MIRA INFORM REPORT

 

 

Report Date :

05.05.2014

 

IDENTIFICATION DETAILS

 

Name :

NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED

 

 

Registered Office :

7, Temasek Boulevard, 20-02, Suntec Tower One, 038987

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

18.11.1967

 

 

Com. Reg. No.:

196700412-E

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Natural Rubber, Synthetic Rubber

 

 

No. of Employees :

40 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

 

 

 


 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

196700412-E

COMPANY NAME

:

NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/11/1967

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

7, TEMASEK BOULEVARD, 20-02, SUNTEC TOWER ONE, 038987, SINGAPORE.

BUSINESS ADDRESS

:

7 TEMASEK BOULEVARD NO 20-02 SUNTEC TOWER ONE, 038987, SINGAPORE.

TEL.NO.

:

65-63322292

FAX.NO.

:

65-63322212

WEB SITE

:

WWW.NEWCONTINENT.COM.SG

CONTACT PERSON

:

OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF NATURAL RUBBER, SYNTHETIC RUBBER

ISSUED AND PAID UP CAPITAL

:

41,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 41,000,000.00

SALES

:

SGD 485,955,840 [2012]

NET WORTH

:

SGD 18,652,015 [2012]

STAFF STRENGTH

:

40 [2014]

BANKER (S)

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

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) trading of natural rubber, synthetic rubber.

 

The immediate and ultimate holding company of the Subject is HONG WAN COMPANY LIMITED, a company incorporated in CAYMAN ISLANDS.

 

Share Capital History

Date

Issue & Paid Up Capital

15/02/2013

SGD 41,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA +

27, CLAYMORE ROAD, 19-02, CLAYMORE, THE, 229544, SINGAPORE.

S2160222A

2,000,000.00

4.88

HONG WAN COMPANY LIMITED

THE GRAND PAVILLION COMMERCIAL CENTRE, WEST BAY ROAD, P.O. BOX 2428 GRAND CAYMAN, KY1- 1105, CAYMAN ISLANDS.

T06UF0486B

39,000,000.00

95.12

 

 

 

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

------

 

 

 

41,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

 

GERMANY

NEW CONTINENT ENTERPRISES GMBH

100.00

31/12/2012

 

 

 

 

 

 

NETHERLANDS

NEW CONTINENT ENTERPRISES B.V.

100.00

31/12/2012

 

 

 

 

 

 

INDIA

VAIBHAVI TRADING PVT LTD (INDIA)

88.00

31/12/2012

 

 

 

 

 




DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

LINDA OEI SWAN CHU

Address

:

18, JALAN TANAH PUTEH, 457341, SINGAPORE.

IC / PP No

:

S2165246F

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

09/01/1996

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHRISTIAN TOLLKUEHN

Address

:

45, TOH TUCK ROAD, 01-15, BEVERLY, THE, 596720, SINGAPORE.

IC / PP No

:

S6961341A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

21/01/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

PINIWATY AGAM

Address

:

6, PEACH GARDEN, 03 - 08, PEACH GARDEN, 437606, SINGAPORE.

IC / PP No

:

S7574587G

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/06/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

SHI RONGZHENG

Address

:

56, TANAH MERAH KECHIL AVENUE, CASA MERAH, 465527, SINGAPORE.

IC / PP No

:

S2727272Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

08/03/2012

 

 

 

 

 

 

 

 

 

 

 

 

 


DIRECTOR 5

 

Name Of Subject

:

WESLEY WIDJAJA

Address

:

6, WOODLEIGH CLOSE, 8@WOODLEIGH, 357902, SINGAPORE.

IC / PP No

:

F0852346X

 

 

 

 

 

 

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

17/08/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

NG WEI SAN @ OEI WEI SAN @ WILSON HASAN WIDJAJA

Address

:

33, WATTEN DRIVE, WATTEN ESTATE, 287668, SINGAPORE.

IC / PP No

:

S2176076E

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

06/09/1985

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

ANOOP SINGH

Address

:

27, BALMORAL ROAD, 16-29, BALMORAL TOWER, 259808, SINGAPORE.

IC / PP No

:

S2598501Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/07/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 8

 

Name Of Subject

:

HELESA KRISTINA LAHEY

Address

:

18, JALAN TANAH PUTEH, 457341, SINGAPORE.

IC / PP No

:

F2838160M

 

 

 

 

 

 

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

16/05/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 9

 

Name Of Subject

:

MR. OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA

Address

:

27, CLAYMORE ROAD, 19-02, CLAYMORE, THE, 229544, SINGAPORE.

IC / PP No

:

S2160222A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

03/07/1979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ANOOP SINGH

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

DP & ASSOCIATES

Auditor' Address

:

N/A

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

DOROTHY HO LAI YONG

 

IC / PP No

:

S1105012C

 

 

 

 

 

Address

:

60, LAKESIDE DRIVE, 08-41, CASPIAN, 648320, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200810760

02/12/2008

ALL MONIES

THE HONG KONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201310477

31/07/2013

ALL MONIES

MACQUARIE BANK LIMITED SINGAPORE BRANCH

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.


No winding up petition was found in our databank.



PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The Subject refused to disclose its suppliers.


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

NATURAL RUBBER, SYNTHETIC RUBBER

 

 

 

 

 

Total Number of Employees:

YEAR

2014

2013

 


GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

40

25

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of natural rubber, synthetic rubber.


New Continent is a global trading group dedicated to providing solutions to suppliers and consumers of natural rubber, synthetic rubber and edible oils.


New Continent engages in the sourcing, marketing, transporting, importing and exporting rubber and edible oils.

It focuses on sourcing rubber and edible oils from producers and delivering these commodities to end consumers worldwide.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63322292

Match

:

N/A

 

 

 

Address Provided by Client

:

7 TEMASEK BOULEVARD 18-03 SUNTECT TOWER ONE SINGAPORE

Current Address

:

7 TEMASEK BOULEVARD NO 20-02 SUNTEC TOWER ONE, 038987, SINGAPORE.

Match

:

NO

 

 

 

 

Other Investigations


On 28th April 2014 we contacted one of the staff from the Subject and she provided some information.


The Subject had shifted from the address provided.

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

45.94%

]

 

Profit/(Loss) Before Tax

:

Increased

[

(76.17%)

]

 

Return on Shareholder Funds

:

Unfavourable

[

(19.09%)

]

 

Return on Net Assets

:

Unfavourable

[

(12.90%)

]

 

 

 

 

 

 

 

 

The shrinking turnover could be the result of more entrants into the market which eroded the Subject's market share.Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

5 Days

]

 

Debtor Ratio

:

Favourable

[

54 Days

]

 

Creditors Ratio

:

Favourable

[

18 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

:

Favourable

[

1.15 Times

]

 

Current Ratio

:

Unfavourable

[

1.23 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

:

Unfavourable

[

(1.98 Times)

]

 

Gearing Ratio

:

Unfavourable

[

1.15 Times

]

 

 

 

 

 

 

 

 

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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 : POOR

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

 

 

 

 

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

 

 

 

 

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

 

 

 

 

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

 

 

 

 

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

 

 

 

 

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

 

 

 

 

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

 

 

 

 

 

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

 

 

 

 

 



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 1967, the Subject is a Private Limited company, focusing on trading of natural rubber and synthetic rubber. With its long presence in the industry coupled with its vast experiences in the business, the Subject should have built up certain goodwill with its clients over times. 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 has approximately 40 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.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Given a positive net worth standing at SGD 18,652,015, the Subject should be able to maintain its business in the near terms


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


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

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2012-12-31

2012-06-30

Months

6

12

Consolidated Account

GROUP

GROUP

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

 

 

 

TURNOVER

485,955,840

898,966,054

Other Income

1,397,783

168,575

 

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

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

Total Turnover

487,353,623

899,134,629

Costs of Goods Sold

(483,317,505)

(891,938,736)

 

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

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

Gross Profit

4,036,118

7,195,893

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(3,621,859)

(2,055,844)

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

(3,621,859)

(2,055,844)

Taxation

(11,575)

267,328

 

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

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

PROFIT/(LOSS) AFTER TAXATION

(3,633,434)

(1,788,516)

Minority interests

71,867

227,040

 

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

(3,561,567)

(1,561,476)

 

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

(3,561,567)

(1,561,476)

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

2,297,634

6,859,110

 

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

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

As restated

2,297,634

6,859,110

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(1,263,933)

5,297,634

CAPITALISATION FOR BONUS ISSUES

-

(3,000,000)

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(1,263,933)

2,297,634

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Bank overdraft

6,173

12,313

Trust receipts

244,877

536,735

Others

964,538

585,142

 

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

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

 

1,215,588

1,134,190

 

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

334,139

162,361

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

Subsidiary companies

403,100

-

Deferred assets

210,981

216,043

Others

24

228,425

 

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

614,105

444,468

 

 

 

Others

60,000

60,000

 

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

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

TOTAL INTANGIBLE ASSETS

60,000

60,000

 

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

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

TOTAL LONG TERM ASSETS

1,008,244

666,829

 

 

 

Stocks

6,136,840

3,375,922

Trade debtors

71,758,920

47,744,252

Other debtors, deposits & prepayments

12,633,508

19,640,941

Short term deposits

312,200

182,680

Amount due from related companies

2,259,484

2,408,843

Amount due from director

3,741

455,465

Cash & bank balances

96,114

1,031,014

Others

658,308

10,163

 

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

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

TOTAL CURRENT ASSETS

93,859,115

74,849,280

 

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

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

TOTAL ASSET

94,867,359

75,516,109

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

23,613,547

19,818,619

Other creditors & accruals

338,666

4,567,669

Bank overdraft

5,031,839

584,048

Short term borrowings/Term loans

16,457,507

27,094,202

Amounts owing to related companies

30,165,112

786,650

Provision for taxation

11,575

-

Other liabilities

597,098

236,244

 

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

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

TOTAL CURRENT LIABILITIES

76,215,344

53,087,432

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

17,643,771

21,761,848

 

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

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

TOTAL NET ASSETS

18,652,015

22,428,677

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

20,000,000

20,000,000

 

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

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

TOTAL SHARE CAPITAL

20,000,000

20,000,000

 

 

 

Exchange equalisation/fluctuation reserve

170,462

317,001

Retained profit/(loss) carried forward

(1,263,933)

2,297,634

 

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

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

TOTAL RESERVES

(1,093,471)

2,614,635

 

 

 

MINORITY INTEREST

(254,514)

(185,958)

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

18,652,015

22,428,677

 

 

 

 

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

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

 

18,652,015

22,428,677

 

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

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

 

 

 

 


FINANCIAL RATIO

 

 

TYPES OF FUNDS

 

 

Cash

408,314

1,213,694

Net Liquid Funds

(4,623,525)

629,646

Net Liquid Assets

11,506,931

18,385,926

Net Current Assets/(Liabilities)

17,643,771

21,761,848

Net Tangible Assets

18,592,015

22,368,677

Net Monetary Assets

11,506,931

18,385,926

BALANCE SHEET ITEMS

 

 

Total Borrowings

21,489,346

27,678,250

Total Liabilities

76,215,344

53,087,432

Total Assets

94,867,359

75,516,109

Net Assets

18,652,015

22,428,677

Net Assets Backing

18,652,015

22,428,677

Shareholders' Funds

18,652,015

22,428,677

Total Share Capital

20,000,000

20,000,000

Total Reserves

(1,093,471)

2,614,635

LIQUIDITY (Times)

 

 

Cash Ratio

0.01

0.02

Liquid Ratio

1.15

1.35

Current Ratio

1.23

1.41

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

5

1

Debtors Ratio

54

19

Creditors Ratio

18

8

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

1.15

1.23

Liabilities Ratio

4.09

2.37

Times Interest Earned Ratio

(1.98)

(0.81)

Assets Backing Ratio

0.93

1.12

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

(0.75)

(0.23)

Net Profit Margin

(0.73)

(0.17)

Return On Net Assets

(12.90)

(4.11)

Return On Capital Employed

(10.24)

(4.03)

Return On Shareholders' Funds/Equity

(19.09)

(6.96)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.23

UK Pound

1

Rs.101.68

Euro

1

Rs.83.46

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.