MIRA INFORM REPORT

 

 

Report Date :

13.12.2013

 

IDENTIFICATION DETAILS

 

Name :

MINMETALS SOUTH-EAST ASIA CORPORATION PTE LTD

 

 

Registered Office :

24, Raffles Place, 19 - 04, Clifford Centre, 048621

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.06.1994

 

 

Com. Reg. No.:

199404382-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of raw materials, metals and minerals

 

 

No. of Employees :

10

 

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

 

Status :

Satisfactory

 

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% 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.

:

199404382-K

COMPANY NAME

:

MINMETALS SOUTH-EAST ASIA CORPORATION PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/06/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

24, RAFFLES PLACE, 19 - 04, CLIFFORD CENTRE, 048621, SINGAPORE.

BUSINESS ADDRESS

:

24, RAFFLES PLACE, #19-04 CLIFFORD CENTRE, 048621, SINGAPORE.

TEL.NO.

:

65-65356566

FAX.NO.

:

65-65320508

WEB SITE

:

WWW.MINMETALS.COM

CONTACT PERSON

:

WANG SHUNLI ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF RAW MATERIALS, METALS AND MINERALS

ISSUED AND PAID UP CAPITAL

:

1,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,500,000.00 

SALES

:

USD 840,926,225 [2012]

NET WORTH

:

USD 6,290,312 [2012]

STAFF STRENGTH

:

10 [2013]

BANKER (S)

:

ABN AMRO BANK N.V.
BNP PARIBAS
DBS BANK LTD
STANDARD CHARTERED BANK
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
COMMERZBANK AKTIENGESELLSCHAFT
BANK OF CHINA LIMITED
UNITED OVERSEAS BANK LIMITED
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

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) trading of raw materials, metals and minerals.

 

The immediate holding company of the SC is MINMETALS INTERNATIONAL TRADING COMPANY PTE. LTD., a company incorporated in SINGAPORE.

The ultimate holding company of the SC is CHINA MINMETALS CORPORATION, a company incorporated in CHINA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

24/04/2013

SGD 1,500,000.00

SGD 1,500,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MINMETALS INTERNATIONAL TRADING COMPANY PTE. LTD.

24, RAFFLES PLACE, 19 - 04, CLIFFORD CENTRE, 248621, SINGAPORE.

201134733

1,500,000.00

100.00

 

 

 

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

------

 

 

 

1,500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

WANG SHUNLI

Address

:

7, SINGLAP ROAD, 10 - 56, MANDARIN GARDENS, 448909, SINGAPORE.

IC / PP No

:

F1870760T

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

04/10/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

SUN RUFEI

Address

:

7, SIGLAP ROAD, 16 - 60, MANDARIN GARDENS, 448909, SINGAPORE.

IC / PP No

:

G5532033R

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

30/04/2001

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

WANG SHUNLI

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

RSM CHIO LIM LLP

Auditor' Address

:

N/A

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LIONG CHIN MOI

 

IC / PP No

:

S2073945B

 

 

 

 

 

Address

:

404B, FERNVALE LANE, 13 - 139, 792404, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

ELIS SURIANI BINTE RAMLEE

 

IC / PP No

:

S8132958C

 

 

 

 

 

Address

:

111, NORTH BRIDGE ROAD, 25 - 01, PENINSULA PLAZA, 179098, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ABN AMRO BANK N.V.

 

 

 

 

 

 

 

 

 

2)

Name

:

BNP PARIBAS

 

 

 

 

 

 

 

 

 

3)

Name

:

DBS BANK LTD

 

 

 

 

 

 

 

 

 

4)

Name

:

STANDARD CHARTERED BANK

 

 

 

 

 

 

 

 

 

5)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

 

 

 

 

 

 

 

 

 

6)

Name

:

COMMERZBANK AKTIENGESELLSCHAFT

 

 

 

 

 

 

 

 

 

7)

Name

:

BANK OF CHINA LIMITED

 

 

 

 

 

 

 

 

 

8)

Name

:

UNITED OVERSEAS BANK LIMITED

 

 

 

 

 

 

 

 

 

9)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200803375

10/04/2008

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200810193

07/11/2008

N/A

BNP PARIBAS

N/A

Unsatisfied

C200810194

07/11/2008

N/A

BNP PARIBAS

N/A

Unsatisfied

C201006196

21/07/2010

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C201102616

01/03/2011

N/A

DBS BANK LTD.

N/A

Unsatisfied

C201102619

01/03/2011

N/A

DBS BANK LTD.

N/A

Unsatisfied

C201106870

09/06/2011

N/A

ABN AMRO BANK N.V.

N/A

Unsatisfied

C201107421

20/06/2011

N/A

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

N/A

Unsatisfied

C201113624

27/10/2011

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

N/A

Unsatisfied

C201202736

12/03/2012

N/A

AGRICULTURAL BANK OF CHINA LIMITED

N/A

Unsatisfied

C201205175

11/05/2012

N/A

BNP PARIBAS

N/A

Unsatisfied

C201208554

30/07/2012

N/A

COMMERZBANK AKTIENGESELLSCHAFT

N/A

Unsatisfied

C201208591

30/07/2012

N/A

COMMERZBANK AKTIENGESELLSCHAFT

N/A

Unsatisfied

C201209916

31/08/2012

N/A

UNITED OVERSEAS BANK LIMITED

N/A

Unsatisfied

C201209917

31/08/2012

N/A

UNITED OVERSEAS BANK LIMITED

N/A

Unsatisfied

C201210960

25/09/2012

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

N/A

Unsatisfied

C201306006

02/05/2013

N/A

BANK OF CHINA LIMITED

N/A

Unsatisfied

C201306007

02/05/2013

N/A

BANK OF CHINA LIMITED

N/A

Unsatisfied

C201310250

26/07/2013

N/A

DBS BANK LTD.

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

:

WORLDWIDE

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

RAW MATERIALS, METALS AND MINERALS

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

10

9

9

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of raw materials, metals and minerals. 

The Group has six business centers, including non-ferrous metals business center, iron ore and steel business center, ferrous mining business center, finance business center, real estate business center, as well as science and technology business center.


The SC supplies metal, steel scraps, slabs and billets.


The SC sells the products according to its customers' orders. 



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-65356566

Match

:

N/A

 

 

 

Address Provided by Client

:

24 RAFFLES PLACE #19-04 CLIFORD CENTRE SINGAPORE 048621

Current Address

:

24, RAFFLES PLACE, #19-04 CLIFFORD CENTRE, 048621, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


On 10th December 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Favourable

[

46.50%

]

 

Return on Net Assets

:

Favourable

[

73.71%

]

 

 

 

 

 

 

 

 

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. 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

:

Favourable

[

0 Days

]

 

Debtor Ratio

:

Unfavourable

[

81 Days

]

 

Creditors Ratio

:

Favourable

[

54 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 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

:

Favourable

[

1.02 Times

]

 

Current Ratio

:

Unfavourable

[

1.02 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

:

Acceptable

[

3.42 Times

]

 

Gearing Ratio

:

Favourable

[

0.01 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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 : 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 1994, the SC is a Private Limited company, focusing on trading of raw materials, metals and minerals. 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. 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 10 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.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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. 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 USD 6,290,312, 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. 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.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

 

 

 

 

 

TURNOVER

840,926,225

982,770,122

509,279,342

351,628,217

 

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

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

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

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

Total Turnover

840,926,225

982,770,122

509,279,342

351,628,217

Costs of Goods Sold

<833,864,434>

<975,996,792>

-

-

 

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

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

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

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

Gross Profit

7,061,791

6,773,330

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,295,811

3,654,706

2,258,320

2,660,711

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,295,811

3,654,706

2,258,320

2,660,711

Taxation

<370,673>

<351,912>

139,912

-

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,925,138

3,302,794

2,398,232

2,660,711

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

2,665,174

<637,620>

<3,035,852>

<5,696,563>

 

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

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

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

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

As restated

2,665,174

<637,620>

<3,035,852>

<5,696,563>

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,590,312

2,665,174

<637,620>

<3,035,852>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,590,312

2,665,174

<637,620>

<3,035,852>

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Lease interest

1,742

1,742

-

-

Others

1,359,909

1,876,183

296,757

779,961

 

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

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

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

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

 

1,361,651

1,877,925

296,757

779,961

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

132,831

151,155

175,056

130,528

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Deferred assets

-

-

139,912

-

Others

2,200,000

-

-

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,200,000

-

139,912

-

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Others

46,420

46,420

-

-

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

46,420

46,420

-

-

 

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

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

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

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

TOTAL LONG TERM ASSETS

2,379,251

197,575

314,968

130,528

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

365,300

539,819

2,068,700

-

Trade debtors

187,369,190

220,498,898

60,303,745

47,901,804

Other debtors, deposits & prepayments

54,548

43,252

19,053

-

Short term deposits

-

-

34,946

50,214

Amount due from related companies

99,632

73,209

-

-

Cash & bank balances

4,194,276

3,877,834

5,150,184

9,012,165

 

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

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

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

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

TOTAL CURRENT ASSETS

192,082,946

225,033,012

67,576,628

56,964,183

 

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

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

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

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

TOTAL ASSET

194,462,197

225,230,587

67,891,596

57,094,711

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

122,720,725

83,151,016

44,412,599

35,913,460

Other creditors & accruals

-

-

1,195,833

-

Hire purchase & lease creditors

11,105

10,434

-

-

Short term borrowings/Term loans

-

-

21,872,473

-

Other borrowings

-

-

-

23,163,111

Bill & acceptances payable

-

128,435,701

-

-

Amounts owing to related companies

65,095,754

9,718,875

-

-

Provision for taxation

315,615

212,000

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

188,143,199

221,528,026

67,480,905

59,076,571

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,939,747

3,504,986

95,723

<2,112,388>

 

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

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

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

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

TOTAL NET ASSETS

6,318,998

3,702,561

410,691

<1,981,860>

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,000,000

1,000,000

1,000,000

1,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

1,000,000

 

 

 

 

 

RESERVES

 

 

 

 

General reserve

<300,000>

-

-

-

Retained profit/(loss) carried forward

5,590,312

2,665,174

<637,620>

<3,035,852>

 

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

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

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

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

TOTAL RESERVES

5,290,312

2,665,174

<637,620>

<3,035,852>

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

6,290,312

3,665,174

362,380

<2,035,852>

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Other long term borrowings

-

-

48,311

53,992

Lease obligations

28,686

37,387

-

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

28,686

37,387

48,311

53,992

 

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

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

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

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

 

6,318,998

3,702,561

410,691

<1,981,860>

 

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

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

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

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

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

Cash

4,194,276

3,877,834

5,185,130

9,062,379

Net Liquid Funds

4,194,276

<124,557,867>

5,185,130

9,062,379

Net Liquid Assets

3,574,447

2,965,167

<1,972,977>

<2,112,388>

Net Current Assets/(Liabilities)

3,939,747

3,504,986

95,723

<2,112,388>

Net Tangible Assets

6,272,578

3,656,141

410,691

<1,981,860>

Net Monetary Assets

3,545,761

2,927,780

<2,021,288>

<2,166,380>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

39,791

128,483,522

21,920,784

23,217,103

Total Liabilities

188,171,885

221,565,413

67,529,216

59,130,563

Total Assets

194,462,197

225,230,587

67,891,596

57,094,711

Net Assets

6,318,998

3,702,561

410,691

<1,981,860>

Net Assets Backing

6,290,312

3,665,174

362,380

<2,035,852>

Shareholders' Funds

6,290,312

3,665,174

362,380

<2,035,852>

Total Share Capital

1,000,000

1,000,000

1,000,000

1,000,000

Total Reserves

5,290,312

2,665,174

<637,620>

<3,035,852>

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.02

0.02

0.08

0.15

Liquid Ratio

1.02

1.01

0.97

0.96

Current Ratio

1.02

1.02

1.00

0.96

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

0

0

1

0

Debtors Ratio

81

82

43

50

Creditors Ratio

54

31

32

37

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.01

35.06

60.49

<11.40>

Liabilities Ratio

29.91

60.45

186.35

<29.04>

Times Interest Earned Ratio

3.42

2.95

8.61

4.41

Assets Backing Ratio

6.27

3.66

0.41

<1.98>

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

0.39

0.37

0.44

0.76

Net Profit Margin

0.35

0.34

0.47

0.76

Return On Net Assets

73.71

149.43

622.14

<173.61>

Return On Capital Employed

73.04

147.17

622.14

<173.61>

Return On Shareholders' Funds/Equity

46.50

90.11

661.80

<130.69>

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.62

UK Pound

1

Rs.100.84

Euro

1

Rs.84.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.