EXECUTIVE SUMMARY

HISTORY / BACKGROUND

OWNERS

MANAGEMENT

AUDITOR

BANKING

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

PAYMENT RECORD

CLIENTELE

OPERATIONS

CURRENT INVESTIGATION

FINANCIAL ANALYSIS

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

INDUSTRY ANALYSIS

CREDIT RISK EVALUATION & RECOMMENDATION

FINANCIAL ACCOUNT

MIRA INFORM REPORT

3decades

Report No. :	507201
Report Date :	04.05.2018

IDENTIFICATION DETAILS

Name :	SHELL EASTERN CHEMICALS (S)

Registered Office :	9, North Buona Vista Drive, 07-01, The Metropolis, 138588

Country :	Singapore

Date of Incorporation :	20.12.1995

Com. Reg. No.:	52812669-E

Legal Form :	Sole Proprietorship

Line of Business :	The Subject is principally engaged in manufacturer and marketer of petrochemicals for industrial, agricultural, automotive and pharmaceutical applications.

No. of Employees :	200 [2017]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate

Payment Behaviour :	Unknown

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Singapore

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 electronics, petroleum products, chemicals, medical and optical devices, pharmaceuticals, and on Singapore’s 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. Growth from 2012-2017 was slower than during the previous decade, a result of slowing structural growth - as Singapore reached high-income levels - and soft global demand for exports. Growth recovered to 3.6% in 2017 with a strengthening global economy.

The government is attempting to restructure Singapore’s economy to reduce its dependence on foreign labor, raise productivity growth, and increase wages amid slowing labor force growth and an aging population. Singapore has attracted major investments in advanced manufacturing, pharmaceuticals, and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and technology hub. Singapore is a signatory of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and a party to the Regional Comprehensive Economic Partnership (RCEP) negotiations with nine other ASEAN members plus Australia, China, India, Japan, South Korea, and New Zealand. In 2015, Singapore formed, with the other ASEAN members, the ASEAN Economic Community.

Source : CIA

REGISTRATION NO.

52812669-E

COMPANY NAME

SHELL EASTERN CHEMICALS (S)

COMMENCEMENT DATE

20/12/1995

REGISTRATION DATE

20/12/1995

EXPIRY DATE

20/12/2020

COMPANY STATUS

ACTIVE

BUSINESS CONSTITUTION

SOLE PROPRIETORSHIP

REGISTERED ADDRESS

9, NORTH BUONA VISTA DRIVE, 07-01, THE METROPOLIS, 138588, SINGAPORE.

BUSINESS ADDRESS

9, NORTH BUONA VISTA DRIVE, 09-01, THE METROPOLIS TOWER 1, 138588, SINGAPORE.

TEL.NO.

65-62353261/63848000

FAX.NO.

65-63848454

WEB SITE

WWW.SHELL.COM.SG

CONTACT PERSON

DIANA ( STAFF )

PRINCIPAL ACTIVITY

MANUFACTURER AND MARKETER OF PETROCHEMICALS FOR INDUSTRIAL, AGRICULTURAL, AUTOMOTIVE AND PHARMACEUTICAL APPLICATIONS

STAFF STRENGTH

200 [2017]

BANKER (S)

STANDARD CHARTERED BANK

LITIGATION

CLEAR

PAYMENT

UNKNOWN

MANAGEMENT CAPABILITY

AVERAGE

COMMERCIAL RISK

MODERATE

CURRENCY EXPOSURE

MODERATE

GENERAL REPUTATION

SATISFACTORY

INDUSTRY OUTLOOK

MATURE

The Subject commenced its business on 20/12/1995 as a SOLE PROPRIETORSHIP.

The Subject is a sole proprietorship, that is, it has a single owner whose liabilities are unlimited. In case the Subject is unable to meet all its obligations, the creditors can claim on the owner's personal assets. The sole proprietorship ceases upon the death of the owner or any time at the discretion of the owner. The ownership is non-transferable. Under the law, the Subject has to file in its information with Registrar of Business but it is not required to file in its financial statements.

The Subject is principally engaged in the (as a / as an) manufacturer and marketer of petrochemicals for industrial, agricultural, automotive and pharmaceutical applications.

The owner of the Subject are shown as follows :

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
SHELL EASTERN TRADING (PTE) LTD	9, NORTH BUONA VISTA DRIVE, 07-01, THE METROPOLIS , 138588, SINGAPORE.	198902087	100.00	100.00
			---------------	------
			100.00	100.00
			============	=====

+ Also Director

OWNER(S) 1

Name Of Subject	:	SHELL EASTERN TRADING (PTE) LTD
Address	:	9, NORTH BUONA VISTA DRIVE, 07-01, THE METROPOLIS, 138588, SINGAPORE.
IC / PP No	:	198902087



Date of Appointment	:	14/12/1995
Shareholding	:	100%

INTEREST CHECK


Interest in companies	:	none in our databank
Interest in business	:	see below

INTEREST IN BUSINESS

Business	Position	Shareholding	As At
SHELL EASTERN CHEMICALS (S)	SOLE PROPRIETORSHIP	100.00	05/12/2017
SHELL INTERNATIONAL EASTERN TRADING COMPANY	SOLE PROPRIETORSHIP	100.00	27/10/2017

1)	Name of Subject	:	DIANA
	Position	:	STAFF

No Auditor found in our databank

Banking relations are maintained principally with :

1)	Name	:	STANDARD CHARTERED BANK

* 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.


SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA PACIFIC
Credit Term	:	AS AGREED

Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

Products manufactured

PETROCHEMICALS FOR INDUSTRIAL, AGRICULTURAL, AUTOMOTIVE AND PHARMACEUTICAL APPLICATIONS

Total Number of Employees:
YEAR	2017	2016	2015	2014	2013

GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	200	1000	1000	1,000	1,000

Branch

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturer and marketer of petrochemicals for industrial, agricultural, automotive and pharmaceutical applications.

The Subject's products and services:
* blowing agents
* chemicals: polyurethane
* chemicals: urethane
* elastomers
* epoxy resin diluents
* liquefied petroleum gas
* resins: epoxy
* solvents

Trade names/ brands:
* Caradol - Chemicals
* Cariflex - Chemicals
* Dutrex - Chemicals
* Epikure - Chemicals
* Epon - Chemicals
* Kraton - Chemicals
* Neodol - Detergents
* Shellflex - Process Oils
* Shellsol - Chemicals
* Styrocell - Chemicals
* Teepol - Detergents

The subject is also a member of following entities:
* Singapore Manufacturers' Federation

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62353261/63848000
Match	:	N/A

Address Provided by Client	:	9, NORTH BUONA, VISTA DRIVE, #09-01 TOWER 1, THE METROPOLIS
Current Address	:	9, NORTH BUONA VISTA DRIVE, 09-01, THE METROPOLIS TOWER 1, 138588, SINGAPORE.
Match	:	NO

Other Investigations

We contacted one of the staff from the Subject's registered office and she provided some information.

The address provided is incomplete.

Major Economic Indicators :	2012	2013	2014	2015	2016*

Population (Million)	5.31	5.40	5.47	5.54	5.63
Gross Domestic Products ( % )	1.3	3.7	(3.5)	3.7	4.8
Consumer Price Index	4.6	2.4	2.4	(0.5)	(0.7)
Total Imports (Million)	474,554.0	466,762.0	463,779.1	407,767.9	398,372.0
Total Exports (Million)	510,329.0	513,391.0	518,922.7	476,285.4	468,552.0

Unemployment Rate (%)	2.0	1.9	1.9	1.9	2.1
Tourist Arrival (Million)	14.49	15.46	15.01	15.23	16.28
Hotel Occupancy Rate (%)	86.4	86.3	85.5	85.0	-
Cellular Phone Subscriber (Million)	1.52	1.97	1.98	1.99	-

Registration of New Companies (No.)	31,892	37,288	41,589	34,243	35,528
Registration of New Companies (%)	(1.3)	9.8	11.5	(17.7)	3.8
Liquidation of Companies (No.)	17,218	17,369	18,767	21,384	-
Liquidation of Companies (%)	9.4	(5.3)	8.0	13.9	-

Registration of New Businesses (No.)	24,788	22,893	35,773	28,480	33,326
Registration of New Businesses (%)	5.51	1.70	56.30	(20.39)	17.02
Liquidation of Businesses (No.)	22,489	22,598	22,098	26,116	-
Liquidation of Businesses (%)	(2.2)	0.5	(2.2)	18.2	-

Bankruptcy Orders (No.)	1,748	1,992	1,757	1,776	-
Bankruptcy Orders (%)	14.5	14.0	(11.8)	1.0	-
Bankruptcy Discharges (No.)	1,881	2,584	3,546	3,499	-
Bankruptcy Discharges (%)	35.2	37.4	37.2	(1.3)	-

INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	5.16	1.78	4.29	3.04	-
Fish Supply & Wholesale	(0.5)	(3.8)	(8.6)	(8.5)	(9.9)

Manufacturing #
Food, Beverages & Tobacco	97.9	97.9	99.4	100.0	103.7
Textiles	140.1	119.5	102.7	100.0	93.3
Wearing Apparel	395.4	334.1	212.6	100.0	80.3
Leather Products & Footwear	109.5	122.0	106.5	100.0	93.2
Wood & Wood Products	93.3	103.0	107.2	100.0	90.5
Paper & Paper Products	98.5	104.4	104.5	100.0	99.7
Printing & Media	122.8	113.8	105.968	100.0	86.9
Crude Oil Refineries	107.1	100.7	92.2	100.0	100.5
Chemical & Chemical Products	85.3	88.4	96.7	100.0	97.6
Pharmaceutical Products	103.8	101.421	109.4	100.0	115.9
Rubber & Plastic Products	113.5	109.497	109.2	100.0	87.9
Non-metallic Mineral	108.8	107.4	90.759	100.0	93.6
Basic Metals	91.5	77.2	99.3	100.0	113.1
Fabricated Metal Products	107.314	107.5	107.757	100.0	91.7
Machinery & Equipment	107.3	109.1	118.2	100.0	79.3
Electrical Machinery	80.102	87.4	97.871	100.0	99.3
Electronic Components	100.7	105.0	105.6	100.0	106.3
Transport Equipment	109.9	111.1	106.68	100.0	98.7

Construction	28.70	25.40	22.00	-	-
Real Estate	31.9	88.5	145.1	-	-

Services
Electricity, Gas & Water	6.30	6.70	6.50	-	-
Transport, Storage & Communication	5.30	9.80	14.20	-	-
Finance & Insurance	0.50	3.30	6.00	-	-
Government Services	6.00	6.50	6.30	-	-
Education Services	0.30	3.10	5.98	-	-

* Estimate / Preliminary
# Based on Index of Industrial Production (2015 = 100)

INDUSTRY :	MANUFACTURING


In the third quarter of 2015, manufacturing output contracted by 6.2%, extending the 4.8% decline in the previous quarter. The contraction was mainly due to a fall in the output of the transport engineering and electronics clusters. Although the chemicals and biomedical manufacturing clusters saw higher output, it was not sufficient to offset the decline in output in the other clusters.

In the chemicals cluster, output increased by 3.7% in the third quarter of 2015, with all segments, except for the other chemical products segment, posting output gains. In particular, growth was led by the specialty chemicals and petrochemicals segments, which grew by 7.2% and 2.0% respectively, on the back of capacity expansions. Growth was further supported by the petroleum segment, which grew by 4.1%.

Besides, output of the biomedical manufacturing cluster grew by 1.3% in the third quarter of 2015, supported by a robust expansion in the medical technology segment (17%), which came on the back of higher export demand for medical devices and supplies. On the other hand, the pharmaceuticals segment fell by 2.5% due to a different product mix which resulted in a lower volume of active pharmaceutical ingredients produced.

In the third quarter of 2015, the general manufacturing industries shrank by 2.9%, with all segments within the cluster registering declines in output. The food, beverages & tobacco segment contracted by 3.6 % due to lower export demand. At the same time, the output of the miscellaneous industries and printing segments declined by 1.9% and 4.8% respectively. The weak performance of the miscellaneous industries was due to lower output in construction-related products, such as metal doors, windows, grilles & gratings and wooden furniture & fixtures.

Moreover, the precision engineering cluster contracted 7.6% in the third quarter of 2015. In particular, the machinery & systems segment shrank by 8.6%, weighed down by a lower volume of mechanical engineering work, as well as lower production of process control equipment. In addition, the semiconductor equipment manufacturing firms in the segment were affected by a slowdown in global demand. The precision modules & components segment contracted by 6.3% due to a fall in the production of industrial rubber and fabricated metal products.

Output in the electronics cluster fell by 9.2% in the third quarter of 2015, with all segments, except the other electronic modules & components segment, recording lower output. The semiconductors, computer peripherals and data storage segments posed the biggest drag on the cluster, contracting by 12%, 22% and 5.4% respectively. The poor performance of the semiconductors segment could be attributed to weak global semiconductor demand due to the softening of the PC and mobility devices markets. On the other hand, the other electronic modules & components segment recorded output growth of 44% on the back of an expansion in capacity and higher demand for components used in communication devices.

The transport engineering cluster posted a sharp 16% contraction in the third quarter of 2015. This was largely because of a 24% fall in the output of the marine & offshore engineering segment which had come on the back of a lower level of rig building and ship building activities. On the other hand, the aerospace segment expanded by 5.2%, largely due to a low base effect.

OVERALL INDUSTRY OUTLOOK : MATURE

Incorporated in 1995, the Subject is a Sole Proprietorship, focusing on manufacturer and marketer of petrochemicals for industrial, agricultural, automotive and pharmaceutical applications. 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.

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. The Subject is a fairly large and rapidly growing company with over 200 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

As the Subject is registered as a sole-proprietorship, its financial statement are not available for analysis. As such, we are unable to ascertain the Subject's financial health. The Subject's ability to meet its obligations is very much dependent on the owner's financial strength.

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.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

In view of the above, we only recommend credit be proceeded to the Subject with guarantee.

We are unable to comment on the Subject financial position as the Subject is not required by the law to file its financial statement in the Registrar of Business.

Overall financial condition of the Subject : N/A

No latest financial accounts are available at the Registry Office.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.66
UK Pound	1	INR 91.66
Euro	1	INR 81.01
SGD	1	INR 50.15

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.