MIRA INFORM REPORT

 

 

Report Date :

26.08.2014

 

IDENTIFICATION DETAILS

 

Name :

ECOGREEN OLEOCHEMICALS (SINGAPORE) PTE LTD

 

 

Formerly Known As :

SALIM OLEOCHEMICALS (SINGAPORE) PTE LTD

 

 

Registered Office :

99, Bukit Timah Road, 03-01, Alfa Centre, 229835

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

06.03.1997

 

 

Com. Reg. No.:

199701440-N

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Subject is engaged in the trading of natural-based oelochemicals, ethylene oxide derivatives and ethoxylated surfactants

Engaged in marketing and selling of chemicals such as fatty acids, glycerin, and oleochemicals

 

Subject Products ranges includes:-

Fatty Alcohols

Short Chain Fatty Acids

Glycerine

Sugar Alcohols

Primary Fatty Amines

Unsaturated Fatty Alcohols

Specialty Esters

Alcohol Ethoxylates

 

 

No. of Employees :

15 [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 :

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

 


           


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

199701440-N

COMPANY NAME

:

ECOGREEN OLEOCHEMICALS (SINGAPORE) PTE LTD

FORMER NAME

:

SALIM OLEOCHEMICALS (SINGAPORE) PTE LTD (05/03/2001)

INCORPORATION DATE

:

06/03/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

99, BUKIT TIMAH ROAD, 03-01, ALFA CENTRE, 229835, SINGAPORE.

BUSINESS ADDRESS

:

99 BUKIT TIMAH ROAD, 03-01/02 ALFA CENTRE, 229835, SINGAPORE.

TEL.NO.

:

65-63777726

FAX.NO.

:

65-63377706

EMAIL

:

INFO@ECOGREENOLEO.COM.SG

WEB SITE

:

WWW.ECOGREENOLEO.DE

CONTACT PERSON

:

WILLY SUTANTO @ CHEN GUO WEI ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF NATURAL-BASED OELOCHEMICALS, ETHYLENE OXIDE DERIVATIVES AND ETHOXYLATED SURFACTANTS

ISSUED AND PAID UP CAPITAL

:

6,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 6,000,000.00

SALES

:

USD 308,825,000 [2012]

NET WORTH

:

USD 41,130,000 [2012]

STAFF STRENGTH

:

15 [2014]

BANKER (S)

:

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.
FORTIS BANK (NETHERLAND) N.V SINGAPORE BRANCH

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


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) trading of natural-based oelochemicals, ethylene oxide derivatives and ethoxylated surfactants.

 

The immediate holding company of the Subject is WORLDWIDE LINK (B.V.I.) LTD, a company incorporated in VIRGIN ISLANDS, BRITISH.

 

The ultimate holding company of the Subject is NAMURA INVESTMENTS LTD., a company incorporated in HONG KONG.

 

The intermediate holding company of the Subject is CARHART INVESTMENTS PTE LTD, a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

02/02/2014

SGD 6,000,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

WORLDWIDE LINK (B.V.I.) LTD

WICKHAMS CAY ROAD TOWN TORTOLA, VIRGIN ISLANDS, BRITISH.

S97UF0221

6,000,000.00

100.00

 

 

 

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

------

 

 

 

6,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

 

UNITED STATES

ECOGREEN OLEOCHEMICALS, INC.

100.00

31/12/2012

 

 

 

 

 

198502042C

SINGAPORE

ETHOXYLATES MANUFACTURING PTE LTD

100.00

31/12/2012

 

 

 

 

 

 

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

WILLY SUTANTO @ CHEN GUO WEI

Address

:

20, WILBY ROAD, 03-01, TESSARINA, THE, 276305, SINGAPORE.

IC / PP No

:

S2619579I

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/02/1998

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

TEDDY TANZIL

Address

:

1, JALAN KUALA, 08-03, MORNINGSIDE, THE, 239639, SINGAPORE.

IC / PP No

:

S2668092A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

06/03/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DR ERWIN SUTANTO

Address

:

JL. MANGGA BESAR III/29.E, RT 005/005, KEL MANGGA BESAR, JAKARTA BARAT, INDONESIA.

IC / PP No

:

A3647758

 

 

 

 

 

 

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

02/05/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

JIMMY MASRIN

Address

:

38, STEVENS ROAD, 04-02, 257845, SINGAPORE.

IC / PP No

:

W490219

 

 

 

 

 

 

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

19/03/2001

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

EDDY WILLIAM KATUARI

Address

:

JL. MANYAR KERTOARJO 7, 31, SURABAYA, 60285, INDONESIA.

IC / PP No

:

V486381

 

 

 

 

 

 

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

19/03/2001

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

WILLY SUTANTO @ CHEN GUO WEI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

KHAW YIO LOK

 

IC / PP No

:

S1311899Z

 

 

 

 

 

Address

:

1E, CANTONMENT ROAD, 39-57, PINNACLE@DUXTON, THE, 085501, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

CHAN KWANG CHENG

 

IC / PP No

:

S0011395F

 

 

 

 

 

Address

:

28, MAR THOMA ROAD, 10 - 01, 328708, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

 

 

 

 

 

 

 

 

 

2)

Name

:

FORTIS BANK (NETHERLAND) N.V SINGAPORE BRANCH

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

200104886

05/10/2001

N/A

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.('RABOBANK

-

Unsatisfied

C200705889

25/07/2007

N/A

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

-

Unsatisfied

C200705980

26/07/2007

N/A

RAIFFEISEN ZENTRALBANK OSTERREICH AKTIENGELLSCHAFT

-

Unsatisfied

C200709496

05/11/2007

N/A

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.("RABOBANK

-

Unsatisfied

C201004571

03/06/2010

N/A

FORTIS BANK (NETHERLAND) N.V

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject 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 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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

15 - 30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

NATURAL-BASED OELOCHEMICALS, ETHYLENE OXIDE DERIVATIVES AND ETHOXYLATED SURFACTANTS

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2009

 

 

 

 

 


 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

15

20

20

14

 

 

 

 

 

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of natural-based oelochemicals, ethylene oxide derivatives and ethoxylated surfactants.


The principal activities of the company consist of the distribution and sale of natural-based oelochemicals, ethylene oxide derivatives and ethoxylated surfactants.


Background:
Ecogreen Oleochemicals is one of the worlds largest producers of naturally fatty alcohols.


Formerly known as Salim Oleochemicals, it was incorporated in 1997. Today, it is a thriving company with more than 500 employees worldwide, state-of-the-art manufacturing facilities and a combined production capacity of more than 100,000 mt per year.


Ecogreen Oleochemicals exports the majority of its products worldwide to key markets in Asia Pacific, The United States of America, Latin America and Europe. Close links to these markets are maintained through the marketing headquarters in Singapore which covers not only marketing functions in Asia, but also coordinates global marketing activities with two regional offices, one in Houston (USA) and the other in Rodleben (Germany).

Ecogreen Oleochemicals marketing efforts are complimented by a network of distributors and agents in over 20 countries that provide the local support in distribution, storage and customer liaison. Tank storage facilities assure its customers the continuity of supply and timely delivery.


Ecogreen Oleochemicals (Singapore) Pte Ltd. markets and sells chemicals such as fatty acids, glycerin, and oleochemicals. The company was formerly known as Salim Oleochemicals (Singapore) Pte Ltd. Ecogreen Oleochemicals (Singapore) Pte Ltd. was founded in the year 1997 and is based in Singapore, Singapore. The company operates as a subsidiary of PT Ecogreen Oleochemicals Limited.


Products:
* fatty alcohols
* short chain fatty acids
* glycerine
* sugar alcohols
* primary fatty amines
* unsaturated fatty alcohols
* specialty esters
* alcohol ethoxylates

Quality assessment:
* ISO 14001:2004
* ISO 9001:2000

Subject is a member of the following entities:
* Singapore Business Federation


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63777726

Match

:

N/A

 

 

 

Address Provided by Client

:

99, BUKIT, TIMAH ROAD 03-01 ALFA CENTRE, SINGAPORE 229835

Current Address

:

99 BUKIT TIMAH ROAD, 03-01/02 ALFA CENTRE, 229835, SINGAPORE.

Match

:

NO

 

 

 

 

Other Investigations

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


The address provided is incomplete.

 


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.00%

]

 

Return on Net Assets

:

Acceptable

[

12.62%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

9 Days

]

 

Debtor Ratio

:

Unfavourable

[

114 Days

]

 

Creditors Ratio

:

Favourable

[

26 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 debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.35 Times

]

 

Current Ratio

:

Unfavourable

[

1.45 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

:

Acceptable

[

3.58 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.31 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject'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 Subject : FAIR

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2008

2009

2010

2011

2012

 

 

 

 

 

 

Population (Million)

4.84

4.98

5.08

5.18

5.31

Gross Domestic Products ( % )

1.5

(0.8)

14.5

4.9

1.3

Consumer Price Index

6.6

0.6

2.8

5.2

4.6

Total Imports (Million)

450,892.6

356,299.3

423,221.8

459,655.1

474,554.0

Total Exports (Million)

476,762.2

391,118.1

478,840.7

514,741.2

510,329.0

 

 

 

 

 

 

Unemployment Rate (%)

2.2

3.2

2.2

2.1

2.0

Tourist Arrival (Million)

10.12

9.68

11.64

13.17

14.37

Hotel Occupancy Rate (%)

81.0

75.8

85.6

86.5

86.4

Cellular Phone Subscriber (Million)

1.31

1.37

1.43

1.50

1.52

 

 

 

 

 

 

Registration of New Companies (No.)

25,327

26,414

29,798

32,317

31,892

Registration of New Companies (%)

(2.2)

4.3

12.8

8.5

(1.3)

Liquidation of Companies (No.)

10,493

22,393

15,126

19,005

17,218

Liquidation of Companies (%)

13.7

113.4

(32.5)

25.6

9.4

 

 

 

 

 

 

Registration of New Businesses (No.)

24,850

26,876

23,978

23,494

24,788

Registration of New Businesses (%)

0.36

8.15

(10.78)

2.02

5.51

Liquidation of Businesses (No.)

21,150

23,552

24,211

23,005

22,489

Liquidation of Businesses (%)

(0.8)

11.4

2.8

(5)

(2.2)

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,326

2,058

1,537

1,527

1,748

Bankruptcy Orders (%)

(15.9)

(11.5)

(25.3)

(0.7)

14.5

Bankruptcy Discharges (No.)

1,500

3,056

2,252

1,391

1,881

Bankruptcy Discharges (%)

(7.7)

103.7

(26.3)

(38.2)

35.2

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

(0.32)

3.25

(0.48)

4.25

3.64

Fish Supply & Wholesale

(6.31)

(1.93)

(10.5)

12.10

(0.5)

 

 

 

 

 

 

Manufacturing *

74.6

71.5

92.8

100.0

100.3

Food, Beverages & Tobacco

94.8

90.4

96.4

100.0

103.5

Textiles

180.1

145.9

122.1

100.0

104.0

Wearing Apparel

334.6

211.0

123.3

100.0

92.1

Leather Products & Footwear

128.2

79.5

81.8

100.0

98.6

Wood & Wood Products

132.0

101.4

104.0

100.0

95.5

Paper & Paper Products

101.0

95.4

106.1

100.0

97.4

Printing & Media

118.2

100.9

103.5

100.0

93.0

Crude Oil Refineries

113.1

96.4

95.6

100.0

99.4

Chemical & Chemical Products

84.5

80.3

97.6

100.0

100.5

Pharmaceutical Products

43.7

49.1

75.3

100.0

109.7

Rubber & Plastic Products

120.1

101.2

112.3

100.0

96.5

Non-metallic Mineral

96.5

91.9

92.5

100.0

98.2

Basic Metals

109.8

92.6

102.2

100.0

90.6

Fabricated Metal Products

101.3

90.8

103.6

100.0

104.3

Machinery & Equipment

65.0

57.3

78.5

100.0

112.9

Electrical Machinery

81.7

86.8

124.1

100.0

99.3

Electronic Components

93.1

85.2

113.6

100.0

90.6

Transport Equipment

102.0

96.0

94.0

100.0

106.3

 

 

 

 

 

 

Construction

45.90

(36.9)

14.20

20.50

28.70

Real Estate

(11.2)

1.4

21.3

25.4

31.9

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

(1.3)

1.70

4.00

7.00

6.30

Transport, Storage & Communication

11.60

3.90

12.80

7.40

5.30

Finance & Insurance

(5.9)

(16.4)

(0.4)

8.90

0.50

Government Services

17.40

4.50

9.70

6.90

6.00

Education Services

0.50

0.10

(0.9)

(1.4)

0.30

 

 

 

 

 

 

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

 

 

 

 

 



INDUSTRY ANALYSIS

 

INDUSTRY :

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 1997, the Subject is a Private Limited company, focusing on trading of natural-based oelochemicals, ethylene oxide derivatives and ethoxylated surfactants. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its 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 penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject's business operation is supported by 15 employees. 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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. However, 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. Given a positive net worth standing at USD 41,130,000, 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.

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


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


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

 



PROFIT AND LOSS ACCOUNT

 

 

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

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

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

USD

USD

USD

USD

 

 

 

 

 

TURNOVER

308,825,000

460,221,000

288,906,000

178,633,000

 

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

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

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

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

Total Turnover

308,825,000

460,221,000

288,906,000

178,633,000

Costs of Goods Sold

(298,105,000)

(441,842,000)

(275,893,000)

(168,171,000)

 

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

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

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

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

Gross Profit

10,720,000

18,379,000

13,013,000

10,462,000

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,741,000

9,977,000

4,501,000

4,802,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,741,000

9,977,000

4,501,000

4,802,000

Taxation

(449,000)

(1,224,000)

(518,000)

(484,000)

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,292,000

8,753,000

3,983,000

4,318,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

33,689,000

24,936,000

20,953,000

16,635,000

 

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

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

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

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

As restated

33,689,000

24,936,000

20,953,000

16,635,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

36,981,000

33,689,000

24,936,000

20,953,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

36,981,000

33,689,000

24,936,000

20,953,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Loan from holding company

-

-

118,000

676,000

Loan from subsidiary companies

-

-

4,000

15,000

Term loan / Borrowing

1,187,000

1,022,000

808,000

1,035,000

Others

265,000

337,000

301,000

442,000

 

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

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

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

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

 

1,452,000

1,359,000

1,231,000

2,168,000

 

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

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

43,000

40,000

30,000

33,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

6,044,000

6,044,000

6,544,000

6,544,000

Investments

29,000

29,000

29,000

29,000

Others

194,000

190,000

196,000

143,000

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

6,267,000

6,263,000

6,769,000

6,716,000

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

6,310,000

6,303,000

6,799,000

6,749,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

7,739,000

8,045,000

9,200,000

4,395,000

Trade debtors

96,474,000

114,422,000

80,076,000

49,966,000

Other debtors, deposits & prepayments

3,194,000

2,742,000

2,509,000

1,661,000

Short term deposits

-

-

-

5,515,000

Cash & bank balances

5,331,000

7,829,000

2,540,000

2,095,000

Others

-

444,000

95,000

-

 

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

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

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

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

TOTAL CURRENT ASSETS

112,738,000

133,482,000

94,420,000

63,632,000

 

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

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

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

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

TOTAL ASSET

119,048,000

139,785,000

101,219,000

70,381,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

21,192,000

47,743,000

20,223,000

3,231,000

Other creditors & accruals

629,000

1,573,000

2,469,000

1,264,000

Short term borrowings/Term loans

54,000,000

50,000,000

48,000,000

39,600,000

Amounts owing to related companies

520,000

418,000

-

-

Provision for taxation

379,000

1,165,000

514,000

510,000

Other liabilities

1,193,000

1,042,000

926,000

673,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

77,913,000

101,941,000

72,132,000

45,278,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

34,825,000

31,541,000

22,288,000

18,354,000

 

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

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

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

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

TOTAL NET ASSETS

41,135,000

37,844,000

29,087,000

25,103,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

4,149,000

4,149,000

4,149,000

4,149,000

 

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

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

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

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

TOTAL SHARE CAPITAL

4,149,000

4,149,000

4,149,000

4,149,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

36,981,000

33,689,000

24,936,000

20,953,000

 

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

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

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

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

TOTAL RESERVES

36,981,000

33,689,000

24,936,000

20,953,000

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

41,130,000

37,838,000

29,085,000

25,102,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

5,000

6,000

2,000

1,000

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

5,000

6,000

2,000

1,000

 

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

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

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

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

 

41,135,000

37,844,000

29,087,000

25,103,000

 

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

Cash

5,331,000

7,829,000

2,540,000

7,610,000

Net Liquid Funds

5,331,000

7,829,000

2,540,000

7,610,000

Net Liquid Assets

27,086,000

23,496,000

13,088,000

13,959,000

Net Current Assets/(Liabilities)

34,825,000

31,541,000

22,288,000

18,354,000

Net Tangible Assets

41,135,000

37,844,000

29,087,000

25,103,000

Net Monetary Assets

27,081,000

23,490,000

13,086,000

13,958,000

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

54,000,000

50,000,000

48,000,000

39,600,000

Total Liabilities

77,918,000

101,947,000

72,134,000

45,279,000

Total Assets

119,048,000

139,785,000

101,219,000

70,381,000

Net Assets

41,135,000

37,844,000

29,087,000

25,103,000

Net Assets Backing

41,130,000

37,838,000

29,085,000

25,102,000

Shareholders' Funds

41,130,000

37,838,000

29,085,000

25,102,000

Total Share Capital

4,149,000

4,149,000

4,149,000

4,149,000

Total Reserves

36,981,000

33,689,000

24,936,000

20,953,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.07

0.08

0.04

0.17

Liquid Ratio

1.35

1.23

1.18

1.31

Current Ratio

1.45

1.31

1.31

1.41

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

9

6

12

9

Debtors Ratio

114

91

101

102

Creditors Ratio

26

39

27

7

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

1.31

1.32

1.65

1.58

Liabilities Ratio

1.89

2.69

2.48

1.80

Times Interest Earned Ratio

3.58

8.34

4.66

3.21

Assets Backing Ratio

9.91

9.12

7.01

6.05

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

1.21

2.17

1.56

2.69

Net Profit Margin

1.07

1.90

1.38

2.42

Return On Net Assets

12.62

29.95

19.71

27.77

Return On Capital Employed

12.62

29.95

19.71

27.77

Return On Shareholders' Funds/Equity

8.00

23.13

13.69

17.20

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.60.42

UK Pound

1

Rs.100.11

Euro

1

Rs.79.74

 

 

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.