MIRA INFORM REPORT

 

 

Report Date :

05.09.2013

 

IDENTIFICATION DETAILS

 

Name :

AAVANTI INDUSTRIES PTE LTD

 

 

Registered Office :

17, Phillip Street, 05-01, Grand Building, 048695

 

 

Country :

Singapore

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

21.07.1993

 

 

Com. Reg. No.:

199304717-K

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of edible oil, steel products, agriculture

 

 

No. of Employees :

15 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES:

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

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

Singapore ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

 

 

 

 

 


* Adopted abbreviations :

SC – Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

199304717-K

COMPANY NAME

:

AAVANTI INDUSTRIES PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/07/1993

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

17, PHILLIP STREET, 05-01, GRAND BUILDING, 048695, SINGAPORE.

BUSINESS ADDRESS

:

16 RAFFLES QUAY, HONG LEONG BUILDING, #39-03, 048581, SINGAPORE.

TEL.NO.

:

65-64386821

FAX.NO.

:

65-65382183

CONTACT PERSON

:

EASAW S/O V E THOMAS ( DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF EDIBLE OIL, STEEL PRODUCTS, AGRICULTURE

 

 

 

ISSUED AND PAID UP CAPITAL

:

7,870,000.00 ORDINARY SHARE, OF A VALUE OF SGD 7,870,000.00

 

 

 

SALES

:

USD 2,487,347,793 [2012]

NET WORTH

:

USD 32,001,836 [2012]

 

 

 

STAFF STRENGTH

:

15 [2013]

BANKER (S)

:

DBS BANK LTD
SOCIETE GENERALE
OVERSEA-CHINESE BANKING CORPORATION LTD
HSH NORDBANK AG
THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

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 edible oil, steel products, agriculture.

 

The immediate and ultimate holding company of the SC is MERDALE INVESTMENT COMPANY LIMITED, a company incorporated in JERSEY.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

EASAW S/O V E THOMAS +

2, WILBY ROAD, 276291, SINGAPORE.

S1206857C

1.00

0.00

ANJULA THOMAS NEE KHANDELWAL +

2, WILBY ROAD, 276291, SINGAPORE.

S2183449A

1.00

0.00

MERDALE INVESTMENT COMPANY LIMITED

SAINT JAMES HOUSE NEW SAINT JAMES PLACE SAINT HELIER JERSEY JE 4 8WB CHANNEL ISLANDS, UNITED KINGDOM.

UKT08UF0334

7,869,998.00

100.00

 

 

 

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

------

 

 

 

7,870,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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

Local No

Country

Company

(%)

As At

011111

INDONESIA

PT SUMBER MATAHARI INDONESIA

100.00

30/06/2012

 

 

 

 

 

201108552R

SINGAPORE

RF SOLUTIONS PTE. LTD.

100.00

30/06/2012

 

 

 

 

 

200810633D

SINGAPORE

SAWIT PLANTATION PTE. LTD.

100.00

30/06/2012

 

 

 

 

 

200107825M

SINGAPORE

JUST CONSOLIDATED PTE LTD

50.00

30/06/2012

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

EASAW S/O V E THOMAS

Address

:

2, WILBY ROAD, 276291, SINGAPORE.

IC / PP No

:

S1206857C

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/02/1998

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

ANJULA THOMAS NEE KHANDELWAL

Address

:

2, WILBY ROAD, 276291, SINGAPORE.

IC / PP No

:

S2183449A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

21/07/1993

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

EASAW S/O V E THOMAS

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PRUDENTIAL PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

CLIFFORD EMMANUEL GERMAIN ABAYASEKARA

 

IC / PP No

:

S2191478I

 

 

 

 

 

Address

:

407B, FERNVALE ROAD, 04-13, 792407, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

RAMANUJAM JEYAPRIYA

 

IC / PP No

:

S7136299Z

 

 

 

 

 

Address

:

565B, EAST COAST ROAD, IVORY APARTMENTS, 429080, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

 

 

 

 

 

 

 

 

 

2)

Name

:

SOCIETE GENERALE

 

 

 

 

 

 

 

 

 

3)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LTD

 

 

 

 

 

 

 

 

 

4)

Name

:

HSH NORDBANK AG

 

 

 

 

 

 

 

 

 

5)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

 

 

 

 

 

 

 

 

 

6)

Name

:

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

9504610

26/07/1995

N/A

SOCIETE GENERALE

N/A

Unsatisfied

200005623

21/11/2000

N/A

DBS BANK LTD

N/A

Unsatisfied

200104805

03/10/2001

N/A

SOCIETE GENERALE

N/A

Unsatisfied

200205650

24/12/2002

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200305583

19/11/2003

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200400106

07/01/2004

N/A

OVERSEA-CHINESE BANKING CORPORATION LTD

N/A

Unsatisfied

C200506980

10/11/2005

N/A

THE HONGKONG & SHANGHAI BANKING CORPORATION LTD

N/A

Unsatisfied

C200604202

29/06/2006

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200604204

29/06/2006

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200604205

29/06/2006

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200604839

25/07/2006

N/A

THE ROYAL BANK OF SCOTLAND N.V.

N/A

Unsatisfied

C200702493

02/04/2007

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200702495

02/04/2007

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200702496

02/04/2007

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C200702643

05/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702867

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200710757

06/12/2007

N/A

DBS BANK LTD

N/A

Unsatisfied

C200710804

07/12/2007

N/A

DBS BANK LTD

N/A

Unsatisfied

C200710812

07/12/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200800042

02/01/2008

N/A

OVERSEA-CHINESE BANKING CORPORATION LTD

N/A

Unsatisfied

C200803803

23/04/2008

N/A

DBS BANK LTD

N/A

Unsatisfied

C200806325

11/07/2008

N/A

HSH NORDBANK AG

N/A

Unsatisfied

C200808077

28/08/2008

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200810012

03/11/2008

N/A

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

N/A

Unsatisfied

C201005563

02/07/2010

N/A

COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

N/A

Unsatisfied

C201005568

02/07/2010

N/A

COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

N/A

Unsatisfied

C201010231

29/10/2010

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C201010233

29/10/2010

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C201010236

29/10/2010

N/A

SOCIETE GENERALE

N/A

Unsatisfied

C201201940

20/02/2012

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

N/A

Unsatisfied

C201201989

21/02/2012

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

N/A

Unsatisfied

C201300643

14/01/2013

N/A

STATE BANK OF INDIA

N/A

Unsatisfied

C201308858

01/07/2013

N/A

CHINATRUST COMMERCIAL BANK CO., LTD.

N/A

Unsatisfied

C201308860

01/07/2013

N/A

CHINATRUST COMMERCIAL BANK CO., LTD.

N/A

Unsatisfied

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against 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

:

40%

Overseas

:

YES

Percentage

:

60%

 

 

 

 

 

 



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

Percentage

:

60%

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Percentage

:

40%

Export Market

:

WORLDWIDE

Credit Term

:

15 - 30 DAYS,AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH
LETTER OF CREDIT (LC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

EDIBLE OIL, STEEL PRODUCTS, AGRICULTURE

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

15

15

15

12

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of edible oil, steel products, agriculture

The SC refused to reveal detail information regarding to its business operation. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-64386821

Match

:

N/A

 

 

 

Address Provided by Client

:

17 PHILLIP STRET, 05-01, GRAND BUILDING, SINGAPORE 048695

Current Address

:

16 RAFFLES QUAY, HONG LEONG BUILDING, #39-03, 048581, SINGAPORE.

Match

:

NO

 

 

 

 

Other Investigations


we contacted one of the SC staff and she provided some information regarding to the SC.

The address provided belongs to the SC's registered office.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

25.34%

]

 

Return on Net Assets

:

Favourable

[

83.71%

]

 

 

 

 

 

 

 

 

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 profit fell sharply because of the high operating costs incurred. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

2 Days

]

 

Debtor Ratio

:

Favourable

[

35 Days

]

 

Creditors Ratio

:

Favourable

[

22 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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

:

Acceptable

[

1.00 Times

]

 

Current Ratio

:

Unfavourable

[

1.03 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

[

1.46 Times

]

 

Gearing Ratio

:

Unfavourable

[

8.23 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 :

 

 

 

 

 

 

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. 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 : LIMITED

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2008

2009

2010

2011

2012

 

 

 

 

 

 

Population (Million)

4.84

4.98

5.08

5.18

5.31

Gross Domestic Products ( % )

1.5

<0.8>

14.5

4.9

1.3

Consumer Price Index

6.6

0.6

2.8

5.2

4.6

Total Imports (Million)

450,892.6

356,299.3

423,221.8

459,655.1

474,554.0

Total Exports (Million)

476,762.2

391,118.1

478,840.7

514,741.2

510,329.0

 

 

 

 

 

 

Unemployment Rate (%)

2.2

3.2

2.2

2.1

2.0

Tourist Arrival (Million)

10.12

9.68

11.64

13.17

14.37

Hotel Occupancy Rate (%)

81.0

75.8

85.6

86.5

86.4

Cellular Phone Subscriber (Million)

1.31

1.37

1.43

1.50

1.52

 

 

 

 

 

 

Registration of New Companies (No.)

25,327

26,414

29,798

32,317

31,892

Registration of New Companies (%)

<2.2>

4.3

12.8

8.5

<1.3>

Liquidation of Companies (No.)

10,493

22,393

15,126

19,005

17,218

Liquidation of Companies (%)

13.7

113.4

<32.5>

25.6

9.4

 

 

 

 

 

 

Registration of New Businesses (No.)

24,850

26,876

23,978

23,494

24,788

Registration of New Businesses (%)

0.36

8.15

<10.78>

2.02

5.51

Liquidation of Businesses (No.)

21,150

23,552

24,211

23,005

22,489

Liquidation of Businesses (%)

<0.8>

11.4

2.8

<5>

<2.2>

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,326

2,058

1,537

1,527

1,748

Bankruptcy Orders (%)

<15.9>

<11.5>

<25.3>

<0.7>

14.5

Bankruptcy Discharges (No.)

1,500

3,056

2,252

1,391

1,881

Bankruptcy Discharges (%)

<7.7>

103.7

<26.3>

<38.2>

35.2

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

<0.32>

3.25

<0.48>

4.25

3.64

Fish Supply & Wholesale

<6.31>

<1.93>

<10.5>

12.10

<0.5>

 

 

 

 

 

 

Manufacturing *

74.6

71.5

92.8

100.0

100.3

Food, Beverages & Tobacco

94.8

90.4

96.4

100.0

103.5

Textiles

180.1

145.9

122.1

100.0

104.0

Wearing Apparel

334.6

211.0

123.3

100.0

92.1

Leather Products & Footwear

128.2

79.5

81.8

100.0

98.6

Wood & Wood Products

132.0

101.4

104.0

100.0

95.5

Paper & Paper Products

101.0

95.4

106.1

100.0

97.4

Printing & Media

118.2

100.9

103.5

100.0

93.0

Crude Oil Refineries

113.1

96.4

95.6

100.0

99.4

Chemical & Chemical Products

84.5

80.3

97.6

100.0

100.5

Pharmaceutical Products

43.7

49.1

75.3

100.0

109.7

Rubber & Plastic Products

120.1

101.2

112.3

100.0

96.5

Non-metallic Mineral

96.5

91.9

92.5

100.0

98.2

Basic Metals

109.8

92.6

102.2

100.0

90.6

Fabricated Metal Products

101.3

90.8

103.6

100.0

104.3

Machinery & Equipment

65.0

57.3

78.5

100.0

112.9

Electrical Machinery

81.7

86.8

124.1

100.0

99.3

Electronic Components

93.1

85.2

113.6

100.0

90.6

Transport Equipment

102.0

96.0

94.0

100.0

106.3

 

 

 

 

 

 

Construction

45.90

<36.9>

14.20

20.50

28.70

Real Estate

<11.2>

1.4

21.3

25.4

31.9

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

<1.3>

1.70

4.00

7.00

6.30

Transport, Storage & Communication

11.60

3.90

12.80

7.40

5.30

Finance & Insurance

<5.9>

<16.4>

<0.4>

8.90

0.50

Government Services

17.40

4.50

9.70

6.90

6.00

Education Services

0.50

0.10

<0.9>

<1.4>

0.30

 

 

 

 

 

 

* Based on Index of Industrial Production (2011 = 100)

 

 

 

 

 

(Source : Department of Statistics)

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

 

 

 

The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.

 

The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.

 

In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%. 

 

For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.

 

 

 

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH




CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1993, the SC is a Private Limited company, focusing on trading of edible oil, steel products, agriculture. Its impressive track record shows that the SC has been able to keep its business going despite the passing of two decades of highs and lows in the local economy. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future. 

Over the years, the SC has 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's business operation is supported by 15 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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 high gearing ratio clearly implied that the SC was supported by more debt than equity. Nevertheless, given a positive net worth standing at USD 32,001,836, the SC should be able to maintain its business in the near terms. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources. 

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. 

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

AAVANTI INDUSTRIES PTE LTD

 

Financial Year End

2012-06-30

2011-06-30

2010-06-30

2009-06-30

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

 

 

 

 

 

TURNOVER

2,487,347,793

1,986,406,114

1,405,288,793

1,552,931,671

Other Income

9,779,120

16,614,614

-

-

 

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

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

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

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

Total Turnover

2,497,126,913

2,003,020,728

1,405,288,793

1,552,931,671

Costs of Goods Sold

<2,463,357,482>

<1,974,160,617>

-

-

 

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

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

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

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

Gross Profit

33,769,431

28,860,111

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

8,588,110

16,797,345

2,518,599

1,219,488

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

-

-

<27,193>

<44,175>

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

8,588,110

16,797,345

2,491,406

1,175,313

Taxation

<170,876>

<330,675>

<1,062,733>

590,036

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

8,417,234

16,466,670

1,428,673

1,765,349

Minority interests

<308,413>

<26,558>

-

-

Pre-acquisition profit/(loss)

-

-

<29,000>

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

8,108,821

16,440,112

1,399,673

1,765,349

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

8,108,821

16,440,112

1,399,673

1,765,349

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

20,876,731

6,066,443

4,780,386

3,058,015

Prior year adjustment

-

<1,629,824>

-

-

 

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

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

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

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

As restated

20,876,731

4,436,619

4,780,386

3,058,015

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

28,985,552

20,876,731

6,180,059

4,823,364

TRANSFER TO RESERVES - General

-

-

<113,616>

<42,978>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

28,985,552

20,876,731

6,066,443

4,780,386

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Trust receipts

3,427,473

1,514,877

1,437,564

2,612,546

Others

15,090,071

6,145,489

7,886,714

18,584,407

 

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

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

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

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

 

18,517,544

7,660,366

9,324,278

21,196,953

 

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

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

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

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

 

 

 

BALANCE SHEET

 

 

AAVANTI INDUSTRIES PTE LTD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

3,050,521

188,125

31,117,383

7,849,251

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Associated companies

-

646,439

550,465

289,573

Investment properties

504,222

510,108

515,994

521,880

Investments

715,964

-

-

-

Others

12,043,005

-

-

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

13,263,191

1,156,547

1,066,459

811,453

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Own goodwill

382,118

-

-

-

Goodwill on consolidation

-

-

11,401,019

11,157,640

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

382,118

-

11,401,019

11,157,640

 

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

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

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

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

TOTAL LONG TERM ASSETS

16,695,830

1,344,672

43,584,861

19,818,344

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

16,968,494

24,703,382

1,862,688

1,303,687

Trade debtors

238,986,768

311,371,286

106,250,483

205,303,047

Other debtors, deposits & prepayments

71,689,719

40,081,193

1,488,673

1,156,200

Short term deposits

-

-

1,212,366

5,416,550

Amount due from associated companies

109,687

1,042,752

-

-

Cash & bank balances

107,453,732

48,379,879

14,563,410

5,134,487

Others

83,666,094

69,381,288

7,053,486

13,785,707

 

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

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

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

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

TOTAL CURRENT ASSETS

518,874,494

494,959,780

132,431,106

232,099,678

 

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

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

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

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

TOTAL ASSET

535,570,324

496,304,452

176,015,967

251,918,022

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

149,137,257

196,068,170

63,100,340

61,463,917

Other creditors & accruals

28,772,216

20,116,031

3,542,687

2,247,968

Short term borrowings/Term loans

262,985,296

231,233,304

73,143,147

160,811,237

Deposits from customers

22,476,591

-

-

-

Amounts owing to related companies

69,379

-

-

-

Provision for taxation

311,131

343,161

994,856

251,876

Other liabilities

39,436,656

12,598,625

970,856

808,977

 

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

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

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

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

TOTAL CURRENT LIABILITIES

503,188,526

460,359,291

141,751,886

225,583,975

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

15,685,968

34,600,489

<9,320,780>

6,515,703

 

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

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

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

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

TOTAL NET ASSETS

32,381,798

35,945,161

34,264,081

26,334,047

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

4,779,070

4,779,070

4,779,070

4,779,070

 

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

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

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

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

TOTAL SHARE CAPITAL

4,779,070

4,779,070

4,779,070

4,779,070

 

 

 

 

 

RESERVES

 

 

 

 

Revaluation reserve

-

-

22,443,287

-

Exchange equalisation/fluctuation reserve

<304,583>

18,868

-

-

Retained profit/(loss) carried forward

28,985,552

20,876,731

6,066,443

4,780,386

Others

<2,020,870>

9,814,553

<512,902>

<774,718>

 

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

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

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

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

TOTAL RESERVES

26,660,099

30,710,152

27,996,828

4,005,668

 

 

 

 

 

MINORITY INTEREST

562,667

48,550

1,116,957

31,261

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

32,001,836

35,537,772

33,892,855

8,815,999

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

379,962

407,389

371,226

17,518,048

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

379,962

407,389

371,226

17,518,048

 

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

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

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

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

 

32,381,798

35,945,161

34,264,081

26,334,047

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

AAVANTI INDUSTRIES PTE LTD

 

TYPES OF FUNDS

 

 

 

 

Cash

107,453,732

48,379,879

15,775,776

10,551,037

Net Liquid Funds

107,453,732

48,379,879

15,775,776

10,551,037

Net Liquid Assets

<1,282,526>

9,897,107

<11,183,468>

5,212,016

Net Current Assets/(Liabilities)

15,685,968

34,600,489

<9,320,780>

6,515,703

Net Tangible Assets

31,999,680

35,945,161

22,863,062

15,176,407

Net Monetary Assets

<1,662,488>

9,489,718

<11,554,694>

<12,306,032>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

263,365,258

231,640,693

73,514,373

178,329,285

Total Liabilities

503,568,488

460,766,680

142,123,112

243,102,023

Total Assets

535,570,324

496,304,452

176,015,967

251,918,022

Net Assets

32,381,798

35,945,161

34,264,081

26,334,047

Net Assets Backing

32,001,836

35,537,772

33,892,855

8,815,999

Shareholders' Funds

32,001,836

35,537,772

33,892,855

8,815,999

Total Share Capital

4,779,070

4,779,070

4,779,070

4,779,070

Total Reserves

26,660,099

30,710,152

27,996,828

4,005,668

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.21

0.11

0.11

0.05

Liquid Ratio

1.00

1.02

0.92

1.02

Current Ratio

1.03

1.08

0.93

1.03

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

2

5

0

0

Debtors Ratio

35

57

28

48

Creditors Ratio

22

36

16

14

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

8.23

6.52

2.17

20.23

Liabilities Ratio

15.74

12.97

4.19

27.58

Times Interest Earned Ratio

1.46

3.19

1.27

1.06

Assets Backing Ratio

6.70

7.52

4.78

3.18

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

0.35

0.85

0.18

0.08

Net Profit Margin

0.33

0.83

0.10

0.11

Return On Net Assets

83.71

68.04

34.48

84.96

Return On Capital Employed

81.33

67.95

25.26

59.62

Return On Shareholders' Funds/Equity

25.34

46.26

4.13

20.02

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.67.03

UK Pound

1

Rs.104.32

Euro

1

Rs.88.24

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.