MIRA INFORM REPORT

Report No. :	344856
Report Date :	16.10.2015

IDENTIFICATION DETAILS

Name :	DAXIN PETROLEUM PTE LTD
Registered Office :	65, Chulia Street, 41-08, Ocbc Centre, 049513
Country :	Singapore
Financials (as on) :	31.12.2014
Date of Incorporation :	12.05.1990
Com. Reg. No.:	199002246-C
Legal Form :	Private limited
Line of Business :	Wholesale of petroleum products, petrochemicals and crude oil.
No. of Employee :	21 [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.	:	199002246-C
COMPANY NAME	:	DAXIN PETROLEUM PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	12/05/1990
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	65, CHULIA STREET, 41-08, OCBC CENTRE, 049513, SINGAPORE.
BUSINESS ADDRESS	:	65, CHULIA STREET, HEX 41-08, OCBC CENTRE, 049513, SINGAPORE.
TEL.NO.	:	65-68299270
FAX.NO.	:	65-65356969
CONTACT PERSON	:	ZHOU BIN ( GENERAL MANAGER )
PRINCIPAL ACTIVITY	:	WHOLESALE OF PETROLEUM PRODUCTS, PETROCHEMICALS AND CRUDE OIL
ISSUED AND PAID UP CAPITAL	:	67,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 33,503,350.00
SALES	:	USD 2,044,587,000 [2014]
NET WORTH	:	USD 96,658,000 [2014]
STAFF STRENGTH	:	21 [2015]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	SLOW BUT CORRECT
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 petroleum products, petrochemicals and crude oil.

Share Capital History

Date	Issue & Paid Up Capital
17/09/2015	SGD 33,503,350.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHAN SHING SAU +	THE MAY FAIR, 40F/B, 1, MAY ROAD, HONG KONG.	D154062A	20,937,500.00	31.25
DRAGON NEW ZEALAND LIMITED	CONE MARSHALL LTD, 280, PARNELL ROAD PARNELL, AUCKLAND, 1052, LEVEL 3, NEW ZEALAND.	T14UF5243	20,937,500.00	31.25
IPACA LTD	853, UNIT 10-11, SPRINGATE EAST, GOVERNMENT ROAD, CHARLESTOWN, NEVIS, SAINT KITTS AND NEVIS.	T10UF0267	6,700,000.00	10.00
PRAX CAPITAL INC.	ELVIRA MENDEZ STREET, VALLARINO BUILDING, PANAMA, THIRD FLOOR, PANAMA.	T14UF5242	6,700,000.00	10.00
NGIAM TEE CHIANG +	114, MIMOSA CRESCENT, SELETAR HILLS ESTATE, 808062, SINGAPORE.	S0089387J	4,020,000.00	6.00
MACKAY LTD	TRUST HOUSE, 112, BONADIE STREET, KINGSTOWN, SAINT VINCENT AND THE GRENADINES.	T15UF3093D	3,015,000.00	4.50
ZHOU BIN +	45, NAMLY PLACE, SHAMROCK VILLAS, 267193, SINGAPORE.	S2763185A	2,680,000.00	4.00
MARTYNIOUK ANDREI	32, NASSIM HILL, 06-34, NASSIM MANSION, 258472, SINGAPORE.	S6865490D	2,010,000.00	3.00
			---------------	------
			67,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	JULIAN JONATHAN ARTHUR TAYLOR
Address	:	CHALET LA PLEYEUSE, BRUSON 1934, VALAIS, SWITZERLAND.
IC / PP No	:	S2692897D
Nationality	:	BRITISH
Date of Appointment	:	12/05/1990

DIRECTOR 2

Name Of Subject	:	ZHOU BIN
Address	:	45, NAMLY PLACE, SHAMROCK VILLAS, 267193, SINGAPORE.
IC / PP No	:	S2763185A
Nationality	:	CHINESE
Date of Appointment	:	01/09/2001

DIRECTOR 3

Name Of Subject	:	NGIAM TEE CHIANG
Address	:	114, MIMOSA CRESCENT, SELETAR HILLS ESTATE, 808062, SINGAPORE.
IC / PP No	:	S0089387J
Nationality	:	SINGAPOREAN
Date of Appointment	:	12/05/1990

DIRECTOR 4

Name Of Subject	:	CHAN SHING SAU
Address	:	THE MAY FAIR, 40F/B, 1, MAY ROAD, HONG KONG.
IC / PP No	:	D154062A
Nationality	:	HONGKONGESE
Date of Appointment	:	01/10/2000

MANAGEMENT

1)	Name of Subject	:	ZHOU BIN
	Position	:	GENERAL MANAGER

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	NGIAM TEE CHIANG
	IC / PP No	:	S0089387J
	Address	:	114, MIMOSA CRESCENT, SELETAR HILLS ESTATE, 808062, 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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its 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	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

PETROLEUM PRODUCTS, PETROCHEMICALS AND CRUDE OIL

Total Number of Employees:
YEAR	2015	2014	2013
GROUP	N/A	N/A	N/A
COMPANY	21	21	21

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) wholesale of petroleum products, petrochemicals and crude oil.

The Subject refused to disclose any information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-68299270
Match	:	N/A
Address Provided by Client	:	65, CHULIA STREET, HEX 41-08, OCBC CENTRE,049513,SINGAPORE
Current Address	:	65, CHULIA STREET, HEX 41-08, OCBC CENTRE, 049513, SINGAPORE.
Match	:	YES

Other Investigations

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

The Subject refused to disclose its bankers.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Decreased	[	2010 - 2014	]
Return on Shareholder Funds	:	Acceptable	[	14.59%	]
Return on Net Assets	:	Acceptable	[	14.72%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	23 Days	]
Debtor Ratio	:	Favourable	[	44 Days	]
Creditors Ratio	:	Favourable	[	31 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	[	0.95 Times	]
Current Ratio	:	Unfavourable	[	1.16 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	[	(11.56 Times)	]
Gearing Ratio	:	Unfavourable	[	1.51 Times	]
The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was 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 :
The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject'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 : LIMITED

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 :	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 1990, the Subject is a Private Limited company, focusing on wholesale of petroleum products, petrochemicals and crude oil. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. With a paid up capital of SGD 33,503,350, the Subject has greater opportunities to expand its business when the needs arise. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities

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 21 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.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 96,658,000, the Subject should be able to maintain its business in the near terms.

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 normally.

PROFIT AND LOSS ACCOUNT

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

DAXIN 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	FULL	FULL	FULL
Currency	USD	USD	USD	USD	USD
TURNOVER	2,044,587,000	3,367,971,000	3,150,276,000	3,309,729,000	2,911,015,000
Other Income	(22,382,000)	10,418,000	11,396,000	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	2,022,205,000	3,378,389,000	3,161,672,000	3,309,729,000	2,911,015,000
Costs of Goods Sold	(1,951,442,000)	(3,238,276,000)	(3,050,423,000)	(3,188,372,000)	(2,824,845,000)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	70,763,000	140,113,000	111,249,000	121,357,000	86,170,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	15,461,000	71,776,000	49,912,000	26,901,000	25,960,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	15,461,000	71,776,000	49,912,000	26,901,000	25,960,000
Taxation	(1,357,000)	(4,092,000)	(3,031,000)	(2,307,000)	(1,783,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	14,104,000	67,684,000	46,881,000	24,594,000	24,177,000
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	80,543,000	81,000,000	66,300,000	49,181,000	66,719,000
	----------------	----------------	----------------	----------------	----------------
As restated	80,543,000	81,000,000	66,300,000	49,181,000	66,719,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	94,647,000	148,684,000	113,181,000	73,775,000	90,896,000
DIVIDENDS - Ordinary (paid & proposed)	(17,992,000)	(68,141,000)	(32,181,000)	(7,475,000)	(41,715,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	76,655,000	80,543,000	81,000,000	66,300,000	49,181,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Fixed deposit	156,000	108,000	(126,000)	-	-
Term loan / Borrowing	(1,387,000)	(2,564,000)	2,073,000	-	-
Trust receipts	-	-	-	2,609,000	2,281,000
	----------------	----------------	----------------	----------------	----------------
	(1,231,000)	(2,456,000)	1,947,000	2,609,000	2,281,000
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	18,000	54,000	72,000	81,000	95,000
	----------------	----------------	----------------	----------------	----------------
	18,000	54,000	72,000	81,000	95,000
	=============	=============	=============	=============	=============

BALANCE SHEET

DAXIN PETROLEUM PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	34,000	62,000	80,000	150,000	230,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	34,000	62,000	80,000	150,000	230,000
Stocks	126,668,000	131,741,000	55,530,000	30,651,000	36,646,000
Trade debtors	246,443,000	292,984,000	327,931,000	326,299,000	172,486,000
Other debtors, deposits & prepayments	198,055,000	75,856,000	34,708,000	84,629,000	159,981,000
Short term deposits	17,177,000	40,774,000	-	29,011,000	18,072,000
Cash & bank balances	124,659,000	107,418,000	146,538,000	42,754,000	71,209,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	713,002,000	648,773,000	564,707,000	513,344,000	458,394,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	713,036,000	648,835,000	564,787,000	513,494,000	458,624,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	164,071,000	193,288,000	124,840,000	145,071,000	71,295,000
Other creditors & accruals	285,601,000	224,652,000	258,239,000	190,553,000	184,125,000
Short term borrowings/Term loans	17,376,000	-	-	31,690,000	-
Other borrowings	128,424,000	113,576,000	-	-	-
Deposits from customers	20,262,000	13,302,000	-	-	-
Other liabilities & accruals	-	-	-	58,206,000	-
Provision for taxation	644,000	3,474,000	2,512,000	1,674,000	1,271,000
Other liabilities	-	-	78,196,000	-	132,752,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	616,378,000	548,292,000	463,787,000	427,194,000	389,443,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	96,624,000	100,481,000	100,920,000	86,150,000	68,951,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	20,003,000	20,000,000	20,000,000	20,000,000	20,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	20,003,000	20,000,000	20,000,000	20,000,000	20,000,000
Retained profit/(loss) carried forward	76,655,000	80,543,000	81,000,000	66,300,000	49,181,000
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	76,655,000	80,543,000	81,000,000	66,300,000	49,181,000
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
	----------------	----------------	----------------	----------------	----------------
	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

DAXIN PETROLEUM PTE LTD

TYPES OF FUNDS
Cash	141,836,000	148,192,000	146,538,000	71,765,000	89,281,000
Net Liquid Funds	141,836,000	148,192,000	146,538,000	71,765,000	89,281,000
Net Liquid Assets	(30,044,000)	(31,260,000)	45,390,000	55,499,000	32,305,000
Net Current Assets/(Liabilities)	96,624,000	100,481,000	100,920,000	86,150,000	68,951,000
Net Tangible Assets	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
Net Monetary Assets	(30,044,000)	(31,260,000)	45,390,000	55,499,000	32,305,000
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	14,230,000	69,320,000	51,859,000	29,510,000	28,241,000
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	14,248,000	69,374,000	51,931,000	29,591,000	28,336,000
BALANCE SHEET ITEMS
Total Borrowings	145,800,000	113,576,000	0	31,690,000	0
Total Liabilities	616,378,000	548,292,000	463,787,000	427,194,000	389,443,000
Total Assets	713,036,000	648,835,000	564,787,000	513,494,000	458,624,000
Net Assets	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
Net Assets Backing	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
Shareholders' Funds	96,658,000	100,543,000	101,000,000	86,300,000	69,181,000
Total Share Capital	20,003,000	20,000,000	20,000,000	20,000,000	20,000,000
Total Reserves	76,655,000	80,543,000	81,000,000	66,300,000	49,181,000
LIQUIDITY (Times)
Cash Ratio	0.23	0.27	0.32	0.17	0.23
Liquid Ratio	0.95	0.94	1.10	1.13	1.08
Current Ratio	1.16	1.18	1.22	1.20	1.18
WORKING CAPITAL CONTROL (Days)
Stock Ratio	23	14	6	3	5
Debtors Ratio	44	32	38	36	22
Creditors Ratio	31	22	15	17	9
SOLVENCY RATIOS (Times)
Gearing Ratio	1.51	1.13	0	0.37	0
Liabilities Ratio	6.38	5.45	4.59	4.95	5.63
Times Interest Earned Ratio	(11.56)	(28.22)	26.64	11.31	12.38
Assets Backing Ratio	4.83	5.03	5.05	4.32	3.46
PERFORMANCE RATIO (%)
Operating Profit Margin	0.76	2.13	1.58	0.81	0.89
Net Profit Margin	0.69	2.01	1.49	0.74	0.83
Return On Net Assets	14.72	68.95	51.35	34.19	40.82
Return On Capital Employed	14.72	68.95	51.35	34.19	40.82
Return On Shareholders' Funds/Equity	14.59	67.32	46.42	28.50	34.95
Dividend Pay Out Ratio (Times)	1.28	1.01	0.69	0.30	1.73
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.82
UK Pound	1	Rs.100.41
Euro	1	Rs.74.50

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ASH

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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