MIRA INFORM REPORT

 

 

Report Date :

18.12.2014

 

IDENTIFICATION DETAILS

 

Name :

KURARAY ASIA PACIFIC PTE. LTD.

 

 

Formerly Known as : 

POVAL ASIA PTE LTD

 

 

Registered Office :

10, Sakra Avenue, 627887

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.03.1996

 

 

Com. Reg. No.:

199601494-W

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Engaged in manufacturing Synthetic Resins such as Polyvinyl Alcohol resin (PVOH)

·         engaged in Sales & Marketing of chemicals, polymers and waste water treatment.

 

 

No of Employees :

80 [2013]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear 

 

NOTES :

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

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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.

:

199601494-W

COMPANY NAME

:

KURARAY ASIA PACIFIC PTE. LTD.

FORMER NAME

:

POVAL ASIA PTE LTD (01/07/2008)

INCORPORATION DATE

:

02/03/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

10, SAKRA AVENUE, 627887, SINGAPORE.

BUSINESS ADDRESS

:

331 NORTH BRIDGE ROAD, #18-02 ODEON TOWERS, 188720, SINGAPORE.

TEL.NO.

:

65-63374123

FAX.NO.

:

65-63371912

WEB SITE

:

WWW.KURARAY.COM.SG

CONTACT PERSON

:

YAP YAIK SONG, SHAUN ( DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

·         Engaged in manufacturing Synthetic Resins such as Polyvinyl Alcohol resin (PVOH)

·         engaged in Sales & Marketing of chemicals, polymers and waste water treatment.

 

 

 

ISSUED AND PAID UP CAPITAL

:

42,520,000.00 ORDINARY SHARE, OF A VALUE OF SGD 42,520,000.00

 

 

 

SALES

:

SGD 178,404,561 [2013]

NET WORTH

:

SGD 923,325 [2013]

 

 

 

STAFF STRENGTH

:

80 [2013]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

SLOW

MANAGEMENT CAPABILITY

:

WEAK

 

 

 

COMMERCIAL RISK

:

MODERATE

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 chemicals, polymers and waste water treatment.

The immediate holding company of the Subject is KURARAY CO., LTD., a company incorporated in JAPAN.

Share Capital History

Date

Issue & Paid Up Capital

04/12/2014

SGD 42,520,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KURARAY CO., LTD.

1621, SAKAZU, KURASHIKI, OKAYAMA ,710-8622, JAPAN.

T05UF0228K

42,520,000.00

100.00

 

 

 

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

------

 

 

 

42,520,000.00

100.00

 

 

 

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

=====

+ Also Director


DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

YAP YAIK SONG, SHAUN

Address

:

1, SIN MING WALK, 11-33, THE GARDENS AT BISHAN, 575574, SINGAPORE.

IC / PP No

:

S1684160I

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/07/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

HIROYUKI SHIMO

Address

:

33, MOUNT SINAI RISE, 02-09, THE MARBELLA, 276954, SINGAPORE.

IC / PP No

:

TH2541027

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

18/04/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

YOSHIO TANGO

Address

:

36, CHAY YAN STREET, 26-01, REGENCY AT TIONG BAHRU, 169905, SINGAPORE.

IC / PP No

:

G5647137K

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/01/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

FUYUO UEYAMA

Address

:

1-44-16, KUZUHA NAMIKI HIRAKATA-SHI, OSAKA, JAPAN.

IC / PP No

:

TH3016557

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

01/08/2014

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

HIROYUKI SHIMO

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

YAP YAIK SONG, SHAUN

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PRICEWATER HOUSECOOP ERS LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ANG SIEW KOON

 

IC / PP No

:

S1721860C

 

New IC No

:

390818-03-5012

 

Address

:

122, YISHUN STREET, 11, 06-463, 760122, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)


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

 

 

LITIGATION 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

:

N/A

Overseas

:

N/A

 

 

 


The Subject refused to disclose it's suppliers.

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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

INDIA

MIDDLE EAST

SOUTH EAST ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

CHEMICALS, POLYMERS AND WASTE WATER TREATMENT

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

80

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The Subject is principally engaged in sales & marketing of chemicals, polymers and waste water treatment.

 

Subject engaged in manufacturing synthetic resins such as polyvinyl alcohol resin (pvoh)

 

THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: CHEMICALS.

DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITY IS TO MANUFACTURE POLY VINYL ALCOHOL RESIN, ORGANIC AND INORGANIC CHEMICAL PRODUCTS.

FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:

BACKGROUND:
PREVIOUSLY, SUBJECT IS A 50-50 JOINT VENTURE BETWEEN JAPANESE COMPANIES KURARAY CO. LTD. AND NIPPON SYNTHETIC CHEMICAL INDUSTRY CO. LTD. (NIPPON GOHSEI). THE TWO COMPANIES ARE THE TOP TWO GLOBAL PRODUCERS OF POLYVINYL ALCOHOL.

KURARAY CO LTD, THROUGH ITS MAJORITY-OWNED KURARAY SINGAPORE PTE LTD (KS) UNIT, HAVE ACQUIRED THE REMAINING 50% INTEREST, WHICH IT DID NOT ALREADY OWN, IN POVAL ASIA PTE LTD, A POLYVINYL ALCOHOL RESINS MANUFACTURER AND WHOLESALER, FROM KS' JOINT VENTURE PARTNER NIPPON GOHSEI SINGAPORE PTE LTD, A MAJORITY-OWNED UNIT OF NIPPON SYNTHETIC CHEMICAL INDUSTRY CO LTD. THE TRANSACTION WAS APPROVED BY THE BOARD OFDIRECTORS. TERMS WERE NOT DISCLOSED.

ACTIVITIES:
* PRODUCTION OF PVA RESIN
* SALE OF PVA RESIN AND OTHER KURARAY GROUP PRODUCTS IN THE ASIA
PACIFIC REGION

PRODUCTS DEALING:
* CHEMICALS BY APPLICATIONS
* SPECIALTY CHEMICALS

PVA RESIN PRODUCTION FACILITIES:
* 40,000 TONS/YEAR

INDUSTRY TYPE:
* CHEMICAL

SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:
* SINGAPORE MANUFACTURERS' FEDERATION
* SINGAPORE CHEMICAL INDUSTRY COUNCIL

NUMBER OF EMPLOYEES:
* 77 (AS STATED ON COMPANY'S WEBSITE)

NEWS:

- SOURCE: COMPANY'S WEBSITE
- DATE: 1 JULY 2008

KURARAY ASIA PACIFIC PTE. LTD. WAS ESTABLISHED ON JULY 1, AS A HUB TO OVERSEE THE KURARAY GROUP'S ACTIVITIES IN THE ASIA PACIFIC REGION. THE COMPANY WILL CONDUCT A WIDE RANGE OF OPERATIONS SUCH AS THE PRODUCTION AND SALE OF POLYVINYL ALCOHOL RESIN (PRODUCT NAME: KURARAY POVAL,
HEREINAFTER REFERRED TO AS "PVA RESIN"), AND THE SALE OF A POLYVINYL
BUTYRAL RESIN AND FILM (HEREINAFTER REFERRED TO AS "PVB RESIN/FILM")
AND RELATED CHEMICALS IN THE ASIA PACIFIC REGION.

ORIGINALLY, PVA RESIN WAS PRODUCED BY POVAL ASIA PTE LTD. (A FIFTY-
FIFTY JOINT VENTURE BETWEEN KURARAY AND KURARAY SUBSIDIARY KURARAY
SINGAPORE PTE., LTD.) AND SOLD BY KURARAY SPECIALITIES ASIA PTE., LTD.
(A WHOLLY-OWNED SUBSIDIARY OF KURARAY SINGAPORE PTE., LTD.).

THE ESTABLISHMENT OF KURARAY ASIA PACIFIC PTE. LTD. MARKS THE CREATION
OF AN OPERATIONAL HUB (WHOLLY OWNED BY KURARAY) FOR THE KURARAY GROUP
THAT COMBINES PRODUCTION AND SALES IN THE ASIA PACIFIC REGION,
CREATING AN ORGANIZATION FOR STRENGTHENING THE GLOBAL EXPANSION OF THE
GROUP'S PVA RESIN BUSINESS.

"THE NEW COMPANY WILL BE OUR REGIONAL HEADQUARTER OF WHOLE KURARAY
GROUP IN THESE EMERGING AND MOST GROWING MARKETS," SAID YASUAKI WAKUI,
CHAIRMAN AND REPRESENTATIVE DIRECTOR OF KURARAY CO., LTD., AT THE
OPENING CEREMONY HELD IN SHANGRI-LA HOTEL SINGAPORE ON JULY 1. "MAKING
MOST OF GEOPOLITICAL SIGNIFICANCE OF SINGAPORE, THE COMPANY WILL BE
ABLE TO PROVIDE BETTER AND MORE EFFICIENT SERVICE FOR THE OTHER
KURARAY GROUP'S PRODUCTS."

THE PVA-RELATED BUSINESS IS AT THE VERY CORE OF THE KURARAY GROUP'S
CORE BUSINESS, AND THE GROUP IS EXPANDING ITS BUSINESS LOCATIONS IN
EUROPE AND THE UNITES STATES BOTH AS A PIONEER AND THE WORLD'S LEADING
CORPORATE GROUP WITH REGARD TO PVA. THE GROUP HAS ESTABLISHED HUBS FOR
ITS PVA RESIN AND ITS PVB RESIN/FILM OPERATIONS IN EUROPE THROUGH
ACQUISITIONS.

WITH THE ESTABLISHMENT OF KURARAY ASIA PACIFIC PTE. LTD., THE GROUP
AIMS TO MOVE FROM THE APPROACH CENTERED ON CONVENTIONAL GENERAL
PURPOSE PVA RESIN PRODUCTS, AND PROMOTE INCREASED ADDED VALUE ABLE TO
CATER FOR THE ADVANCED NEEDS OF USERS. THE MOVE ALSO EXPANDS THE
GROUP'S HORIZONS BEYOND PVA RESIN TO INCLUDE NEW BUSINESSES FOR PVB
RESIN/FILM AND RELATED PRODUCTS. KURARAY ASIA PACIFIC PTE. LTD. WILL
AIM TO SERVE AS AN OPERATIONAL HUB FOR KURARAY-RELATED PRODUCTS BY
FURTHER PROMOTING THE DEVELOPMENT OF RAPIDLY GROWING MARKETS IN ASIA
AND OCEANIA, INCLUDING CHINA AND INDIA.

NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT
GRANTED BY SUBJECT'S PERSONNEL ON 01/12/2008.

OTHER BUSINESS ADDRESS:
331 NORTH BRIDGE ROAD
#18-02 ODEN TOWERS
SINGAPORE 188720
- SALE OFFICE

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63374123

Match

:

N/A

 

 

 

Address Provided by Client

:

331, NORTH BRIDGE ROAD, #18-02, ODEON TOWERS 188720 SINGAPORE

Current Address

:

331 NORTH BRIDGE ROAD, #18-02 ODEON TOWERS, 188720, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


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

The Subject refused to disclose it's bankers.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

(0.00%)

]

 

Return on Net Assets

:

Unfavourable

[

(0.00%)

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Unfavourable

[

0.68 Times

]

 

 

 

 

 

 

 

 

Due to its weak liquidity position, the Subject 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 Subject.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

118.38 Times

]

 

 

 

 

 

 

 

 

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The higher turnover had helped to reduce the Subject's losses. Due to its weak liquidity position, the Subject 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 Subject. The Subject's liabilities 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 : POOR

 

 

 

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)

 

 

 

 

 

(Source : Department of Statistics)

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

 

 

 

The wholesale and retail trade sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.

 

The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.

 

In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.

 

For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.

 

 

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1996, the Subject is a Private Limited company, focusing on trading of chemicals, polymers and waste water treatment. 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. Presently, the issued and paid up capital of the Subject stands at SGD 42,520,000. The Subject have a strong support from its holding company.

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. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

Despite the higher turnover, the Subject suffered pre-tax losses which reflected a highly competitive business environment. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

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

The Subject's payment habit is slow. With its adequate working capital, the Subject 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.

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

KURARAY ASIA PACIFIC PTE. LTD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

SUMMARY

SUMMARY

Currency

SGD

USD

USD

SGD

SGD

 

 

 

 

 

 

TURNOVER

178,404,561

160,963,153

139,910,457

177,052,607

132,293,478

Other Income

-

253,437

114,015

-

-

 

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

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

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

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

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

Total Turnover

178,404,561

161,216,590

140,024,472

177,052,607

132,293,478

Costs of Goods Sold

-

(163,715,600)

(136,620,195)

-

-

 

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

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

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

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

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

Gross Profit

-

(2,499,010)

3,404,277

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

-

(12,290,933)

(4,544,441)

-

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

-

(12,290,933)

(4,544,441)

-

-

Taxation

0

0

0

0

0

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

-

(12,290,933)

(4,544,441)

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

0

(5,660,191)

(1,115,750)

0

0

 

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

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

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

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

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

As restated

0

(5,660,191)

(1,115,750)

0

0

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

-

(17,951,124)

(5,660,191)

0

0

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

-

(17,951,124)

(5,660,191)

0

0

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

-

-

745

-

-

Loan from holding company

-

360,988

299,946

-

-

Others

-

120,007

114,292

-

-

 

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

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

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

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

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

 

-

480,995

414,983

-

-

 

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

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

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

 

 

 

 

 

BALANCE SHEET

 

 

KURARAY ASIA PACIFIC PTE. LTD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

45,450,158

30,836,060

34,042,802

45,684,792

54,296,281

 

 

 

 

 

 

Deferred assets

-

3,207,502

3,207,502

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

3,207,502

3,207,502

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

45,450,158

34,043,562

37,250,304

45,684,792

54,296,281

 

 

 

 

 

 

Stocks

-

28,084,612

27,613,601

-

-

Trade debtors

-

25,614,992

12,451,373

-

-

Other debtors, deposits & prepayments

-

142,627

129,397

-

-

Cash & bank balances

-

4,461,375

13,171,979

-

-

Others

-

291,118

220,872

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

64,777,756

58,594,724

53,587,222

62,500,036

56,039,628

 

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

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

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

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

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

TOTAL ASSET

110,227,914

92,638,286

90,837,526

108,184,827

110,335,909

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

14,932,792

10,844,947

-

-

Other creditors & accruals

-

4,888,315

6,977,262

-

-

Other borrowings

-

60,472,788

43,500,000

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

94,882,770

80,293,895

61,322,209

71,554,340

71,117,435

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(30,105,014)

(21,699,171)

(7,734,987)

(9,054,304)

(15,077,807)

 

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

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

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

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

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

TOTAL NET ASSETS

15,345,144

12,344,391

29,515,317

36,630,487

39,218,474

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

42,520,000

27,775,379

27,775,379

42,520,000

42,520,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

42,520,000

27,775,379

27,775,379

42,520,000

42,520,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

-

(17,951,124)

(5,660,191)

0

0

Others

(41,596,675)

-

-

(8,782,240)

(6,056,504)

 

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

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

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

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

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

TOTAL RESERVES

(41,596,675)

(17,951,124)

(5,660,191)

(8,782,240)

(6,056,504)

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

923,325

9,824,255

22,115,188

33,737,761

36,463,496

 

 

 

 

 

 

Other long term borrowings

-

-

5,000,000

-

-

Others

-

2,520,136

2,400,129

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

14,421,819

2,520,136

7,400,129

2,892,727

2,754,978

 

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

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

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

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

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

 

15,345,144

12,344,391

29,515,317

36,630,487

39,218,474

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KURARAY ASIA PACIFIC PTE. LTD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

4,461,375

13,171,979

-

-

Net Liquid Funds

-

4,461,375

13,171,979

-

-

Net Liquid Assets

(30,105,014)

(49,783,783)

(35,348,588)

(9,054,304)

(15,077,807)

Net Current Assets/(Liabilities)

(30,105,014)

(21,699,171)

(7,734,987)

(9,054,304)

(15,077,807)

Net Tangible Assets

15,345,144

12,344,391

29,515,317

36,630,487

39,218,474

Net Monetary Assets

(44,526,833)

(52,303,919)

(42,748,717)

(11,947,031)

(17,832,786)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

60,472,788

48,500,000

-

-

Total Liabilities

109,304,589

82,814,031

68,722,338

74,447,067

73,872,413

Total Assets

110,227,914

92,638,286

90,837,526

108,184,827

110,335,909

Net Assets

15,345,144

12,344,391

29,515,317

36,630,487

39,218,474

Net Assets Backing

923,325

9,824,255

22,115,188

33,737,761

36,463,496

Shareholders' Funds

923,325

9,824,255

22,115,188

33,737,761

36,463,496

Total Share Capital

42,520,000

27,775,379

27,775,379

42,520,000

42,520,000

Total Reserves

(41,596,675)

(17,951,124)

(5,660,191)

(8,782,240)

(6,056,504)

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.06

0.21

-

-

Liquid Ratio

-

0.38

0.42

-

-

Current Ratio

0.68

0.73

0.87

0.87

0.79

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

64

72

-

-

Debtors Ratio

-

58

32

-

-

Creditors Ratio

-

33

29

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

6.16

2.19

-

-

Liabilities Ratio

118.38

8.43

3.11

2.21

2.03

Times Interest Earned Ratio

-

(24.55)

(9.95)

-

-

Assets Backing Ratio

0.36

0.44

1.06

0.86

0.92

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

-

(7.64)

(3.25)

-

-

Net Profit Margin

-

(7.64)

(3.25)

-

-

Return On Net Assets

-

(95.67)

(13.99)

-

-

Return On Capital Employed

-

(95.67)

(13.99)

-

-

Return On Shareholders' Funds/Equity

-

(125.11)

(20.55)

-

-

Dividend Pay Out Ratio (Times)

-

0.00

0.00

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.58

UK Pound

1

Rs.99.98

Euro

1

Rs.79.39

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.