MIRA INFORM REPORT

Report No. :	323274
Report Date :	22.05.2015

IDENTIFICATION DETAILS

Name :	BOROCHEMIE INTERNATIONAL PTE LTD
Registered Office :	77, High Street, 09-06, High Street Plaza, 179433
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	01.03.1995
Com. Reg. No.:	199501436-Z
Legal Form :	Private Limited
Line of Business :	Trading of Chemicals and Allied Products
No. of Employee :	6

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
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.	:	199501436-Z
COMPANY NAME	:	BOROCHEMIE INTERNATIONAL PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	01/03/1995
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	77, HIGH STREET, 09-06, HIGH STREET PLAZA, 179433, SINGAPORE.
BUSINESS ADDRESS	:	77 HIGH STREET #09-06 HIGH STREET PLAZA,, 179433, SINGAPORE.
TEL.NO.	:	65-63347500
FAX.NO.	:	65-63340735
WEB SITE	:	WWW.BOROCHEMIE.COM
CONTACT PERSON	:	ISMAIL ENES ALGAN ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF CHEMICALS AND ALLIED PRODUCTS
ISSUED AND PAID UP CAPITAL	:	3,200,000.00 ORDINARY SHARE, OF A VALUE OF SGD 3,200,000.00
SALES	:	USD 123,713,104 [2013]
NET WORTH	:	USD 11,173,748 [2013]
BANKER (S)		THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
STAFF STRENGTH	:	6 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
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) trading of chemicals and allied products.

Share Capital History

Date	Issue & Paid Up Capital
20/05/2015	SGD 3,200,000.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
AHMET KORKUT YAKAL +	FENERBAHCE ERGUVAN, SK. 4/3, KADIKOY, ISTANBUL, TURKEY.	U 09898206	799,760.00	24.99
ISMAIL ENES ALGAN +	FENERBAHCE MAH ATLIHAN SK SEVGILI KONAKLARI, 18/3, KADIKOY, ISTANBUL, TURKEY.	U 09518115	797,840.00	24.93
ROOP RASAYAN INDUSTRIES PTE LTD	25A, BESANT STREET SANTACRUZ (WEST) MUMBAI 400054, INDIA.	T08UF0505	600,000.00	18.75
PADMAJA GIRISH MEHTA	FLAT 602, SHRADDHA SUMAN, 6TH ROAD JUHU VILLEPARLE SCHEME, VILLEPARLE (W), MUMBAI 56, 6TH FLOOR, INDIA.	B 5817481	263,250.00	8.23
ALAKH NATVARLAL SHAH +	301, MUNSHI MANOR, CORNER OF 9TH & 10TH ROAD KHAR, (WEST), MUMBAI, 3RD FLOOR, 400052, INDIA.	Z2286702	236,750.00	7.40
MEHTA GIRISH DINESHCHANDRA +	FLAT 602, SHRADDHA SUMAN, 6TH ROAD JUHU VILLEPARLE SCHEME, VILLEPARLE (W), MUMBAI 56, 6TH FLOOR, INDIA.	Z1894148	236,750.00	7.40
BERIL BEHIRE ALGAN +	ATLIHAN SOK, SEVGILI MARIN PARK SITESI 20/D/3, 34726 FENERBAHCE, ISTANBUL, TURKEY, MALAYSIA.	U 00251029	2,160.00	0.07
SYLVIA YAKAL +	FENERBAHCE ERGUVAN, SK. 4/3, KADIKOY, ISTANBUL, TURKEY.	P2219429	240.00	0.01
RAKSHA ALAK SHAH	301, MUNSHI MANOR, CORNER OF 9TH & 10TH ROAD KHAR (WEST), MUMBAI 400 052, 3RD FLOOR, INDIA.	G 0182919	263,250.00	8.23
			---------------	------
			3,200,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	CHINA	BOROCHEMIE (GUANGZHOU) CO., LTD	100.00	31/12/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	ERIC TIONG HIN WON
Address	:	28, LEONIE HILL, 07-30, LEONIE TOWERS, 239227, SINGAPORE.
IC / PP No	:	S0146842A
Nationality	:	SINGAPOREAN
Date of Appointment	:	17/12/1996

DIRECTOR 2

Name Of Subject	:	SHUKLA SURESHCHANDRA
Address	:	BALCHANDRA PLOT-25/A, BESANT STREET SANTACRUZ (W), MUMBAI-054, INDIA.
IC / PP No	:	Z 1894381
Date of Birth	:	01/01/1970
Nationality	:	INDIAN
Date of Appointment	:	01/03/1995

DIRECTOR 3

Name Of Subject	:	SYLVIA YAKAL
Address	:	FENERBAHCE ERGUVAN, SK. 4/3, KADIKOY, ISTANBUL, TURKEY.
IC / PP No	:	P2219429
Date of Birth	:	01/01/1970
Nationality	:	AUSTRIAN
Date of Appointment	:	01/09/2004

DIRECTOR 4

Name Of Subject	:	BERIL BEHIRE ALGAN
Address	:	ATLIHAN SOK, SEVGILI MARIN PARK SITESI 20/D/3, 34726 FENERBAHCE, ISTANBUL, TURKEY, MALAYSIA.
IC / PP No	:	U 00251029
Date of Appointment	:	01/09/2004

DIRECTOR 5

Name Of Subject	:	MEHTA GIRISH DINESHCHANDRA
Address	:	FLAT 602, SHRADDHA SUMAN, 6TH ROAD JUHU VILLEPARLE SCHEME, VILLEPARLE (W), MUMBAI 56, 6TH FLOOR, INDIA.
IC / PP No	:	Z1894148
Date of Birth	:	01/01/1970
Nationality	:	INDIAN
Date of Appointment	:	01/09/2004

DIRECTOR 6

Name Of Subject	:	ALAKH NATVARLAL SHAH
Address	:	301, MUNSHI MANOR, CORNER OF 9TH & 10TH ROAD KHAR, (WEST), MUMBAI, 3RD FLOOR, 400052, INDIA.
IC / PP No	:	Z2286702
Date of Birth	:	01/01/1970
Nationality	:	INDIAN
Date of Appointment	:	27/06/2000

DIRECTOR 7

Name Of Subject	:	ISMAIL ENES ALGAN
Address	:	FENERBAHCE MAH ATLIHAN SK SEVGILI KONAKLARI, 18/3, KADIKOY, ISTANBUL, TURKEY.
IC / PP No	:	U 09518115
Date of Birth	:	01/01/1970
Nationality	:	TURK
Date of Appointment	:	27/03/1995

DIRECTOR 8

Name Of Subject	:	AHMET KORKUT YAKAL
Address	:	FENERBAHCE ERGUVAN, SK. 4/3, KADIKOY, ISTANBUL, TURKEY.
IC / PP No	:	U 09898206
Date of Birth	:	01/01/1970
Nationality	:	TURK
Date of Appointment	:	17/12/1996

MANAGEMENT

1)	Name of Subject	:	ISMAIL ENES ALGAN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	FEROZ KHAN & CO
Auditor' Address	:	N/A

Auditor	:	FEROZ KHAN & CO
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	CHAN LILY
	IC / PP No	:	S2668267C
	Address	:	259A, COMPASSVALE ROAD, 13-609, 541259, SINGAPORE.

2)	Company Secretary	:	LOH JOO HUI
	IC / PP No	:	S2558149J
	Address	:	22, SAINT GEORGES ROAD, 12-182, 321022, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
199905675	22/12/1999	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
200005802	29/11/2000	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
200006097	13/12/2000	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200808566	15/09/2008	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200808703	18/09/2008	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200907854	01/12/2009	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201005589	02/07/2010	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201005707	06/07/2010	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201114210	10/11/2011	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201114211	10/11/2011	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201114212	10/11/2011	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201114213	10/11/2011	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201207649	10/07/2012	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	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	:	N/A
Overseas	:	N/A

The staff from the registered office refused to disclose the Subject's suppliers.

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

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

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The staff from the registered office refused to disclose the Subject's clientele.

OPERATIONS

Goods Traded

:

CHEMICALS AND ALLIED PRODUCTS

Total Number of Employees:
YEAR	2015
GROUP	N/A
COMPANY	6

Branch

:

NO

Other Information:

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

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

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6563347500
Current Telephone Number	:	65-63347500
Match	:	YES
Address Provided by Client	:	77 HIGH STREET,# 09-06, HIGH STREET, PLAZA, SINGAPORE 173433
Current Address	:	77 HIGH STREET #09-06 HIGH STREET PLAZA,, 179433, SINGAPORE.
Match	:	YES

Other Investigations

On 19th May 2015 we contacted one of the staff from the Subject's registered office and he provided limited information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	13.87%	]
Profit/(Loss) Before Tax	:	Increased	[	13.15%	]
Return on Shareholder Funds	:	Unfavourable	[	8.35%	]
Return on Net Assets	:	Acceptable	[	21.97%	]
The lower turnover could be due to the intense market competition.The Subject's management have been efficient in controlling its operating costs. 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	[	2 Days	]
Debtor Ratio	:	Acceptable	[	57 Days	]
Creditors Ratio	:	Favourable	[	52 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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	[	1.44 Times	]
Current Ratio	:	Unfavourable	[	1.48 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	[	1.76 Times	]
Gearing Ratio	:	Favourable	[	0.11 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 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 :
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. 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 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 : FAIR

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 1995, the Subject is a Private Limited company, focusing on trading of chemicals and allied 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. A paid up capital of SGD 3,200,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

Being a small company, the Subject's business operation is supported by 6 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.

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. 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 USD 11,173,748, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

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

The industry 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 promptly.

PROFIT AND LOSS ACCOUNT

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

BOROCHEMIE INTERNATIONAL PTE LTD

Financial Year End	2013-12-31	2012-12-31
Months	12	12
Consolidated Account	GROUP	GROUP
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	123,713,104	143,628,431
Other Income	349,612	54,953
	----------------	----------------
Total Turnover	124,062,716	143,683,384
Costs of Goods Sold	(110,528,151)	(126,630,029)
	----------------	----------------
Gross Profit	13,534,565	17,053,355
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,061,086	937,792
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,061,086	937,792
Taxation	(128,111)	(75,652)
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	932,975	862,140
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	8,026,116	8,998,538
	----------------	----------------
As restated	8,026,116	8,998,538
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	8,959,091	9,860,678
DIVIDENDS - Ordinary (paid & proposed)	-	(1,834,562)
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	8,959,091	8,026,116
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	1,400,628	1,655,616
	----------------	----------------
	1,400,628	1,655,616
	=============	=============
DEPRECIATION (as per notes to P&L)	59,290	70,001
AMORTIZATION	2,617	-
	----------------	----------------
	61,907	70,001
	=============	=============

BALANCE SHEET

BOROCHEMIE INTERNATIONAL PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	1,693,489	1,726,570
Computer software	10,025	4,748
	----------------	----------------
TOTAL INTANGIBLE ASSETS	10,025	4,748
	----------------	----------------
TOTAL LONG TERM ASSETS	1,703,514	1,731,318
Stocks	843,876	13,200
Trade debtors	19,445,608	19,514,191
Other debtors, deposits & prepayments	1,601,857	1,725,828
Short term deposits	5,614,867	5,599,786
Cash & bank balances	1,811,562	4,801,736
	----------------	----------------
TOTAL CURRENT ASSETS	29,317,770	31,654,741
	----------------	----------------
TOTAL ASSET	31,021,284	33,386,059
	=============	=============
CURRENT LIABILITIES
Trade creditors	15,597,879	19,488,567
Other creditors & accruals	2,087,956	2,030,584
Short term borrowings/Term loans	1,253,265	245,578
Amounts owing to related companies	158,881	365,068
Amounts owing to director	616,784	839,151
Provision for taxation	101,212	78,817
	----------------	----------------
TOTAL CURRENT LIABILITIES	19,815,977	23,047,765
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	9,501,793	8,606,976
	----------------	----------------
TOTAL NET ASSETS	11,205,307	10,338,294
	=============	=============
SHARE CAPITAL
Ordinary share capital	2,235,569	2,235,569
	----------------	----------------
TOTAL SHARE CAPITAL	2,235,569	2,235,569
Retained profit/(loss) carried forward	8,959,091	8,026,116
Others	(20,912)	(124,973)
	----------------	----------------
TOTAL RESERVES	8,938,179	7,901,143
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	11,173,748	10,136,712
Other long term borrowings	31,559	201,582
	----------------	----------------
TOTAL LONG TERM LIABILITIES	31,559	201,582
	----------------	----------------
	11,205,307	10,338,294
	=============	=============

FINANCIAL RATIO

BOROCHEMIE INTERNATIONAL PTE LTD

TYPES OF FUNDS
Cash	7,426,429	10,401,522
Net Liquid Funds	7,426,429	10,401,522
Net Liquid Assets	8,657,917	8,593,776
Net Current Assets/(Liabilities)	9,501,793	8,606,976
Net Tangible Assets	11,195,282	10,333,546
Net Monetary Assets	8,626,358	8,392,194
BALANCE SHEET ITEMS
Total Borrowings	1,284,824	447,160
Total Liabilities	19,847,536	23,249,347
Total Assets	31,021,284	33,386,059
Net Assets	11,205,307	10,338,294
Net Assets Backing	11,173,748	10,136,712
Shareholders' Funds	11,173,748	10,136,712
Total Share Capital	2,235,569	2,235,569
Total Reserves	8,938,179	7,901,143
LIQUIDITY (Times)
Cash Ratio	0.37	0.45
Liquid Ratio	1.44	1.37
Current Ratio	1.48	1.37
WORKING CAPITAL CONTROL (Days)
Stock Ratio	2	0
Debtors Ratio	57	50
Creditors Ratio	52	56
SOLVENCY RATIOS (Times)
Gearing Ratio	0.11	0.04
Liabilities Ratio	1.78	2.29
Times Interest Earned Ratio	1.76	1.57
Assets Backing Ratio	5.01	4.62
PERFORMANCE RATIO (%)
Operating Profit Margin	0.86	0.65
Net Profit Margin	0.75	0.60
Return On Net Assets	21.97	25.09
Return On Capital Employed	21.95	25.07
Return On Shareholders' Funds/Equity	8.35	8.51
Dividend Pay Out Ratio (Times)	0.00	2.13
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.70
UK Pound	1	Rs.98.92
Euro	1	Rs.70.67

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SDA

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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