MIRA INFORM REPORT

Report No. :	349144
Report Date :	17.11.2015

IDENTIFICATION DETAILS

Name :	FORTREC CHEMICALS AND PETROLEUM PTE. LTD.
Formerly Known As :	FORTREC SERVICES PTE LTD TMRS PTE LTD HAMSHIN PTE LTD
Registered Office :	391A, Orchard Road, 23-01, Ngee Ann City Tower A, 238873
Country :	Singapore
Financials (as on) :	31.12.2014
Date of Incorporation :	07.09.1999
Com. Reg. No.:	199905323-Z
Legal Form :	Private Limited
Line of Business :	Subject is engaged in the investment holding.
No. of Employees :	15 [2015]

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 :	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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

199905323-Z

COMPANY NAME

:

FORTREC CHEMICALS AND PETROLEUM PTE. LTD.

FORMER NAME

:

FORTREC SERVICES PTE LTD (14/03/2003)
TMRS PTE LTD (05/10/2001)
HAMSHIN PTE LTD (20/02/2001)

INCORPORATION DATE

:

07/09/1999

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

391A, ORCHARD ROAD, 23-01, NGEE ANN CITY TOWER A, 238873, SINGAPORE.

BUSINESS ADDRESS

:

391A, ORCHARD ROAD, 23-01, NGEE ANN CITY TOWER A, 238873, SINGAPORE.

TEL.NO.

:

65-67342829

FAX.NO.

:

65-67342306

WEB SITE

:

WWW.FORTREC.COM

CONTACT PERSON

:

MEERA MARIE F KRISHNAN TATPARANANDAM ( DIRECTOR )

PRINCIPAL ACTIVITY

:

INVESTMENT HOLDING

ISSUED AND PAID UP CAPITAL

:

1,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,500,000.00 

SALES

:

USD 189,216,274 [2014]

NET WORTH

:

USD 10,280,880 [2014]

STAFF STRENGTH

:

15 [2015]

BANKER (S)

:

BNP PARIBAS CALYON COMMERZBANK AKTIENGESELLSCHAFT DBS BANK LTD RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

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) investment holding.

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

Share Capital History

Date	Issue & Paid Up Capital
11/11/2015	SGD 1,500,000.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
FORTREC PTE. LTD.	391A, ORCHARD ROAD, 23-01, NGEE ANN CITY TOWER A, 238873, SINGAPORE.	200414831C	1,041,000.00	69.40
SEAGO LIMITED	TAI YAU BUILDING 181, JOHNSTON ROAD, WANCHAI, 21ST FLOOR, HONG KONG.	019583	459,000.00	30.60
			---------------	------
			1,500,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	AJAY BHATTACHARYA
Address	:	59B, CHUN TIN ROAD, 599634, SINGAPORE.
IC / PP No	:	S1595736J
Nationality	:	SINGAPOREAN
Date of Appointment	:	20/02/2004

DIRECTOR 2

Name Of Subject	:	GRANT SCOTT FERGUSON
Address	:	3, IDAMANSARA JALAN ROSA 4, BUKIT IDAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	517611998
Nationality	:	BRITISH
Date of Appointment	:	16/05/2013

DIRECTOR 3

Name Of Subject	:	MS. MEERA MARIE F KRISHNAN TATPARANANDAM
Address	:	10, JALAN 3/55, PETALING, 46000 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	A26211829
New IC No	:	810517-71-5098
Date of Birth	:	17/05/1981
Nationality	:	MALAYSIAN
Date of Appointment	:	16/05/2013

MANAGEMENT

1)	Name of Subject	:	MEERA MARIE F KRISHNAN TATPARANANDAM
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PKF-CAP LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	IRVING TAN PECK LENG
	IC / PP No	:	S1534406G
	Address	:	11, GENTLE DRIVE, 309214, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BNP PARIBAS

2)

Name

:

CALYON

3)

Name

:

COMMERZBANK AKTIENGESELLSCHAFT

4)

Name

:

DBS BANK LTD

5)

Name

:

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

6)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

7)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200302206	13/05/2003	N/A	BNP PARIBAS	-	Unsatisfied
C200302192	14/05/2003	N/A	BNP PARIBAS	-	Unsatisfied
C200706243	02/08/2007	N/A	THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201000970	01/02/2010	N/A	RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT	-	Unsatisfied
C201002210	15/03/2010	N/A	DBS BANK LTD	-	Unsatisfied
C201002212	15/03/2010	N/A	DBS BANK LTD	-	Unsatisfied
C201313641	08/10/2013	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201402122	26/02/2014	N/A	CIMB BANK BERHAD	-	Unsatisfied
C201402124	26/02/2014	N/A	CIMB BANK BERHAD	-	Unsatisfied
C201402129	26/02/2014	N/A	CIMB BANK BERHAD	-	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 Group sources its products from the both local and overseas. 

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	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Services

:

INVESTMENT HOLDING

Total Number of Employees:
YEAR	2015
GROUP	N/A
COMPANY	15

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) investment holding. 

The Group deals with petrochemicals. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-67342829
Match	:	N/A
Address Provided by Client	:	391A ORCHARD ROAD, 23-01 NGEE ANN CITY TOWER A,238873,SINGAPORE
Current Address	:	391A, ORCHARD ROAD, 23-01, NGEE ANN CITY TOWER A, 238873, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Acceptable	[	24.48%	]
Return on Net Assets	:	Acceptable	[	29.39%	]
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. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	3 Days	]
Debtor Ratio	:	Favourable	[	20 Days	]
Creditors Ratio	:	Favourable	[	17 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	[	1.57 Times	]
Current Ratio	:	Unfavourable	[	1.67 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	[	16.86 Times	]
Gearing Ratio	:	Favourable	[	0.27 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 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2010	2011	2012	2013	2014
Population (Million)	5.08	5.18	5.31	5.40	5.47
Gross Domestic Products ( % )	14.5	4.9	1.3	3.7	(3.5)
Consumer Price Index	2.8	5.2	4.6	2.4	2.4
Total Imports (Million)	423,221.8	459,655.1	474,554.0	466,762.0	463,779.1
Total Exports (Million)	478,840.7	514,741.2	510,329.0	513,391.0	518,922.7
Unemployment Rate (%)	2.2	2.1	2.0	1.9	1.9
Tourist Arrival (Million)	11.64	13.17	14.49	15.46	15.01
Hotel Occupancy Rate (%)	85.6	86.5	86.4	86.3	85.5
Cellular Phone Subscriber (Million)	1.43	1.50	1.52	1.97	1.98
Registration of New Companies (No.)	29,798	32,317	31,892	37,288	41,589
Registration of New Companies (%)	12.8	8.5	(1.3)	9.8	11.5
Liquidation of Companies (No.)	15,126	19,005	17,218	17,369	18,767
Liquidation of Companies (%)	(32.5)	25.6	9.4	(5.3)	8.0
Registration of New Businesses (No.)	23,978	23,494	24,788	22,893	35,773
Registration of New Businesses (%)	(10.78)	2.02	5.51	1.70	56.30
Liquidation of Businesses (No.)	24,211	23,005	22,489	22,598	22,098
Liquidation of Businesses (%)	2.8	(5)	(2.2)	0.5	(2.2)
Bankruptcy Orders (No.)	1,537	1,527	1,748	1,992	1,757
Bankruptcy Orders (%)	(25.3)	(0.7)	14.5	14.0	(11.8)
Bankruptcy Discharges (No.)	2,252	1,391	1,881	2,584	3,546
Bankruptcy Discharges (%)	(26.3)	(38.2)	35.2	37.4	37.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(10.5)	12.10	(0.5)	-	2.80
Manufacturing *	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	96.4	100.0	103.5	103.5	105.0
Textiles	122.1	100.0	104.0	87.1	74.9
Wearing Apparel	123.3	100.0	92.1	77.8	49.5
Leather Products & Footwear	81.8	100.0	98.6	109.8	95.9
Wood & Wood Products	104.0	100.0	95.5	107.4	112.0
Paper & Paper Products	106.1	100.0	97.4	103.2	103.4
Printing & Media	103.5	100.0	93.0	86.1	80.3
Crude Oil Refineries	95.6	100.0	99.4	93.5	85.6
Chemical & Chemical Products	97.6	100.0	100.5	104.1	114.0
Pharmaceutical Products	75.3	100.0	109.7	107.2	115.7
Rubber & Plastic Products	112.3	100.0	96.5	92.9	92.8
Non-metallic Mineral	92.5	100.0	98.2	97.6	82.2
Basic Metals	102.2	100.0	90.6	76.5	98.3
Fabricated Metal Products	103.6	100.0	104.3	105.1	105.1
Machinery & Equipment	78.5	100.0	112.9	114.5	124.0
Electrical Machinery	124.1	100.0	99.3	108.5	121.3
Electronic Components	113.6	100.0	90.6	94.3	95.0
Transport Equipment	94.0	100.0	106.3	107.5	103.2
Construction	14.20	20.50	28.70	-	22.00
Real Estate	21.3	25.4	31.9	-	145.1
Services
Electricity, Gas & Water	4.00	7.00	6.30	-
Transport, Storage & Communication	12.80	7.40	5.30	-	14.20
Finance & Insurance	(0.4)	8.90	0.50	-	6.00
Government Services	9.70	6.90	6.00	-
Education Services	(0.9)	(1.4)	0.30	-	5.98
* 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 1999, the Subject is a Private Limited company, focusing on investment holding. 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 1,500,000 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 small company, the Subject's business operation is supported by 15 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. 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 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 10,280,880, the Subject should be able to maintain its business in the near terms. 

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 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 promptly.

PROFIT AND LOSS ACCOUNT

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

FORTREC CHEMICALS AND PETROLEUM PTE. LTD.

Financial Year End	2014-12-31	2013-12-31	2012-12-31	2011-12-31	2010-12-31
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	FULL	FULL
Currency	USD	USD	SGD	USD	USD
TURNOVER	189,216,274	260,658,708	299,168,916	224,784,884	130,399,371
	----------------	----------------	----------------	----------------	----------------
Total Turnover	189,216,274	260,658,708	299,168,916	224,784,884	130,399,371
Costs of Goods Sold	(182,671,627)	(254,917,107)	-	(220,736,310)	(126,747,047)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	6,544,647	5,741,601	-	4,048,574	3,652,324
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	2,842,754	2,109,180	1,485,888	1,185,637	1,110,850
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	2,842,754	2,109,180	1,485,888	1,185,637	1,110,850
Taxation	(326,000)	(216,000)	(188,107)	(94,851)	(89,605)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	2,516,754	1,893,180	1,297,780	1,090,786	1,021,245
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	6,773,102	4,879,922	4,485,715	2,743,045	1,721,800
	----------------	----------------	----------------	----------------	----------------
As restated	6,773,102	4,879,922	4,485,715	2,743,045	1,721,800
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	9,289,856	6,773,102	5,783,495	3,833,831	2,743,045
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	9,289,856	6,773,102	5,783,495	3,833,831	2,743,045
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Lease interest	220	616	-	-	-
Trust receipts	-	-	-	270,186	157,477
Others	178,999	141,243	-	-	-
	----------------	----------------	----------------	----------------	----------------
	179,219	141,859	-	270,186	157,477
	=============	=============	-	=============	=============
DEPRECIATION (as per notes to P&L)	66,226	77,675	-	18,414	810
	----------------	----------------	----------------	----------------	----------------
	66,226	77,675	-	18,414	810
	=============	=============	=============	=============	=============

BALANCE SHEET

FORTREC CHEMICALS AND PETROLEUM PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	75,186	88,765	112,826	10,347	21,329
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	75,186	88,765	112,826	10,347	21,329
Stocks	1,508,609	-	-	-	-
Trade debtors	10,209,913	14,820,580	-	19,462,787	32,178,774
Other debtors, deposits & prepayments	149,328	176,466	-	430,057	797,247
Short term deposits	1,491,716	1,565,660	-	500,000	500,000
Amount due from agents, brokers & reinsurers	1,245,378	536,475	-	-	-
Amount due from related companies	1,392,000	1,358,193	-	1,869,773	1,856,159
Cash & bank balances	8,332,727	5,574,321	-	1,825,998	709,437
Others	1,214,466	93,190	-	-	1,095,990
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	25,544,137	24,124,885	31,556,042	24,088,615	37,137,607
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	25,619,323	24,213,650	31,668,868	24,098,962	37,158,936
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	8,669,558	11,524,178	-	2,257,173	32,096,009
Other creditors & accruals	1,323,041	1,623,582	-	448,438	826,372
Other borrowings	2,743,119	2,191,771	-	16,322,643	51,717
Amounts owing to related companies	673,599	841,780	-	155,790	364,136
Provision for taxation	384,098	239,105	-	90,063	86,633
Lease payables	-	7,418	-	-	-
Other liabilities	1,545,028	21,690	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	15,338,443	16,449,524	24,385,373	19,274,107	33,424,867
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	10,205,694	7,675,361	7,170,669	4,814,508	3,712,740
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	991,024	991,024	1,500,000	991,024	991,024
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	991,024	991,024	1,500,000	991,024	991,024
Retained profit/(loss) carried forward	9,289,856	6,773,102	5,783,495	3,833,831	2,743,045
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	9,289,856	6,773,102	5,783,495	3,833,831	2,743,045
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
	----------------	----------------	----------------	----------------	----------------
	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
	=============	=============	=============	=============	=============

FINANCIAL RATIO

FORTREC CHEMICALS AND PETROLEUM PTE. LTD.

TYPES OF FUNDS
Cash	9,824,443	7,139,981	-	2,325,998	1,209,437
Net Liquid Funds	9,824,443	7,139,981	-	2,325,998	1,209,437
Net Liquid Assets	8,697,085	7,675,361	7,170,669	4,814,508	3,712,740
Net Current Assets/(Liabilities)	10,205,694	7,675,361	7,170,669	4,814,508	3,712,740
Net Tangible Assets	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
Net Monetary Assets	8,697,085	7,675,361	7,170,669	4,814,508	3,712,740
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	3,021,973	2,251,039	-	1,455,823	1,268,327
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	3,088,199	2,328,714	-	1,474,237	1,269,137
BALANCE SHEET ITEMS
Total Borrowings	2,743,119	2,191,771	-	16,322,643	51,717
Total Liabilities	15,338,443	16,449,524	24,385,373	19,274,107	33,424,867
Total Assets	25,619,323	24,213,650	31,668,868	24,098,962	37,158,936
Net Assets	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
Net Assets Backing	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
Shareholders' Funds	10,280,880	7,764,126	7,283,495	4,824,855	3,734,069
Total Share Capital	991,024	991,024	1,500,000	991,024	991,024
Total Reserves	9,289,856	6,773,102	5,783,495	3,833,831	2,743,045
LIQUIDITY (Times)
Cash Ratio	0.64	0.43	-	0.12	0.04
Liquid Ratio	1.57	1.47	-	1.25	1.11
Current Ratio	1.67	1.47	1.29	1.25	1.11
WORKING CAPITAL CONTROL (Days)
Stock Ratio	3	0	-	0	0
Debtors Ratio	20	21	-	32	90
Creditors Ratio	17	17	-	4	92
SOLVENCY RATIOS (Times)
Gearing Ratio	0.27	0.28	-	3.38	0.01
Liabilities Ratio	1.49	2.12	3.35	3.99	8.95
Times Interest Earned Ratio	16.86	15.87	-	5.39	8.05
Assets Backing Ratio	10.37	7.83	4.86	4.87	3.77
PERFORMANCE RATIO (%)
Operating Profit Margin	1.50	0.81	0.50	0.53	0.85
Net Profit Margin	1.33	0.73	0.43	0.49	0.78
Return On Net Assets	29.39	28.99	20.40	30.17	33.97
Return On Capital Employed	29.39	28.99	20.40	30.17	33.97
Return On Shareholders' Funds/Equity	24.48	24.38	17.82	22.61	27.35
Dividend Pay Out Ratio (Times)	0	0	-	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	-	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.17
UK Pound	1	Rs.100.65
Euro	1	Rs.70.97

INFORMATION DETAILS

Analysis Done by :	KIN
Report Prepared by :	TPT

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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