MIRA INFORM REPORT

 

 

Report Date :           

04.04.2012

 

IDENTIFICATION DETAILS

 

Name :

MEGACHEM LIMITED

 

 

Formerly Known As :

MEGACHEM PTE LTD

 

 

Registered Office :

132 Pioneer Road Singapore 639588

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2010 (Group)

 

 

Date of Incorporation :

12.09.1988

 

 

Com. Reg. No.:

198803293m             

 

 

Legal Form :

Public Company Limited By Shares

 

 

Line of Business :

General wholesale trade (including general importers and exporters)

 

 

No. of Employees :

Not Available

 

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

 

Maximum Credit Limit :

S$1,000,000

 

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

:

MEGACHEM LIMITED

Registration No

:

198803293M

Date of Registration

:

12/09/1988

Former Name

:

MEGACHEM PTE LTD Eff. date : 12/09/1988 Eff. date : 12/09/1988

Date of Change of Name

:

11/09/2003

Type of Company

:

PUBLIC COMPANY LIMITED BY SHARES

Registered Address

:

132 PIONEER ROAD SINGAPORE 639588

Date of Change of Address

:

18/03/1994

Contact No.

:

6863 3818

Fax No.

:

6863 2818

Website

:

www.megachem.com

Registered Activities

:

1. GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)

TRADING IN CHEMICALS AND CHEMICAL-RELATED PRODUCTS

2. OTHER INVESTMENT HOLDING COMPANIES

Issued Ordinary Capital*

:

$15,892,027.86 SINGAPORE, DOLLARS ,NO. OF SHARE : 133,300,000

Issued Preference Capital

:

NA

Paid-Up Ordinary Capital

:

$15,892,027.86 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

:

3

No. of Local Associates

:

NA

Auditor

:

RSM CHIO LIM LLP

Bankers / Financiers

:

NA

Turnover

:

SGD - SIN 94,982,700.00 (FY2010)

Net Worth

:

SGD - SIN 37,649,428.00 (FY2010)

No. of Bank Charges

:

NA

No. of Litigation Suits

:

6

S1000 / SME 500 / FG50 Ranking

:

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

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

333 POSITION IN Singapore 500 Public Listed Companies Ranked By Sales/Turnover (2007/2008)

1473 POSITION IN Singapore 1000 Companies Ranked by Sales/Turnover (2006/2007)

340 POSITION IN Singapore 500 Public Listed Companies Ranked By Sales/Turnover (2006/2007)

Compounded Annual Growth Rate (CAGR)

:

12.29% (4 years)

 

 

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

:

PATRICK PUI HANG YEUNG

ADDRESS

:

14 MOUNT ELIZABETH #14-04 ELIZABETH TOWER SINGAPORE 228512

POSITION

:

DIRECTOR

DATE OF APPT

:

09/07/2007

NATIONALITY

:

AMERICAN

I/C PASSPORT

:

712598366

 

NAME

:

TAN BOCK CHIA

ADDRESS

:

628 HOUGANG AVENUE 8 #04-96 SINGAPORE 530628

POSITION

:

DIRECTOR

DATE OF APPT

:

12/09/1988

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S1268065A

 

NAME

:

LEE BON LEONG

ADDRESS

:

44 CORONATION DRIVE SINGAPORE 269598

POSITION

:

DIRECTOR

DATE OF APPT

:

05/09/2003

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S2034220Z

 

NAME

:

CHEW CHOON TEE

ADDRESS

:

18 SPRINGLEAF HEIGHT SPRINGLEAF GARDEN SINGAPORE 788112

POSITION

:

DIRECTOR

MANAGING DIRECTOR

DATE OF APPT

:

28/04/1989

09/11/2005

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S2505195E

 

NAME

:

CHAN KAM LOON

ADDRESS

:

25 DUCHESS ROAD DUKE'S GARDEN SINGAPORE 268995

POSITION

:

DIRECTOR

DATE OF APPT

:

28/09/2007

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S2566529E

 

NAME

:

TAN PING PING

ADDRESS

:

112 LENGKONG TIGA #11-219 SINGAPORE 410112

POSITION

:

SECRETARY

DATE OF APPT

:

27/01/2005

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S7484709I

 

NAME

:

KWOK HWEE PENG

ADDRESS

:

115 SHREWSBURY ROAD #03-02 TREASURE LOFT SINGAPORE 307856

POSITION

:

SECRETARY

DATE OF APPT

:

01/03/2004

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S7516601Z

 

 

KEY PERSONNEL PROFILE

 

Name:

CHEW CHOON TEE

NRIC Number:

S2505195E

Available Address:

18 SPRINGLEAF HEIGHT SPRINGLEAF GARDEN  SINGAPORE 788112

 

Current Business Interest

No.

Name

Position

Appt Date

#of Share

%

1

MEGACHEM (SHANGHAI) PTE LTD

DIRECTOR

24/06/2000

-

-

2

MEGACHEM LIMITED

DIRECTOR

28/04/1989

-

-

3

MEGACHEM LIMITED

MANAGING DIRECTOR

09/11/2005

-

-

4

MEGACHEM MANUFACTURING PTE. LTD.

DIRECTOR

29/12/1997

-

-

5

MEGACHEM RAYA PTE LTD

DIRECTOR

29/12/1993

-

-

 

Previous Business

No.

Name

 

 

Status

Position

Appt Date

Last Known Inactive Date

1

MEGACHEM LIMITED

LIVE COMPANY

SHAREHOLDER

-

13/10/2011

2

PERFECT CHEMICAL PRIVATE LIMITED

LIVE COMPANY

DIRECTOR

07/01/1987

28/06/2011

 

 

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

M

42295

2003

17/12/2003

SGD 2,219.15

Negligence Related

 

 

SUBSIDIARIES AND ASSOCIATE COMPANIES

 

Company

Shareholdings (%)

 

MEGACHEM MANUFACTURING PTE. LTD.

100

MEGACHEM (SHANGHAI) PTE LTD

85

MEGACHEM RAYA PTE LTD

74.17

                                                                                                                       

BANKERS/ FINANCIERS

 

Subject enjoys a normal banking routine with its bankers. To date, there are no bank charges registered against Subject by its bankers.

 

 

LITIGATION

 

The following litigation suits were traced against Subject. Case status is as per available database. 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 6 litigation suits filed against Subject.

 

 

Current Year

On/After 01 Jan 2012

Past Years

W.e.f 01 Jan 2012

 

Court (Claim under normal circumstances)

Magistrate (< $80,000)

0

6

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

0

0

High (>$250,000)

0

0

 

Winding Up Trace

 

No

In litigation/Dissolved/Struck Off/In receivership

No

 

The details are as follows:

 

1)

Court

:

Magistrate Court

 

Case No.

:

22876

 

Date of Filing

:

01/07/2003

 

Amount

:

4,836.30

 

Cause

:

Negligence - Motor Accidents (Not Injuries / Death)

 

Case Status

:

CONCLUDED

 

Plaintiff

:

FONG WENG HENG

 

Last Update Date

:

11/08/2006

 

2)

Court

:

Magistrate Court

 

Case No.

:

42295

 

Date of Filing

:

17/12/2003

 

Amount

:

2,219.15

 

Cause

:

Negligence - Motor Accidents (Not Injuries / Death)

 

Case Status

:

CONCLUDED

 

Plaintiff

:

LIM TIANG YAO

 

Last Update Date

:

11/08/2006

 

3)

Court

:

Magistrate Court

 

Case No.

:

25574

 

Date of Filing

:

21/10/2004

 

Amount

:

39,967.49

 

Cause

:

Contract - Others

 

Case Status

:

CONCLUDED

 

Plaintiff

:

BIRKART GLOBISTICS (S.E.A) PTE LTD (FORMERLY KNOWN AS BIRKART SOUTHEASTASIA PTE LTD)

 

Last Update Date

:

08/01/2009

 

4)

Court

:

Magistrate Court

 

Case No.

:

18957

 

Date of Filing

:

12/08/2005

 

Amount

:

SGD 46,011.23

USD 760.00

 

Cause

:

Contract - Provisions of Services Excluding Renovation

 

Case Status

:

DEEMED DISCONTINUED

 

Plaintiff

:

G&U ASIA PACIFIC LOGISTICS PTE LTD

 

Last Update Date

:

08/01/2009

 

5)

Court

:

Magistrate Court

 

Case No.

:

7457

 

Date of Filing

:

03/04/2007

 

Amount

:

38,000.00

 

Cause

:

Contract - Others

 

Case Status

:

CONCLUDED

 

Plaintiff

:

NEWPORT CHEMICALS (UK) LTD

 

Last Update Date

:

08/01/2009

 

6)

Court

:

Magistrate Court

 

Case No.

:

19428

 

Date of Filing

:

28/08/2007

 

Amount

:

9,248.30

 

Cause

:

Tort - Negligence (Motor Accidents Without Death/ Injury)

 

Case Status

:

CONCLUDED

 

Plaintiff

:

TRANS-CAB SERVICES PTE LTD

KWEK JIN TAI GINA

 

Last Update Date

:

17/12/2007

 

 

COMPLIANCE RECORDS

 

Date of Last AGM

:

15/04/2011

Date of Last AR

:

13/05/2011

Date of A/C Laid At Last AGM

:

31/12/2010

FINANCIAL HIGHLIGHTS

 

Financial Figures

Group

 

DEC 2010

% Change

DEC 2009

DEC 2008

DEC 2007

DEC 2006

Currency

SGD - SIN

 

SGD - SIN

SGD - SIN

SGD - SIN

SGD - SIN

Profit and Loss Key Figures

 

 

 

 

 

 

Turnover

94,982,700

34.49

70,622,743

77,664,443

73,597,264

59,745,957

Profit/(Loss) Before Tax

6,159,440

78.56

3,449,547

3,026,095

2,913,531

2,369,243

Profit After Tax attributable to Shareholders

4,822,684

78.23

2,705,930

2,339,432

2,329,967

1,815,847

 

 

 

 

 

 

 

Balance Sheet Key Figures

 

 

 

 

 

 

Total Assets

58,720,971

16.06

50,595,259

47,960,481

45,957,095

42,054,932

Current Assets

50,866,067

16.12

43,803,419

41,616,067

39,782,840

36,129,510

Non Current Assets

7,854,904

15.65

6,791,840

6,344,414

6,174,255

5,925,422

 

 

 

 

 

 

 

Total Liabilities

21,071,543

33.16

15,824,648

15,384,710

14,348,049

11,710,176

Current Liabilities

21,005,495

33.46

15,739,163

15,288,635

14,325,049

11,692,176

Non Current Liabilities

66,048

-22.74

85,485

96,075

23,000

18,000

 

 

 

 

 

 

 

Shareholders' Funds

37,649,428

8.28

34,770,611

32,575,771

31,609,046

30,344,756

Share Capital

15,892,028

0.00

15,892,028

15,892,028

15,892,028

15,892,028

Total Reserves

21,757,400

15.25

18,878,583

16,683,743

15,717,018

14,452,728

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

 

Group

 

DEC 2010

DEC 2009

DEC 2008

DEC 2007

DEC 2006

Growth %

 

 

 

 

 

Year-on-Year Growth

34.49

-9.07

5.53

23.18

NA

 

 

 

 

 

 

Profitability

 

 

 

 

 

Profit Margin (%)

5.08

3.83

3.01

3.17

3.04

Return on Equity (%)

12.81

7.78

7.18

7.37

5.98

Return on Assets (%)

8.21

5.35

4.88

5.07

4.32

 

 

 

 

 

 

Leverage

 

 

 

 

 

Total Debt/Equity (Times)

0.56

0.46

0.47

0.45

0.39

Current Debt/Equity (Times)

0.56

0.45

0.47

0.45

0.39

Long Term Debt To Equity (Times)

0.00

0.00

0.00

0.00

0.00

Total Asset To Total Equity (Times)

1.56

1.46

1.47

1.45

1.39

 

 

 

 

 

 

Asset Management

 

 

 

 

 

Total Assets Turnover (Times)

1.62

1.40

1.62

1.60

1.42

Fixed Assets Turnover (Times)

12.09

10.40

12.24

11.92

10.08

 

 

 

 

 

 

Liquidity

 

 

 

 

 

Current Ratio (Times)

2.42

2.78

2.72

2.78

3.09

 

 

 

 

 

 

FINANCIAL COMMENTARY

 

Compound Annual Growth Rate

 

The company's CAGR is 12.29% (4 years).

 

CAGR is the year-over-year growth rate of a company over a specified period. Instead of looking at the average growth rate, CAGR allow users to look at the annualized growth rate of a company over a given period, a more indicative measure of growth of a company’s performance over a given period.

 

Profitability

The group yielded a rate of net profit on sales of 5.08 per cent in FY10. The group is now able to book in SGD - SIN 0.05 of profit for every SGD - SIN of sales.

 

 

Liquidity

Current ratio stood at 2.42 times in FY10. This means that the group has SGD - SIN 2.42 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 0.56 times in FY10. This means that the group requires additional external financing of SGD - SIN 0.56 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 12.81 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 8.21 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 1.62 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.50.56

UK Pound

1

Rs.81.04

Euro

1

Rs.67.48

 

 

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.