MIRA INFORM REPORT

 

 

Report Date :

07.03.2014

 

IDENTIFICATION DETAILS

 

Name :

FUTAR ENTERPRISES PRIVATE LIMITED

 

 

Registered Office :

19, Changi North Way, 498786,

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.11.1971

 

 

Com. Reg. No.:

197101311-Z

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesale and vendor of building materials

 

 

No. of Employees :

100 [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 – 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. 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 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.

:

197101311-Z

COMPANY NAME

:

FUTAR ENTERPRISES PRIVATE LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

26/11/1971

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

19, CHANGI NORTH WAY, 498786, SINGAPORE.

BUSINESS ADDRESS

:

19, CHANGI NORTH WAY, 498786, SINGAPORE.

TEL.NO.

:

65-65433818

FAX.NO.

:

65-65433789

CONTACT PERSON

:

TAN SING PHONG ( MANAGING DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

WHOLESALE AND VENDOR OF BUILDING MATERIALS

 

 

 

ISSUED AND PAID UP CAPITAL

:

8,628,578.00 ORDINARY SHARE, OF A VALUE OF SGD 7,902,582.04

 

 

 

SALES

:

SGD 29,339,730 [2012]

NET WORTH

:

SGD 20,037,760 [2012]

 

 

 

STAFF STRENGTH

:

100 [2014]

BANKER (S)

:

DBS BANK LTD
THE DEVELOPMENT BANK OF SINGAPORE LTD

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) wholesale and vendor of building materials.

 

Share Capital History

Date

Issue & Paid Up Capital

04/03/2014

SGD 7,902,582.04

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

TAN SING PHONG +

61, SENNETT LANE, EAST COAST HILL, 466953, SINGAPORE.

S1356010B

1,988,574.00

23.05

CHOO TUAN WEI

5000N MARINE PARADE ROAD, 20 - 57, LAGOON VIEW, 427508, SINGAPORE.

S1198932B

750,000.00

8.69

LOH SIEW CHOO

61, SENNETT LANE, EAST COAST HILL, 466953, SINGAPORE.

S1364970G

678,000.00

7.86

LAUW PENG KIAT

19, JALAN ULU SIGLAP, SIGLAP PARK, 457162, SINGAPORE.

S2157967Z

459,996.00

5.33

PETER POH KENG SWEE +

194, ONAN ROAD, 424579, SINGAPORE.

S1771359J

354,334.00

4.11

TAN MUI GIOK @ TAN MUI GEOK

194, ONAN ROAD, 424579, SINGAPORE.

S0404390A

354,332.00

4.11

TAN HONG WAH

9, CHAPEL CLOSE, 429565, SINGAPORE.

S1277941J

324,600.00

3.76

BRILLIANT EAST ENTERPRISES (PTE) LTD.

30, BOURNEMOUTH ROAD, 439676, SINGAPORE.

197301533D

315,000.00

3.65

LAUW CHOON KANG

20C, EAST COAST AVENUE, 459213, SINGAPORE.

S2158592J

267,732.00

3.10

CHNG HONG TECK

36, DAKOTA CRESCENT, 11 - 07, DAKOTA RESIDENCES, 399937, SINGAPORE.

S0101782I

256,668.00

2.97

SAMUEL ZHUANG SENMAO

36, DAKOTA CRESCENT, 11 - 07, DAKOTA RESIDENCES, 399937, SINGAPORE.

S8210790H

256,668.00

2.97

ZHUANG KAI QUAN

36, DAKOTA CRESCENT, 11 - 07, DAKOTA RESIDENCES, 399937, SINGAPORE.

S8524324A

256,668.00

2.97

REMAINING SHAREHOLDERS

-

-

2,366,006.00

27.42

 

 

 

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

------

 

 

 

8,628,578.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

 

 

FUTAR HOLDINGS PRIVATE LIMITED (SINGAPORE)

100.00

31/12/2010

 

 

 

 

 



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

PETER POH KENG SWEE

Address

:

194, ONAN ROAD, 424579, SINGAPORE.

IC / PP No

:

S1771359J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

06/05/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

TAN SING PHONG

Address

:

61, SENNETT LANE, EAST COAST HILL, 466953, SINGAPORE.

IC / PP No

:

S1356010B

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/02/1995

 

 

 

 

 

 

 

 

 

 

 

 





 

MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN SING PHONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

ENTERPRISE ACCOUNTANTS LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

GOH CHENG GUAN

 

IC / PP No

:

S1476288D

 

 

 

 

 

Address

:

401, PANDAN GARDENS, 04 - 01, 600401, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

 

 

 

 

 

 

 

 

 

2)

Name

:

THE DEVELOPMENT BANK OF SINGAPORE LTD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

199904898

06/11/1999

N/A

THE DEVELOPMENT BANK OF SINGAPORE LIMITED

-

Unsatisfied

199904899

06/11/1999

N/A

THE DEVELOPMENT BANK OF SINGAPORE LIMITED

-

Unsatisfied

C200505378

07/09/2005

N/A

DBS BANK LTD

-

Unsatisfied

C201007798

03/09/2010

N/A

DBS BANK LTD

-

Unsatisfied

C201113974

03/11/2011

N/A

DBS BANK LTD

-

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.

LEGAL ACTION

 

 

 

Code No

:

99

Case No

:

4693

 

 

 

 

 

Year

:

2006

Place

:

SINGAPORE

 

 

 

 

 

Court

:

DISTRICT COURT

 

 

 

 

 

 

 

 

Date Filed

:

08/12/2006

 

 

 

 

 

 

 

 

Solicitor

:

MOHAMED MOHIDEEN S/O SHAIK NOOHU

 

 

 

 

 

 

 

 

Solicitor Ref

:

MM/0975/05

 

 

 

 

 

 

 

 

Solicitor Firm

:

YPMP LAW CORPORATION

 

 

 

 

 

Plaintiff

:

KAYUIM SIDDIQUE MIAH

 

 

 

Defendants

:

FUTAR ENTERPRISES PRIVATE LIMITED (197101311)

19, CHANGI NORTH WAY, 498786, SINGAPORE.

 

 

 

 

Amount Claimed

:

61000

 

 

 

 

 

 

 

 

Nature of Claim

:

SGD

 

 

 

 

 

 

 

 

Remark

:

NEGLIGENCE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Code No

:

99

Case No

:

3267

 

 

 

 

 

Year

:

2010

Place

:

SINGAPORE

 

 

 

 

 

Court

:

DISTRICT COURT

 

 

 

 

 

 

 

 

Date Filed

:

28/09/2010

 

 

 

 

 

 

 

 

Solicitor Ref

:

HS/JT/1217/09

 

 

 

 

 

 

 

 

Solicitor Firm

:

HAR ASSOCIATES

 

 

 

 

 

Plaintiff

:

WU WENKEN

 

 

 

Defendants

:

FUTAR ENTERPRISES PRIVATE LIMITED (197101311)

19, CHANGI NORTH WAY, 498786, SINGAPORE.

 

 

 

 

Amount Claimed

:

0

 

 

 

 

 

 

 

 

Nature of Claim

:

SGD

 

 

 

 

 

 

 

 

Remark

:

OTHERS/MISCELLANEOUS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Code No

:

99

Case No

:

2619

 

 

 

 

 

Year

:

2012

Place

:

SINGAPORE

 

 

 

 

 

Court

:

DISTRICT COURT

 

 

 

 

 

 

 

 

Solicitor Ref

:

RC.2012.192777.MB

 

 

 

 

 

 

 

 

Solicitor Firm

:

CHELLIAH & KIANG

 

 

 

 

 

Plaintiff

:

NOVELTY BUILDERS PTE LTD

 

 

 

Defendants

:

FUTAR ENTERPRISES PRIVATE LIMITED (197101311)

 

 

 

 

 

Amount Claimed

:

100000

 

 

 

 

 

 

 

 

Nature of Claim

:

SGD

 

 

 

 

 

 

 

 

Remark

:

BUILDING AND CONSTRUCTION LAW

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 




 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

SINGAPORE

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CASH

Type of Customer

:

CONSTRUCTION INDUSTRY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

BUILDING MATERIALS

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

YEAR

2014

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

100

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) wholesale and vendor of building materials.

The SC is engaged in construction.

They focus on building construction.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

6565433818

Current Telephone Number

:

65-65433818

Match

:

YES

 

 

 

Address Provided by Client

:

19 CHANGI NORTH WAY SINGAPORE 498786

Current Address

:

19, CHANGI NORTH WAY, 498786, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations

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


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

16.68%

]

 

Return on Net Assets

:

Acceptable

[

18.45%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

170 Days

]

 

Debtor Ratio

:

Unfavourable

[

125 Days

]

 

Creditors Ratio

:

Favourable

[

31 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

1.51 Times

]

 

Current Ratio

:

Favourable

[

3.11 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

[

17.33 Times

]

 

Gearing Ratio

:

Favourable

[

0.32 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 :

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 1971, the Subject is a Private Limited company, focusing on wholesale and vendor of building materials. The Subject has been in business for over 4 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Information revealed that the Subject solely focuses on domestic market rather than overseas market. We believe that this narrow market segment would limit the Subject's business opportunities and the Subject is likely to be affected by the uncertainties in local economy. However, its long presence in the market has enabled the Subject to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a 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 SGD 20,037,760, 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.

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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

FUTAR ENTERPRISES PRIVATE LIMITED

 

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

SGD

SGD

SGD

SGD

 

 

 

 

 

TURNOVER

29,339,730

29,695,155

30,285,961

34,559,946

 

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

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

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

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

Total Turnover

29,339,730

29,695,155

30,285,961

34,559,946

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,971,333

4,024,392

4,255,394

4,312,450

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,971,333

4,024,392

4,255,394

4,312,450

Taxation

(628,716)

(696,199)

(717,745)

(615,915)

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,342,617

3,328,193

3,537,649

3,696,535

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

9,223,990

6,327,226

7,092,578

3,773,293

Prior year adjustment

-

-

(3,951,291)

-

 

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

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

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

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

As restated

9,223,990

6,327,226

3,141,287

3,773,293

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

12,566,607

9,655,419

6,678,936

7,469,828

TRANSFER TO RESERVES - General

-

-

25,540

-

DIVIDENDS - Ordinary (paid & proposed)

(431,429)

(431,429)

(377,250)

(377,250)

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

12,135,178

9,223,990

6,327,226

7,092,578

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

-

56

-

-

Lease interest

20,218

11,062

-

-

Term loan / Borrowing

87,833

150,930

-

-

Trust receipts

135,125

181,528

-

-

Others

-

-

521,912

477,223

 

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

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

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

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

 

243,176

343,576

521,912

477,223

 

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

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

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

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

 

 

 

BALANCE SHEET

 

 

FUTAR ENTERPRISES PRIVATE LIMITED

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

4,848,045

4,909,710

5,215,178

5,244,472

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

4,848,045

4,909,710

5,215,178

5,244,472

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

13,657,761

11,179,831

11,076,826

8,530,553

Trade debtors

10,044,422

10,015,157

8,618,857

9,774,919

Other debtors, deposits & prepayments

422,722

535,435

388,881

498,268

Short term deposits

215,917

225,919

225,166

249,652

Cash & bank balances

2,166,699

1,727,557

985,145

420,155

 

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

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

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

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

TOTAL CURRENT ASSETS

26,507,521

23,683,899

21,294,875

19,473,547

 

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

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

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

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

TOTAL ASSET

31,355,566

28,593,609

26,510,053

24,718,019

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

2,465,951

2,353,702

749,151

1,393,571

Other creditors & accruals

1,431,860

1,669,786

1,542,360

1,091,524

Hire purchase & lease creditors

85,803

71,876

57,590

57,590

Short term borrowings/Term loans

3,719,409

3,179,143

-

-

Amounts owing to director

185,446

187,227

188,099

743,737

Provision for taxation

622,937

703,915

701,479

713,099

Other liabilities

-

-

5,071,311

6,723,631

 

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

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

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

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

TOTAL CURRENT LIABILITIES

8,511,406

8,165,649

8,309,990

10,723,152

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

17,996,115

15,518,250

12,984,885

8,750,395

 

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

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

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

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

TOTAL NET ASSETS

22,844,160

20,427,960

18,200,063

13,994,867

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

7,902,582

7,902,582

7,902,582

3,772,501

 

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

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

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

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

TOTAL SHARE CAPITAL

7,902,582

7,902,582

7,902,582

3,772,501

 

 

 

 

 

RESERVES

 

 

 

 

Capital reserve

-

-

-

25,540

Retained profit/(loss) carried forward

12,135,178

9,223,990

6,327,226

7,092,578

 

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

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

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

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

TOTAL RESERVES

12,135,178

9,223,990

6,327,226

7,118,118

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

20,037,760

17,126,572

14,229,808

10,890,619

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

2,237,530

2,949,484

-

-

Lease obligations

417,870

200,904

-

-

Hire purchase creditors

-

-

172,780

230,370

Deferred taxation

151,000

151,000

151,000

151,000

Others

-

-

3,646,475

2,722,878

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,806,400

3,301,388

3,970,255

3,104,248

 

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

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

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

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

 

22,844,160

20,427,960

18,200,063

13,994,867

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

FUTAR ENTERPRISES PRIVATE LIMITED

 

TYPES OF FUNDS

 

 

 

 

Cash

2,382,616

1,953,476

1,210,311

669,807

Net Liquid Funds

2,382,616

1,953,476

1,210,311

669,807

Net Liquid Assets

4,338,354

4,338,419

1,908,059

219,842

Net Current Assets/(Liabilities)

17,996,115

15,518,250

12,984,885

8,750,395

Net Tangible Assets

22,844,160

20,427,960

18,200,063

13,994,867

Net Monetary Assets

1,531,954

1,037,031

(2,062,196)

(2,884,406)

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

6,460,612

6,401,407

230,370

287,960

Total Liabilities

11,317,806

11,467,037

12,280,245

13,827,400

Total Assets

31,355,566

28,593,609

26,510,053

24,718,019

Net Assets

22,844,160

20,427,960

18,200,063

13,994,867

Net Assets Backing

20,037,760

17,126,572

14,229,808

10,890,619

Shareholders' Funds

20,037,760

17,126,572

14,229,808

10,890,619

Total Share Capital

7,902,582

7,902,582

7,902,582

3,772,501

Total Reserves

12,135,178

9,223,990

6,327,226

7,118,118

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.28

0.24

0.15

0.06

Liquid Ratio

1.51

1.53

1.23

1.02

Current Ratio

3.11

2.90

2.56

1.82

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

170

137

133

90

Debtors Ratio

125

123

104

103

Creditors Ratio

31

29

9

15

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.32

0.37

0.02

0.03

Liabilities Ratio

0.56

0.67

0.86

1.27

Times Interest Earned Ratio

17.33

12.71

9.15

10.04

Assets Backing Ratio

2.89

2.58

2.30

3.71

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

13.54

13.55

14.05

12.48

Net Profit Margin

11.39

11.21

11.68

10.70

Return On Net Assets

18.45

21.38

26.25

34.22

Return On Capital Employed

18.38

21.31

26.17

34.08

Return On Shareholders' Funds/Equity

16.68

19.43

24.86

33.94

Dividend Pay Out Ratio (Times)

0.13

0.13

0.11

0.10

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.32

UK Pound

1

Rs.102.54

Euro

1

Rs.84.19

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.