MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

ADAMPAK LIMITED

 

 

Registered Office :

6, Loyang Way 4, 507605

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.01.1979

 

 

Com. Reg. No.:

197900079-M

 

 

Legal Form :

Public (Limited by Share)

 

 

Line of Business :

Manufacturer of Labels , Adhesive Labels, Signboards and Posters

 

 

No. of Employees :

150 [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 :

Exists

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

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

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

197900079-M

COMPANY NAME

:

ADAMPAK LIMITED

FORMER NAME

:

ADAMPAK PTE. LTD. (15/07/2004)
ADAMPAK & PRINT PTE LTD (09/07/2004)

INCORPORATION DATE

:

10/01/1979

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

NO

LISTED DATE

:

29/09/2004

REGISTERED ADDRESS

:

6, LOYANG WAY 4, 507605, SINGAPORE.

BUSINESS ADDRESS

:

6 LOYANG WAY 4, 507605, SINGAPORE.

TEL.NO.                               

:

65-67479922

FAX.NO.

:

65-67434720

EMAIL

:

SALES@ADAMPAK.COM.SG

WEB SITE

:

HTTP://WWW.ADAMPAK.COM

CONTACT PERSON

:

TAY SONG SENG ( DIRECTOR )

PRINCIPAL ACTIVITY

:

MANUFACTURER OF LABELS , ADHESIVE LABELS, SIGNBOARDS AND POSTERS

ISSUED AND PAID UP CAPITAL

:

263,625,000.00 ORDINARY SHARE, OF A VALUE OF SGD 25,415,377.00

SALES

:

USD 49,797,000 [2012]

NET WORTH

:

USD 32,366,000 [2012]

STAFF STRENGTH

:

150 [2014]

BANKER (S)

:

THE DEVELOPMENT BANK OF SINGAPORE LTD

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MATURE

 

 

HISTORY / BACKGROUND

 

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacturer of labels , adhesive labels, signboards and posters.

 

The immediate holding company of the Subject is SAFE LABEL GROUP PTE. LTD., a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is NAVIS CAPITAL PARTNERS LTD, a company incorporated in CAYMAN ISLANDS.

 

Share Capital History

Date

Issue & Paid Up Capital

23/01/2014

SGD 25,415,377.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

SAFE LABEL GROUP PTE. LTD.

8, MARINA BOULEVARD, 05-02, MARINA BAY FINANCIAL CENTRE, 018981 , SINGAPORE.

201207303

263,625,000.00

100.00

 

 

 

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

------

 

 

 

263,625,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

149084A

MALAYSIA

AIDENT CORPORATION SDN. BHD.

100.00

31/12/2012

 

 

 

 

 

462213U

MALAYSIA

AIDENT CORPORATION (KL) SDN. BHD.

100.00

31/12/2012

 

 

 

 

 

 

CHINA

ADAMPAK (SUZHOU) CO., LTD.

100.00

31/12/2012

 

 

 

 

 

 

THAILAND

ADAMPAK (THAILAND) LTD

100.00

31/12/2012

 

 

 

 

 

 

PHILIPPINES

ADAMPAK & PRINT (PHILS.) INC.

100.00

31/12/2012

 

 

 

 

 

198302468D

SINGAPORE

ADAMPAK SCREEN PRINTING PTE LTD

100.00

31/12/2012

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

BHARAT VENKATARAMA SARMA

Address

:

5, RHU CROSS, 15-12, COSTA RHU, 437434, SINGAPORE.

IC / PP No

:

S7587335B

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/07/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

WONG YEW MUN

Address

:

B-16-20, CENGAL CONDOMINIUM, BANDAR SRI PERMAISURI CHERAS, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A24919920

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

31/07/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

CHUA CHENG SONG

Address

:

311, ANG MO KIO AVENUE 3, 02-2118 , 560311, SINGAPORE.

IC / PP No

:

S0194740J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/08/1998

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAY SONG SENG

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

RT LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LEE TIONG HOCK

 

IC / PP No

:

S6845091H

 

 

 

 

 

Address

:

83, REDHILL LANE, 18-77, 150083, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

THE DEVELOPMENT BANK OF SINGAPORE LTD

 

 

 

 

 

 

 

 

 

 

 

 

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

:

8133

 

 

 

 

 

Year

:

2012

Place

:

SINGAPORE

 

 

 

 

 

Court

:

MAGISTRATE COURT

 

 

 

 

 

 

 

 

Date Filed

:

27/03/2012

 

 

 

 

 

 

 

 

Solicitor Ref

:

CL/SA.460.11.LYW.SS

 

 

 

 

 

 

 

 

Solicitor Firm

:

CENTRO-LEGAL LLP

 

 

 

 

 

Plaintiff

:

LAI YUE WAH

 

 

 

Defendants

:

ADAMPAK LIMITED (197900079)

 

 

 

 

 

Remark

:

TORT - NEGLIGENCE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
ELECTRONIC TRANSFER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

LABELS , ADHESIVE LABELS, SIGNBOARDS AND POSTERS

 

 

 

 

Total Number of Employees:

YEAR

2014

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

150

 

 

 

 

 

 

 

 

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturer of labels , adhesive labels, signboards and posters.

Background:
The group is principally involved into the manufacture of pressure-sensitive labels, seals and other die-cut components mainly for the electronics, pharmaceutical/ medical equipment and supplies and chemical industries.

The group manufactures information labels, blank labels and bar code labels, used mainly for computer and peripherals, consumer electronics, pharmaceutical/ medical equipment and supplies, industries, commercial and other consumer products. The group also produces seals mainly for hard disk drives, and other die-cut components for bonding, sealing, insulation, protection and shielding for electronics, telecommunication and other equipment. In addition, it also on-sell thermal transfer ribbons and printer heads to its customers.

Products:

- Labels:
* pre-printed labels
* bar code labels
* high temperature resistant labels
* pharmaceutical/medical labels/fda labels
* protective labels

- Overlays/nameplates
* polycarbonate/lexan overlays
* decals
* mousepads

- Precision multi-layer die-cut:
* adhesive free zone seals for hdd
* dampening adhesive
* emi/rfi/insulators seals
* lcd/lens/keypad attachment double sided tape

- Security/tamper evident solutions
* standard tamper evident labels
* adampak/trustcopy alliance

Services:

- Full-service inclination
* in-house pre-press facilities
* first article inspection
* quality control
* cleanroom capabilities

- Production capabilities
* production department
* barcode department
* silk-screen department

Key suppliers:
* 3m
* fasson
* flexcon
* raflatac
* lintec

Manufacturing facilities:
* two in singapore
* one in philippines
* one in thailand


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-67479922

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 6 LIYANG WAY 4, 507605

Current Address

:

6 LOYANG WAY 4, 507605, SINGAPORE.

Match

:

NO

 

 

 

 

Other Investigations


On 22nd January 2014, we contacted one of the staff from the Subject and she provided some information.


The address provided is incomplete.

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.67%

]

 

Return on Net Assets

:

Acceptable

[

12.65%

]

 

 

 

 

 

 

 

 

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 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

[

49 Days

]

 

Debtor Ratio

:

Unfavourable

[

85 Days

]

 

Creditors Ratio

:

Favourable

[

54 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

2.38 Times

]

 

Current Ratio

:

Favourable

[

3.22 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

:

Favourable

[

383.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.02 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STRONG

 

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 :

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 1979, the Subject is a Public Limited Company company, focusing on manufacture of labels, adhesive labels, signboards and posters. The Subject has been in business for over 3 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 Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

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 is a fairly large and rapidly growing company with over 150 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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at USD 32,366,000, the Subject should be able to maintain its business in the near terms.

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

 
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.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

 

 

 

 

 

TURNOVER

49,797,000

58,195,000

62,669,000

54,123,000

 

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

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

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

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

Total Turnover

49,797,000

58,195,000

62,669,000

54,123,000

Costs of Goods Sold

(36,432,000)

(40,481,000)

-

-

 

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

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

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

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

Gross Profit

13,365,000

17,714,000

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

4,202,000

6,192,000

11,425,000

8,111,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,202,000

6,192,000

11,425,000

8,111,000

Taxation

(1,718,000)

(1,298,000)

(2,098,000)

(1,623,000)

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,484,000

4,894,000

9,327,000

6,488,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

23,516,000

25,497,000

20,944,000

17,721,000

Prior year adjustment

-

(376,000)

-

(165,000)

 

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

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

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

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

As restated

23,516,000

25,121,000

20,944,000

17,556,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

26,000,000

30,015,000

30,271,000

24,044,000

TRANSFER TO RESERVES - General

(15,000)

(12,000)

-

-

DIVIDENDS - Ordinary (paid & proposed)

(12,733,000)

(6,487,000)

(4,774,000)

(3,100,000)

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

13,252,000

23,516,000

25,497,000

20,944,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

3,000

1,000

2,000

10,000

Bankers' acceptance

1,000

-

-

-

Hire purchase

-

-

-

1,000

Revolving loans

-

-

30,000

20,000

Term loan / Borrowing

-

-

-

9,000

Others

7,000

3,000

-

-

 

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

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

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

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

 

11,000

4,000

32,000

40,000

 

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

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

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

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

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

14,418,000

12,528,000

15,153,000

13,234,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Deferred assets

147,000

120,000

137,000

72,000

Others

357,000

350,000

368,000

338,000

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

504,000

470,000

505,000

410,000

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Goodwill on consolidation

669,000

669,000

669,000

669,000

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

669,000

669,000

669,000

669,000

 

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

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

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

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

TOTAL LONG TERM ASSETS

15,591,000

13,667,000

16,327,000

14,313,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

6,690,000

7,739,000

8,580,000

6,545,000

Trade debtors

11,560,000

12,112,000

15,001,000

16,327,000

Other debtors, deposits & prepayments

1,201,000

1,014,000

721,000

980,000

Short term deposits

125,000

1,522,000

1,704,000

1,523,000

Amount due from holding company

15,000

-

-

-

Cash & bank balances

6,084,000

16,028,000

11,108,000

9,915,000

Others

-

-

32,000

-

 

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

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

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

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

TOTAL CURRENT ASSETS

25,675,000

38,415,000

37,146,000

35,290,000

 

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

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

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

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

TOTAL ASSET

41,266,000

52,082,000

53,473,000

49,603,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

5,419,000

7,704,000

5,363,000

7,135,000

Other creditors & accruals

221,000

654,000

1,035,000

761,000

Bank overdraft

473,000

-

-

8,000

Bill & acceptances payable

35,000

62,000

-

-

Provision for taxation

324,000

511,000

1,191,000

1,098,000

Other liabilities

1,500,000

84,000

909,000

1,419,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

7,972,000

9,015,000

8,498,000

10,421,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

17,703,000

29,400,000

28,648,000

24,869,000

 

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

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

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

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

TOTAL NET ASSETS

33,294,000

43,067,000

44,975,000

39,182,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

15,545,000

15,545,000

15,545,000

15,545,000

 

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

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

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

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

TOTAL SHARE CAPITAL

15,545,000

15,545,000

15,545,000

15,545,000

 

 

 

 

 

RESERVES

 

 

 

 

Revaluation reserve

798,000

798,000

798,000

798,000

Exchange equalisation/fluctuation reserve

-

-

2,307,000

1,077,000

Statutory reserve

403,000

388,000

-

-

General reserve

2,368,000

1,953,000

-

-

Retained profit/(loss) carried forward

13,252,000

23,516,000

25,497,000

20,944,000

 

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

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

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

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

TOTAL RESERVES

16,821,000

26,655,000

28,602,000

22,819,000

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

32,366,000

42,200,000

44,147,000

38,364,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

764,000

681,000

540,000

578,000

Others

164,000

186,000

288,000

240,000

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

928,000

867,000

828,000

818,000

 

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

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

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

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

 

33,294,000

43,067,000

44,975,000

39,182,000

 

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

Cash

6,209,000

17,550,000

12,812,000

11,438,000

Net Liquid Funds

5,701,000

17,488,000

12,812,000

11,430,000

Net Liquid Assets

11,013,000

21,661,000

20,068,000

18,324,000

Net Current Assets/(Liabilities)

17,703,000

29,400,000

28,648,000

24,869,000

Net Tangible Assets

32,625,000

42,398,000

44,306,000

38,513,000

Net Monetary Assets

10,085,000

20,794,000

19,240,000

17,506,000

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

508,000

62,000

30,000

28,000

Total Liabilities

8,900,000

9,882,000

9,326,000

11,239,000

Total Assets

41,266,000

52,082,000

53,473,000

49,603,000

Net Assets

33,294,000

43,067,000

44,975,000

39,182,000

Net Assets Backing

32,366,000

42,200,000

44,147,000

38,364,000

Shareholders' Funds

32,366,000

42,200,000

44,147,000

38,364,000

Total Share Capital

15,545,000

15,545,000

15,545,000

15,545,000

Total Reserves

16,821,000

26,655,000

28,602,000

22,819,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.78

1.95

1.51

1.10

Liquid Ratio

2.38

3.40

3.36

2.76

Current Ratio

3.22

4.26

4.37

3.39

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

49

49

50

44

Debtors Ratio

85

76

87

110

Creditors Ratio

54

69

31

48

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.02

0.00

0.00

0.00

Liabilities Ratio

0.27

0.23

0.21

0.29

Times Interest Earned Ratio

383.00

1,549.00

358.03

203.78

Assets Backing Ratio

2.10

2.73

2.85

2.48

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

8.44

10.64

18.23

14.99

Net Profit Margin

4.99

8.41

14.88

11.99

Return On Net Assets

12.65

14.39

25.47

20.80

Return On Capital Employed

12.23

14.17

25.08

20.44

Return On Shareholders' Funds/Equity

7.67

11.60

21.13

16.91

Dividend Pay Out Ratio (Times)

5.13

1.33

0.51

0.48

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.