|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
200921721-C
|
|
COMPANY NAME
|
:
|
ETERNAL ASIA (S) PTE. LTD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
19/11/2009
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
5, PEREIRA ROAD, 07-02, ASIAWIDE INDUSTRIAL BUILDING, 368025,
SINGAPORE.
|
|
BUSINESS ADDRESS
|
:
|
2 JURONG EAST STREET 21, 03-105, IMM BUILDING, 609601, SINGAPORE.
|
|
TEL.NO.
|
:
|
65-62249388
|
|
FAX.NO.
|
:
|
65-62249866
|
|
WEB SITE
|
:
|
WWW.ETERNAL-ASIA.COM
|
|
CONTACT PERSON
|
:
|
CHENG KIM HUNG ( DIRECTOR )
|
|
|
|
|
|
|
|
|
|
PRINCIPAL ACTIVITY
|
:
|
DISTRIBUTION OF IT PRODUCTS AND CONSUMER ELECTRONICS
|
|
|
|
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
1,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 1,000,000.00
|
|
|
|
|
|
SALES
|
:
|
USD 93,604,615 [2011]
|
|
NET WORTH
|
:
|
USD 3,066,364 [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
20 [2013]
|
|
BANKER (S)
|
:
|
|
DBS BANK
LTD
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
STANDARD CHARTERED BANK
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE 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) distribution of it products and
consumer electronics.
The immediate
and ultimate holding company of the SC is ETERNAL ASIA SUPPLY CHAIN
MANAGEMENT (S) 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
|
(%)
|
|
ETERNAL ASIA SUPPLY CHAIN MANAGEMENT (S) PTE. LTD.
|
5, PEREORA ROAD, 07-02, ASIAWIDE INDUSTRIAL BUILDING, 368025,
SINGAPORE.
|
200710608R
|
700,000.00
|
70.00
|
|
ATTICA TECHNOLOGIES PTE. LTD.
|
2, JURONG EAST STREET21, 03-105, IMM BUILDING, 609601, SINGAPORE.
|
200819698C
|
300,000.00
|
30.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
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
|
|
201229346
|
SINGAPORE
|
ETERNAL ASIA DISTRIBUTION (S) PTE. LTD.
|
100.00
|
31/12/2011
|
|
|
|
|
|
|
|
201221863
|
SINGAPORE
|
UNIQUE CONNECTION PTE. LTD.
|
100.00
|
31/12/2011
|
|
|
|
|
|
|
|
201127728M
|
SINGAPORE
|
ETERNAL ASIA (THAILAND) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201011088G
|
SINGAPORE
|
ETERNAL ASIA (INDONESIA) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
905693M
|
MALAYSIA
|
ETERNAL ASIA (MALAYSIA) SDN. BHD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201025758N
|
SINGAPORE
|
MARQUE VENTURES PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201026111R
|
SINGAPORE
|
ETERNAL ASIA (PHILIPPINES) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201127728M
|
SINGAPORE
|
MCM DISTRIBUTION (S) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201106362G
|
SINGAPORE
|
ETERNAL ASIA (RESOURCES) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201203223
|
SINGAPORE
|
MAVERICK SERVICES (S) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
|
201018328H
|
SINGAPORE
|
ETERNAL ASIA (VIETNAM) PTE. LTD.
|
70.00
|
31/12/2011
|
|
|
|
|
|
|
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
CHENG KIM HUNG
|
|
Address
|
:
|
31, JURONG WEST STREET 41, 02-40, THE LAKESHORE, 649412, SINGAPORE.
|
|
IC / PP No
|
:
|
G5284898P
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
CHINESE
|
|
Date of Appointment
|
:
|
19/11/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
DAVID CHENG TAK WAI
|
|
Address
|
:
|
ROOM D, TOWER 1, SAUSALITO, 1 YUK TAI STREET, MA ON SHAN, SHATIN,
29TH FLOOR, NEW TERRITORRIES, HONG KONG.
|
|
IC / PP No
|
:
|
KJ0009847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
CHINESE
|
|
Date of Appointment
|
:
|
19/11/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
GOH HIEN JUAN
|
|
Address
|
:
|
110, BISHAN STREET 12, 05-122, BISHAN VIEW, 570110, SINGAPORE.
|
|
IC / PP No
|
:
|
S6811572H
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
19/11/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
FUNG KWAN HUNG
|
|
Address
|
:
|
FLAT B, TOWER 9, PARK AVENUE, 18 HOI TING ROAD, MONGKOK, 23RD FLOOR,
KOWLOON, HONG KONG.
|
|
IC / PP No
|
:
|
HA0769796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
CHINESE
|
|
Date of Appointment
|
:
|
19/11/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. ASRI BIN SALLEH
|
|
Address
|
:
|
106D, PUNGGOL FIELD, 14-506, 824106, SINGAPORE.
|
|
IC / PP No
|
:
|
S7247648D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
19/11/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
CHENG KIM HUNG
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
P G WEE PARTNERSHIP LLP
|
|
Auditor' Address
|
:
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
CHENG KIM HUNG
|
|
|
IC / PP No
|
:
|
G5284898P
|
|
|
|
|
|
|
|
Address
|
:
|
31, JURONG WEST STREET 41, 02-40, THE LAKESHORE, 649412, SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
2)
|
Name
|
:
|
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
|
|
|
|
|
|
|
|
|
|
|
|
3)
|
Name
|
:
|
STANDARD CHARTERED BANK
|
|
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge
Description
|
Chargee Name
|
Total Charge
|
Status
|
|
C201210006
|
03/09/2012
|
N/A
|
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
|
N/A
|
Unsatisfied
|
|
C201210010
|
03/09/2012
|
N/A
|
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
|
N/A
|
Unsatisfied
|
|
C201214675
|
13/12/2012
|
N/A
|
STANDARD CHARTERED BANK
|
N/A
|
Unsatisfied
|
|
C201214877
|
18/12/2012
|
N/A
|
STANDARD CHARTERED BANK
|
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
|
|
|
|
|
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
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
SINGAPORE
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
IT PRODUCTS AND CONSUMER ELECTRONICS
|
|
|
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2013
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
20
|
20
|
20
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) distribution of it
products and consumer electronics.
Products dealing:
* acer
- external hard drive
- lcd displays
* lg
- touch screen lcd
- wide screen lcd
- standard 4:3 lcd
- multi-function lcd tv/av/pc
* pendrive
- sdhc
- micro sdhc
* samsung
- external hard drive
- external slim dvd writer
* toshiba
- usb flash drive
* unis
- media station lite
- external hdd
* western digital
- external hard drive
- wd tv mini media player
Trade names:
* acer
* lg
* pendrive
* samsung
* toshiba
* unis
* western digital
The SC is a member of the following entities:
* Singapore business federation
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
65 62249388
|
|
Current Telephone Number
|
:
|
65-62249388
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
2 JURONG EAST STREET 21, #03-105, IMM BUILDING, SINGAPORE 609601.
|
|
Current Address
|
:
|
2 JURONG EAST STREET 21, 03-105, IMM BUILDING, 609601, 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
|
:
|
Increased
|
[
|
38.96%
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
47.68%
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
39.32%
|
]
|
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
119.06%
|
]
|
|
|
|
|
|
|
|
|
|
|
The increase in turnover could be due to the SC adopting an aggressive
marketing strategy.The higher profit could be attributed to the increase in
turnover. Generally the SC was profitable. The favourable return on
shareholders' funds and return on net assets indicate that the SC's
management was efficient in utilising the assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Acceptable
|
[
|
62 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
67 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
29 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC kept adequate stocks to meet its normal business transactions
without incurring excessive storage costs. 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 SC had a favourable
creditors' ratio where the SC could be taking advantage of the cash
discounts and also wanting to maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.64 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.06 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of
fresh capital, it may face difficulties in meeting its short term
obligations.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Unfavourable
|
[
|
1.84 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was low. If its profits fall or when interest
rate rises, it may not be able to meet all its interest payment. 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 :
|
|
|
|
|
|
|
|
Generally, the SC's performance has improved with higher turnover
and profit. Due to its weak liquidity position, the SC will be faced with
problems in meeting all its short term obligations if no short term loan is
obtained or additional capital injected into the SC. If there is a fall in
the SC's profit or any increase in interest rate, the SC may not be able to
generate sufficient cash-flow to service its interest. The SC was a zero
gearing company, it was solely dependant on its shareholders to provide funds
to finance its business. The SC has good chance of getting loans, if the
needs arises.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : FAIR
|
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 :
|
TRADING
|
|
|
|
|
|
|
The wholesale and retail trade sector contracted by 1.5% in the fourth
quarter of 2012, extending the 0.2% decline in the preceding quarter. For
the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth
in 2011. The sector was weighed down primarily by the wholesale trade
segment. In 2012, the wholesale trade segment contracted by 1.0%, a
reversal from the 1.4% growth in 2011. Growth of the retail trade segment
also moderated to 2.0%, from 3.2% in the year 2011.
|
|
|
|
The domestic wholesale trade index grew by 1.2% in the fourth quarter
of 2012, an improvement from the 5.4% decline in the third quarter. This
was partly due to an increase in the sales of chemicals & chemical
products and ship chandlers & bunkering. For the full year of 2012, the
domestic wholesale trade index contracted by 2.2%, extending the 1.7%
decline in 2011. The foreign wholesale trade index grew by 8.6% in the
fourth quarter, an increase from the 6.6% growth in the third quarter. The
expansion was partly due to resilient sales of petroleum & petroleum products.
For the whole of 2012, the foreign wholesale trade index expanded by 9.1%,
faster than the 4.3% increase in 2011.
|
|
|
|
In the fourth quarter of 2012, retail sales volume declined by 2.0%,
extending the 0.3% decline in the third quarter. Excluding motor vehicles,
retail sales volume grew by 0.4%, a slight moderation compared to the 1.5%
gain in the third quarter of 2012. The sales volume of motor vehicles fell
by 11% in the fourth quarter of 2012, after contracting by 6.1% in the
third quarter. The sales of several discretionary items also declined in
the fourth quarter. Besides, the sales of optical goods & books in 2012
fell by 3.6%, while the sales of telecommunications apparatus &
computers declined by 1.4%.
|
|
|
|
For 2012 as a whole, retail sales volume grew by 1.3%, compared to
the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in
retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012.
Medical goods & toiletries registered the largest increase (9.3%) in
sales, followed by telecommunications apparatus & computers (6.9%). By
contrast, the sales of watches & jewellery (-2.2%) and optical goods
& books (-3.6%) declined.
|
|
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated in 2009, the SC is a Private Limited company, focusing on
distribution of it products and consumer electronics. Having been in the
industry for 4 years, the SC has started to stabilise its business position
in the market. Having strong support from its holding company has enabled
the SC to remain competitive despite the challenging business environment.
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 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. 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.
We noted that both the turnover and profits have increased compared to the
previous year. The higher profit could be due to increase in turnover and
better control over its operating costs. Based on the higher profitability,
the SC has generated a favourable return based on its existing
shareholders' funds which indicated that the management was efficient in
utilising its funds to generate income. Due to its weak liquidity position,
the SC may face working capital deficiency in meeting its short term
financial obligations if no fresh capital are injected into the SC. Being a
zero geared company, the SC virtually has no financial risk as it is mainly
dependent on its internal funds to finance its business. Given a positive
net worth standing at USD 3,066,364, the SC should be able to maintain its
business in the near terms.
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. Overall the SC
has a good control over its resources.
The SC's payment habit is average. With its adequate working capital, the
SC should be able to pay its short term debts.
The industry shows an upward trend and this trend is very likely to sustain
in the near terms. Hence, the SC is expected to benefit from the favourable
outlook of the industry.
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.
|
|
ETERNAL ASIA
(S) PTE. LTD.
|
|
Financial Year End
|
2011-12-31
|
2010-12-31
|
|
Months
|
12
|
13
|
|
Consolidated Account
|
GROUP
|
GROUP
|
|
Audited Account
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
|
Currency
|
USD
|
USD
|
|
|
|
|
|
TURNOVER
|
93,604,615
|
67,361,524
|
|
Other Income
|
748,583
|
466,370
|
|
|
----------------
|
----------------
|
|
Total Turnover
|
94,353,198
|
67,827,894
|
|
Costs of Goods Sold
|
<84,544,262>
|
<63,761,930>
|
|
|
----------------
|
----------------
|
|
Gross Profit
|
9,808,936
|
4,065,964
|
|
|
----------------
|
----------------
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,673,963
|
1,133,479
|
|
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,673,963
|
1,133,479
|
|
Taxation
|
<242,422>
|
<124,299>
|
|
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
1,431,541
|
1,009,180
|
|
Minority interests
|
<225,738>
|
<92,852>
|
|
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
1,205,803
|
916,328
|
|
|
----------------
|
----------------
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
|
1,205,803
|
916,328
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
As previously reported
|
916,328
|
-
|
|
|
----------------
|
----------------
|
|
As restated
|
916,328
|
-
|
|
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
2,122,131
|
916,328
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<580,279>
|
-
|
|
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
1,541,852
|
916,328
|
|
|
=============
|
=============
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
Lease interest
|
2,000,173
|
727,794
|
|
|
----------------
|
----------------
|
|
|
2,000,173
|
727,794
|
|
|
=============
|
=============
|
BALANCE SHEET
|
ETERNAL ASIA
(S) PTE. LTD.
|
|
ASSETS EMPLOYED:
|
|
|
|
FIXED ASSETS
|
411,699
|
188,685
|
|
|
|
|
|
INTANGIBLE ASSETS
|
|
|
|
Deferred/Expenditure carried forward
|
361,462
|
200,000
|
|
|
----------------
|
----------------
|
|
TOTAL INTANGIBLE ASSETS
|
361,462
|
200,000
|
|
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
773,161
|
388,685
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
Stocks
|
15,885,372
|
13,186,402
|
|
Trade debtors
|
17,256,566
|
10,970,067
|
|
Other debtors, deposits & prepayments
|
581,911
|
7,904
|
|
Short term deposits
|
-
|
231,893
|
|
Amount due from related companies
|
4,825,781
|
3,592,854
|
|
Cash & bank balances
|
1,256,006
|
1,338,901
|
|
Others
|
549,305
|
45,842
|
|
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
40,354,941
|
29,373,863
|
|
|
----------------
|
----------------
|
|
TOTAL ASSET
|
41,128,102
|
29,762,548
|
|
|
=============
|
=============
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
6,781,076
|
5,081,385
|
|
Other creditors & accruals
|
155,879
|
26,480
|
|
Amounts owing to holding company
|
29,636,657
|
21,481,801
|
|
Amounts owing to related companies
|
1,120,738
|
840,189
|
|
Provision for taxation
|
347,782
|
120,000
|
|
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
38,042,132
|
27,549,855
|
|
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
2,312,809
|
1,824,008
|
|
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
3,085,970
|
2,212,693
|
|
|
=============
|
=============
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
1,000,000
|
1,000,000
|
|
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
1,000,000
|
1,000,000
|
|
|
|
|
|
RESERVES
|
|
|
|
Retained profit/(loss) carried forward
|
1,541,852
|
916,328
|
|
Others
|
26,546
|
36,927
|
|
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
1,568,398
|
953,255
|
|
|
|
|
|
MINORITY INTEREST
|
497,966
|
254,852
|
|
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
3,066,364
|
2,208,107
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
Deferred taxation
|
19,606
|
4,586
|
|
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
19,606
|
4,586
|
|
|
----------------
|
----------------
|
|
|
3,085,970
|
2,212,693
|
|
|
=============
|
=============
|
FINANCIAL RATIO
|
ETERNAL ASIA (S)
PTE. LTD.
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
1,256,006
|
1,570,794
|
|
Net Liquid Funds
|
1,256,006
|
1,570,794
|
|
Net Liquid Assets
|
<13,572,563>
|
<11,362,394>
|
|
Net Current Assets/(Liabilities)
|
2,312,809
|
1,824,008
|
|
Net Tangible Assets
|
2,724,508
|
2,012,693
|
|
Net Monetary Assets
|
<13,592,169>
|
<11,366,980>
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
0
|
0
|
|
Total Liabilities
|
38,061,738
|
27,554,441
|
|
Total Assets
|
41,128,102
|
29,762,548
|
|
Net Assets
|
3,085,970
|
2,212,693
|
|
Net Assets Backing
|
3,066,364
|
2,208,107
|
|
Shareholders' Funds
|
3,066,364
|
2,208,107
|
|
Total Share Capital
|
1,000,000
|
1,000,000
|
|
Total Reserves
|
1,568,398
|
953,255
|
|
LIQUIDITY (Times)
|
|
|
|
Cash Ratio
|
0.03
|
0.06
|
|
Liquid Ratio
|
0.64
|
0.59
|
|
Current Ratio
|
1.06
|
1.07
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
62
|
71
|
|
Debtors Ratio
|
67
|
59
|
|
Creditors Ratio
|
29
|
29
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
|
Liabilities Ratio
|
12.41
|
12.48
|
|
Times Interest Earned Ratio
|
1.84
|
2.56
|
|
Assets Backing Ratio
|
2.72
|
2.01
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
1.79
|
1.68
|
|
Net Profit Margin
|
1.29
|
1.36
|
|
Return On Net Assets
|
119.06
|
84.12
|
|
Return On Capital Employed
|
93.12
|
69.77
|
|
Return On Shareholders' Funds/Equity
|
39.32
|
41.50
|
|
Dividend Pay Out Ratio (Times)
|
0.48
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0
|
0
|
|