MIRA INFORM REPORT

 

 

Report Date :

03.09.2013

 

IDENTIFICATION DETAILS

 

Name :

VITAL SOLUTIONS PTE LTD

 

 

Formerly Known As :

EPULPNPAPER PTE LTD

 

 

Registered Office :

77, Robinson Road, 14-01, Robinson 77, 068896

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.12.1999

 

 

Com. Reg. No.:

199907719-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Paper and Paper Products

 

 

No. of Employees :

45

 

 

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 :

Good

Payment Behaviour :

Regular

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.

:

199907719-D

COMPANY NAME

:

VITAL SOLUTIONS PTE LTD

FORMER NAME

:

EPULPNPAPER PTE LTD (30/06/2001)

INCORPORATION DATE

:

08/12/1999

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

77, ROBINSON ROAD, 14-01, ROBINSON 77, 068896, SINGAPORE.

BUSINESS ADDRESS

:

77, ROBINSON ROAD, #14-01 ROBINSON 77, 068896, SINGAPORE.

TEL.NO.

:

65-63259230

FAX.NO.

:

65-62211044

CONTACT PERSON

:

VARADARAJAN KRISHNAN ( MANAGING DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF PAPER AND PAPER PRODUCTS

 

 

 

ISSUED AND PAID UP CAPITAL

:

9,988,450.00 ORDINARY SHARE, OF A VALUE OF SGD 998,845.00
3,884,168.00 PREFERENCE SHARE, OF A VALUE OF SGD 13,792,111.80

 

 

 

SALES

:

USD 289,608,488 [2011]

NET WORTH

:

USD 29,262,236 [2011]

 

 

 

STAFF STRENGTH

:

45 [2013]

BANKER (S)

:

BNP PARIBAS
CITIBANK N.A.
DBS BANK LTD
INDIAN BANK

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

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 paper and paper products.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

LENSHERR UNIVERSAL S.A
[ORD 3,604,852 & PREF 731,707]

PASEA ESTATE, ROAD TOWN, TOTOLA, VIRGIN ISLANDS, BRITISH.

VGT04UF2150

4,336,559.00

31.26

VARADARAJAN KRISHNAN +
[ORD 3,188,674 & PREF 731,708; NALTERNATE DIRECTOR TO DEVKISHAN SITALDAS VARYANI]

9, TANJONG RHU ROAD, 15-03, WATERSIDE, THE, 436894, SINGAPORE.

S2663619A

3,920,382.00

28.26

RAJIV DHAR +
[ORD 3,188,674 & PREF 731,707]

9, TANJONG RHU ROAD, 12-03, WATERSIDE, THE, 436894, SINGAPORE.

S7078521H

3,920,381.00

28.26

ASIA PACIFIC GROWTH FUND CAYMAN ISLANDS III L.P
[PREF]

C/O WALKERS SPV LTD, WALKER HOUSE, 87, MARY STREET, GEORGETOWN, GRAND CAYMAN, KYI-9002, CAYMAN ISLANDS.

KYT08UF2125

713,436.00

5.14

INFOCOMM INVESTMENTS PTE LTD
[PREF]

10, PASIR PANJANG ROAD, 10-01, MAPLETREE BUSINESS CITY, 117438, SINGAPORE.

199608120R

487,805.00

3.52

INTERNATIONAL FINANCE CORPORATION
[PREF]

2121, PENNYSYVANIA AVENUE, N. W. WASHINGTON, D.C. 20433, UNITED STATES.

US011062

487,805.00

3.52

GIBSON KENNETH WILLIAM

JL BDN 56-57, CILANDAK, JAKARTA SELATAN, INDONESIA.

E7059255

6,250.00

0.05

 

 

 

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

------

 

 

 

13,872,618.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

011072

VIRGIN ISLANDS, BRITISH

VIBRANT INDUSTRIES INC

100.00

31/12/2011

 

 

 

 

 

011

KOREA

ASIA PAPER MARKETS.COM CO LTD

100.00

31/12/2011

 

 

 

 

 

011001

NIGERIA

VITAL SOLUTIONS (NIGERIA) PTE LTD

100.00

31/12/2011

 

 

 

 

 

522767D

MALAYSIA

E-PULP N PAPER SDN. BHD.

100.00

31/12/2011

 

 

 

 

 

011061

UNITED STATES

VITAL SOLUTIONS INC

100.00

31/12/2011

 

 

 

 

 

011064

INDIA

VITAL PAPER INDIA PVT LTD

97.02

31/12/2011

 

 

 

 

 

011110

INDONESIA

PT. ASIAPAPER MARKETS

95.00

31/12/2011

 

 

 

 

 

011062

INDIA

SOFT EDGE TECHNOLOGIES PVT LTD

90.00

31/12/2011

 

 

 

 

 

011056

AUSTRALIA

VITAL SOLUTIONS (AUST) PVT LTD

75.00

31/12/2011

 

 

 

 

 

011057

AUSTRALIA

ASIA PAPER MARKET PTY LTD

75.00

31/12/2011

 

 

 

 

 

011014

GERMANY

VITAL PAPER GMBH

72.50

31/12/2011

 

 

 

 

 

011063

INDIA

VERTEX INDIA PVT LTD

70.00

31/12/2011

 

 

 

 

 


DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

HANSON CHEAH

Address

:

FLAT A, BLOCK 17, PROVIDENT CENTRE, NORTH POINT, 23RD FLOOR, HONG KONG.

IC / PP No

:

A9516030

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/05/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

DEVKISHAN SITALDAS VARYANI

Address

:

1366, WOODGREEN WAY HIGHGATE, DAINFEM, JOHANNESBURG, SOUTH AFRICA.

IC / PP No

:

Z1422617

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

29/12/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

RAJIV DHAR

Address

:

9, TANJONG RHU ROAD, 12-03, WATERSIDE, THE, 436894, SINGAPORE.

IC / PP No

:

S7078521H

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

29/12/1999

Remark

:

ORD 3,188,674 & PREF 731,707

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

VARADARAJAN KRISHNAN

Address

:

9, TANJONG RHU ROAD, 15-03, WATERSIDE, THE, 436894, SINGAPORE.

IC / PP No

:

S2663619A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

13/12/1999

Remark

:

ORD 3,188,674 & PREF 731,708; NALTERNATE DIRECTOR TO DEVKISHAN SITALDAS VARYANI

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

VARADARAJAN KRISHNAN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

NEXIA TS PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LEE SOO CHYE

 

IC / PP No

:

S1660953F

 

 

 

 

 

Address

:

12, WEST COAST CRESCENT, 07-01, WESTCOVE CONDOMINIUM, 128042, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BNP PARIBAS

 

 

 

 

 

 

 

 

 

2)

Name

:

CITIBANK N.A.

 

 

 

 

 

 

 

 

 

3)

Name

:

DBS BANK LTD

 

 

 

 

 

 

 

 

 

4)

Name

:

INDIAN BANK

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

200202660

14/06/2002

N/A

STANDARD CHARTERED BANK.

N/A

Unsatisfied

200205051

19/11/2002

N/A

BNP PARIBAS

N/A

Unsatisfied

200205052

19/11/2002

N/A

BNP PARIBAS

N/A

Unsatisfied

C200605573

21/08/2006

N/A

BNP PARIBAS

N/A

Unsatisfied

C200701270

14/02/2007

N/A

THE HONGKONG & SHANGHAI BANKING CORPORATION LTD

N/A

Unsatisfied

C200710267

14/02/2007

N/A

THE HONGKONG & SHANGHAI BANKING CORPORATION LTD

N/A

Unsatisfied

C200708456

08/10/2007

N/A

BNP PARIBAS

N/A

Unsatisfied

C200801803

19/02/2008

N/A

STANDARD CHARTERED BANK.

N/A

Unsatisfied

C200810381

18/11/2008

N/A

INDIAN BANK

N/A

Unsatisfied

C201001295

09/02/2010

N/A

CITIBANK BHD

N/A

Unsatisfied

C201005797

09/07/2010

N/A

DBS BANK LTD

N/A

Unsatisfied

C201010030

25/10/2010

N/A

DBS BANK LTD

N/A

Unsatisfied

C201102935

09/03/2011

N/A

AUSTRALIA & NEW ZEALAND BANKING GROUP LTD

N/A

Unsatisfied

C201102968

10/03/2011

N/A

AUSTRALIA & NEW ZEALAND BANKING GROUP 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

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

 

 

 

 

 

 



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Percentage

:

40%

Export Market

:

SOUTH EAST ASIA

EUROPE

MIDDLE EAST

UNITED STATES

Credit Term

:

15 - 30 DAYS,AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)

Type of Customer

:

INDUSTRIAL SECTOR

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

PAPER PRODUCT

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

 


GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

45

40

40

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of paper and paper products.

The SC offers two types of products which can be broadly categorized as Paper and Building Materials.

The SC supply the entire gambit of materials used in Building from Steel to Glass.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

+65 63259230

Current Telephone Number

:

65-63259230

Match

:

YES

 

 

 

Address Provided by Client

:

77 ROBINSON ROAD 14-01 ROBINSON 77 SINGAPORE 068896

Current Address

:

77, ROBINSON ROAD, #14-01 ROBINSON 77, 068896, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


On 3rd September 2013 we contacted a staff from the SC and she provided some information on the SC

.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

20.81%

]

 

Return on Net Assets

:

Acceptable

[

28.04%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

5 Days

]

 

Debtor Ratio

:

Unfavourable

[

78 Days

]

 

Creditors Ratio

:

Favourable

[

21 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

[

1.50 Times

]

 

Current Ratio

:

Unfavourable

[

1.58 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

[

5.44 Times

]

 

Gearing Ratio

:

Acceptable

[

0.89 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's gearing was slightly high. The SC is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the SC. It will be more vulnerable in times of economy downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher 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. 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the SC's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

 

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 1999, the SC is a Private Limited company, focusing on trading of paper and paper products. 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 shareholder has enabled the SC to remain competitive despite the challenging business environment. The SC has strong capital position. We are confident with the SC's business and its future growth prospect.

Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is operating on a medium scale and it has approximately 45 employees in its business operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The gearing level of the SC is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at USD 29,262,236, the SC should be able to maintain its business in the near terms.

The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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.

VITAL SOLUTIONS PTE LTD

 

Financial Year End

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

USD

USD

USD

 

 

 

 

TURNOVER

289,608,488

262,261,430

240,705,248

Other Income

711,958

<2,669,832>

-

 

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

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

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

Total Turnover

290,320,446

259,591,598

240,705,248

Costs of Goods Sold

<270,572,605>

<245,682,350>

-

 

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

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

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

Gross Profit

19,747,841

13,909,248

-

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

6,746,648

5,273,388

8,473,318

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

6,746,648

5,273,388

8,473,318

Taxation

<944,275>

<672,567>

<1,176,596>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,802,373

4,600,821

7,296,722

Minority interests

288,221

158,582

-

 

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

6,090,594

4,759,403

7,296,722

 

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

6,090,594

4,759,403

7,296,722

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

13,914,160

13,777,577

7,537,948

Prior year adjustment

-

<3,108,037>

-

 

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

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

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

As restated

13,914,160

10,669,540

7,537,948

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

20,004,754

15,428,943

14,834,670

DIVIDENDS - Ordinary (paid & proposed)

<2,087,200>

<1,514,783>

<1,057,093>

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

17,917,554

13,914,160

13,777,577

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Bank overdraft

1,382,625

-

-

Lease interest

17,711

-

-

Term loan / Borrowing

119,671

-

-

 

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

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

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

 

1,520,007

-

-

 

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

 

 

 

 

 

BALANCE SHEET

 

 

VITAL SOLUTIONS PTE LTD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

556,714

409,181

216,696

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

Associated companies

26,804

-

-

Others

51,885

51,885

67,000

 

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

78,689

51,885

67,000

 

 

 

 

INTANGIBLE ASSETS

 

 

 

Deferred/Expenditure carried forward

-

-

39,730

Computer software

-

29,157

-

 

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

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

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

TOTAL INTANGIBLE ASSETS

-

29,157

39,730

 

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

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

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

TOTAL LONG TERM ASSETS

635,403

490,223

323,426

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

3,822,422

1,154,100

972,759

Trade debtors

62,244,338

67,312,130

57,492,565

Other debtors, deposits & prepayments

387,583

529,626

31,122

Short term deposits

5,618,748

5,241,811

6,281,785

Cash & bank balances

5,342,171

2,510,371

2,976,467

Others

1,165,903

530,052

1,518,699

 

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

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

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

TOTAL CURRENT ASSETS

78,581,165

77,278,090

69,273,397

 

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

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

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

TOTAL ASSET

79,216,568

77,768,313

69,596,823

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

15,547,476

18,034,762

12,388,566

Other creditors & accruals

7,542,621

8,761,883

7,360,019

Hire purchase & lease creditors

51,110

24,022

23,220

Bank overdraft

-

1,014,914

41,350

Short term borrowings/Term loans

13,787,206

19,202,295

16,423,616

Other borrowings

1,235,205

1,233,145

-

Bill & acceptances payable

10,886,953

2,882,889

2,709,064

Provision for taxation

664,075

691,417

929,346

Other liabilities

22,488

200,331

854,073

 

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

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

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

TOTAL CURRENT LIABILITIES

49,737,134

52,045,658

40,729,254

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

28,844,031

25,232,432

28,544,143

 

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

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

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

TOTAL NET ASSETS

29,479,434

25,722,655

28,867,569

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

11,454,315

11,454,315

14,790,957

 

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

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

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

TOTAL SHARE CAPITAL

11,454,315

11,454,315

14,790,957

 

 

 

 

RESERVES

 

 

 

General reserve

-

-

176,898

Retained profit/(loss) carried forward

17,917,554

13,914,160

13,777,577

Others

243,525

258,563

-

 

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

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

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

TOTAL RESERVES

18,161,079

14,172,723

13,954,475

 

 

 

 

MINORITY INTEREST

<353,158>

<64,937>

-

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

29,262,236

25,562,101

28,745,432

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Hire purchase creditors

168,563

120,251

116,100

Deferred taxation

48,635

40,303

6,037

 

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

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

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

TOTAL LONG TERM LIABILITIES

217,198

160,554

122,137

 

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

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

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

 

29,479,434

25,722,655

28,867,569

 

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

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

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

 

 

 

FINANCIAL RATIO

 

 

VITAL SOLUTIONS PTE LTD

 

TYPES OF FUNDS

 

 

 

Cash

10,960,919

7,752,182

9,258,252

Net Liquid Funds

73,966

3,854,379

6,507,838

Net Liquid Assets

25,021,609

24,078,332

27,571,384

Net Current Assets/(Liabilities)

28,844,031

25,232,432

28,544,143

Net Tangible Assets

29,479,434

25,693,498

28,827,839

Net Monetary Assets

24,804,411

23,917,778

27,449,247

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

26,129,037

24,477,516

19,313,350

Total Liabilities

49,954,332

52,206,212

40,851,391

Total Assets

79,216,568

77,768,313

69,596,823

Net Assets

29,479,434

25,722,655

28,867,569

Net Assets Backing

29,262,236

25,562,101

28,745,432

Shareholders' Funds

29,262,236

25,562,101

28,745,432

Total Share Capital

11,454,315

11,454,315

14,790,957

Total Reserves

18,161,079

14,172,723

13,954,475

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.22

0.15

0.23

Liquid Ratio

1.50

1.46

1.68

Current Ratio

1.58

1.48

1.70

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

5

2

1

Debtors Ratio

78

94

87

Creditors Ratio

21

27

19

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.89

0.96

0.67

Liabilities Ratio

1.71

2.04

1.42

Times Interest Earned Ratio

5.44

0.00

0.00

Assets Backing Ratio

2.57

2.24

1.95

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

2.33

2.01

3.52

Net Profit Margin

2.10

1.81

3.03

Return On Net Assets

28.04

20.50

29.35

Return On Capital Employed

28.33

19.73

29.25

Return On Shareholders' Funds/Equity

20.81

18.62

25.38

Dividend Pay Out Ratio (Times)

0.34

0.32

0.14

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.86

UK Pound

1

Rs.102.50

Euro

1

Rs.87.05

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.