MIRA INFORM REPORT

 

 

Report Date :

15.03.2014

 

IDENTIFICATION DETAILS

 

Name :

STARHUB LTD.

 

 

Formerly Known As :

STARHUB PTE LTD

 

 

Registered Office :

67, Ubi Avenue 1, 05-01, Starhub Green, 408942,

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

07.05.1998

 

 

Com. Reg. No.:

199802208-C

 

 

Legal Form :

Public (Limited By Share)

 

 

Line of Business :

Subject is principally engaged in the provision of telecommunications services and other related services.

 

 

No. of Employees :

Not Available

 

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 :

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.

:

199802208-C

COMPANY NAME

:

STARHUB LTD.

FORMER NAME

:

STARHUB PTE LTD (18/08/2004)

INCORPORATION DATE

:

07/05/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

YES

LISTED DATE

:

13/10/2004

REGISTERED ADDRESS

:

67, UBI AVENUE 1, 05-01, STARHUB GREEN, 408942, SINGAPORE.

BUSINESS ADDRESS

:

67, UBI AVENUE 1, 05-01, STARHUB GREEN, 408942, SINGAPORE.

TEL.NO.

:

65-68255000

FAX.NO.

:

65-67215000

CONTACT PERSON

:

TAN GUONG CHING ( DIRECTOR )

PRINCIPAL ACTIVITY

:

PROVISION OF TELECOMMUNICATIONS SERVICES AND OTHER RELATED SERVICES

ISSUED AND PAID UP CAPITAL

:

1,723,014,153.00 ORDINARY SHARE, OF A VALUE OF SGD 274,813,475.16

SALES

:

SGD 2,421,600,000 [2012]

NET WORTH

:

SGD 43,500,000 [2012]

STAFF STRENGTH

:

N/A

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 


 

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) provision of telecommunications services and other related services.

 

The immediate holding company of the Subject is ASIA MOBILE HOLDINGS PTE. LTD., a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is TEMASEK HOLDINGS (PRIVATE) LIMITED, a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

12/03/2014

SGD 274,813,475.16

SGD 270,227,368.93

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

ASIA MOBILE HOLDINGS PTE. LTD.

1, TEMASEK AVENUE, 33-01, MILLENIA TOWER, 039192, SINGAPORE.

200507749

970,807,990.00

56.34

NTT COMMUNICATIONS CORPORATION

1-6, UCHISAIWAI-CHO, 1-CHOME CHIYODA-KU, TOKYO, JAPAN.

S97UF0578

171,490,520.00

9.95

CITIBANK NOMINEES SINGAPORE PTE LTD

8, MARINA VIEW, 21-00, ASIA SQUARE TOWER 1, 018960, SINGAPORE.

198801936

126,730,399.00

7.36

DBS NOMINEES PTE LTD

12, MARINA BOULEVARD , 018982, SINGAPORE.

196900222

93,362,072.00

5.42

HSBC (SINGAPORE) NOMINEES PTE LTD

21, COLLYER QUAY, 10-02, HSBC BUILDING, 049320, SINGAPORE.

194600097

73,906,032.00

4.29

DBSN SERVICES PTE. LTD.

12, MARINA BOULEVARD, MARINA BAY FINANCIAL CENTRE, 018982, SINGAPORE.

200602090

51,816,834.00

3.01

RAFFLES NOMINEES (PTE.) LIMITED

7, CHANGI BUSINESS PARK CRESCENT, 03-00, STANDARD CHARTERED @ CHANGI, 486028, SINGAPORE.

193700032

30,462,076.00

1.77

UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED

80, RAFFLES PLACE, UOB PLAZA , 048624, SINGAPORE.

196800520

23,198,044.00

1.35

SINGAPORE PRESS HOLDINGS LIMITED

1000, TOA PAYOH NORTH , 318994 , SINGAPORE.

198402868E

12,911,230.00

0.75

DB NOMINEES (SINGAPORE) PTE LTD

1, RAFFLES QUAY, 17-10 , 048583 , SINGAPORE.

197300322

8,397,818.00

0.49

REMAINING SHAREHOLDERS

-

-

159,931,138.00

9.28

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

------

1,723,014,153.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

MAURITIUS

STARHUB (MAURITIUS) LTD

100.00

31/12/2012

HONG KONG

STARHUB (HONG KONG) LIMITED

100.00

31/12/2012

199905336E

SINGAPORE

STARHUB SHOP PTE LTD

100.00

31/12/2012

201111817G

SINGAPORE

SHINE SYSTEMS ASSETS PTE. LTD.

100.00

31/12/2012

200906560W

SINGAPORE

NUCLEUS CONNECT PTE. LTD.

100.00

31/12/2012

200000646C

SINGAPORE

STARHUB MOBILE PTE LTD

100.00

31/12/2012

199504131K

SINGAPORE

STARHUB INTERNET PTE LTD

100.00

22/12/2012

200501897Z

SINGAPORE

STARHUB ONLINE PTE LTD

100.00

31/12/2012

199103398C

SINGAPORE

STARHUB CABLE VISION LTD.

100.00

13/11/2013



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TEO EK TOR

Address

:

60, BINJAI PARK, 589860, SINGAPORE.

IC / PP No

:

S0158671H

Nationality

:

SINGAPOREAN

Date of Appointment

:

16/08/2004

 

DIRECTOR 2

 

Name Of Subject

:

NASSER MARAFIH

Address

:

AL QUTAIFAT AREA, SAHA 66, VILLA 10, WEST BAY, DOHA, QATAR.

IC / PP No

:

01095393

Nationality

:

QATARI

Date of Appointment

:

09/07/2007

 

DIRECTOR 3

 

Name Of Subject

:

KUA HONG PAK

Address

:

1, MUSWELL HILL, BRADDELL HEIGHTS ESTATE, 358416, SINGAPORE.

IC / PP No

:

S0229766C

Nationality

:

SINGAPOREAN

Date of Appointment

:

19/11/2001

 

DIRECTOR 4

 

Name Of Subject

:

PETER SEAH LIM HUAT

Address

:

45, BINJAI PARK, 589845, SINGAPORE.

IC / PP No

:

S0337313D

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/07/2002

 

DIRECTOR 5

 

Name Of Subject

:

NIHAL VIJAYA DEVADAS KAVIRATNE CBE

Address

:

A-5, SEA FACE PARK, 50, BHULABHAI DESAI ROAD, MUMBAI, 400026, INDIA.

IC / PP No

:

S2726390I

Nationality

:

SINGAPOREAN

Date of Appointment

:

16/08/2004

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

LIM MING SEONG

Address

:

69, CHARTWELL DRIVE, SERANGOON GARDEN ESTATE, 558765, SINGAPORE.

IC / PP No

:

S0348871C

Nationality

:

SINGAPOREAN

Date of Appointment

:

14/12/2000

 

DIRECTOR 7

 

Name Of Subject

:

LIU CHEE MING

Address

:

5, THOMSON LANE, 24-01, SKY@ELEVEN, 297724, SINGAPORE.

IC / PP No

:

S0143768B

Nationality

:

SINGAPOREAN

Date of Appointment

:

16/08/2004

 

DIRECTOR 8

 

Name Of Subject

:

SIO TAT HIANG

Address

:

7, OAK AVENUE, OAK VILLAS, 276771, SINGAPORE.

IC / PP No

:

S0005627H

Nationality

:

SINGAPOREAN

Date of Appointment

:

02/07/2012

 

DIRECTOR 9

 

Name Of Subject

:

TAN GUONG CHING

Address

:

27, CARMICHAEL ROAD, GAY'S VILLAS, 359808, SINGAPORE.

IC / PP No

:

S0416187D

Nationality

:

SINGAPOREAN

Date of Appointment

:

08/08/1998

 

 


 

DIRECTOR 10

 

Name Of Subject

:

TAKESHI KAZAMI

Address

:

100, ROBERTSON QUAY, 03-03, ROBERTSON 100, 238250, SINGAPORE.

IC / PP No

:

G5510222N

Nationality

:

JAPANESE

Date of Appointment

:

13/04/2012

 

DIRECTOR 11

 

Name Of Subject

:

TAN TONG HAI

Address

:

30, LEEDON ROAD, 267849, SINGAPORE.

IC / PP No

:

S1620724A

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/03/2013

 

DIRECTOR 12

 

Name Of Subject

:

ROBERT J. SACHS

Address

:

55-8, COMMERCIAL WHARF, BOSTON, MA, 02110, UNITED STATES.

IC / PP No

:

488208150

Nationality

:

AMERICAN

Date of Appointment

:

29/04/2005

 

DIRECTOR 13

 

Name Of Subject

:

STEVEN TERRELL CLONTZ

Address

:

465, 18TH AVENUE SOUTH, NAPLES, FLORIDA , 34102, UNITED STATES.

IC / PP No

:

422105372

Nationality

:

AMERICAN

Date of Appointment

:

08/12/1999




 

 

 

MANAGEMENT

 

1)

Name of Subject

:

TAN GUONG CHING

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

KPMG LLP

Auditor' Address

:

16, RAFFLES QUAY, 22-00, HONG LEONG BUILDING, 048581, SINGAPORE

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

VERONICA LAI KWAI-YI

IC / PP No

:

S6936393H

Address

:

55B, NAMLY GARDEN, 267406, SINGAPORE.

 

2)

Company Secretary

:

KONG POOI FOONG

IC / PP No

:

S7280312D

Address

:

71, JALAN TUA KONG, 04-06, PARK EAST, 457265, SINGAPORE.

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


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

 

 

LEGAL CHECK AGAINST SUBJECT


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

 

LEGAL ACTION

 

 

Code No

:

99

Case No

:

21661

Year

:

2008

Place

:

SINGAPORE

Court

:

MAGISTRATE COURT

Date Filed

:

26/08/2008

Plaintiff

:

RENTOKIL INTIAL SINGAPORE PTE LTD

Defendants

:

STARHUB LTD (199802208)

67 UBI AVENUE 1, 05-01 STARHUB GREEN, 408942, SINGAPORE.

Amount Claimed

:

25885.68

Nature of Claim

:

SGD

Remark

:

CONTRACTS RELATED

 

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

:

NO

Percentage

:

0%

Overseas

:

NO

Percentage

:

0%


The Subject does not have any trade supplier as it is a service provider company.

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

X

]

Poor >120 Days

[

]



CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

SINGAPORE

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

N/A

 

OPERATIONS

 

Services

:

SOLE OPERATOR DELIVERING A RANGE OF INFORMATION, COMMUNICATIONS AND ENTERTAINMENT SERVICES OVER FIXED, CABLE, MOBILE AND INTERNET PLATFORMS

Ownership of premises

:

OWNED

 

Total Number of Employees:

YEAR

2011

2010


GROUP

N/A

N/A

COMPANY

2,770

2,770

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) provision of telecommunications services and other related services.

The Subject is Singapore's fully-integrated info-communication company, offering a full range of information, communications and entertainment services for both consumer and corporate markets.

The Subject operates Singapore's fastest two-way HSPA+ mobile network that delivers up to 21Mbps for downlink to complement its nation-wide GSM network, and an island-wide HFC network that delivers multi-channel cable TV services (including High Definition Television and on-demand services) as well as ultra-high speed residential broadband services.

StarHub also operates an extensive fixed business network that provides a wide range of data, voice and wholesale services.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-68255000

Match

:

N/A

Address Provided by Client

:

67 UBI AVENUE 1 #05-01 STARHUB GREEN SINGAPORE 408942

Current Address

:

67, UBI AVENUE 1, 05-01, STARHUB GREEN, 408942, SINGAPORE.

Match

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2009 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2012

]

Return on Shareholder Funds

:

Favourable

[

825.98%

]

Return on Net Assets

:

Favourable

[

48.57%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

4 Days

]

Debtor Ratio

:

Favourable

[

21 Days

]

Creditors Ratio

:

Favourable

[

9 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. 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

:

Unfavourable

[

0.67 Times

]

Current Ratio

:

Unfavourable

[

0.70 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Favourable

[

22.57 Times

]

Gearing Ratio

:

Unfavourable

[

15.80 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 highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : FAIR

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

2008

2009

2010

2011

2012

 

Population (Million)

4.84

4.98

5.08

5.18

5.31

Gross Domestic Products ( % )

1.5

(0.8)

14.5

4.9

1.3

Consumer Price Index

6.6

0.6

2.8

5.2

4.6

Total Imports (Million)

450,892.6

356,299.3

423,221.8

459,655.1

474,554.0

Total Exports (Million)

476,762.2

391,118.1

478,840.7

514,741.2

510,329.0

 

Unemployment Rate (%)

2.2

3.2

2.2

2.1

2.0

Tourist Arrival (Million)

10.12

9.68

11.64

13.17

14.37

Hotel Occupancy Rate (%)

81.0

75.8

85.6

86.5

86.4

Cellular Phone Subscriber (Million)

1.31

1.37

1.43

1.50

1.52

 

Registration of New Companies (No.)

25,327

26,414

29,798

32,317

31,892

Registration of New Companies (%)

(2.2)

4.3

12.8

8.5

(1.3)

Liquidation of Companies (No.)

10,493

22,393

15,126

19,005

17,218

Liquidation of Companies (%)

13.7

113.4

(32.5)

25.6

9.4

 

Registration of New Businesses (No.)

24,850

26,876

23,978

23,494

24,788

Registration of New Businesses (%)

0.36

8.15

(10.78)

2.02

5.51

Liquidation of Businesses (No.)

21,150

23,552

24,211

23,005

22,489

Liquidation of Businesses (%)

(0.8)

11.4

2.8

(5)

(2.2)

 

Bankruptcy Orders (No.)

2,326

2,058

1,537

1,527

1,748

Bankruptcy Orders (%)

(15.9)

(11.5)

(25.3)

(0.7)

14.5

Bankruptcy Discharges (No.)

1,500

3,056

2,252

1,391

1,881

Bankruptcy Discharges (%)

(7.7)

103.7

(26.3)

(38.2)

35.2

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

(0.32)

3.25

(0.48)

4.25

3.64

Fish Supply & Wholesale

(6.31)

(1.93)

(10.5)

12.10

(0.5)

 

Manufacturing *

74.6

71.5

92.8

100.0

100.3

Food, Beverages & Tobacco

94.8

90.4

96.4

100.0

103.5

Textiles

180.1

145.9

122.1

100.0

104.0

Wearing Apparel

334.6

211.0

123.3

100.0

92.1

Leather Products & Footwear

128.2

79.5

81.8

100.0

98.6

Wood & Wood Products

132.0

101.4

104.0

100.0

95.5

Paper & Paper Products

101.0

95.4

106.1

100.0

97.4

Printing & Media

118.2

100.9

103.5

100.0

93.0

Crude Oil Refineries

113.1

96.4

95.6

100.0

99.4

Chemical & Chemical Products

84.5

80.3

97.6

100.0

100.5

Pharmaceutical Products

43.7

49.1

75.3

100.0

109.7

Rubber & Plastic Products

120.1

101.2

112.3

100.0

96.5

Non-metallic Mineral

96.5

91.9

92.5

100.0

98.2

Basic Metals

109.8

92.6

102.2

100.0

90.6

Fabricated Metal Products

101.3

90.8

103.6

100.0

104.3

Machinery & Equipment

65.0

57.3

78.5

100.0

112.9

Electrical Machinery

81.7

86.8

124.1

100.0

99.3

Electronic Components

93.1

85.2

113.6

100.0

90.6

Transport Equipment

102.0

96.0

94.0

100.0

106.3

 

Construction

45.90

(36.9)

14.20

20.50

28.70

Real Estate

(11.2)

1.4

21.3

25.4

31.9

 

Services

Electricity, Gas & Water

(1.3)

1.70

4.00

7.00

6.30

Transport, Storage & Communication

11.60

3.90

12.80

7.40

5.30

Finance & Insurance

(5.9)

(16.4)

(0.4)

8.90

0.50

Government Services

17.40

4.50

9.70

6.90

6.00

Education Services

0.50

0.10

(0.9)

(1.4)

0.30

 

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



INDUSTRY ANALYSIS

 

INDUSTRY :

ECONOMY

According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.

However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.

Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.

For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.

Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.

For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentagepoints. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.

In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.

Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.

OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1998, the Subject is a Public Listed company, focusing on provision of telecommunications services and other related services. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Investigation revealed that the Subject concentrates only on the local market. This narrow market segment has placed the Subject at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the Subject's business performance. Overall, we regard that the Subject's management capability is average.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. Unfortunately, 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 high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. The Subject may face difficulties in maintaining its business in near term with a small net worth of SGD 43,500,000.

The Subject's overall payment habit is fair and this clearly implied a weak credit control of the Subject.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

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

STARHUB LTD.

 

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

2,421,600,000

2,312,000,000

2,237,700,000

2,150,000,000

Other Income

26,700,000

21,400,000

6,000,000

-

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

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

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

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

Total Turnover

2,448,300,000

2,333,400,000

2,243,700,000

2,150,000,000

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

431,400,000

379,800,000

317,500,000

385,200,000

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

431,400,000

379,800,000

317,500,000

385,200,000

Taxation

(72,100,000)

(64,300,000)

(54,300,000)

(65,500,000)

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

359,300,000

315,500,000

263,200,000

319,700,000

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

34,300,000

62,100,000

142,000,000

139,000,000

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

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

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

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

As restated

34,300,000

62,100,000

142,000,000

139,000,000

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

393,600,000

377,600,000

405,200,000

458,700,000

DIVIDENDS - Ordinary (paid & proposed)

(343,400,000)

(343,300,000)

(343,100,000)

(316,700,000)

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

50,200,000

34,300,000

62,100,000

142,000,000

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Term loan / Borrowing

18,000,000

20,500,000

26,600,000

-

Others

2,000,000

-

-

24,000,000

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

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

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

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

20,000,000

20,500,000

26,600,000

24,000,000

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

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

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

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

 

 

BALANCE SHEET

 

STARHUB LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

791,100,000

761,900,000

776,000,000

785,100,000

LONG TERM INVESTMENTS/OTHER ASSETS

Deferred assets

2,500,000

2,800,000

4,500,000

5,300,000

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,500,000

2,800,000

4,500,000

5,300,000

INTANGIBLE ASSETS

Goodwill on consolidation

220,300,000

220,300,000

451,600,000

415,800,000

Computer software

110,000,000

130,300,000

-

-

Others

66,700,000

73,000,000

-

-

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

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

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

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

TOTAL INTANGIBLE ASSETS

397,000,000

423,600,000

451,600,000

415,800,000

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

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

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

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

TOTAL LONG TERM ASSETS

1,190,600,000

1,188,300,000

1,232,100,000

1,206,200,000

CURRENT ASSETS

Stocks

28,100,000

37,200,000

31,800,000

28,200,000

Trade debtors

142,300,000

152,000,000

173,900,000

125,300,000

Other debtors, deposits & prepayments

123,600,000

149,200,000

101,700,000

116,100,000

Short term deposits

225,800,000

141,700,000

191,100,000

184,500,000

Amount due from related companies

12,000,000

17,200,000

16,500,000

22,600,000

Cash & bank balances

86,200,000

37,500,000

46,400,000

49,700,000

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

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

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

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

TOTAL CURRENT ASSETS

618,000,000

534,800,000

561,400,000

526,400,000

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

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

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

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

TOTAL ASSET

1,808,600,000

1,723,100,000

1,793,500,000

1,732,600,000

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

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

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

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

CURRENT LIABILITIES

Trade creditors

59,400,000

80,500,000

437,700,000

377,200,000

Other creditors & accruals

668,700,000

622,400,000

237,400,000

196,400,000

Short term borrowings/Term loans

-

75,000,000

330,400,000

290,400,000

Amounts owing to related companies

56,500,000

41,900,000

41,800,000

42,100,000

Provision for taxation

94,600,000

83,500,000

25,800,000

19,400,000

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

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

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

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

TOTAL CURRENT LIABILITIES

879,200,000

903,300,000

1,073,100,000

925,500,000

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(261,200,000)

(368,500,000)

(511,700,000)

(399,100,000)

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

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

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

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

TOTAL NET ASSETS

929,400,000

819,800,000

720,400,000

807,100,000

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

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

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

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

SHARE CAPITAL

Ordinary share capital

263,100,000

262,800,000

260,300,000

257,500,000

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

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

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

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

TOTAL SHARE CAPITAL

263,100,000

262,800,000

260,300,000

257,500,000

RESERVES

Retained profit/(loss) carried forward

50,200,000

34,300,000

62,100,000

142,000,000

Others

(269,800,000)

(274,500,000)

(268,400,000)

(273,700,000)

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

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

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

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

TOTAL RESERVES

(219,600,000)

(240,200,000)

(206,300,000)

(131,700,000)

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

43,500,000

22,600,000

54,000,000

125,800,000

LONG TERM LIABILITIES

Long term loans

687,500,000

587,500,000

475,000,000

605,400,000

Deferred taxation

119,200,000

112,800,000

108,100,000

61,200,000

Others

79,200,000

96,900,000

83,300,000

14,700,000

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

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

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

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

TOTAL LONG TERM LIABILITIES

885,900,000

797,200,000

666,400,000

681,300,000

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

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

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

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

929,400,000

819,800,000

720,400,000

807,100,000

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

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

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

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

 

 

FINANCIAL RATIO

 

STARHUB LTD.

 

TYPES OF FUNDS

Cash

312,000,000

179,200,000

237,500,000

234,200,000

Net Liquid Funds

312,000,000

179,200,000

237,500,000

234,200,000

Net Liquid Assets

(289,300,000)

(405,700,000)

(543,500,000)

(427,300,000)

Net Current Assets/(Liabilities)

(261,200,000)

(368,500,000)

(511,700,000)

(399,100,000)

Net Tangible Assets

532,400,000

396,200,000

268,800,000

391,300,000

Net Monetary Assets

(1,175,200,000)

(1,202,900,000)

(1,209,900,000)

(1,108,600,000)

BALANCE SHEET ITEMS

Total Borrowings

687,500,000

662,500,000

805,400,000

895,800,000

Total Liabilities

1,765,100,000

1,700,500,000

1,739,500,000

1,606,800,000

Total Assets

1,808,600,000

1,723,100,000

1,793,500,000

1,732,600,000

Net Assets

929,400,000

819,800,000

720,400,000

807,100,000

Net Assets Backing

43,500,000

22,600,000

54,000,000

125,800,000

Shareholders' Funds

43,500,000

22,600,000

54,000,000

125,800,000

Total Share Capital

263,100,000

262,800,000

260,300,000

257,500,000

Total Reserves

(219,600,000)

(240,200,000)

(206,300,000)

(131,700,000)

LIQUIDITY (Times)

Cash Ratio

0.35

0.20

0.22

0.25

Liquid Ratio

0.67

0.55

0.49

0.54

Current Ratio

0.70

0.59

0.52

0.57

WORKING CAPITAL CONTROL (Days)

Stock Ratio

4

6

5

5

Debtors Ratio

21

24

28

21

Creditors Ratio

9

13

71

64

SOLVENCY RATIOS (Times)

Gearing Ratio

15.80

29.31

14.91

7.12

Liabilities Ratio

40.58

75.24

32.21

12.77

Times Interest Earned Ratio

22.57

19.53

12.94

17.05

Assets Backing Ratio

2.02

1.51

1.03

1.52

PERFORMANCE RATIO (%)

Operating Profit Margin

17.81

16.43

14.19

17.92

Net Profit Margin

14.84

13.65

11.76

14.87

Return On Net Assets

48.57

48.83

47.77

50.70

Return On Capital Employed

34.03

32.19

29.36

33.46

Return On Shareholders' Funds/Equity

825.98

1,396.02

487.41

254.13

Dividend Pay Out Ratio (Times)

0.96

1.09

1.30

0.99

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.52

UK Pound

1

Rs.102.22

Euro

1

Rs.85.23

 

 

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.