MIRA INFORM REPORT

 

 

Report Date :

28.11.2011

 

IDENTIFICATION DETAILS

 

Name :

NICO STEEL SOLUTIONS (S) PTE. LTD.

 

 

Formerly Known As :

NICO STEEL CENTRE (S) PTE LTD (29.10.2002)

 

 

Registered Office :

51, Loyang Way, 508744

 

 

Country :

Singapore

 

 

Financials (as on) :

28.02.2013

 

 

Date of Incorporation :

07.07.1995

 

 

Com. Reg. No.:

199504753-E

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture and repair of machinery and machine- tools - metal cutting types

 

 

No. of Employees :

Not Available

 

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 :

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.

:

199504753-E

COMPANY NAME

:

NICO STEEL SOLUTIONS (S) PTE. LTD.

FORMER NAME

:

NICO STEEL CENTRE (S) PTE LTD (29/10/2002)

INCORPORATION DATE

:

07/07/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

51, LOYANG WAY, 508744, SINGAPORE.

BUSINESS ADDRESS

:

48 CHANGI SOUTH STREET 1, NICO BUILDING, CHANGI SOUTH INDUSTRIAL ESTATE, 486130, SINGAPORE.

TEL.NO.

:

65-65421886

FAX.NO.

:

65-65421986

EMAIL

:

SALES@NICO.COM.SG

WEB SITE

:

WWW.NICOSTEEL.COM

CONTACT PERSON

:

TAN CHEE KHIONG ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

MANUFACTURE AND REPAIR OF MACHINERY AND MACHINE- TOOLS - METAL CUTTING TYPES

ISSUED AND PAID UP CAPITAL

:

900,000.00 ORDINARY SHARE, OF A VALUE OF SGD 900,000.00 

SALES

:

USD 24,727,062 [2013]

NET WORTH

:

USD 5,421,814 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

BANGKOK BANK PUBLIC COMPANY LTD
STANDARD CHARTERED BANK
THE DEVELOPMENT BANK OF SINGAPORE LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 


 

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) manufacture and repair of machinery and machine- tools - metal cutting types.

 

The immediate holding company of the SC is NICO STEEL HOLDINGS LIMITED, a company incorporated in SINGAPORE.

 

The ultimate holding company of the SC is D.S.A.G INVESTMENT 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

(%)

NICO STEEL HOLDINGS LIMITED

51, LOYANG WAY, 508744, SINGAPORE.

200104166D

900,000.00

100.00

 

 

 

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

------

 

 

 

900,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

TANG HEE KYA

Address

:

20A, RICHARDS AVENUE, 546429, SINGAPORE.

IC / PP No

:

S2572915C

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

24/02/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

TAN CHEE KHIONG

Address

:

20A, RICHARDS AVENUE, 546429, SINGAPORE.

IC / PP No

:

S1724457D

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

07/07/1995

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

TANG CHEE BIAN

Address

:

20A, RICHARDS AVENUE, 546429, SINGAPORE.

IC / PP No

:

S1805146Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

24/02/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

TANG CHEE WEE

Address

:

20A, RICHARDS AVENUE, 546432, SINGAPORE.

IC / PP No

:

S6909127Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

24/02/1997

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN CHEE KHIONG

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

KPMG LLP

Auditor' Address

:

N/A

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

TAN CHEE KHIONG

 

IC / PP No

:

S1724457D

 

 

 

 

 

Address

:

20A, RICHARDS AVENUE, 546429, SINGAPORE.

 

 

 

 

 

 

 

 

 

 


BANKING


Banking relations are maintained principally with :

 

1)

Name

:

BANGKOK BANK PUBLIC COMPANY LTD

 

 

 

 

 

 

 

 

 

2)

Name

:

STANDARD CHARTERED BANK

 

 

 

 

 

 

 

 

 

3)

Name

:

THE DEVELOPMENT BANK OF SINGAPORE LTD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)


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

 

 

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

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MACHINE TOOLS, STEEL

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture and repair of machinery and machine- tools - metal cutting types. 


Activities: 
The SC is a processor and distributor of comprehensive range of specialty & commercial ferrous and non-ferrous material (eg. copper, brass, bronze, stainless steel, aluminium etc). subject has established a new coil centre in suzhou, china. 


Products:
* nico solderite 

* stainless steel

* copper alloy 

* aluminum alloy 

* carbon steel alloy

* brass strip 

* copper strip 

* phospher bronze strip 


Industries served: 

* consumer electronics 

* telecommunications

* hard disk drive 



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

 

Telephone Number Provided By Client

:

6565421886

Current Telephone Number

:

65-65421886

Match

:

YES

 

 

 

Address Provided by Client

:

48 CHANGI SOUTH STREET 1, NICO BUILDING, CHANGI SOUTH INDUSTRIAL ESTATE, SINGAPORE 486130

Current Address

:

48 CHANGI SOUTH STREET 1, NICO BUILDING, CHANGI SOUTH INDUSTRIAL ESTATE, 486130, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


On 20th November 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The SC refused to disclose its number of employees.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

28.05%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

94.25%

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.23%

]

 

Return on Net Assets

:

Acceptable

[

13.63%

]

 

 

 

 

 

 

 

 

The lower turnover could be due to the intense market competition.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

36 Days

]

 

Debtor Ratio

:

Unfavourable

[

182 Days

]

 

Creditors Ratio

:

Favourable

[

24 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

[

1.11 Times

]

 

Current Ratio

:

Unfavourable

[

1.33 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

:

Unfavourable

[

1.49 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.26 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 was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's performance deteriorated over the years with lower turnover and profit. 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. 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's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : POOR

 

 

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)

 

 

 

 

 



INDUSTRY ANALYSIS

 

INDUSTRY :   MANUFACTURING

 

The manufacturing sector contracted by 1.1% in the fourth quarter of 2012, led by declines in the electronics and precision engineering clusters. These clusters were weighed down by weak global demand for semiconductors and semiconductor-related equipment. For the whole year of 2012, the manufacturing sector grew by 0.1%, significantly lower than the 7.8% recorded in 2011 when the sector was boosted by a surge in the growth of the biomedical manufacturing cluster.

 

Output of the biomedical manufacturing cluster grew by 2.4% in the fourth quarter. The expansion was driven by the medical technology segment which grew by a healthy 9.2%, benefitting from robust export demand for medical devices. The pharmaceuticals segment also grew by a modest 1.1%. For 2012, the biomedical manufacturing cluster expanded by 9.9%. 

 

Output of the transport engineering cluster expanded by 4.9% in the fourth quarter. The aerospace segment grew by 6.2%, supported by higher demand for repair jobs from commercial airlines. Similarly, the marine & offshore engineering segment expanded by 5.0%, on the back of higher contributions from oil rig projects and oilfield equipment components. In the year 2012, the transport engineering cluster surged by 11%.

 

The output of the precision engineering cluster shrank by 1.3% in the fourth quarter. The decline was led by the 5.3% contraction in the machinery & systems segment, which saw weak export demand for semiconductor-related equipment. On the other hand, the precision modules & components segment grew by 2.9%, supported by higher production of optical instruments & photographic equipment and electronic connectors. In 2012, the precision engineering cluster expanded by 1.3%.

 

The general manufacturing cluster's output grew by 1.2% in the fourth quarter, driven by the 6.4% growth in the miscellaneous industries segment. The segment's growth was supported by higher production of batteries and constructionrelated materials. By contrast, the printing and food, beverages & tobacco segments declined by 6.4% and 1.3% respectively. For 2012, the general manufacturing cluster grew by 2.0%. 

 

The chemicals cluster's output grew by 7.7% in the fourth quarter. The petrochemicals and petroleum segments registered growth of 9.3% and 6.3% respectively, partly due to the low base from plant shutdowns in end of 2011. The specialty chemicals segment also expanded by 8.0% on the back of higher regional demand. For the year 2012, the chemicals cluster declined by 0.4%, primarily due to weak regional demand for specialty chemicals in the second and third quarter of 2012.

 

Output of the electronics cluster contracted by 10% in the fourth quarter, led by the semiconductors and computer peripherals segments which contracted by 13% and 15% respectively. By contrast, the data storage segment grew by 7.8%, mainly due to the low base in end of 2011 when floods in Thailand had disrupted the supply chain for data storage products. For the whole of 2012, the electronics cluster contracted by 11%. 

 

 

OVERALL INDUSTRY OUTLOOK : MATURE



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1995, the SC is a Private Limited company, focusing on manufacture and repair of machinery and machine- tools - metal cutting types. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive.


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


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Given a positive net worth standing at USD 5,421,814, 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 has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the SC's growth prospect is very much depends on its capacity in sustaining its performance in the market. 

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

 

PROFIT AND LOSS ACCOUNT

 

 

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

NICO STEEL SOLUTIONS (S) PTE. LTD.

 

Financial Year End

2013-02-28

2012-02-28

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

USD

USD

 

 

 

TURNOVER

24,727,062

34,367,591

Other Income

472,293

4,538,908

 

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

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

Total Turnover

25,199,355

38,906,499

Costs of Goods Sold

<22,978,433>

<32,472,948>

 

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

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

Gross Profit

2,220,922

6,433,551

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

242,056

4,210,715

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

242,056

4,210,715

Taxation

<12,490>

<8,481>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

229,566

4,202,234

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

6,153,594

1,690,014

Prior year adjustment

-

261,346

 

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

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

As restated

6,153,594

1,951,360

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

6,383,160

6,153,594

DIVIDENDS - Ordinary (paid & proposed)

<1,600,000>

-

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,783,160

6,153,594

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Lease interest

459

456

Others

498,153

739,143

 

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

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

 

498,612

739,599

 

 

 


BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

1,681,011

1,673,531

 

 

 

INTANGIBLE ASSETS

 

 

Patents / Copyrights

8,853

10,689

Trademarks

2,579

4,327

 

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

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

TOTAL INTANGIBLE ASSETS

11,432

15,016

 

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

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

TOTAL LONG TERM ASSETS

1,692,443

1,688,547

 

 

 

CURRENT ASSETS

 

 

Stocks

2,466,805

2,740,512

Trade debtors

12,355,622

14,066,124

Cash & bank balances

123,808

3,705,572

 

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

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

TOTAL CURRENT ASSETS

14,946,235

20,512,208

 

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

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

TOTAL ASSET

16,638,678

22,200,755

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

1,508,052

1,257,314

Other creditors & accruals

80,375

542,532

Bill & acceptances payable

6,822,033

9,285,026

Other liabilities & accruals

73,689

2,176,405

Amounts owing to holding company

2,699,787

2,118,145

Amounts owing to related companies

3,389

219

Amounts owing to director

544

544

Provision for taxation

17,134

9,249

 

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

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

TOTAL CURRENT LIABILITIES

11,205,003

15,389,434

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,741,232

5,122,774

 

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

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

TOTAL NET ASSETS

5,433,675

6,811,321

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

638,654

638,654

 

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

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

TOTAL SHARE CAPITAL

638,654

638,654

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

4,783,160

6,153,594

 

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

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

TOTAL RESERVES

4,783,160

6,153,594

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,421,814

6,792,248

 

 

 

LONG TERM LIABILITIES

 

 

Deferred taxation

7,508

10,740

Others

4,353

8,333

 

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

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

TOTAL LONG TERM LIABILITIES

11,861

19,073

 

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

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

 

5,433,675

6,811,321

 

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

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

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

Cash

123,808

3,705,572

Net Liquid Funds

<6,698,225>

<5,579,454>

Net Liquid Assets

1,274,427

2,382,262

Net Current Assets/(Liabilities)

3,741,232

5,122,774

Net Tangible Assets

5,422,243

6,796,305

Net Monetary Assets

1,262,566

2,363,189

BALANCE SHEET ITEMS

 

 

Total Borrowings

6,822,033

9,285,026

Total Liabilities

11,216,864

15,408,507

Total Assets

16,638,678

22,200,755

Net Assets

5,433,675

6,811,321

Net Assets Backing

5,421,814

6,792,248

Shareholders' Funds

5,421,814

6,792,248

Total Share Capital

638,654

638,654

Total Reserves

4,783,160

6,153,594

LIQUIDITY (Times)

 

 

Cash Ratio

0.01

0.24

Liquid Ratio

1.11

1.15

Current Ratio

1.33

1.33

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

36

29

Debtors Ratio

182

149

Creditors Ratio

24

14

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

1.26

1.37

Liabilities Ratio

2.07

2.27

Times Interest Earned Ratio

1.49

6.69

Assets Backing Ratio

8.49

10.64

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

0.98

12.25

Net Profit Margin

0.93

12.23

Return On Net Assets

13.63

72.68

Return On Capital Employed

13.60

72.52

Return On Shareholders' Funds/Equity

4.23

61.87

Dividend Pay Out Ratio (Times)

6.97

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.36

UK Pound

1

Rs.101.11

Euro

1

Rs.84.68

 

 

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.