MIRA INFORM REPORT

 

 

Report Date :

31.12.2013

 

IDENTIFICATION DETAILS

 

Name :

KS ENERGY LIMITED

 

 

Formerly Known As :

KS ENERGY SERVICES LIMITED

 

 

Registered Office :

19, Jurong Port Road, 619093

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

07.01.1983

 

 

Com. Reg. No.:

198300104-G

 

 

Legal Form :

Public (Limited By Share)

 

 

Line of Business :

Wholesale of industrial machinery and equipment

 

 

No. of Employees :

200

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

--

 

NOTES :

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

 

 

ECGC Country Risk Classification List – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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.

:

198300104-G

COMPANY NAME

:

KS ENERGY LIMITED

FORMER NAME

:

KS ENERGY SERVICES LIMITED (28/04/2011)
KS TECH LTD. (28/04/2005)
KS TECH PTE. LTD. (24/07/1999)
KIM SENG HYDRAULIC & OFFSHORE SUPPLY CO. PTE. LTD. (30/10/1998)

INCORPORATION DATE

:

07/01/1983

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

YES

LISTED DATE

:

06/08/1999

 

 

 

 

 

 

REGISTERED ADDRESS

:

19, JURONG PORT ROAD, 619093, SINGAPORE.

BUSINESS ADDRESS

:

19 JURONG PORT ROAD, 619093, SINGAPORE.

TEL.NO.

:

65-65774600

FAX.NO.

:

65-65774618

WEB SITE

:

WWW.KSENERGY.COM.SG

CONTACT PERSON

:

LIM HO SENG ( MANAGING DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

WHOLESALE OF INDUSTRIAL MACHINERY AND EQUIPMENT

 

 

 

ISSUED AND PAID UP CAPITAL

:

524,240,215.00 ORDINARY SHARE, OF A VALUE OF SGD 361,629,700.55

 

 

 

SALES

:

SGD 698,129,000 [2012]

NET WORTH

:

SGD 419,223,000 [2012]

 

 

 

STAFF STRENGTH

:

200 [2013]

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 

HISTORY / BACKGROUND

 

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, suing or be sued by other companies. The liabilities of the shareholders are only up to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) wholesale of industrial machinery and equipment.

 

Share Capital History

Date

Issue & Paid Up Capital

26/12/2013

SGD 361,629,700.55

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

OVERSEA CHINESE BANK NOMINEES PTE LTD

65, CHULIA STREET, 28 - 01, OCBC CENTRE, 049513, SINGAPORE.

194800054

178,000,000.00

33.95

CITIBANK NOMINEES SINGAPORE PTE LTD

8, MARINA VIEW, 21 - 00, ASIA SQUARE TOWER 1, 018960, SINGAPORE.

198801936

56,894,668.00

10.85

PACIFIC ONE ENERGY LIMITED

 

OTH011193

54,151,690.00

10.33

DUBAI TRANSPORT COMPANY LLC

 

OTH011194

50,751,948.00

9.68

RAFFLES NOMINEES (PTE) LTD

7, CHANGI BUSINESS PARK CRESCENT, 03 - 00, STANDARD CHARTERED @ CHANGI, 486028, SINGAPORE.

193700032

12,573,000.00

2.40

DBS NOMINEES (PRIVATE) LIMITED

12, MARINA BOULEVARD, 018982, SINGAPORE.

196900222

5,051,733.00

0.96

SUNFIELD PTE. LTD.

100, JALAN SULTAN, 09 - 09, SULTAN PLAZA, 199001, SINGAPORE.

200301324W

2,500,000.00

0.48

UNITED OVERSEAS BANK NOMINEES PTE LTD

80, RAFFLES PLACE UOB PLAZA, 048624, SINGAPORE.

196800520

2,049,637.00

0.39

LIM GEOK SENG

 

 

1,916,730.00

0.37

BNP PARIBAS SECURITIES SERVICES PTE LTD

 

AFOTH011168

1,615,000.00

0.31

REMAINING SHAREHOLDERS

 

 

158,735,809.00

30.28

 

 

 

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

------

 

 

 

524,240,215.00

100.00

 

 

 

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

=====

+ Also Director

 

The Subject interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

200819112C

SINGAPORE

KSE (PHILIPPINES) PTE LTD

100.00

31/12/2012

 

 

 

 

 

200403097M

SINGAPORE

UNITED OILFIELD SERVICES PTE. LTD.

100.00

31/12/2012

 

 

 

 

 

 

BERMUDA

ATLANTIC ROTTERDAM LIMITED

100.00

31/12/2012

 

 

 

 

 

 

VIRGIN ISLANDS, BRITISH

SPHINX FRONTIER LTD.

100.00

31/12/2012

 

 

 

 

 

200503186G

SINGAPORE

HARTA HOLDING PTE. LTD.

100.00

31/12/2012

 

 

 

 

 

200503177E

SINGAPORE

HARTA OFFSHORE & MARINE SERVICES PTE. LTD.

100.00

31/12/2012

 

 

 

 

 

198502360H

SINGAPORE

KS OILFIELD EQUIPMENT PTE. LTD.

100.00

31/12/2012

 

 

 

 

 

 

MAURITIUS

KS OILFIELD SERVICES LTD.

100.00

31/12/2012

 

 

 

 

 

 

HONG KONG

KS DISCOVERER 2 (HK) LIMITED

100.00

31/12/2012

 

 

 

 

 

199401121E

SINGAPORE

KS FABRICATION AND ENGINEERING PTE. LTD.

100.00

31/12/2012

 

 

 

 

 

200105112M

SINGAPORE

GLOBALTECH SYSTEMS ENGINEERING PTE LTD

82.00

31/12/2012

 

 

 

 

 

200700221H

SINGAPORE

KS DISCOVERER 4 PTE. LTD.

80.00

31/12/2012

 

 

 

 

 

200708591M

SINGAPORE

KS DISCOVERER 2 PTE. LTD.

80.00

31/12/2012

 

 

 

 

 

200920855C

SINGAPORE

KS DRILLING PTE. LTD.

80.00

31/12/2012

 

 

 

 

 

200723513G

SINGAPORE

KS DISCOVERER 1 PTE. LTD.

80.00

31/12/2012

 

 

 

 

 

 

HONG KONG

KS DISCOVERER 3 (HK) LIMITED

80.00

31/12/2012

 

 

 

 

 

 

EGYPT

ATLANTIC MARINE SERVICE EGYPT

80.00

31/12/2012

 

 

 

 

 

 

NETHERLANDS

ATLANTIC ONSHORE SERVICES B.V.

80.00

31/12/2012

 

 

 

 

 

 

HONG KONG

KS DISCOVERY (HK) LIMITED

80.00

31/12/2012

 

 

 

 

 

 

NETHERLANDS

ATLANTIC OILFIELD SERVICES EUROPE B.V.

80.00

31/12/2012

 

 

 

 

 

 

CYPRUS

ATLANTIC MARINE SERVICES (CYPRUS) GROUP LTD.

80.00

31/12/2012

 

 

 

 

 

 

CYPRUS

QIM VENTURES LIMITED

80.00

31/12/2012

 

 

 

 

 

 

VIRGIN ISLANDS, BRITISH

KSAM2 PETRODRILL OFFSHORE INC.

80.00

31/12/2012

 

 

 

 

 

 

VIRGIN ISLANDS, BRITISH

MINERAL ENERGY RESERVES DRILLER INC

80.00

31/12/2012

 

 

 

 

 

 

INDONESIA

PT GLOBALTECH SYSTEMS ENGINEERING

78.00

31/12/2012

 

 

 

 

 

 

INDONESIA

PT ATLANTIC OILFIELD SERVICES

76.00

31/12/2012

 

 

 

 

 

 

CHINA

RAYMONDS SUPPLY (SHENZHEN) CO., LTD.

55.00

31/12/2012

 

 

 

 

 

 

CHINA

KS EQUIPMENT (SHANGHAI) LTD

55.00

31/12/2012

 

 

 

 

 

 

AUSTRALIA

KS DISTRIBUTION (AUST) PTY LTD

55.00

31/12/2012

 

 

 

 

 

 

CHINA

RAYMONDS SUPPLY (SHANGHAI) CO., LTD.

55.00

31/12/2012

 

 

 

 

 

 

CHINA

DALIAN F.T.Z. SIN SOON HUAT INTERNATIONAL TRADE CO. LTD

55.00

31/12/2012

 

 

 

 

 

200922607D

SINGAPORE

KS DISTRIBUTION PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

197600985C

SINGAPORE

SSH CORPORATION LTD.

55.00

31/12/2012

 

 

 

 

 

200713566E

SINGAPORE

AQUA-TERRA LOGISTICS PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

200706579C

SINGAPORE

AQUA-TERRA OILFIELD EQUIPMENT & SERVICES PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

200000186Z

SINGAPORE

KS MARINEHUB PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

201002239C

SINGAPORE

SSH CORPORATION (PNG) PTE LTD

55.00

31/12/2012

 

 

 

 

 

 

THAILAND

KS DISTRIBUTION (THAILAND) LTD

55.00

31/12/2012

 

 

 

 

 

200709243D

SINGAPORE

AQUA-TERRA GLOBAL PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

 

VIETNAM

KS DISTRIBUTION (VIETNAM) COMPANY LIMITED

55.00

31/12/2012

 

 

 

 

 

505420V

MALAYSIA

KS DISTRIBUTION (MALAYSIA) SDN. BHD.

55.00

31/12/2012

 

 

 

 

 

198201875C

SINGAPORE

SIN SOON HUAT INTERNATIONAL TRADING PTE LTD

55.00

31/12/2012

 

 

 

 

 

200210293Z

SINGAPORE

STARBEAM TECHNOLOGY PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

200619187W

SINGAPORE

MH GLOBAL PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

 

INDONESIA

PT AT OCEANIC OFFSHORE

55.00

31/12/2012

 

 

 

 

 

 

INDONESIA

PT KSD INDONESIA

55.00

31/12/2012

 

 

 

 

 

 

CHINA

KS DISTRIBUTION (SHANGHAI) LTD.

55.00

31/12/2012

 

 

 

 

 

200100108D

SINGAPORE

AQUA-TERRA SUPPLY CO. LIMITED

55.00

31/12/2012

 

 

 

 

 

 

CHINA

AQUA-TERRA SUPPLY (TIANJIN) OILFIELD EQUIPMENT TRADING CO LTD

55.00

31/12/2012

 

 

 

 

 

200204407E

SINGAPORE

GLOBALTECH OFFSHORE & MARINE PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

200611699N

SINGAPORE

KS FLOW CONTROL PTE. LTD.

55.00

31/12/2012

 

 

 

 

 

198800824M

SINGAPORE

ORIENT MARINE PTE LTD

55.00

31/12/2012

 

 

 

 

 

199900177R

SINGAPORE

FISCHER ENGINEERING PTE LTD

55.00

31/12/2012

 

 

 

 

 

 

HONG KONG

RAYMONDS SUPPLY COMANY LIMITED

55.00

31/12/2012

 

 

 

 

 

 

HONG KONG

SURE LINK TRANSPORTATION LIMITED

55.00

31/12/2012

 

 

 

 

 

 

CHINA

SURE LINK LOGISTICS (SHENZHEN) CO., LIMITED

55.00

31/12/2012

 

 

 

 

 



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIM HO SENG

Address

:

100, NEO TIEW ROAD, 719026, SINGAPORE.

IC / PP No

:

S0271375F

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/09/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

LAWRENCE STEPHEN BASAPA

Address

:

76, KEW DRIVE, KEW GROVE, 467987, SINGAPORE.

IC / PP No

:

S0350056Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

ERNEST SEOW TENG PENG

Address

:

2, AVON ROAD, 439780, SINGAPORE.

IC / PP No

:

S0355407D

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 


 

DIRECTOR 4

 

Name Of Subject

:

KRIS TAENAR WILUAN

Address

:

93, GRANGE ROAD, 02-08, GRANGE RESIDENCES, 249614, SINGAPORE.

IC / PP No

:

S2624594Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

02/05/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

WONG MENG YENG

Address

:

1, VICTORIA PARK ROAD, VICTORIA PARK, 266478, SINGAPORE.

IC / PP No

:

S1327330H

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/04/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

BILLY LEE BENG CHENG

Address

:

53, GENTLE ROAD, 309173, SINGAPORE.

IC / PP No

:

S0150107J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/04/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM HO SENG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

BUSARAKHAM KOHSIKAPORN

 

IC / PP No

:

S1681236F

 

 

 

 

 

Address

:

31, MARINE CRESCENT, 09 - 139, MARINE CRESCENT VILLE, 440031, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

YVONNE CHOO

 

IC / PP No

:

S0090447C

 

 

 

 

 

Address

:

2, CALDECOTT CLOSE, CALDECOTT HILL ESTATE, 299110, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

LEGAL ACTION

 

 

 

Code No

:

99

Case No

:

900

 

 

 

 

 

Year

:

2009

Place

:

SINGAPORE

 

 

 

 

 

Court

:

SUPREME COURT

 

 

 

 

 

 

 

 

Date Filed

:

23/10/2009

 

 

 

 

 

 

 

 

Solicitor Ref

:

LTKW/KKJ/NHM/3221 1.1 LTKW/KKJ

 

 

 

 

 

 

 

 

Solicitor Firm

:

RODYK & DAVIDSON LLP

 

 

 

 

 

Plaintiff

:

BR ENERGY (M) SDN BHD

 

 

 

Defendants

:

KS ENERGY LIMITED (198300104)

19, JURONG PORT ROAD, 619093, SINGAPORE.

 

 

 

 

Amount Claimed

:

15000000

 

 

 

 

 

 

 

 

Nature of Claim

:

USD

 

 

 

 

 

 

 

 

Remark

:

CONTRACTS - SALE OF GOODS & SERVICES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

No winding up petition was found in our databank

 

 

 

 

 

 

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


The Subject 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

:

INDUSTRIAL MACHINERY AND EQUIPMENT

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

 

 

 

 

 

 


GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

200

100

100

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) wholesale of industrial machinery and equipment.

The Subject is one of the leading integrated oilfield supply and services providers to the global oil & gas, marine and petrochemical industries.

The core activities of the Subject is in the distribution of parts and components, capital equipment charter and provision of drilling and rig management services.

The Subject represents more than 300 globally-accredited brands and distributes more than 60,000 line items.

The Subject supplies parts and equipment to a wide network of oil majors, rig owners and drilling contractors.

To-date, the Subject has secured quite a few capital equipment related contracts from major oil companies in Asia, Scandinavia, North America as well as the Middle East.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-65774600

Match

:

N/A

 

 

 

Address Provided by Client

:

SINGAPORE

Current Address

:

19 JURONG PORT ROAD, 619093, SINGAPORE.

Match

:

NO

 

 

 

 

Other Investigations


we contacted one of the staff from the subject and she provided some information on the subject.

Through our research, KS DRILLING PTE LTD is only 80% owned by the subject.

We were unable to verify the address as it is incomplete.

The Subject refused to dsiclose its banker.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

0.31%

]

 

Return on Net Assets

:

Unfavourable

[

4.64%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

70 Days

]

 

Debtor Ratio

:

Unfavourable

[

86 Days

]

 

Creditors Ratio

:

Favourable

[

58 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.89 Times

]

 

Current Ratio

:

Unfavourable

[

1.25 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.02 Times

]

 

Gearing Ratio

:

Favourable

[

0.63 Times

]

 

 

 

 

 

 

 

 

The Subject'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 Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject 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 Subject : LIMITED

 

 

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 1983, the Subject is a Public Listed company, focusing on wholesale of industrial machinery and equipment. The Subject has been in business for three decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is fairly large entity with strong capital position.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 200 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a lowly geared company, the Subject 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 419,223,000, the Subject should be able to maintain its business in the near terms.

The Subject'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 Subject has a good control over its resources.

The Subject's payment habit is average. With its adequate working capital, the Subject 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 Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

KS ENERGY LIMITED

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

SGD

SGD

SGD

SGD

Unit

 

 

 

 

 

 

 

 

 

TURNOVER

698,129,000

492,738,000

509,493,000

646,517,000

Other Income

15,192,000

4,425,000

-

-

 

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

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

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

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

Total Turnover

713,321,000

497,163,000

509,493,000

646,517,000

Costs of Goods Sold

<538,217,000>

<366,329,000>

-

-

 

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

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

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

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

Gross Profit

175,104,000

130,834,000

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

13,118,000

<81,589,000>

<87,607,000>

57,345,000

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

-

46,000

<198,000>

53,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

13,118,000

<81,543,000>

<87,805,000>

57,398,000

Taxation

<8,013,000>

<6,116,000>

<8,007,000>

<10,362,000>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,105,000

<87,659,000>

<95,812,000>

47,036,000

Minority interests

<3,816,000>

8,902,000

<2,595,000>

<6,995,000>

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

1,289,000

<78,757,000>

<98,407,000>

40,041,000

Extraordinary items

-

-

28,000

-

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

1,289,000

<78,757,000>

<98,379,000>

40,041,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

39,930,000

118,687,000

217,066,000

183,085,000

 

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

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

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

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

As restated

39,930,000

118,687,000

217,066,000

183,085,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

41,219,000

39,930,000

118,687,000

223,126,000

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

<6,060,000>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

41,219,000

39,930,000

118,687,000

217,066,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

18,000

-

-

-

Bonds

3,210,000

3,210,000

-

-

Hire purchase

-

-

<37,000>

<71,000>

Lease interest

27,000

34,000

-

-

Term loan / Borrowing

8,512,000

6,781,000

9,820,000

<10,199,000>

Others

1,055,000

1,155,000

1,710,000

1,017,000

 

12,822,000

11,180,000

11,493,000

<9,253,000>

 

BALANCE SHEET

 

KS ENERGY LIMITED

 

 

 

 

 

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

389,018,000

415,698,000

362,205,000

434,797,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Associated companies

12,535,000

90,539,000

414,000

586,000

Others

38,675,000

306,000

99,799,000

93,613,000

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

51,210,000

90,845,000

100,213,000

94,199,000

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Deferred/Expenditure carried forward

-

-

27,980,000

45,532,000

Goodwill on consolidation

14,157,000

14,317,000

-

-

Computer software

506,000

841,000

-

-

Trademarks

1,169,000

1,474,000

-

-

Others

9,307,000

11,206,000

-

-

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

25,139,000

27,838,000

27,980,000

45,532,000

 

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

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

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

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

TOTAL LONG TERM ASSETS

465,367,000

534,381,000

490,398,000

574,528,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

134,758,000

120,219,000

156,330,000

168,528,000

Contract work-in-progress

-

-

195,000

11,119,000

Trade debtors

165,441,000

137,454,000

137,883,000

145,954,000

Other debtors, deposits & prepayments

37,349,000

38,055,000

-

-

Short term deposits

597,000

727,000

1,398,000

29,042,000

Amount due from related companies

-

8,000

-

-

Cash & bank balances

60,087,000

57,883,000

33,654,000

56,022,000

Others

73,110,000

30,500,000

85,274,000

37,592,000

 

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

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

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

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

TOTAL CURRENT ASSETS

471,342,000

384,846,000

414,734,000

448,257,000

 

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

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

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

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

TOTAL ASSET

936,709,000

919,227,000

905,132,000

1,022,785,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

85,176,000

73,714,000

64,378,000

64,333,000

Other creditors & accruals

35,435,000

40,865,000

46,581,000

40,682,000

Hire purchase & lease creditors

130,000

225,000

-

-

Short term borrowings/Term loans

110,026,000

82,599,000

-

-

Bill & acceptances payable

25,267,000

10,532,000

-

441,000

Other liabilities & accruals

108,275,000

13,518,000

108,626,000

243,919,000

Amounts owing to associated companies

-

-

-

18,000

Provision for taxation

13,653,000

7,921,000

10,927,000

13,976,000

Other liabilities

-

-

5,687,000

4,979,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

377,962,000

229,374,000

236,199,000

368,348,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

93,380,000

155,472,000

178,535,000

79,909,000

 

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

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

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

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

TOTAL NET ASSETS

558,747,000

689,853,000

668,933,000

654,437,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

319,077,000

319,077,000

319,066,000

228,962,000

 

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

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

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

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

TOTAL SHARE CAPITAL

319,077,000

319,077,000

319,066,000

228,962,000

 

 

 

 

 

RESERVES

 

 

 

 

Exchange equalisation/fluctuation reserve

<65,506,000>

<47,482,000>

<54,932,000>

<22,510,000>

General reserve

8,933,000

8,933,000

-

-

Retained profit/(loss) carried forward

41,219,000

39,930,000

118,687,000

217,066,000

Others

<34,510,000>

<34,510,000>

<24,929,000>

<17,734,000>

 

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

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

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

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

TOTAL RESERVES

<49,864,000>

<33,129,000>

38,826,000

176,822,000

 

 

 

 

 

MINORITY INTEREST

150,010,000

152,211,000

106,854,000

137,954,000

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

419,223,000

438,159,000

464,746,000

543,738,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

130,060,000

139,224,000

-

-

Lease obligations

25,000

105,000

-

-

Deferred taxation

5,998,000

6,763,000

6,096,000

5,592,000

Others

3,441,000

105,602,000

198,091,000

105,107,000

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

139,524,000

251,694,000

204,187,000

110,699,000

 

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

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

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

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

 

558,747,000

689,853,000

668,933,000

654,437,000

 

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

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

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

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

 

FINANCIAL RATIO

 

KS ENERGY LIMITED

 

 

 

 

 

 

TYPES OF FUNDS

 

 

 

 

Cash

60,684,000

58,610,000

35,052,000

85,064,000

Net Liquid Funds

35,417,000

48,078,000

35,052,000

84,623,000

Net Liquid Assets

<41,378,000>

35,253,000

22,205,000

<88,619,000>

Net Current Assets/(Liabilities)

93,380,000

155,472,000

178,535,000

79,909,000

Net Tangible Assets

533,608,000

662,015,000

640,953,000

608,905,000

Net Monetary Assets

<180,902,000>

<216,441,000>

<181,982,000>

<199,318,000>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

265,508,000

232,685,000

0

441,000

Total Liabilities

517,486,000

481,068,000

440,386,000

479,047,000

Total Assets

936,709,000

919,227,000

905,132,000

1,022,785,000

Net Assets

558,747,000

689,853,000

668,933,000

654,437,000

Net Assets Backing

419,223,000

438,159,000

464,746,000

543,738,000

Shareholders' Funds

419,223,000

438,159,000

464,746,000

543,738,000

Total Share Capital

319,077,000

319,077,000

319,066,000

228,962,000

Total Reserves

<49,864,000>

<33,129,000>

38,826,000

176,822,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.16

0.26

0.15

0.23

Liquid Ratio

0.89

1.15

1.09

0.76

Current Ratio

1.25

1.68

1.76

1.22

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

70

89

112

101

Debtors Ratio

86

102

99

82

Creditors Ratio

58

73

46

36

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.63

0.53

0.00

0.00

Liabilities Ratio

1.23

1.10

0.95

0.88

Times Interest Earned Ratio

2.02

<6.29>

<6.64>

<5.20>

Assets Backing Ratio

1.67

2.07

2.01

2.66

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

1.88

<16.55>

<17.23>

8.88

Net Profit Margin

0.18

<15.98>

<19.31>

6.19

Return On Net Assets

4.64

<10.20>

<11.41>

7.36

Return On Capital Employed

3.53

<8.09>

<9.49>

5.75

Return On Shareholders' Funds/Equity

0.31

<17.97>

<21.17>

7.36

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.15

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.00

UK Pound

1

Rs.102.17

Euro

1

Rs.85.19

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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

 

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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.