|
|
REGISTRATION NO.
|
:
|
199505934-R
|
|
COMPANY NAME
|
:
|
ARROW ELECTRONICS ASIA (S) PTE. LTD.
|
|
FORMER NAME
|
:
|
ARROW
ELECTRONICS INDONESIA PTE LTD (22/07/2002)
ARROW ELECTRONICS (INDONESIA) PTE LTD (26/12/1997)
|
|
INCORPORATION DATE
|
:
|
19/08/1995
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
750E CHAI CHEE ROAD #07-01/02 TECHNOPARK @ CHAI CHEE , 469005,
SINGAPORE.
|
|
BUSINESS ADDRESS
|
:
|
750E CHAI CHEE ROAD, #07-01/02 TECHNOPARK @ CHAI CHEE, 469005,
SINGAPORE.
|
|
TEL.NO.
|
:
|
65-65598388
|
|
FAX.NO.
|
:
|
65-64438662
|
|
EMAIL
|
:
|
SALES.SINGAPORE@AROWASIA.COM
|
|
WEB SITE
|
:
|
WWW.ARROWASIA.COM
|
|
CONTACT PERSON
|
:
|
YU MAN WANG ( DIRECTOR )
|
|
|
|
|
|
|
|
|
|
PRINCIPAL ACTIVITY
|
:
|
WHOLESALE OF ELECTRONIC COMPONENTS
|
|
|
|
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
6,929,994.00 ORDINARY SHARE, OF A VALUE OF SGD 6,929,994.00
|
|
|
|
|
|
SALES
|
:
|
USD 455,613,661 [2012]
|
|
NET WORTH
|
:
|
USD (31,505,616) [2012]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
150 [2014]
|
|
BANKER (S)
|
:
|
|
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY / BACKGROUND
The Subject is a
private limited company and is allowed to have a minimum of one and a maximum
of forty-nine shareholders. As a private limited company, the Subject must
have at least two directors. A private limited company is a separate legal
entity from its shareholders. As a separate legal entity, the Subject is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the Subject is insolvent. The Subject is governed by
the Companies Act and the company must file its annual returns, together with
its financial statements with the Registrar of Companies.
The Subject is
principally engaged in the (as a / as an) wholesale of electronic components.
The immediate
holding company of the Subject is COMPONENTS AGENT (CAYMAN) LIMITED, a
company incorporated in CAYMAN ISLANDS.
The ultimate
holding company of the Subject is ARROW ELECTRONICS, INC., a company
incorporated in UNITED STATES.
Share Capital
History
|
Date
|
Issue &
Paid Up Capital
|
|
04/02/2014
|
SGD 6,929,994.00
|
The major shareholder(s) of the Subject are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
COMPONENTS AGENT (CAYMAN) LIMITED
|
2681 GT, GEORGE TOWN, GRAND CAYMAN, BRITISH, WEST INDIES, CAYMAN
ISLANDS.
|
T03UF0274
|
6,929,994.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
6,929,994.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
The Subject's interest in other companies (Subsidiaries/Associates)
are shown as follow :
|
Local No
|
Country
|
Company
|
(%)
|
As At
|
|
200412466D
|
SINGAPORE
|
RICHARDSON RFPD SINGAPORE PTE. LTD.
|
100.00
|
31/12/2011
|
|
|
|
|
|
|
|
199505563E
|
SINGAPORE
|
ACHIEVA COMPONENTS PTE LTD
|
100.00
|
31/12/2011
|
|
|
|
|
|
|
|
199406539E
|
SINGAPORE
|
ACHIEVA ELECTRONICS PTE LTD
|
100.00
|
31/12/2011
|
|
|
|
|
|
|
|
|
THAILAND
|
ARROW ELECTRONICS (THAILAND) LIMITED
|
99.90
|
31/12/2011
|
|
|
|
|
|
|
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
PAUL JOSEPH REILLY
|
|
Address
|
:
|
21, OSBOURNE ROAD, GARDEN CITY, NEW YORK, 11530, UNITED STATES.
|
|
IC / PP No
|
:
|
445187675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
15/08/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. PETER S. BROWN
|
|
Address
|
:
|
20, SUTTON PLACE SOUTH, NEW YORK, 10025, UNITED STATES.
|
|
IC / PP No
|
:
|
141752910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
22/12/2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MANALORE MANICKAVASAGAM NATARAJAN
|
|
Address
|
:
|
53, TAMPINES AVENUE 1, 04-02, THE TROPICA, 529772, SINGAPORE.
|
|
IC / PP No
|
:
|
S2744318D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
02/05/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
YU MAN WANG
|
|
Address
|
:
|
FLAT L 23/F, BLK 2 ROYAL PENINSULA HUNG HOM, KOWLOON, HONG KONG.
|
|
IC / PP No
|
:
|
790204052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
HONGKONGESE
|
|
Date of Appointment
|
:
|
13/08/2010
|
|
1)
|
Name of Subject
|
:
|
YU MAN WANG
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG LLP
|
|
Auditor' Address
|
:
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
LAU GEK SIN
|
|
|
IC / PP No
|
:
|
S1524169A
|
|
|
|
|
|
|
|
Address
|
:
|
71, TOH TUCK PLACE, TOH TUCK GARDEN, 596836, SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
|
|
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SUBJECT
* A check has been conducted in our databank 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
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
|
|
|
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
X
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
SINGAPORE
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA PACIFIC
|
|
Credit Term
|
:
|
30 - 90 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
ELECTRICAL AND ELECTRONIC COMPONENTS IN COMPUTERS AND COMPUTER
RELATED PRODUCTS
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2014
|
2012
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
150
|
150
|
|
|
|
|
|
|
|
Other Information:
The Subject is principally engaged in the (as a / as an) wholesale of
electronic components.
Background of the Subject:
* it is one of the world's largest distributors of electronic components and computer
products and a leading provider of services to the electronics industry.
* Headquartered in melville, new york, arrow serves as a supply channel
partner for more than 600 suppliers and 175,000 original equipment
manufacturers,contract manufacturers, and value-added resellers through more
than 200 sales facilities and 23 distribution centers in 40 countries and
territories.
Products/brands:
* semiconductor
* passive/electro-mechanical
* connector
Distributors for:
* astec power
* maxim/dallas
* national semiconductor
* knitter-switch
* broadcom corporation
Industries served:
* mulitnationals
* original equipment and contract manufacturers involved in field such as
computers and peripherals
* communications
* consumer electronics
* industrial products and automotive
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
65-65598388
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
750 E, CHAI CHEE ROAD # 07-01/02 SINGAPORE 469005
|
|
Current Address
|
:
|
750E CHAI CHEE ROAD, #07-01/02 TECHNOPARK @ CHAI CHEE, 469005,
SINGAPORE.
|
|
Match
|
:
|
NO
|
|
|
|
|
Other Investigations
On 14th April 2014 we contacted one of the staff from the Subject and she
provided some information.
The address provided is incomplete.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2009 - 2012
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2009 - 2012
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
(8.68%)
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
(13.76%)
|
]
|
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.The management had succeeded in turning the
Subject into a profit making company. The profit could be due to better
control of its operating costs and efficiency in utilising its resources.
The 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
|
[
|
46 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Acceptable
|
[
|
56 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
56 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The Subject's stocks were moving fast thus reducing its holding cost.
This had reduced funds being tied up in stocks. The Subject's management
was quite efficient in handling its debtors. The Subject's debtors days
were at an acceptable range, thus the risk of its debts turning bad was
minimised. 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
|
[
|
0.51 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.77 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
|
:
|
Unfavourable
|
[
|
2.73 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The Subject's interest cover was low. If its profits fall or when
interest rate rises, it may not be able to meet all its interest
payment. The Subject had no gearing and hence it had virtually no financial
risk. The Subject was financed by its shareholders' funds and internally
generated fund. During the economic downturn, the Subject, having a zero
gearing, will be able to compete better than those which are highly geared
in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
The Subject's turnover showed a volatile trend but its losses were
lower when compared to the previous corresponding period. This could suggest
that the Subject was more efficient in its operating cost control and was
more competitive. 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. If
there is a fall in the Subject's profit or any increase in interest rate,
the Subject may not be able to generate sufficient cash-flow to service its
interest. The Subject was a zero gearing company, it was solely dependant
on its shareholders to provide funds to finance its business. The Subject
has good chance of getting loans, if the needs arises.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the Subject : POOR
|
SINGAPORE ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators :
|
2009
|
2010
|
2011
|
2012
|
2013
|
|
|
|
|
|
|
|
|
Population (Million)
|
4.98
|
5.08
|
5.18
|
5.31
|
5.40
|
|
Gross Domestic Products ( % )
|
(0.8)
|
14.5
|
4.9
|
1.3
|
3.7
|
|
Consumer Price Index
|
0.6
|
2.8
|
5.2
|
4.6
|
2.4
|
|
Total Imports (Million)
|
356,299.3
|
423,221.8
|
459,655.1
|
474,554.0
|
466,762.0
|
|
Total Exports (Million)
|
391,118.1
|
478,840.7
|
514,741.2
|
510,329.0
|
513,391.0
|
|
|
|
|
|
|
|
|
Unemployment Rate (%)
|
3.2
|
2.2
|
2.1
|
2.0
|
1.9
|
|
Tourist Arrival (Million)
|
9.68
|
11.64
|
13.17
|
14.49
|
15.46
|
|
Hotel Occupancy Rate (%)
|
75.8
|
85.6
|
86.5
|
86.4
|
86.3
|
|
Cellular Phone Subscriber (Million)
|
1.37
|
1.43
|
1.50
|
1.52
|
1.97
|
|
|
|
|
|
|
|
|
Registration of New Companies (No.)
|
26,414
|
29,798
|
32,317
|
31,892
|
37,288
|
|
Registration of New Companies (%)
|
4.3
|
12.8
|
8.5
|
(1.3)
|
9.8
|
|
Liquidation of Companies (No.)
|
22,393
|
15,126
|
19,005
|
17,218
|
17,369
|
|
Liquidation of Companies (%)
|
113.4
|
(32.5)
|
25.6
|
9.4
|
(5.3)
|
|
|
|
|
|
|
|
|
Registration of New Businesses (No.)
|
26,876
|
23,978
|
23,494
|
24,788
|
22,893
|
|
Registration of New Businesses (%)
|
8.15
|
(10.78)
|
2.02
|
5.51
|
1.70
|
|
Liquidation of Businesses (No.)
|
23,552
|
24,211
|
23,005
|
22,489
|
22,598
|
|
Liquidation of Businesses (%)
|
11.4
|
2.8
|
(5)
|
(2.2)
|
0.5
|
|
|
|
|
|
|
|
|
Bankruptcy Orders (No.)
|
2,058
|
1,537
|
1,527
|
1,748
|
1,992
|
|
Bankruptcy Orders (%)
|
(11.5)
|
(25.3)
|
(0.7)
|
14.5
|
14.0
|
|
Bankruptcy Discharges (No.)
|
3,056
|
2,252
|
1,391
|
1,881
|
2,584
|
|
Bankruptcy Discharges (%)
|
103.7
|
(26.3)
|
(38.2)
|
35.2
|
37.4
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ) :
|
|
|
|
|
|
|
Agriculture
|
|
|
|
|
|
|
Production of Principal Crops
|
3.25
|
(0.48)
|
4.25
|
3.64
|
-
|
|
Fish Supply & Wholesale
|
(1.93)
|
(10.5)
|
12.10
|
(0.5)
|
-
|
|
|
|
|
|
|
|
|
Manufacturing *
|
71.5
|
92.8
|
100.0
|
100.3
|
102.0
|
|
Food, Beverages & Tobacco
|
90.4
|
96.4
|
100.0
|
103.5
|
103.5
|
|
Textiles
|
145.9
|
122.1
|
100.0
|
104.0
|
87.1
|
|
Wearing Apparel
|
211.0
|
123.3
|
100.0
|
92.1
|
77.8
|
|
Leather Products & Footwear
|
79.5
|
81.8
|
100.0
|
98.6
|
109.8
|
|
Wood & Wood Products
|
101.4
|
104.0
|
100.0
|
95.5
|
107.4
|
|
Paper & Paper Products
|
95.4
|
106.1
|
100.0
|
97.4
|
103.2
|
|
Printing & Media
|
100.9
|
103.5
|
100.0
|
93.0
|
86.1
|
|
Crude Oil Refineries
|
96.4
|
95.6
|
100.0
|
99.4
|
93.5
|
|
Chemical & Chemical Products
|
80.3
|
97.6
|
100.0
|
100.5
|
104.1
|
|
Pharmaceutical Products
|
49.1
|
75.3
|
100.0
|
109.7
|
107.2
|
|
Rubber & Plastic Products
|
101.2
|
112.3
|
100.0
|
96.5
|
92.9
|
|
Non-metallic Mineral
|
91.9
|
92.5
|
100.0
|
98.2
|
97.6
|
|
Basic Metals
|
92.6
|
102.2
|
100.0
|
90.6
|
76.5
|
|
Fabricated Metal Products
|
90.8
|
103.6
|
100.0
|
104.3
|
105.1
|
|
Machinery & Equipment
|
57.3
|
78.5
|
100.0
|
112.9
|
114.5
|
|
Electrical Machinery
|
86.8
|
124.1
|
100.0
|
99.3
|
108.5
|
|
Electronic Components
|
85.2
|
113.6
|
100.0
|
90.6
|
94.3
|
|
Transport Equipment
|
96.0
|
94.0
|
100.0
|
106.3
|
107.5
|
|
|
|
|
|
|
|
|
Construction
|
(36.9)
|
14.20
|
20.50
|
28.70
|
-
|
|
Real Estate
|
1.4
|
21.3
|
25.4
|
31.9
|
-
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
|
|
Electricity, Gas & Water
|
1.70
|
4.00
|
7.00
|
6.30
|
-
|
|
Transport, Storage & Communication
|
3.90
|
12.80
|
7.40
|
5.30
|
-
|
|
Finance & Insurance
|
(16.4)
|
(0.4)
|
8.90
|
0.50
|
-
|
|
Government Services
|
4.50
|
9.70
|
6.90
|
6.00
|
-
|
|
Education Services
|
0.10
|
(0.9)
|
(1.4)
|
0.30
|
-
|
|
|
|
|
|
|
|
|
* Based on Index of Industrial Production (2011 = 100)
|
|
|
|
|
|
|
(Source : Department of Statistics)
|
|
|
|
|
|
INDUSTRY ANALYSIS
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
The wholesale and retail trade 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 1995, the Subject is a Private Limited company, focusing on
wholesale of electronic components. 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. Having strong support from its
holding company has enabled the Subject to remain competitive despite the
challenging business environment. The capital standing of the Subject is
fair.
Our investigation revealed that the Subject serves both local and overseas
clients. Penetrating into the overseas countries has well diversified its
business risk. However, being a loss making company indicates that the
Subject faces difficulties in the market. The Subject is a fairly large and
rapidly growing company with over 150 staff in its operations. An
unfavourable return on shareholders' funds implies that the Subject's
management capability is weak.
We noted that both the turnover and profits have increased compared to the
previous year. However, the Subject has generated an unfavourable return on
shareholders' funds indicating that the management was inefficient in
utilising its funds to generate return. Due to its weak liquidity position,
the Subject may face working capital deficiency in meeting its short term
financial obligations if no fresh capital are injected into the Subject.
The Subject's unfavourable financial performance over the years has wiped
out its shareholders' funds to a deficit of USD 31,505,616. Therefore, the
Subject as a going concern is much dependent on its ability to generate
sufficient cash flow and obtain additional financing to meet its future
obligations.
Without a strong assets backing, the Subject may face difficulties in
getting loans for its future expansion and continued growth. 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.
The Subject's payment record regarded as fair. With poor financial
condition, the Subject may unable to pay its creditors on the given period
of time.
The industry shows an upward trend and this trend is very likely to sustain
in the near terms. However, the Subject does not take any advantage from
this favourable condition as it is making losses in this few years. The
Subject should adopt more competitive strategies to retain its business
position in the market.
Based on the above unfavourable condition, we regard granting credit to the
Subject to be quite risky. Hence, credit is not recommended.
|
|
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.
|
|
ARROW
ELECTRONICS ASIA (S) PTE. LTD.
|
|
Financial Year End
|
2012-12-31
|
2011-12-31
|
2010-12-31
|
2009-12-31
|
|
Months
|
12
|
12
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
USD
|
USD
|
USD
|
USD
|
|
|
|
|
|
|
|
TURNOVER
|
455,613,661
|
445,320,872
|
501,364,979
|
386,068,213
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
455,613,661
|
445,320,872
|
501,364,979
|
386,068,213
|
|
Costs of Goods Sold
|
(429,511,942)
|
(420,609,500)
|
(472,087,290)
|
(364,165,033)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
26,101,719
|
24,711,372
|
29,277,689
|
21,903,180
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
2,748,007
|
(3,840,804)
|
1,436,574
|
(3,764,082)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
2,748,007
|
(3,840,804)
|
1,436,574
|
(3,764,082)
|
|
Taxation
|
(12,903)
|
555,606
|
(639,403)
|
125,580
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
2,735,104
|
(3,285,198)
|
797,171
|
(3,638,502)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
As previously reported
|
(38,223,736)
|
(35,201,278)
|
(35,998,449)
|
(32,359,947)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
(38,223,736)
|
(35,201,278)
|
(35,998,449)
|
(32,359,947)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
(35,488,632)
|
(38,486,476)
|
(35,201,278)
|
(35,998,449)
|
|
TRANSFER TO RESERVES - Statutory
|
-
|
262,740
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
(35,488,632)
|
(38,223,736)
|
(35,201,278)
|
(35,998,449)
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
Others
|
1,588,194
|
1,410,414
|
1,804,901
|
3,848,998
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
1,588,194
|
1,410,414
|
1,804,901
|
3,848,998
|
|
|
=============
|
=============
|
=============
|
=============
|
BALANCE SHEET
|
ARROW ELECTRONICS
ASIA (S) PTE. LTD.
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
FIXED ASSETS
|
148,564
|
266,899
|
135,648
|
119,688
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
Subsidiary companies
|
18,518,212
|
18,518,212
|
18,518,212
|
18,518,189
|
|
Deferred assets
|
663,827
|
660,563
|
104,961
|
66,624
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
19,182,039
|
19,178,775
|
18,623,173
|
18,584,813
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS
|
|
|
|
|
|
Others
|
3,275,000
|
3,275,000
|
3,275,000
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL INTANGIBLE ASSETS
|
3,275,000
|
3,275,000
|
3,275,000
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
22,605,603
|
22,720,674
|
22,033,821
|
18,704,501
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
57,982,076
|
44,928,017
|
43,648,760
|
36,742,225
|
|
Trade debtors
|
69,300,005
|
63,537,610
|
80,851,006
|
68,242,058
|
|
Other debtors, deposits & prepayments
|
101,364
|
123,899
|
167,102
|
124,266
|
|
Amount due from holding company
|
99,350
|
-
|
-
|
-
|
|
Amount due from related companies
|
48,088,545
|
23,670,320
|
21,733,253
|
50,181,757
|
|
Cash & bank balances
|
590,202
|
1,423,842
|
1,281,504
|
1,475,253
|
|
Others
|
21,823
|
22,693
|
-
|
20,274
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
176,183,365
|
133,706,381
|
147,681,625
|
156,785,833
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
198,788,968
|
156,427,055
|
169,715,446
|
175,490,334
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
66,407,934
|
37,782,088
|
52,269,688
|
75,160,824
|
|
Other creditors & accruals
|
3,167,931
|
2,897,518
|
4,987,458
|
178,725
|
|
Amounts owing to holding company
|
-
|
399,343
|
251,190
|
181,787
|
|
Amounts owing to subsidiary companies
|
5,675,035
|
5,741,223
|
3,751,092
|
3,735,967
|
|
Amounts owing to related companies
|
155,011,796
|
143,747,882
|
138,662,265
|
124,922,490
|
|
Provision for taxation
|
31,888
|
99,721
|
749,275
|
207,268
|
|
Other liabilities
|
-
|
-
|
-
|
2,855,966
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
230,294,584
|
190,667,775
|
200,670,968
|
207,243,027
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
(54,111,219)
|
(56,961,394)
|
(52,989,343)
|
(50,457,194)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
(31,505,616)
|
(34,240,720)
|
(30,955,522)
|
(31,752,693)
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
3,983,016
|
3,983,016
|
3,983,016
|
3,983,016
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
3,983,016
|
3,983,016
|
3,983,016
|
3,983,016
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
Capital reserve
|
-
|
-
|
262,740
|
262,740
|
|
Retained profit/(loss) carried forward
|
(35,488,632)
|
(38,223,736)
|
(35,201,278)
|
(35,998,449)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
(35,488,632)
|
(38,223,736)
|
(34,938,538)
|
(35,735,709)
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
(31,505,616)
|
(34,240,720)
|
(30,955,522)
|
(31,752,693)
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
(31,505,616)
|
(34,240,720)
|
(30,955,522)
|
(31,752,693)
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
FINANCIAL RATIO
|
ARROW
ELECTRONICS ASIA (S) PTE. LTD.
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
590,202
|
1,423,842
|
1,281,504
|
1,475,253
|
|
Net Liquid Funds
|
590,202
|
1,423,842
|
1,281,504
|
1,475,253
|
|
Net Liquid Assets
|
(112,093,295)
|
(101,889,411)
|
(96,638,103)
|
(87,199,419)
|
|
Net Current Assets/(Liabilities)
|
(54,111,219)
|
(56,961,394)
|
(52,989,343)
|
(50,457,194)
|
|
Net Tangible Assets
|
(34,780,616)
|
(37,515,720)
|
(34,230,522)
|
(31,752,693)
|
|
Net Monetary Assets
|
(112,093,295)
|
(101,889,411)
|
(96,638,103)
|
(87,199,419)
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
0
|
|
Total Liabilities
|
230,294,584
|
190,667,775
|
200,670,968
|
207,243,027
|
|
Total Assets
|
198,788,968
|
156,427,055
|
169,715,446
|
175,490,334
|
|
Net Assets
|
(31,505,616)
|
(34,240,720)
|
(30,955,522)
|
(31,752,693)
|
|
Net Assets Backing
|
(31,505,616)
|
(34,240,720)
|
(30,955,522)
|
(31,752,693)
|
|
Shareholders' Funds
|
(31,505,616)
|
(34,240,720)
|
(30,955,522)
|
(31,752,693)
|
|
Total Share Capital
|
3,983,016
|
3,983,016
|
3,983,016
|
3,983,016
|
|
Total Reserves
|
(35,488,632)
|
(38,223,736)
|
(34,938,538)
|
(35,735,709)
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
Cash Ratio
|
0.00
|
0.01
|
0.01
|
0.01
|
|
Liquid Ratio
|
0.51
|
0.47
|
0.52
|
0.58
|
|
Current Ratio
|
0.77
|
0.70
|
0.74
|
0.76
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
46
|
37
|
32
|
35
|
|
Debtors Ratio
|
56
|
52
|
59
|
65
|
|
Creditors Ratio
|
56
|
33
|
40
|
75
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Liabilities Ratio
|
(7.31)
|
(5.57)
|
(6.48)
|
(6.53)
|
|
Times Interest Earned Ratio
|
2.73
|
(1.72)
|
1.80
|
0.02
|
|
Assets Backing Ratio
|
(8.73)
|
(9.42)
|
(8.59)
|
(7.97)
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
0.60
|
(0.86)
|
0.29
|
(0.97)
|
|
Net Profit Margin
|
0.60
|
(0.74)
|
0.16
|
(0.94)
|
|
Return On Net Assets
|
(13.76)
|
7.10
|
(10.47)
|
(0.27)
|
|
Return On Capital Employed
|
(15.36)
|
7.85
|
(11.71)
|
(0.27)
|
|
Return On Shareholders' Funds/Equity
|
(8.68)
|
9.59
|
(2.58)
|
11.46
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
|