	Unsatisfied

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	[	]	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	:	EUROPE ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	PETROCHEMICAL INDUSTRIES

OPERATIONS

Goods Traded

:

PETROCHEMICALS, PETROLEUM AND RELATED PRODUCTS

Total Number of Employees:
YEAR	2015	2014	2013
GROUP	N/A	N/A	N/A
COMPANY	20	20	20

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of petrochemical products.

Products:
- Aromatics
* Benzene
* Toluene
* Xylenes-para
* Styrene monomer
* Py-gas

- Gasoline components
* Reformate
* Naphtha
* Tx-mix
* Alkylate
* Platformate
* Raffinate
* C9 heavy aromatics
* FCC gas
* Gasoline
* Isomerate

Subject is a member of the following entity:
* The European Petrochemical Association

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63254666
Match	:	N/A
Address Provided by Client	:	40 BUKIT PASOH ROAD,089854,SINGAPORE
Current Address	:	40 BUKIT PASOH ROAD, 089854, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	4.22%	]
Return on Net Assets	:	Acceptable	[	12.70%	]
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	[	8 Days	]
Debtor Ratio	:	Favourable	[	27 Days	]
Creditors Ratio	:	Favourable	[	29 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	:	Acceptable	[	0.85 Times	]
Current Ratio	:	Unfavourable	[	1.09 Times	]
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Unfavourable	[	1.54 Times	]
Gearing Ratio	:	Unfavourable	[	1.46 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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 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. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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 :	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 2000, the Subject is a Private Limited company, focusing on wholesale of petrochemical products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The Subject have a strong capital position of SGD 24,536,600. We are confident with the Subject's business and its future growth prospect. 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 small company, the Subject's business operation is supported by 20 employees. 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. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. 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. Given a positive net worth standing at USD 42,354,608, 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 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.

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.

INTERCHEM 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	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	USD	USD	USD	USD	USD
TURNOVER	4,647,509,740	4,275,970,967	4,118,519,141	3,263,140,577	1,825,651,218
	----------------	----------------	----------------	----------------	----------------
Total Turnover	4,647,509,740	4,275,970,967	4,118,519,141	3,263,140,577	1,825,651,218
Costs of Goods Sold	(4,628,044,566)	(4,252,059,474)	(4,079,010,792)	(3,229,004,881)	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	19,465,174	23,911,493	39,508,349	34,135,696	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,889,079	6,715,575	19,813,758	18,460,781	21,742,576
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,889,079	6,715,575	19,813,758	18,460,781	21,742,576
Taxation	(103,556)	(1,577,007)	(2,138,240)	(3,764,340)	(6,201,643)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,785,523	5,138,568	17,675,518	14,696,441	15,540,933
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	35,543,934	39,405,366	33,729,848	19,033,407	13,492,474
	----------------	----------------	----------------	----------------	----------------
As restated	35,543,934	39,405,366	33,729,848	19,033,407	13,492,474
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	37,329,457	44,543,934	51,405,366	33,729,848	29,033,407
DIVIDENDS - Ordinary (paid & proposed)	(11,000,000)	(9,000,000)	(12,000,000)	-	(10,000,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	26,329,457	35,543,934	39,405,366	33,729,848	19,033,407
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	3,490,150	2,415,078	2,750,190	2,236,700	1,404,397
	----------------	----------------	----------------	----------------	----------------
	3,490,150	2,415,078	2,750,190	2,236,700	1,404,397
	=============	=============	=============	=============	=============

BALANCE SHEET

INTERCHEM PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	1,729,845	2,237,448	1,777,025	1,725,915	1,693,584
Deferred assets	827,367	529,238	-	-	60,810
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	827,367	529,238	-	-	60,810
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	2,557,212	2,766,686	1,777,025	1,725,915	1,754,394
Stocks	103,876,948	96,760,010	92,107,346	81,840,819	110,032,365
Trade debtors	348,661,850	326,095,134	213,050,462	187,104,097	173,967,586
Other debtors, deposits & prepayments	2,380,289	4,550,913	23,030,771	16,217,518	13,656,741
Amount due from holding company	4,690,187	10,692,838	-	-	-
Cash & bank balances	15,366,810	19,212,605	20,194,056	12,928,322	2,951,781
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	474,976,084	457,311,500	348,382,635	298,090,756	300,608,473
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	477,533,296	460,078,186	350,159,660	299,816,671	302,362,867
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	369,232,790	269,697,377	236,704,901	205,735,915	228,834,462
Other creditors & accruals	3,544,901	2,916,378	4,994,933	6,977,725	17,177,608
Short term borrowings/Term loans	62,000,265	130,099,353	55,954,781	45,447,306	30,054,681
Provision for taxation	334,994	1,826,084	1,642,765	1,712,776	1,634,418
Other liabilities	65,738	5,520,855	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	435,178,688	410,060,047	299,297,380	259,873,722	277,701,169
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	39,797,396	47,251,453	49,085,255	38,217,034	22,907,304
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	42,354,608	50,018,139	50,862,280	39,942,949	24,661,698
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	16,974,004	14,974,004	11,696,122	6,260,672	6,260,672
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	16,974,004	14,974,004	11,696,122	6,260,672	6,260,672
Exchange equalisation/fluctuation reserve	(948,853)	(499,799)	(729,979)	(1,180,688)	(1,286,739)
Retained profit/(loss) carried forward	26,329,457	35,543,934	39,405,366	33,729,848	19,033,407
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	25,380,604	35,044,135	38,675,387	32,549,160	17,746,668
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	42,354,608	50,018,139	50,371,509	38,809,832	24,007,340
Deferred taxation	-	-	490,771	1,133,117	654,358
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	-	490,771	1,133,117	654,358
	----------------	----------------	----------------	----------------	----------------
	42,354,608	50,018,139	50,862,280	39,942,949	24,661,698
	=============	=============	=============	=============	=============

FINANCIAL RATIO

INTERCHEM PTE. LTD.

TYPES OF FUNDS
Cash	15,366,810	19,212,605	20,194,056	12,928,322	2,951,781
Net Liquid Funds	15,366,810	19,212,605	20,194,056	12,928,322	2,951,781
Net Liquid Assets	(64,079,552)	(49,508,557)	(43,022,091)	(43,623,785)	(87,125,061)
Net Current Assets/(Liabilities)	39,797,396	47,251,453	49,085,255	38,217,034	22,907,304
Net Tangible Assets	42,354,608	50,018,139	50,862,280	39,942,949	24,661,698
Net Monetary Assets	(64,079,552)	(49,508,557)	(43,512,862)	(44,756,902)	(87,779,419)
BALANCE SHEET ITEMS
Total Borrowings	62,000,265	130,099,353	55,954,781	45,447,306	30,054,681
Total Liabilities	435,178,688	410,060,047	299,788,151	261,006,839	278,355,527
Total Assets	477,533,296	460,078,186	350,159,660	299,816,671	302,362,867
Net Assets	42,354,608	50,018,139	50,862,280	39,942,949	24,661,698
Net Assets Backing	42,354,608	50,018,139	50,371,509	38,809,832	24,007,340
Shareholders' Funds	42,354,608	50,018,139	50,371,509	38,809,832	24,007,340
Total Share Capital	16,974,004	14,974,004	11,696,122	6,260,672	6,260,672
Total Reserves	25,380,604	35,044,135	38,675,387	32,549,160	17,746,668
LIQUIDITY (Times)
Cash Ratio	0.04	0.05	0.07	0.05	0.01
Liquid Ratio	0.85	0.88	0.86	0.83	0.69
Current Ratio	1.09	1.12	1.16	1.15	1.08
WORKING CAPITAL CONTROL (Days)
Stock Ratio	8	8	8	9	22
Debtors Ratio	27	28	19	21	35
Creditors Ratio	29	23	21	23	46
SOLVENCY RATIOS (Times)
Gearing Ratio	1.46	2.60	1.11	1.17	1.25
Liabilities Ratio	10.27	8.20	5.95	6.73	11.59
Times Interest Earned Ratio	1.54	3.78	8.20	9.25	16.48
Assets Backing Ratio	2.50	3.34	4.35	6.38	3.94
PERFORMANCE RATIO (%)
Operating Profit Margin	0.04	0.16	0.48	0.57	1.19
Net Profit Margin	0.04	0.12	0.43	0.45	0.85
Return On Net Assets	12.70	18.25	44.36	51.82	93.86
Return On Capital Employed	12.70	18.25	44.36	51.82	93.86
Return On Shareholders' Funds/Equity	4.22	10.27	35.09	37.87	64.73
Dividend Pay Out Ratio (Times)	6.16	1.75	0.68	0.00	0.64
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.93.33
Euro	1	Rs.71.49

INFORMATION DETAILS

Analysis Done by :	KAR
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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