MIRA INFORM REPORT

 

 

Report Date :

14.12.2012

 

IDENTIFICATION DETAILS

 

Name :

HOCK SENG MARINE ENGINEERING PTE LTD

 

 

Registered Office :

7 Joo Koon Crescent, 629024

 

 

Country :

Singapore

 

 

Date of Incorporation :

10.03.1988

 

 

Reg. No.:

198800748-G

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

Marine Engineering

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

Without Financials

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 1.0% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010 and 4.9% in 2011, on the strength of renewed exports. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to a compound annual growth rate of just 1.8% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

198800748-G

COMPANY NAME

:

HOCK SENG MARINE ENGINEERING PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/03/1988

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

7 JOO KOON CRESCENT, 629024, SINGAPORE.

BUSINESS ADDRESS

:

7 JOO KOON CRESCENT, , 629024, SINGAPORE.

TEL.NO.

:

65-62688877

FAX.NO.

:

65-62686880

EMAIL

:

hsmepl@singnet.com.sg

WEB SITE

:

www.hocksengmarine.com.sg

CONTACT PERSON

:

MANOR ( DIRECTOR )

PRINCIPAL ACTIVITY

:

MARINE ENGINEERING

AUTHORISED CAPITAL

:

410,000.00 ORDINARY SHARE, OF A VALUE OF SGD 410,000.00

ISSUED AND PAID UP CAPITAL

:

410,000.00 ORDINARY SHARE, OF A VALUE OF SGD 410,000.00

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

N/A

BANKER (S)

:

DBS BANK LTD
OVERSEA-CHINESE BANKING CORPORATION LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

The SC is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, suing or be sued by other companies. The SC is governed by the Companies Act and must file in its annual return. The SC need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the SC is able to meet all its obligations as and when they fall due. Although the SC is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

The SC is principally engaged in the (as a / as an) marine engineering.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

HO HOCK SENG +

11A SECOND AVENUE, 266662, SINGAPORE.

S0190434E

300,000.00

73.17

MDM. FOO CHEAN TAY +

11A SECOND AVENUE, 266662, SINGAPORE.

S1225822D

50,000.00

12.20

HO HOCK KIAN +

285C TOH GUAN ROAD 14-88, 603285, SINGAPORE.

S0166630D

50,000.00

12.20

CHALSON MANOR +

24 PORTCHESTER AVENUE, SERANGOON GARDEN ESTATE, 556306, SINGAPORE.

S0175046A

10,000.00

2.44

---------------

------

410,000.00

100.00

============

=====

 

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

HO PEI YUI

Address

:

503 CHOA CHU KANG STREET 51, 04-161, 680503, SINGAPORE.

IC / PP No

:

S7923412E

Nationality

:

SINGAPOREAN

Date of Appointment

:

31/12/2011

 

DIRECTOR 2

 

Name Of Subject

:

EDDIE ONG KIAN SEK

Address

:

503 CHOA CHU KANG STREET 51, 04-161, 680503, SINGAPORE.

IC / PP No

:

S7825182D

Nationality

:

SINGAPOREAN

Date of Appointment

:

31/12/2011

 

DIRECTOR 3

 

Name Of Subject

:

LEE MUN KOK

Address

:

569 PASIR RIS STREET 51, 05-66, 510569, SINGAPORE.

IC / PP No

:

S1453699Z

Nationality

:

SINGAPOREAN

Date of Appointment

:

12/02/1997

 

DIRECTOR 4

 

Name Of Subject

:

LOH BOON SHONG

Address

:

667C JURONG WEST STREET 65, 12-145, 643667, SINGAPORE.

IC / PP No

:

S7804415B

Nationality

:

SINGAPOREAN

Date of Appointment

:

31/12/2011

 

DIRECTOR 5

 

Name Of Subject

:

CHALSON MANOR

Address

:

24 PORTCHESTER AVENUE, SERANGOON GARDEN ESTATE, 556306, SINGAPORE.

IC / PP No

:

S0175046A

Nationality

:

SINGAPOREAN

Date of Appointment

:

20/02/1991

 

DIRECTOR 6

 

Name Of Subject

:

MDM. FOO CHEAN TAY

Address

:

11A SECOND AVENUE, 266662, SINGAPORE.

IC / PP No

:

S1225822D

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/03/1988

 

DIRECTOR 7

 

Name Of Subject

:

HO HOCK KIAN

Address

:

285C TOH GUAN ROAD 14-88, 603285, SINGAPORE.

IC / PP No

:

S0166630D

Nationality

:

SINGAPOREAN

Date of Appointment

:

20/02/1991

 

DIRECTOR 8

 

Name Of Subject

:

HO HOCK SENG

Address

:

11A SECOND AVENUE, 266662, SINGAPORE.

IC / PP No

:

S0190434E

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/03/1988



MANAGEMENT

 

 

 

1)

Name of Subject

:

MANOR

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

LIM CHEE YONG & CO

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

TAN KOK SENG

IC / PP No

:

S0889453A

Address

:

112 BUKIT BATOK WEST AVENUE 6, 01-154, 650112, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

 

2)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LTD

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

03/02/2010

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LTD

Form 40 Dated

Registered and Numbered C201001065 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

03/02/2010

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LTD

Form 40 Dated

Registered and Numbered C201001071 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

12/04/2012

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LTD

Form 40 Dated

Registered and Numbered C201203955 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

13/04/2012

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

OVERSEA-CHINESE BANKING CORPORATION LTD

Form 40 Dated

Registered and Numbered C201204022 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

18/10/2012

Description Of Charge

:

N/A

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

DBS BANK LTD

Form 40 Dated

Registered and Numbered C201212041 In The Register of Charges



LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC 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 SC refused to disclose its supplier information.

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

WORLDWIDE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Services

:

MARINE ENGINEERING

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) marine engineering.

The SC is a well established marine engineering organization specializing in the design and fabrication of marine grade windows, doors, hatches, ladders and other types of hull outfittings to an interior accommodation system like lining/wall/ceiling panels and pre-fabricated sanitary modules.

The SC's services are as follows:

* Site measurement

* On-site repair and installation

* Stress calculation


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62688877

Match

:

N/A

Address Provided by Client

:

7, JOO KOON CRESENT SINGAPORE 629024

Current Address

:

7 JOO KOON CRESCENT, , 629024, SINGAPORE.

Match

:

YES

 

Other Investigations


On 11th December 2012 we contacted one of the staff from the SC and she provided some information on the SC.

The SC refused to disclose its number of employees.



FINANCIAL ANALYSIS

 

 

The SC is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the SC's financial performance.

Overall financial condition of the SC : N/A

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2006

2007

2008

2009

2010

 

Population (Million)

4.40

4.58

4.84

4.98

5.08

Gross Domestic Products ( % )

8.7

8.8

1.5

<0.8>

14.5

Consumer Price Index

1.0

2.1

6.6

0.6

2.8

Total Imports (Million)

378,924.1

395,979.7

450,892.6

356,299.3

423,221.8

Total Exports (Million)

431,559.2

450,627.7

476,762.2

391,118.1

478,840.7

 

Unemployment Rate (%)

2.7

2.3

2.2

3.2

2.2

Tourist Arrival (Million)

9.75

10.28

10.12

9.68

11.64

Hotel Occupancy Rate (%)

85.2

87.0

81.0

75.8

85.6

Cellular Phone Subscriber (Million)

1.05

1.22

1.31

1.37

1.43

 

Registration of New Companies (No.)

21,495

25,903

25,327

26,414

29,798

Registration of New Companies (%)

10.2

20.5

<2.2>

4.3

12.8

Liquidation of Companies (No.)

8,980

9,226

10,493

22,393

15,126

Liquidation of Companies (%)

28.1

2.7

13.7

113.4

<32.5>

 

Registration of New Businesses (No.)

24,219

24,762

24,850

26,876

23,978

Registration of New Businesses (%)

3.17

2.24

0.36

8.15

<10.78>

Liquidation of Businesses (No.)

26,843

21,322

21,150

23,552

24,211

Liquidation of Businesses (%)

<52.3>

<20.6>

<0.8>

11.4

2.8

 

Bankruptcy Orders (No.)

2,983

2,767

2,326

2,058

1,537

Bankruptcy Orders (%)

15.8

<7.2>

<15.9>

<11.5>

<25.3>

Bankruptcy Discharges (No.)

1,634

1,626

1,500

3,056

2,252

Bankruptcy Discharges (%)

<2.9>

<0.5>

<7.7>

103.7

<26.3>

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

3.91

5.26

<0.32>

3.25

<0.48>

Fish Supply & Wholesale

1.33

<3.91>

<6.31>

<1.93>

3.60

 

Manufacturing *

94.4

100.0

95.8

91.8

119.1

Food, Beverages & Tobacco

89.9

100.0

107.7

102.7

109.5

Textiles

119.9

100.0

92.6

75.0

62.8

Wearing Apparel

114.5

100.0

71.8

45.3

26.4

Leather Products & Footwear

100.3

100.0

84.7

52.6

54.1

Wood & Wood Products

107.1

100.0

88.8

68.3

70.0

Paper & Paper Products

92.5

100.0

98.8

93.3

103.7

Printing & Media

97.6

100.0

96.7

82.5

84.7

Crude Oil Refineries

100.2

100.0

101.0

86.1

85.4

Chemical & Chemical Products

93.8

100.0

95.1

90.4

109.9

Pharmaceutical Products

102.1

100.0

92.8

104.4

159.9

Rubber & Plastic Products

100.1

100.0

92.2

77.6

86.1

Non-metallic Mineral

113.1

100.0

83.1

79.1

79.7

Basic Metals

110.0

100.0

120.9

101.9

112.5

Fabricated Metal Products

97.8

100.0

95.0

85.2

97.2

Machinery & Equipment

83.9

100.0

97.4

85.8

117.7

Electrical Machinery

98.8

100.0

98.1

104.2

149.1

Electronic Components

96.1

100.0

93.0

85.1

115.5

Transport Equipment

85.3

100.0

106.7

100.2

99.3

 

Construction

46.60

45.60

45.90

<36.9>

14.20

Real Estate

12.9

40.8

<11.2>

1.4

21.3

 

Services

Electricity, Gas & Water

<5.3>

11.00

<1.3>

1.70

4.00

Transport, Storage & Communication

6.00

8.50

11.60

3.90

12.80

Finance & Insurance

6.40

41.50

<5.9>

<16.4>

<0.4>

Government Services

13.50

3.80

17.40

4.50

9.70

Education Services

1.10

1.80

0.50

0.10

<0.9>

 

* Based on Index of Industrial Production (2007 = 100)

(Source : Department of Statistics)



INDUSTRY ANALYSIS

 

INDUSTRY :

ECONOMY


According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2012. Global economic conditions are expected to remain subdued in 2012, with the outlook clouded by increased uncertainty and financial volatility. In the advanced economies, final demand is likely to be restrained by continued household deleveraging, ongoing fiscal tightening as well as structural weaknesses in labour and housing markets.


Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.


For the 4th quarter of 2011, growth in the Singapore economy will likely weaken alongside deteriorating external macroeconomic conditions. Within the manufacturing sector, the electronics cluster is expected to register a lower level of output given the downturn in the global electronics cycle. This in turn will have knock-on effects on the precision engineering cluster and wholesale trade. The biomedical manufacturing (BMS) cluster is expected to see a pullback in growth following the strong surge in the 3rd quarter of 2011. In the financial services sector, activity in the core financial intermediation will moderate and the sentiment-sensitive segments are expected to continue to perform poorly.


The manufacturing sector expanded by 14.2 % on a year-on-year basis, reversing from the 5.6 % decline in the preceding quarter. On a sequential basis, the sector grew by an annualised rate of 11.7 %. This was largely due to a rebound in biomedical manufacturing output, as some companies switched to producing a higher value mix of pharmaceutical products. By contrast, the electronics cluster continued to contract, as global demand for semiconductor chips and other electronic components moderated.


The construction sector grew marginally by 0.3 % on a year-on-year basis, moderating from the 1.5 % growth in the preceding quarter. On a sequential basis, the sector contracted by an annualised rate of 11.8 %, largely due to a decline in private sector building activities.


The wholesale and retail trade sector saw a small year-on-year decline of 0.2 %, mainly due to weakening export activities. Supported by air travel demand, the transport and storage sector grew by 4.2 %, similar to the pace of growth in the preceding quarter. On a sequential basis, growth momentum in both sectors declined, by annualised rates of 0.6 % and 4.5 % respectively.


The financial services sector grew at 10.5 % on a year-on-year basis, anchored by gains in domestic and offshore lending activities. However, the business services sector registered a weak growth of 1.7 %, largely due to a moderation in the real estate services segment. On a sequential basis, both sectors grew marginally by 0.8 % and 0.9 % respectively.


Supported by healthy visitor inflows, the hotels and restaurants sector and the 'other services' industries (which include arts, entertainment and recreation activities) grew by 5.6 % and 4.0 % respectively. However, on a sequential basis, these sectors declined by 2.6 and 0.7 % respectively.


Overall, the Singapore economy is expected to grow by around 5.0% in 2011 and by 1.0 to 3.0% in 2012.

OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1988, the SC is an Exempt Private company, focusing on marine engineering. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. However, with a small paid up capital, the SC should put more efforts on its business to gain higher market share while competing aggressively in the market.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Overall, we regard that the SC's management capability is average.


As the SC is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.


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 SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.23

UK Pound

1

Rs.87.53

Euro

1

Rs.70.94

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.