MIRA INFORM REPORT

 

 

Report Date :

03.09.2013

 

IDENTIFICATION DETAILS

 

Name :

WE HOLDINGS LTD.

 

 

Formerly Known As :

WESTECH ELECTRONICS LIMITED

 

 

Registered Office :

10, UBI Crescent, 03-95, Ubi Techpark, 408564

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

06.03.1986

 

 

Com. Reg. No.:

198600445-D

 

 

Legal Form :

Public (Limited By Share)

 

 

Line of Business :

Distributor and manufacturers’ representative for electronic products based in Singapore covering Asia Pacific.

 

 

No. of Employees :

75 Group

 

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

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.

:

198600445-D

COMPANY NAME

:

WE HOLDINGS LTD.

FORMER NAME

:

WESTECH ELECTRONICS LIMITED (28/04/2011)
WESTECH ELECTRONICS PTE LTD (31/08/2001)

INCORPORATION DATE

:

06/03/1986

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

YES

LISTED DATE

:

23/05/2002

 

 

 

 

 

 

REGISTERED ADDRESS

:

10, UBI CRESCENT, 03-95, UBI TECHPARK, 408564, SINGAPORE.

BUSINESS ADDRESS

:

10 UBI CRESCENT, UBI TECHPARK, LOBBY E, #03-95, 408564, SINGAPORE.

TEL.NO.

:

65-63112900

FAX.NO.

:

65-63112905

WEB SITE

:

WWW.WES.SG

CONTACT PERSON

:

TAN WEE PENG KELVIN ( DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF ELECTRONIC COMPONENTS

 

 

 

ISSUED AND PAID UP CAPITAL

:

1,516,764,806.00 ORDINARY SHARE, OF A VALUE OF SGD 37,703,770.04

 

 

 

SALES

:

USD 62,517,000 [2013]

NET WORTH

:

USD 5,031,000 [2013]

 

 

 

STAFF STRENGTH

:

75 [2013]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

As a public limited company, the SC must have at least one shareholder but there is no limit on the maximum number of shareholders. The SC must have at least two directors. A public 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, 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 SC is insolvent. The SC is governed by the Companies Act and must file in its annual return, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) trading of electronic components.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SINGYASIN SMC TECHNOLOGIES PTE. LTD.

 

AF201021587

49,520,593.00

3.26

BANK OF EAST ASIA NOMINEES PTE LTD

 

AFAFOTH011076

27,421,000.00

1.81

OCBC SECURITIES PRIVATE LTD

 

AF196600262

23,357,055.00

1.54

UNITED OVERSEAS BANK NOMINEES PTE LTD

80, RAFFLES PLACE, UOB PLAZA, 048624, SINGAPORE.

196800520

22,386,350.00

1.48

NG SAN SAN

 

 

20,000,000.00

1.32

PHILLIP SECURITIES PTE LTD

250, NORTH BRIDGE ROAD, 06 - 00, RAFFLES CITY TOWER, 179101, SINGAPORE.

197501035Z

15,629,060.00

1.03

CIMB SECURITIES (SINGAPORE) PTE LTD

 

AF198701621

12,825,000.00

0.85

LOH CHIEW YIN

 

 

10,000,000.00

0.66

HO MAY LEE

 

 

10,000,000.00

0.66

AUW SIEW AI SERENE

 

 

10,000,000.00

0.66

REMAINING SHAREHOLDERS

 

 

1,315,625,748.00

86.74

 

 

 

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

------

 

 

 

1,516,764,806.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

199206782N

SINGAPORE

WE SYSTEMS PTE. LTD.

100.00

31/03/2013

 

 

 

 

 

199707469R

SINGAPORE

WE COMPONENTS PTE. LTD.

100.00

31/03/2013

 

 

 

 

 

335786D

MALAYSIA

WE COMPONENTS SDN. BHD.

85.00

31/03/2013

 

 

 

 

 

201305805

SINGAPORE

WE DRAGON RESOURCES PTE. LTD.

50.00

31/03/2013

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TAN WEE PENG KELVIN

Address

:

16, WAN THO AVENUE, SENNETT ESTATE, 347545, SINGAPORE.

IC / PP No

:

S1668298E

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

16/02/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

SIM MONG KEANG

Address

:

29, ANGULLIA PARK, 22-01, ORCHARD VIEW, 239977, SINGAPORE.

IC / PP No

:

S6928302J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

02/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

TERENCE TEA YEOK KIAN

Address

:

2C, BROADRICK ROAD, 439462, SINGAPORE.

IC / PP No

:

S6803374H

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

11/03/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

NG LI YONG

Address

:

50M, FABER HEIGHTS, 03-87, FABER CREST, 129206, SINGAPORE.

IC / PP No

:

S7214266G

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

11/06/2013

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN WEE PENG KELVIN

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

NEXIA TS PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LOH ENG LOCK KELVIN

 

IC / PP No

:

S7421147Z

 

 

 

 

 

Address

:

84, KEW DRIVE, KEW GROVE, 467991, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

LEE WEI HSIUNG

 

IC / PP No

:

S7927166G

 

 

 

 

 

Address

:

633, JURONG WEST STREET 65, 10-310, 640633, 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 SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

ELECTRONIC COMPONENTS

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 


GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

75

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of electronic components.

The SC is a distributor and manufacturers’ representative for electronic products based in Singapore covering Asia Pacific.

The SC sells a comprehensive range of electronic components, systems, and power.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

65 67436355

Current Telephone Number

:

65-63112900

Match

:

NO

 

 

 

Address Provided by Client

:

10 UBI CRESCENT, UBI TECHPARK, LOBBY E, #03-95, SINGAPORE 408564.

Current Address

:

10 UBI CRESCENT, UBI TECHPARK, LOBBY E, #03-95, 408564, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


On 2nd September 2013 we contacted one of the staff from the SC and she provided some information on the SC.


 

 

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

27.53%

]

 

Profit/(Loss) Before Tax

:

Increased

[

<1.83%>

]

 

Return on Shareholder Funds

:

Unfavourable

[

<89.72%>

]

 

Return on Net Assets

:

Unfavourable

[

<53.25%>

]

 

 

 

 

 

 

 

 

The lower turnover could be due to the intense market competition.Higher losses before tax during the year could be due to the higher operating costs incurred. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

28 Days

]

 

Debtor Ratio

:

Unfavourable

[

83 Days

]

 

Creditors Ratio

:

Unfavourable

[

73 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 unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.86 Times

]

 

Current Ratio

:

Unfavourable

[

1.05 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC 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

[

<5.05 Times>

]

 

Gearing Ratio

:

Unfavourable

[

2.80 Times

]

 

 

 

 

 

 

 

 

The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. 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 losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. The SC's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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)

 

 

 

 

 

(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 1986, the SC is a Public Listed company, focusing on trading of electronic components. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its shareholders has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.

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. To date, the SC has a total workforce of 75 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.

Due to the challenging market conditions, the SC's business performance seems to be deteriorating and losses incurred. 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 managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its 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. The SC suffered huge accumulated losses of USD 10,236,000.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth . 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.

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. Nonetheless, the SC should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same industry.

In view of the above, we only recommend credit be proceeded to the SC with guarantee.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

WE HOLDINGS LTD.

 

Financial Year End

2013-03-31

2012-03-31

2010-12-31

2009-12-31

Months

12

15

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

USD

USD

USD

USD

 

 

 

 

 

TURNOVER

62,517,000

86,266,000

90,076,000

52,453,000

 

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

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

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

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

Total Turnover

62,517,000

86,266,000

90,076,000

52,453,000

Costs of Goods Sold

<56,651,000>

<76,875,000>

-

-

 

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

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

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

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

Gross Profit

5,866,000

9,391,000

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<4,429,000>

<4,427,000>

<7,949,000>

988,000

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

<79,000>

-

-

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<4,508,000>

<4,427,000>

<7,949,000>

988,000

Taxation

<29,000>

<82,000>

<208,000>

<244,000>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<4,537,000>

<4,509,000>

<8,157,000>

744,000

Minority interests

23,000

486,000

4,133,000

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

<4,514,000>

<4,023,000>

<4,024,000>

744,000

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

<4,514,000>

<4,023,000>

<4,024,000>

744,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

<7,446,000>

<3,423,000>

2,773,000

2,029,000

Prior year adjustment

75,000

-

-

-

 

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

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

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

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

As restated

<7,371,000>

<3,423,000>

2,773,000

2,029,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<11,885,000>

<7,446,000>

<1,251,000>

2,773,000

TRANSFER TO RESERVES - General

1,649,000

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

-

-

<2,172,000>

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<10,236,000>

<7,446,000>

<3,423,000>

2,773,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Lease interest

745,000

804,000

643,000

328,000

 

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

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

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

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

 

745,000

804,000

643,000

328,000

 

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

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

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

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

 

 

 

BALANCE SHEET

 

 

WE HOLDINGS LTD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

5,597,000

5,227,000

2,774,000

2,436,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Associated companies

-

114,000

91,000

-

Others

156,000

268,000

126,000

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

156,000

382,000

217,000

-

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Computer software

64,000

100,000

146,000

-

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

64,000

100,000

146,000

-

 

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

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

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

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

TOTAL LONG TERM ASSETS

5,817,000

5,709,000

3,137,000

2,436,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

4,800,000

6,404,000

9,716,000

4,288,000

Trade debtors

14,245,000

10,001,000

18,905,000

12,347,000

Other debtors, deposits & prepayments

731,000

290,000

548,000

542,000

Amount due from associated companies

-

193,000

-

-

Cash & bank balances

6,386,000

5,827,000

8,141,000

6,421,000

Others

141,000

177,000

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

26,303,000

22,892,000

37,310,000

23,598,000

 

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

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

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

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

TOTAL ASSET

32,120,000

28,601,000

40,447,000

26,034,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

11,284,000

7,166,000

12,830,000

8,194,000

Other creditors & accruals

1,134,000

1,831,000

1,809,000

1,072,000

Hire purchase & lease creditors

2,000

21,000

54,000

8,000

Bank overdraft

467,000

572,000

68,000

-

Short term borrowings/Term loans

6,224,000

2,032,000

4,644,000

751,000

Bill & acceptances payable

5,905,000

2,691,000

5,147,000

2,940,000

Amounts owing to associated companies

-

7,000

-

-

Provision for taxation

37,000

25,000

96,000

269,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

25,053,000

14,345,000

24,648,000

13,234,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,250,000

8,547,000

12,662,000

10,364,000

 

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

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

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

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

TOTAL NET ASSETS

7,067,000

14,256,000

15,799,000

12,800,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

12,844,000

7,851,000

7,789,000

6,736,000

 

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

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

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

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

TOTAL SHARE CAPITAL

12,844,000

7,851,000

7,789,000

6,736,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

<10,236,000>

<7,446,000>

<3,423,000>

2,773,000

Others

2,412,000

2,270,000

248,000

<206,000>

 

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

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

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

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

TOTAL RESERVES

<7,824,000>

<5,176,000>

<3,175,000>

2,567,000

 

 

 

 

 

MINORITY INTEREST

11,000

1,681,000

2,171,000

-

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,031,000

4,356,000

6,785,000

9,303,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

1,484,000

9,428,000

8,936,000

3,455,000

Lease obligations

-

4,000

31,000

42,000

Deferred taxation

552,000

468,000

47,000

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,036,000

9,900,000

9,014,000

3,497,000

 

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

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

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

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

 

7,067,000

14,256,000

15,799,000

12,800,000

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

WE HOLDINGS LTD.

 

TYPES OF FUNDS

 

 

 

 

Cash

6,386,000

5,827,000

8,141,000

6,421,000

Net Liquid Funds

14,000

2,564,000

2,926,000

3,481,000

Net Liquid Assets

<3,550,000>

2,143,000

2,946,000

6,076,000

Net Current Assets/(Liabilities)

1,250,000

8,547,000

12,662,000

10,364,000

Net Tangible Assets

7,003,000

14,156,000

15,653,000

12,800,000

Net Monetary Assets

<5,586,000>

<7,757,000>

<6,068,000>

2,579,000

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

14,082,000

14,748,000

18,880,000

7,196,000

Total Liabilities

27,089,000

24,245,000

33,662,000

16,731,000

Total Assets

32,120,000

28,601,000

40,447,000

26,034,000

Net Assets

7,067,000

14,256,000

15,799,000

12,800,000

Net Assets Backing

5,031,000

4,356,000

6,785,000

9,303,000

Shareholders' Funds

5,031,000

4,356,000

6,785,000

9,303,000

Total Share Capital

12,844,000

7,851,000

7,789,000

6,736,000

Total Reserves

<7,824,000>

<5,176,000>

<3,175,000>

2,567,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.25

0.41

0.33

0.49

Liquid Ratio

0.86

1.15

1.12

1.46

Current Ratio

1.05

1.60

1.51

1.78

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

28

27

39

30

Debtors Ratio

83

42

77

86

Creditors Ratio

73

34

52

57

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

2.80

3.39

2.78

0.77

Liabilities Ratio

5.38

5.57

4.96

1.80

Times Interest Earned Ratio

<5.05>

<4.51>

<11.36>

4.01

Assets Backing Ratio

0.55

1.80

2.01

1.90

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

<7.21>

<5.13>

<8.82>

1.88

Net Profit Margin

<7.22>

<4.66>

<4.47>

1.42

Return On Net Assets

<53.25>

<25.41>

<46.24>

10.28

Return On Capital Employed

<49.44>

<21.79>

<40.06>

10.27

Return On Shareholders' Funds/Equity

<89.72>

<92.36>

<59.31>

8.00

Dividend Pay Out Ratio (Times)

0.00

0.00

0.54

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

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.