MIRA INFORM REPORT

 

 

Report Date :           

03.05.2011

 

IDENTIFICATION DETAILS

 

Name :

HG METAL MANUFACTURING LIMITED

 

 

Formerly Known As :

Hock Guan Hardware Engineering Pte. Ltd.

 

 

Registered Office :

30 Jalan Buroh Singapore 619486

 

 

Country :

Singapore

 

 

Financials (as on) :

30.09.2010 (Group)

 

 

Date of Incorporation :

04.08.1988

 

 

Com. Reg. No.:

198802660d

 

 

Legal Form :

Public Company Limited By Shares

 

 

Line of Business :

Other Investment Holding Companies Investment Holding

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

S$1,000,000

Status :

Moderate

Payment Behaviour :

Unknown

Litigation :

Exists

 

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, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Singapore

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Executive Summary

 

Company Name

:

HG METAL MANUFACTURING LIMITED

Registration No

:

198802660D

Date of Registration

:

04/08/1988

Former Name

:

HOCK GUAN HARDWARE ENGINEERING PTE. LTD. Eff. date : 04/08/1988 Eff. date : 04/08/1988

Date of Change of Name

:

01/02/2002

Type of Company

:

PUBLIC COMPANY LIMITED BY SHARES

Registered Address

:

30 JALAN BUROH SINGAPORE 619486

Date of Change of Address

:

01/01/1999

Contact No.

:

6268 2828

Fax No.

:

6268 3838

Website

:

www.hgmetal.com

Registered Activities

:

1. OTHER INVESTMENT HOLDING COMPANIES

INVESTMENT HOLDING

2. WHOLESALE OF METALS AND METAL ORES EXCEPT GENERAL HARDWARE (EG STEEL PIPES)

TRADING OF STEEL PRODUCTS

Issued Ordinary Capital*

:

$128,776,379.54 SINGAPORE, DOLLARS ,NO. OF SHARE : 939,521,962

Issued Preference Capital

:

NA

Paid-Up Ordinary Capital

:

$128,776,379.54 SINGAPORE, DOLLARS

Paid-Up Preference Capital

:

NA

* Number of Shares includes number of Issued Treasury Shares

Issued Treasury Capital

:

NA

Paid-Up Treasury Capital

:

NA

No. of Local Subsidiaries

:

2

No. of Local Associates

:

1

Auditor

:

ERNST & YOUNG LLP

Bankers / Financiers

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

Turnover

:

SGD - SIN 203,068,000.00 (FY2010)

Net Worth

:

SGD - SIN 100,614,000.00 (FY2010)

No. of Bank Charges

:

4

No. of Litigation Suits

:

3

S1000 / SME 500 / FG50 Ranking

:

428 POSITION IN Singapore 1000 Companies Ranked by Sales/Turnover (2009/2010)

64 POSITION IN Singapore 500 Public Listed Companies Ranked By Sales/Turnover (2009/2010)

308 POSITION IN Singapore 1000 Companies Ranked by Sales/Turnover (2008/2009)

652 POSITION IN Singapore 1000 Companies Ranked by Net Profit (2008/2009)

57 POSITION IN Singapore 500 Public Listed Companies Ranked By Sales/Turnover (2008/2009)

Compounded Annual Growth Rate (CAGR)

:

NA

 

 

Credit Recommendation

 

Recommended Credit Line

:

S$1,000,000

 

 

SHAREHOLDER DETAILS

 

As Subject is registered as a public company limited by shares, its shareholder details are not available. Please refer to documentary for information.

 

 

OFFICER DETAILS

 

NAME

:

WONG KEAN SHYONG (KENN)

ADDRESS

:

113 SANTA VILLA, 158 XUYLIN ROAD XUJIN, SHANGHAI, PRC

POSITION

:

DIRECTOR

DATE OF APPT

:

15/11/2010

NATIONALITY

:

MALAYSIAN

I/C PASSPORT

:

A17362925

 

NAME

:

GOH KIAN SIN

ADDRESS

:

NO. 1 JALAN 21 / 13, SEA PARK, 46300 PETALING JAYA SELANGOR DARUL EHSAN, MALAYSIA

POSITION

:

DIRECTOR

MANAGING DIRECTOR

DATE OF APPT

:

15/11/2010

02/12/2010

NATIONALITY

:

MALAYSIAN

I/C PASSPORT

:

A20348100

 

NAME

:

GUI KIM YOUNG @ GUI KIM GAN

ADDRESS

:

10 KENSINGTON PARK DRIVE #16-03 KENSINGTON PARK SINGAPORE 557324

POSITION

:

DIRECTOR

DATE OF APPT

:

01/02/2002

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S0044644J

 

NAME

:

TAN ENG LIANG

ADDRESS

:

58 SWISS VIEW #03-07 LA SUISSE I SINGAPORE 288061

POSITION

:

DIRECTOR

DATE OF APPT

:

29/01/2010

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S0344209H

 

NAME

:

YAP XI MING

ADDRESS

:

52 HUME AVENUE #07-14 SUMMERHILL SINGAPORE 596230

POSITION

:

DIRECTOR

DATE OF APPT

:

26/04/2010

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S1546616B

 

NAME

:

TAN CHAN TOO

ADDRESS

:

56A WILKINSON ROAD SINGAPORE 436754

POSITION

:

DIRECTOR

DATE OF APPT

:

04/08/1988

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S2582874G

 

NAME

:

PATRICK SEIL

ADDRESS

:

20 BRIGHT HILL DRIVE SINGAPORE 579638

POSITION

:

MANAGER

DATE OF APPT

:

02/12/2010

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S2737083G

 

NAME

:

FOONG LEE HENG

ADDRESS

:

11 TOH TUCK ROAD #02-16 HIGH OAK CONDOMINIUM SINGAPORE 596290

POSITION

:

SECRETARY

DATE OF APPT

:

01/02/2002

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S6982965A

 

NAME

:

LING CHUNG YEE ROY

ADDRESS

:

202 KIM SENG ROAD #12-06 COSMOPOLITAN, THE SINGAPORE 239496

POSITION

:

DIRECTOR

DATE OF APPT

:

04/01/2010

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S7715738G

 

 

KEY PERSONNEL PROFILE

 

Name:

GOH KIAN SIN

NRIC Number:

A20348100

Available Address:

NO. 1 JALAN 21 / 13, SEA PARK, 46300 PETALING JAYA SELANGOR DARUL EHSAN, MALAYSIA

 

Current Business Interest

No.

Name

Position

Appt Date

#of Share

%

1

HG METAL MANUFACTURING LIMITED

DIRECTOR

15/11/2010

-

-

2

HG METAL MANUFACTURING LIMITED

MANAGING DIRECTOR

02/12/2010

-

-

3

ORIENTAL SHEET PILING PTE. LTD.

DIRECTOR

21/03/2003

-

-

4

ORIENTAL SHEET PILING PTE. LTD.

MANAGING DIRECTOR

12/05/2003

-

-

5

ORIENTAL STEEL PIPE PTE. LTD.

DIRECTOR

03/03/2006

-

-

 

Previous Business

No.

Name

 

 

Status

Position

Appt Date

Last Known Inactive Date

No Trace

 

 

 

 

 

Bankruptcy Record

Case No.

Year

Date of Filing

Petitioner Name

Amount

No Trace

 

 

 

 

 

Litigation Search – Writ of Summons

Court

Case No.

Year

Date of Filing

Amount

Cause Category

No Trace

 

 

 

 

 

 

 

SUBSIDIARIES AND ASSOCIATE COMPANIES

 

Company

Shareholdings (%)

ORIENTAL METALS PTE LTD

99.99

HG METAL INVESTMENTS PTE. LTD.

100

POS-SEA PTE. LTD.

24.5

                                                                                                                       

BANKERS/ FINANCIERS

 

Subject enjoys a normal banking routine with its bankers. To date, there have been 4 bank charges registered against Subject by its bankers. The charge numbers are:

 

1)

Charge No.

:

C200907148

 

Date of Registration

:

06/11/2009

 

Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

 

Address

:

65 CHULIA STREET #26-00 OCBC CENTRE SINGAPORE 049513

 

2)

Charge No.

:

C200906975

 

Date of Registration

:

30/10/2009

 

Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

 

Address

:

65 CHULIA STREET #26-00 OCBC CENTRE SINGAPORE 049513

 

3)

Charge No.

:

C200906974

 

Date of Registration

:

30/10/2009

 

Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

 

Address

:

65 CHULIA STREET #26-00 OCBC CENTRE SINGAPORE 049513

 

4)

Charge No.

:

C200906972

 

Date of Registration

:

30/10/2009

 

Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

 

Address

:

65 CHULIA STREET #26-00 OCBC CENTRE SINGAPORE 049513

 

             

LITIGATION

 

The following litigation suits were traced against Subject. Case status is as per available. For the latest status of the suit, please obtain the full details of the suit through Litigation Detail Search (DLIT) offered.

 

To date, there have been 3 litigation suits filed against Subject.

 

 

Current Year

On/After 01 Jan 2011

Past Years

W.e.f. 01 Jan 2011

 

Court (Claim under normal circumstances)

Magistrate (< $80,000)

0

0

District ($80,000 - $250,000)

0

2

High (>$250,000)

0

1

 

Winding Up Trace

 

No

In litigation/Dissolved/Struck Off/In receivership

No

 

 

The details are as follows:

 

1)

Court

:

Supreme Court

 

Case No.

:

604

 

Date of Filing

:

21/09/2007

 

Amount

:

0.00

 

Cause

:

Contract - Others

 

Case Status

:

CONCLUDED

 

Plaintiff

:

DUN & BRADSTREET (SINGAPORE) PTE LTD

 

Last Update Date

:

24/04/2008

 

2)

Court

:

District Court

 

Case No.

:

968

 

Date of Filing

:

27/03/2008

 

Amount

:

250,000.00

 

Cause

:

Tort - Negligence (Industrial Accidents With Injury)

 

Case Status

:

CONCLUDED

 

Plaintiff

:

SELVANAYAGAM RAJAKUMAR

 

Last Update Date

:

03/03/2009

 

3)

Court

:

District Court

 

Case No.

:

4062

 

Date of Filing

:

19/11/2009

 

Amount

:

88,690.00

 

Cause

:

Tort - Negligence (Motor Accidents With Injury)

 

Case Status

:

PENDING

 

Plaintiff

:

CHOO EILEEN

 

Last Update Date

:

20/11/2009

 

 

COMPLIANCE RECORDS

 

Date of Last AGM

:

28/01/2011

Date of Last AR

:

01/03/2011

Date of A/C Laid At Last AGM

:

30/09/2010

FINANCIAL HIGHLIGHTS

 

Financial Figures

Group

 

SEP 2010

% Change

SEP 2009

SEP 2008

SEP 2007

SEP 2006

Currency

SGD - SIN

 

SGD - SIN

SGD - SIN

SGD - SIN

SGD - SIN

Profit and Loss Key Figures

 

 

 

 

 

 

Turnover

203,068,000

-65.10

581,819,000

732,944,000

438,142,388

362,815,171

Profit/(Loss) Before Tax

(27,000)

NA

(56,309,000)

27,582,000

22,538,858

16,347,895

Profit After Tax attributable to Shareholders

327,000

NA

(58,802,000)

22,738,000

18,313,039

13,876,608

 

 

 

 

 

 

 

Balance Sheet Key Figures

 

 

 

 

 

 

Total Assets

163,872,000

-51.68

339,137,000

681,490,000

325,630,622

226,709,767

Current Assets

98,302,000

-59.41

242,191,000

590,915,000

312,078,118

213,347,503

Non Current Assets

65,570,000

-32.36

96,946,000

90,575,000

13,552,504

13,362,264

 

 

 

 

 

 

 

Total Liabilities

63,258,000

-69.31

206,119,000

514,654,000

208,319,558

167,298,331

Current Liabilities

57,972,000

-67.40

177,812,000

504,676,000

201,888,545

159,640,778

Non Current Liabilities

5,286,000

-81.33

28,307,000

9,978,000

6,431,013

7,657,553

 

 

 

 

 

 

 

Shareholders' Funds

100,614,000

-24.36

133,018,000

166,836,000

117,311,064

59,411,436

Share Capital

111,730,000

0.00

111,730,000

78,203,000

78,196,688

35,273,598

Total Reserves

(11,116,000)

NA

21,288,000

88,633,000

39,114,376

24,137,838

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

 

Group

 

SEP 2010

SEP 2009

SEP 2008

SEP 2007

SEP 2006

Growth %

 

 

 

 

 

Year-on-Year Growth

-65.10

-20.62

67.28

20.76

NA

 

 

 

 

 

 

Profitability

 

 

 

 

 

Profit Margin (%)

0.16

NA

3.10

4.18

3.82

Return on Equity (%)

0.33

NA

13.63

15.61

23.36

Return on Assets (%)

0.20

NA

3.34

5.62

6.12

 

 

 

 

 

 

Leverage

 

 

 

 

 

Total Debt/Equity (Times)

0.63

1.55

3.08

1.78

2.82

Current Debt/Equity (Times)

0.58

1.34

3.02

1.72

2.69

Long Term Debt To Equity (Times)

0.05

0.21

0.06

0.05

0.13

Total Asset To Total Equity (Times)

1.63

2.55

4.08

2.78

3.82

 

 

 

 

 

 

Asset Management

 

 

 

 

 

Total Assets Turnover (Times)

1.24

1.72

1.08

1.35

1.60

Fixed Assets Turnover (Times)

3.10

6.00

8.09

32.33

27.15

 

 

 

 

 

 

Liquidity

 

 

 

 

 

Current Ratio (Times)

1.70

1.36

1.17

1.55

1.34

 

 

 

 

 

 

FINANCIAL COMMENTARY

 

Profitability

The group yielded a rate of net profit on sales of 0.16 per cent in FY10. The group is now able to book in SGD - SIN 0.001 of profit for every SGD - SIN of sales.

 

 

Liquidity

 

Current ratio stood at 1.70 times in FY10. This means that the group has SGD - SIN 1.70 of current assets for every SGD - SIN of current liability incurred.

 

A minimum figure of 1.0 would be considered the lowest limit that this figure should reach. Any business that has a current ratio near 1.0 may be heading for liquidity problems, and would need to be closely monitored. A figure greater than 2.0 would be more desirable, to act as a buffer against any short-term liquidity problems, and give creditors/bank managers a degree of comfort when granting credit/finance.

 

 

 

 

 

 

Leverage

Total debt-to-equity ratio notched 0.63 times in FY10. This means that the group requires additional external financing of SGD - SIN 0.63 for every SGD - SIN injected into its operations.

 

Generally, a total debt-to-equity ratio of less than 0.5 times is preferred. The ratio measures the proportion of the company's reliance on external debt for financing, relative to the shareholder's fund. A lower ratio would imply a greater financial safety and operating freedom for the company.

 

 

Efficiency Ratio

 

Return on equity was 0.33 per cent for Subject in the current financial period. The return on equity measures the return earned on the owner's investment.  Generally, the higher this return, the better off the owner.

 

Return on assets stood at 0.20 per cent. The return on asset measures the overall effectiveness of management in generating profit with its available assets.

 

Total assets turnover ratio logged at 1.24 times in FY10. This ratio measures the group's ability to make productive use of its total assets to generate sales which reflects the efficiency of the management in utilising its resources.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.33

UK Pound

1

Rs.73.89

Euro

1

Rs.65.57

 

 

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%)

 

 

 

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.