|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
200100207-G
|
|
COMPANY NAME
|
:
|
RAINBOW OFFSHORE SUPPLIES PTE LTD
|
|
FORMER NAME
|
:
|
PIPELINK INDUSTRIES PTE LTD (08/08/2001)
|
|
INCORPORATION DATE
|
:
|
08/01/2001
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
7, NEYTHAL ROAD, 628574, SINGAPORE.
|
|
BUSINESS ADDRESS
|
:
|
7 NEYTHAL ROAD, 628574, SINGAPORE.
|
|
TEL.NO.
|
:
|
65-63632822
|
|
FAX.NO.
|
:
|
65-63632622
|
|
EMAIL
|
:
|
SALES@RAINBOW-OFFSHORE.COM
|
|
WEB SITE
|
:
|
HTTP://WWW.RAINBOW-OFFSHORE.COM
|
|
CONTACT PERSON
|
:
|
HUAN MING CHYE ( DIRECTOR )
|
|
|
|
|
|
|
|
|
|
PRINCIPAL ACTIVITY
|
:
|
BUILDING OF SHIPS, TANKERS & OTHER OCEAN-GOING VESSELS
|
|
|
|
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
1,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,000,000.00
|
|
|
|
|
|
SALES
|
:
|
SGD 34,307,674 [2012]
|
|
NET WORTH
|
:
|
SGD 10,615,772 [2012]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
20 [2013]
|
|
BANKER (S)
|
:
|
|
UNITED
OVERSEAS BANK LTD
UNITED OVERSEAS BANK LIMITED
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
POOR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
|
HISTORY / BACKGROUND
The SC 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 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, 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 SC is insolvent. The SC 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 SC is
principally engaged in the (as a / as an) building of ships, tankers &
other ocean-going vessels.
The immediate and
ultimate holding company of the SC is CONEXA PTE. LTD., a company
incorporated in SINGAPORE.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
KONG SWEE ENG +
|
137, COUNTRYSIDE ROAD, 789858, SINGAPORE.
|
S6907802H
|
500,000.00
|
50.00
|
|
CONEXA PTE. LTD.
|
7, NEYTHAL ROAD, 628574, SINGAPORE.
|
199408772C
|
500,000.00
|
50.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
1,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown
as follow :
|
Local No
|
Country
|
Company
|
(%)
|
As At
|
|
200713536G
|
SINGAPORE
|
CONEXA ASIA PTE. LTD.
|
30.00
|
31/03/2012
|
|
|
|
|
|
|
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
HUAN MING CHYE
|
|
Address
|
:
|
137, COUNTRYSIDE ROAD, 789858, SINGAPORE.
|
|
IC / PP No
|
:
|
S1163680B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
01/08/2001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
KONG SWEE ENG
|
|
Address
|
:
|
137, COUNTRYSIDE ROAD, 789858, SINGAPORE.
|
|
IC / PP No
|
:
|
S6907802H
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
01/11/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
HUAN MING CHYE
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
Auditor
|
:
|
A.H. LOW & CO
|
|
Auditor' Address
|
:
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
WONG HONG JUAN
|
|
|
IC / PP No
|
:
|
S0007782H
|
|
|
|
|
|
|
|
Address
|
:
|
18, THOMSON WALK, HAPPY PARK, 574465, SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
UNITED OVERSEAS BANK LTD
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Name
|
:
|
UNITED OVERSEAS BANK LIMITED
|
|
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge
Description
|
Chargee Name
|
Total Charge
|
Status
|
|
C200507573
|
07/12/2005
|
N/A
|
UNITED OVERSEAS BANK LIMITED
|
N/A
|
Unsatisfied
|
|
C201103663
|
23/03/2011
|
N/A
|
DBS BANK LTD.
|
N/A
|
Unsatisfied
|
|
C201114706
|
23/11/2011
|
N/A
|
AUSTRALIAN AND NEW ZEALAND BANKING GROUP LIMITED
|
N/A
|
Unsatisfied
|
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
|
:
|
YES
|
|
|
Overseas
|
:
|
YES
|
|
|
Import Countries
|
:
|
GERMANY,CHINA,HONG KONG,ITALY,UNITED STATES
|
The SC 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
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
X
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
SINGAPORE
|
|
Overseas
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Services
|
:
|
BUILDING OF SHIPS, TANKERS & OTHER OCEAN-GOING VESSELS
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2013
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
20
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) building of ships,
tankers & other ocean-going vessels.
Background:
rainbow offshore offers extensive service for offshore oil/gas turnkey
project, engineering and procurement, commissioning and after-sale
maintenance. their products and services cover the full extent of
oil/gas development facility, including jackets, diversified topsides,subsea pipeline/cable and onshore terminals.
Products:
* pipes, fittings and flangers
* centri-cast steel pipe
* mna valves
* eurovalves
Services:
* fabrication services
* technical services
* qa/qc services
Business partners:
* dmv stainless s.a.s.
* h. butting gmbh
* avestapolarit stainless
* sandvik
* schmidt & clemens gmbh
* husteel co. ltd
* posco co. ltd
* erne fittings gmbh
* bassi luigi & co
* nautic steel ltd
* officine melesi srl
* metalfar srl
* sungkwang bends co. ltd
* danfoss marine systems as
* bolaco valves
* doedijns bv
* westad industri as.
Customers:
* jurong shipyard ltd
* keppelfels ltd
* keppel shipyard ltd
* keppel-hitachi
* st marine ltd
* malaysia shipyard & engineering sdn bhd
* brook shipyard sdn bhd
* single bouy mooring inc
* sembcorp marine,
* dubai drydocks
* ppl shipyard pte ltd
* tanker pacific mgmt pte ltd,
* modec
* idemitsu tanker
* jurong engineering ltd
* mitsubishi corp
* kvaerner spore pte ltd
* p.t.j. ray mcdermott indonesia
* technip-coflexip
* chiyoda spore pte ltd
* halliburton
* bechtel international ltd
* bergsen offshore
* brunei shell
* petronas
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
+65 63632822
|
|
Current Telephone Number
|
:
|
65-63632822
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
7 NEYTHAL ROAD, SINGAPORE 628574
|
|
Current Address
|
:
|
7 NEYTHAL ROAD, 628574, SINGAPORE.
|
|
Match
|
:
|
YES
|
|
|
|
|
Other Investigations
we contacted one of the staff from the SC and she provided some information
on the SC.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2010 - 2012
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2010 - 2012
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
24.26%
|
]
|
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
30.81%
|
]
|
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.The dip in profit
could be due to the stiff market competition which reduced the SC's profit
margin. The SC's management had generated acceptable return for its
shareholders using its assets.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
7 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
65 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
207 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus reducing its holding cost.
This had reduced funds being tied up in stocks. The high debtors' ratio
could indicate that the SC was weak in its credit control. However, the SC
could also giving longer credit periods to its customers in order to boost
its sales or to capture / retain its market share. The unfavourable
creditors' ratio could be due to the SC taking advantage of the credit
granted by its suppliers. However this may affect the goodwill between the
SC and its suppliers and the SC may inadvertently have to pay more for its
future supplies.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Favourable
|
[
|
1.38 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.41 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A minimum liquid ratio of 1 should be maintained by the SC in order
to assure its creditors of its ability to meet short term obligations and the
SC was in a good liquidity position. Thus, we believe the SC is able to
meet all its short term obligations as and when they fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Favourable
|
[
|
26.88 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.01 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The interest cover showed that the SC was able to service the
interest. The favourable interest cover could
indicate that the SC was making enough profit to pay for the interest
accrued. The SC had no gearing and hence it had virtually no financial
risk. The SC was financed by its shareholders' funds and internally
generated fund. During the economic downturn, the SC, having a zero gearing,
will be able to compete better than those which are highly geared in the
same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
The SC recorded lower profits as its turnover showed a erratic trend.
The SC's management was unable to control its costs efficiently as its
profit showed a downward trend. The SC was in good liquidity position with
its total current liabilities well covered by its total current assets.
With its current net assets, the SC should be able to repay its short term
obligations. With the favourable interest cover,
the SC could be able to service all the accrued interest without facing any
difficulties. The SC as a lowly geared company, will be more secured
compared to those highly geared companies. It has the ability to meet all
its long term obligations.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : STRONG
|
SINGAPORE ECONOMIC / INDUSTRY
OUTLOOK
|
Major Economic Indicators :
|
2008
|
2009
|
2010
|
2011
|
2012
|
|
|
|
|
|
|
|
|
Population (Million)
|
4.84
|
4.98
|
5.08
|
5.18
|
5.31
|
|
Gross Domestic Products ( % )
|
1.5
|
<0.8>
|
14.5
|
4.9
|
1.3
|
|
Consumer Price Index
|
6.6
|
0.6
|
2.8
|
5.2
|
4.6
|
|
Total Imports (Million)
|
450,892.6
|
356,299.3
|
423,221.8
|
459,655.1
|
474,554.0
|
|
Total Exports (Million)
|
476,762.2
|
391,118.1
|
478,840.7
|
514,741.2
|
510,329.0
|
|
|
|
|
|
|
|
|
Unemployment Rate (%)
|
2.2
|
3.2
|
2.2
|
2.1
|
2.0
|
|
Tourist Arrival (Million)
|
10.12
|
9.68
|
11.64
|
13.17
|
14.37
|
|
Hotel Occupancy Rate (%)
|
81.0
|
75.8
|
85.6
|
86.5
|
86.4
|
|
Cellular Phone Subscriber (Million)
|
1.31
|
1.37
|
1.43
|
1.50
|
1.52
|
|
|
|
|
|
|
|
|
Registration of New Companies (No.)
|
25,327
|
26,414
|
29,798
|
32,317
|
31,892
|
|
Registration of New Companies (%)
|
<2.2>
|
4.3
|
12.8
|
8.5
|
<1.3>
|
|
Liquidation of Companies (No.)
|
10,493
|
22,393
|
15,126
|
19,005
|
17,218
|
|
Liquidation of Companies (%)
|
13.7
|
113.4
|
<32.5>
|
25.6
|
9.4
|
|
|
|
|
|
|
|
|
Registration of New Businesses (No.)
|
24,850
|
26,876
|
23,978
|
23,494
|
24,788
|
|
Registration of New Businesses (%)
|
0.36
|
8.15
|
<10.78>
|
2.02
|
5.51
|
|
Liquidation of Businesses (No.)
|
21,150
|
23,552
|
24,211
|
23,005
|
22,489
|
|
Liquidation of Businesses (%)
|
<0.8>
|
11.4
|
2.8
|
<5>
|
<2.2>
|
|
|
|
|
|
|
|
|
Bankruptcy Orders (No.)
|
2,326
|
2,058
|
1,537
|
1,527
|
1,748
|
|
Bankruptcy Orders (%)
|
<15.9>
|
<11.5>
|
<25.3>
|
<0.7>
|
14.5
|
|
Bankruptcy Discharges (No.)
|
1,500
|
3,056
|
2,252
|
1,391
|
1,881
|
|
Bankruptcy Discharges (%)
|
<7.7>
|
103.7
|
<26.3>
|
<38.2>
|
35.2
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ) :
|
|
|
|
|
|
|
Agriculture
|
|
|
|
|
|
|
Production of Principal Crops
|
<0.32>
|
3.25
|
<0.48>
|
4.25
|
3.64
|
|
Fish Supply & Wholesale
|
<6.31>
|
<1.93>
|
<10.5>
|
12.10
|
<0.5>
|
|
|
|
|
|
|
|
|
Manufacturing *
|
74.6
|
71.5
|
92.8
|
100.0
|
100.3
|
|
Food, Beverages & Tobacco
|
94.8
|
90.4
|
96.4
|
100.0
|
103.5
|
|
Textiles
|
180.1
|
145.9
|
122.1
|
100.0
|
104.0
|
|
Wearing Apparel
|
334.6
|
211.0
|
123.3
|
100.0
|
92.1
|
|
Leather Products & Footwear
|
128.2
|
79.5
|
81.8
|
100.0
|
98.6
|
|
Wood & Wood Products
|
132.0
|
101.4
|
104.0
|
100.0
|
95.5
|
|
Paper & Paper Products
|
101.0
|
95.4
|
106.1
|
100.0
|
97.4
|
|
Printing & Media
|
118.2
|
100.9
|
103.5
|
100.0
|
93.0
|
|
Crude Oil Refineries
|
113.1
|
96.4
|
95.6
|
100.0
|
99.4
|
|
Chemical & Chemical Products
|
84.5
|
80.3
|
97.6
|
100.0
|
100.5
|
|
Pharmaceutical Products
|
43.7
|
49.1
|
75.3
|
100.0
|
109.7
|
|
Rubber & Plastic Products
|
120.1
|
101.2
|
112.3
|
100.0
|
96.5
|
|
Non-metallic Mineral
|
96.5
|
91.9
|
92.5
|
100.0
|
98.2
|
|
Basic Metals
|
109.8
|
92.6
|
102.2
|
100.0
|
90.6
|
|
Fabricated Metal Products
|
101.3
|
90.8
|
103.6
|
100.0
|
104.3
|
|
Machinery & Equipment
|
65.0
|
57.3
|
78.5
|
100.0
|
112.9
|
|
Electrical Machinery
|
81.7
|
86.8
|
124.1
|
100.0
|
99.3
|
|
Electronic Components
|
93.1
|
85.2
|
113.6
|
100.0
|
90.6
|
|
Transport Equipment
|
102.0
|
96.0
|
94.0
|
100.0
|
106.3
|
|
|
|
|
|
|
|
|
Construction
|
45.90
|
<36.9>
|
14.20
|
20.50
|
28.70
|
|
Real Estate
|
<11.2>
|
1.4
|
21.3
|
25.4
|
31.9
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
|
|
Electricity, Gas & Water
|
<1.3>
|
1.70
|
4.00
|
7.00
|
6.30
|
|
Transport, Storage & Communication
|
11.60
|
3.90
|
12.80
|
7.40
|
5.30
|
|
Finance & Insurance
|
<5.9>
|
<16.4>
|
<0.4>
|
8.90
|
0.50
|
|
Government Services
|
17.40
|
4.50
|
9.70
|
6.90
|
6.00
|
|
Education Services
|
0.50
|
0.10
|
<0.9>
|
<1.4>
|
0.30
|
|
|
|
|
|
|
|
|
* Based on Index of Industrial Production (2011 = 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 2013 as growth in the global economy
is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.
|
|
|
|
However, the global economic outlook is still clouded with uncertainties.
Notably, concerns remain over the extent of the fiscal cutback with the
budget sequester in the US and potential flareup
of the debt crisis in the Eurozone. Should any of
these risks materialise, Singapore's economic
growth could come in lower than expected.
|
|
|
|
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 whole of 2012, Singapore's GDP growth slowed to 1.3%, from
5.2% in 2011, mainly due to weakness in the externally-oriented sectors.
Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to
0.1%. The hudge decline was largely due to a
rebound in the output of the biomedical manufacturing and transport
engineering clusters, which together helped to mitigate part of the fall in
output in the electronics cluster. By contrast, the construction sector
growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both
public and private building activities.
|
|
|
|
Growth in the services producing industries also moderated to 1.2%
in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale
and retail trade, accommodation and food services as well as other services
industries. In particular, the wholesale and retail trade sector contracted
by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and
food services as well as other services industries posted lower gains of
2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.
|
|
|
|
For the whole of 2012, all sectors, except the wholesale and retail
trade, contributed to growth. Business services was the largest contributor
with 0.4 percentage-points, followed by construction with 0.3
percentage-points and transportation and storage at 0.2 percentagepoints.
Besides, growth in total demand moderated to 2.4%, compared to 4.2% in
2011. Domestic demand was the key contributor to total demand growth,
accounting for 2.2 percentage-points, or over 90 per cent, of the increase.
|
|
|
|
In 2012, total domestic demand rose by 9.7%, following the 6.5%
increase in 2011. The growth in total domestic demand was broad-based across
consumption, gross fixed capital formation (GFCF) and changes in
inventories. The total consumption expenditure in 2012 grew slightly by
0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure
fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption
expenditure registered a 2.2% gain, moderating from the 4.6% increase in
the preceding year.
|
|
|
|
Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in
2013.
|
|
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated in 2001, the SC is a Private Limited company, focusing on
building of ships, tankers & other ocean-going vessels. Having been in
the industry for over a decade, the SC has achieved a certain market share
and has built up a satisfactory reputation in the market. It should have
received supports from its regular customers. The capital standing of the
SC is fair. With an adequate share capital, the SC has the potential of
expanding its business in future.
Over the years, the SC should have build up its clientele base and received
supports from its regular customers. Investigation revealed that the SC's
interest lies mostly in the local market. Thus, any adverse changes to the
local economy might have a negative impact on the SC's business
performance. Being a small company, the SC's business operation is
supported by 20 employees. Overall, we regard that the SC's management
capability is average. This indicates that the SC has greater potential to
improve its business performance and raising income for the SC.
Financially, the SC registered a higher turnover compared to previous year.
However, its profits showed a reverse trend. The lower profit achieved was
a result of higher operating cost and increased competition. Return on
shareholders' funds of the SC was at an acceptable range which indicated
that the management was efficient in utilising
its funds to generate income. The SC is in good liquidity position with its
current liabilities well covered by it current assets. Hence, it has
sufficient working capital to meet its short term financial obligations.
Being a lowly geared company, the SC is exposed to low financial risk as it
is mainly dependent on its internal funds to finance its business needs.
Given a positive net worth standing at SGD 10,615,772, the SC should be
able to maintain its business in the near terms.
Having a strong assets backing, the SC possesses latent assets as
collateral for further financial extension. Hence, it has good chance of
getting loans if the needs arises. The SC'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.
The poor payment habit may affect the goodwill between the SC and its
suppliers and the SC may inadvertently have to pay more for its future
supplies.
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.
Based on the above condition, we recommend credit be granted to the SC
promptly.
|
|
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.
|
|
RAINBOW
OFFSHORE SUPPLIES PTE LTD
|
|
Financial Year End
|
31/03/2012
|
31/03/2011
|
31/03/2010
|
|
Months
|
12
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
|
Currency
|
SGD
|
SGD
|
SGD
|
|
|
|
|
|
|
TURNOVER
|
34,307,674
|
26,474,973
|
37,257,617
|
|
Other Income
|
15,558
|
40,873
|
30,444
|
|
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
34,323,232
|
26,515,846
|
37,288,061
|
|
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
3,087,288
|
2,971,385
|
788,608
|
|
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES
|
70,150
|
893,476
|
-
|
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
3,157,438
|
3,864,861
|
788,608
|
|
Taxation
|
<582,202>
|
<765,662>
|
<1,127,675>
|
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
2,575,236
|
3,099,199
|
<339,067>
|
|
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
As previously reported
|
8,040,536
|
6,341,337
|
7,080,404
|
|
|
----------------
|
----------------
|
----------------
|
|
As restated
|
8,040,536
|
6,341,337
|
7,080,404
|
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
10,615,772
|
9,440,536
|
6,741,337
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<1,000,000>
|
<1,400,000>
|
<400,000>
|
|
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
9,615,772
|
8,040,536
|
6,341,337
|
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
Hire purchase
|
8,882
|
3,640
|
4,575
|
|
Term loan / Borrowing
|
5,154
|
27,407
|
42,906
|
|
Trust receipts
|
107,948
|
13,322
|
59,751
|
|
|
----------------
|
----------------
|
----------------
|
|
|
121,984
|
44,369
|
107,232
|
BALANCE SHEET
|
RAINBOW OFFSHORE
SUPPLIES PTE LTD
|
|
ASSETS EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
1,003,929
|
1,052,140
|
1,354,820
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
Associated companies
|
963,628
|
3,612,623
|
-
|
|
Investments
|
283,000
|
283,000
|
63,000
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
1,246,628
|
3,895,623
|
63,000
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
2,250,557
|
4,947,763
|
1,417,820
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
Stocks
|
648,447
|
518,533
|
138,537
|
|
Trade debtors
|
6,156,080
|
5,151,586
|
4,097,707
|
|
Other debtors, deposits & prepayments
|
4,787,671
|
34,150
|
535,492
|
|
Short term deposits
|
1,371,177
|
1,464,296
|
361,436
|
|
Amount due from related companies
|
3,023,955
|
1,817,575
|
8,119,160
|
|
Amount due from associated companies
|
5,779,145
|
-
|
-
|
|
Amount due from director
|
-
|
-
|
14,680
|
|
Cash & bank balances
|
2,784,368
|
6,776,829
|
6,213,356
|
|
Others
|
4,280,852
|
2,676,197
|
5,012,681
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
28,831,695
|
18,439,166
|
24,493,049
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
31,082,252
|
23,386,929
|
25,910,869
|
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
19,475,211
|
12,905,309
|
13,740,997
|
|
Other creditors & accruals
|
38,338
|
36,402
|
1,898,693
|
|
Hire purchase & lease creditors
|
20,804
|
20,804
|
20,804
|
|
Short term borrowings/Term loans
|
52,692
|
49,916
|
143,576
|
|
Amounts owing to director
|
665,300
|
501,549
|
-
|
|
Provision for taxation
|
185,084
|
729,664
|
2,021,594
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
20,437,429
|
14,243,644
|
17,825,664
|
|
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
8,394,266
|
4,195,522
|
6,667,385
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
10,644,823
|
9,143,285
|
8,085,205
|
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
1,000,000
|
1,000,000
|
1,000,000
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
1,000,000
|
1,000,000
|
1,000,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
Retained profit/(loss) carried forward
|
9,615,772
|
8,040,536
|
6,341,337
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
9,615,772
|
8,040,536
|
6,341,337
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
10,615,772
|
9,040,536
|
7,341,337
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
Long term loans
|
27,346
|
80,239
|
700,554
|
|
Lease obligations
|
1,705
|
22,510
|
43,314
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
29,051
|
102,749
|
743,868
|
|
|
----------------
|
----------------
|
----------------
|
|
|
10,644,823
|
9,143,285
|
8,085,205
|
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
FINANCIAL RATIO
|
RAINBOW
OFFSHORE SUPPLIES PTE LTD
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
4,155,545
|
8,241,125
|
6,574,792
|
|
Net Liquid Funds
|
4,155,545
|
8,241,125
|
6,574,792
|
|
Net Liquid Assets
|
7,745,819
|
3,676,989
|
6,528,848
|
|
Net Current Assets/(Liabilities)
|
8,394,266
|
4,195,522
|
6,667,385
|
|
Net Tangible Assets
|
10,644,823
|
9,143,285
|
8,085,205
|
|
Net Monetary Assets
|
7,716,768
|
3,574,240
|
5,784,980
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
102,547
|
173,469
|
908,248
|
|
Total Liabilities
|
20,466,480
|
14,346,393
|
18,569,532
|
|
Total Assets
|
31,082,252
|
23,386,929
|
25,910,869
|
|
Net Assets
|
10,644,823
|
9,143,285
|
8,085,205
|
|
Net Assets Backing
|
10,615,772
|
9,040,536
|
7,341,337
|
|
Shareholders' Funds
|
10,615,772
|
9,040,536
|
7,341,337
|
|
Total Share Capital
|
1,000,000
|
1,000,000
|
1,000,000
|
|
Total Reserves
|
9,615,772
|
8,040,536
|
6,341,337
|
|
LIQUIDITY (Times)
|
|
|
|
|
Cash Ratio
|
0.20
|
0.58
|
0.37
|
|
Liquid Ratio
|
1.38
|
1.26
|
1.37
|
|
Current Ratio
|
1.41
|
1.29
|
1.37
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
7
|
7
|
1
|
|
Debtors Ratio
|
65
|
71
|
40
|
|
Creditors Ratio
|
207
|
178
|
135
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.01
|
0.02
|
0.12
|
|
Liabilities Ratio
|
1.93
|
1.59
|
2.53
|
|
Times Interest Earned Ratio
|
26.88
|
88.11
|
8.35
|
|
Assets Backing Ratio
|
10.64
|
9.14
|
8.09
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
9.20
|
14.60
|
2.12
|
|
Net Profit Margin
|
7.51
|
11.71
|
<0.91>
|
|
Return On Net Assets
|
30.81
|
42.76
|
11.08
|
|
Return On Capital Employed
|
30.75
|
42.66
|
11.05
|
|
Return On Shareholders' Funds/Equity
|
24.26
|
34.28
|
<4.62>
|
|
Dividend Pay Out Ratio (Times)
|
0.39
|
0.45
|
1.18
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
|