MIRA INFORM REPORT

 

 

Report Date :

18.04.2014              

 

IDENTIFICATION DETAILS

 

Name :

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE. LTD.

 

 

Registered Office :

17, Tuas Street, 638454

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

03.03.1973

 

 

Com. Reg. No.:

197300374-Z

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing Electrical Equipment

 

 

No. of Employees

140 [2014]

 

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 :

Slow but correct

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. 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.

:

197300374-Z

COMPANY NAME

:

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/03/1973

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

17, TUAS STREET, 638454, SINGAPORE.

BUSINESS ADDRESS

:

17 TUAS STREET,, 638454, SINGAPORE.

TEL.NO.

:

65-65611165

FAX.NO.

:

65-65612166

WEB SITE

:

WWW.TERASAKI.COM.SG

CONTACT PERSON

:

ONG POCK KEONG ( DIRECTOR )

PRINCIPAL ACTIVITY

:

MANUFACTURING ELECTRICAL EQUIPMENT

ISSUED AND PAID UP CAPITAL

:

1,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,000,000.00

SALES

:

SGD 35,950,148 [2013]

NET WORTH

:

SGD 34,434,269 [2013]

STAFF STRENGTH

:

140 [2014]

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MATURE

 


 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacturing electrical equipment.

 

The immediate and ultimate holding company of the Subject is TERASAKI ELECTRIC CO LTD, a company incorporated in JAPAN.

 

Share Capital History

Date

Issue & Paid Up Capital

15/04/2014

SGD 1,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

TERASAKI ELECTRIC CO LTD

7-2-10 HANNAN-CHO ABENO-KU, OSAKA, JAPAN.

T08UF0032

1,000,000.00

100.00

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

------

1,000,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

199901020W

SINGAPORE

ELECTRIMEC ASIA PACIFIC PTE LTD

100.00

07/04/2014

198501528W

SINGAPORE

TERASAKI CIRCUIT BREAKERS (S) PTE LTD

100.00

31/03/2013




 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

ONG POCK KEONG

Address

:

9, WEST COAST PARK, HONG LEONG GARDEN, 127634, SINGAPORE.

IC / PP No

:

S0219080Z

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/04/1985

 

DIRECTOR 2

 

Name Of Subject

:

HIROYUKI ISHIMIZU

Address

:

7-2-10, HANNAN-GHO, ABENO-KU, OSAKA 545-0021, JAPAN.

IC / PP No

:

TH1848262

Nationality

:

JAPANESE

Date of Appointment

:

20/06/2011

 

DIRECTOR 3

 

Name Of Subject

:

KOJI NISHIMOTO

Address

:

7-2-10, HANNAN-CHO, ABENO-KU, OSAKA 545-0021, JAPAN.

IC / PP No

:

TH1491214

Nationality

:

JAPANESE

Date of Appointment

:

21/05/2012

 

DIRECTOR 4

 

Name Of Subject

:

SHUNJI OKADA

Address

:

7-2-10, HANNAN-CHO, ABENO-KU, OSAKA 545-002, JAPAN.

IC / PP No

:

TG5010824

Nationality

:

JAPANESE

Date of Appointment

:

22/05/2013

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ONG POCK KEONG

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

ERNST & YOUNG LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

CHIANG CHONG SIN

IC / PP No

:

S1217215Z

Address

:

27, LORONG PISANG ASAM, HOOVER PARK, 597972, SINGAPORE.

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


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

 

 

LEGAL CHECK AGAINST SUBJECT


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

LEGAL ACTION

 

 

Code No

:

99

Case No

:

8035

Year

:

2009

Place

:

SINGAPORE

Court

:

MAGISTRATE COURT

Date Filed

:

16/03/2009

Solicitor Ref

:

NG517-ACC-23135.09/AP(YL)

Solicitor Firm

:

TEO KENG SIANG & PARTNERS

Plaintiff

:

NEO WATT SENG

Defendants

:

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE LTD (197300374)

23 BUKIT BATOK STREET 22, 659590, SINGAPORE.

Amount Claimed

:

39

Nature of Claim

:

SGD

Remark

:

TORT-NEGLIGENCE


Code No

:

99

Case No

:

120

Year

:

2010

Place

:

SINGAPORE

Court

:

SUPREME COURT

Date Filed

:

18/02/2010

Solicitor Ref

:

2009004725PE.HL

Solicitor Firm

:

LEGAL21 LLC

Plaintiff

:

CABLE SOLUTIONS (SEA) PTE LTD

Defendants

:

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE LTD (197300374)

23 BUKIT BATOK STREET 22, 659590, SINGAPORE.

Amount Claimed

:

289604.73

Nature of Claim

:

SGD

Remark

:

CONTRACT

 

NOTE:

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

 

No winding up petition was found in our databank

 


 

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

X

]



CLIENTELE

 

Local

:

YES

Percentage

:

40%

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Percentage

:

60%

Export Market

:

WORLDWIDE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

HIGH QUALITY POWER DISTRIBUTION AND CONTROL SYSTEMS

 

Total Number of Employees:

YEAR

2014

2010


GROUP

N/A

N/A

COMPANY

140

93

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing electrical equipment.

The Subject specialising in the design and manufacture of high quality power distribution and control systems for customers worldwide.

The Subject has a complete in-house facility ranging from design, metalworks, busbar works, painting, assembly, quality control, testing and commissioning and servicing.

The Subject's products are supplied to various countries for the shipbuilding, shiprepairing, oils gas industries, power generating plants, petro-chemical plants, commercial constructions. They are manufactured to conform to the international standards such as IEC, BS as per customers’ requirements.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

6565611165

Current Telephone Number

:

65-65611165

Match

:

YES

Address Provided by Client

:

17 TUAS STREET SINGAPORE 638454

Current Address

:

17 TUAS STREET,, 638454, SINGAPORE.

Match

:

YES

 

Other Investigations


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

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

2010 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

11.24%

]

Return on Net Assets

:

Acceptable

[

11.87%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

9 Days

]

Debtor Ratio

:

Acceptable

[

55 Days

]

Creditors Ratio

:

Unfavourable

[

187 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

1.39 Times

]

Current Ratio

:

Unfavourable

[

1.42 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

The Subject's performance deteriorated over the years with lower turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : STRONG

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

Services

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

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



INDUSTRY ANALYSIS

 

INDUSTRY :

MANUFACTURING

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

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

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

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

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

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

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

OVERALL INDUSTRY OUTLOOK : MATURE



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1973, the Subject is a Private Limited company, focusing on manufacturing electrical equipment. The Subject has been in business for over 4 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is a fairly large and rapidly growing company with over 140 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at SGD 34,434,269, the Subject should be able to maintain its business in the near terms.

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

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. As the Subject is long presence in the market, it should have acquired competitive edge against other players in the same fields.

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

 



PROFIT AND LOSS ACCOUNT

 

 

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

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE. LTD.

 

Financial Year End

2013-03-31

2012-03-31

2011-03-31

2010-03-31

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

SGD

SGD

SGD

SGD

TURNOVER

35,950,148

44,376,110

51,810,800

56,162,536

Other Income

364,960

-

-

-

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

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

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

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

Total Turnover

36,315,108

44,376,110

51,810,800

56,162,536

Costs of Goods Sold

(28,148,841)

(32,735,752)

-

-

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

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

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

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

Gross Profit

8,166,267

11,640,358

-

-

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

4,097,716

7,262,022

8,172,316

6,745,002

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,097,716

7,262,022

8,172,316

6,745,002

Taxation

(226,444)

(752,267)

(1,580,000)

(1,200,000)

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,871,272

6,509,755

6,592,316

5,545,002

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

31,846,997

27,987,242

21,799,926

16,659,924

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

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

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

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

As restated

31,846,997

27,987,242

21,799,926

16,659,924

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

35,718,269

34,496,997

28,392,242

22,204,926

DIVIDENDS - Ordinary (paid & proposed)

(2,914,000)

(2,650,000)

(405,000)

(405,000)

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

32,804,269

31,846,997

27,987,242

21,799,926

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

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

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

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

 

BALANCE SHEET

 

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

14,135,778

14,037,503

4,506,797

4,641,981

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies

3,497,043

3,497,043

3,497,043

3,497,043

Loans & advances - non-current

6,000,000

6,000,000

6,000,000

-

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

9,497,043

9,497,043

9,497,043

3,497,043

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

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

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

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

TOTAL LONG TERM ASSETS

23,632,821

23,534,546

14,003,840

8,139,024

CURRENT ASSETS

Stocks

901,325

1,812,302

1,629,694

1,044,306

Trade debtors

5,436,181

7,497,250

11,061,032

18,200,735

Other debtors, deposits & prepayments

900,592

1,353,890

1,643,213

883,754

Cash & bank balances

29,374,557

32,244,345

40,518,067

31,144,866

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

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

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

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

TOTAL CURRENT ASSETS

36,612,655

42,907,787

54,852,006

51,273,661

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

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

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

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

TOTAL ASSET

60,245,476

66,442,333

68,855,846

59,412,685

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

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

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

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

CURRENT LIABILITIES

Trade creditors

14,388,897

23,395,646

30,110,795

26,591,853

Other creditors & accruals

10,841,444

8,397,634

7,330,886

8,035,652

Other liabilities

487,569

1,128,789

1,676,923

1,235,254

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

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

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

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

TOTAL CURRENT LIABILITIES

25,717,910

32,922,069

39,118,604

35,862,759

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

10,894,745

9,985,718

15,733,402

15,410,902

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

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

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

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

TOTAL NET ASSETS

34,527,566

33,520,264

29,737,242

23,549,926

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

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

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

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

SHARE CAPITAL

Ordinary share capital

1,000,000

1,000,000

1,000,000

1,000,000

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

1,000,000

RESERVES

Retained profit/(loss) carried forward

32,804,269

31,846,997

27,987,242

21,799,926

Others

630,000

630,000

630,000

630,000

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

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

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

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

TOTAL RESERVES

33,434,269

32,476,997

28,617,242

22,429,926

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

34,434,269

33,476,997

29,617,242

23,429,926

LONG TERM LIABILITIES

Deferred taxation

93,297

43,267

120,000

120,000

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

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

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

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

TOTAL LONG TERM LIABILITIES

93,297

43,267

120,000

120,000

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

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

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

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

34,527,566

33,520,264

29,737,242

23,549,926

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

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

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

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

 

FINANCIAL RATIO

 

TERASAKI ELECTRIC COMPANY (FAR EAST) PTE. LTD.

 

TYPES OF FUNDS

Cash

29,374,557

32,244,345

40,518,067

31,144,866

Net Liquid Funds

29,374,557

32,244,345

40,518,067

31,144,866

Net Liquid Assets

9,993,420

8,173,416

14,103,708

14,366,596

Net Current Assets/(Liabilities)

10,894,745

9,985,718

15,733,402

15,410,902

Net Tangible Assets

34,527,566

33,520,264

29,737,242

23,549,926

Net Monetary Assets

9,900,123

8,130,149

13,983,708

14,246,596

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

Total Liabilities

25,811,207

32,965,336

39,238,604

35,982,759

Total Assets

60,245,476

66,442,333

68,855,846

59,412,685

Net Assets

34,527,566

33,520,264

29,737,242

23,549,926

Net Assets Backing

34,434,269

33,476,997

29,617,242

23,429,926

Shareholders' Funds

34,434,269

33,476,997

29,617,242

23,429,926

Total Share Capital

1,000,000

1,000,000

1,000,000

1,000,000

Total Reserves

33,434,269

32,476,997

28,617,242

22,429,926

LIQUIDITY (Times)

Cash Ratio

1.14

0.98

1.04

0.87

Liquid Ratio

1.39

1.25

1.36

1.40

Current Ratio

1.42

1.30

1.40

1.43

WORKING CAPITAL CONTROL (Days)

Stock Ratio

9

15

11

7

Debtors Ratio

55

62

78

118

Creditors Ratio

187

261

212

173

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

0.00

0.00

Liabilities Ratio

0.75

0.98

1.32

1.54

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

Assets Backing Ratio

34.53

33.52

29.74

23.55

PERFORMANCE RATIO (%)

Operating Profit Margin

11.40

16.36

15.77

12.01

Net Profit Margin

10.77

14.67

12.72

9.87

Return On Net Assets

11.87

21.66

27.48

28.64

Return On Capital Employed

11.87

21.66

27.48

28.64

Return On Shareholders' Funds/Equity

11.24

19.45

22.26

23.67

Dividend Pay Out Ratio (Times)

0.75

0.41

0.06

0.07

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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.