MIRA INFORM REPORT

 

 

Report Date :

12.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MEWAH OILS & FATS PTE LTD

 

 

Formerly Known As :

NGO CHEW HONG COMMODITIES PTE LTD

 

 

Registered Office :

5, International Business Park, 05-00, Mewah Building, 609914

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

30.12.1983

 

 

Com. Reg. No.:

198306094-E

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Oil and Fats

 

 

No. of Employees :

200 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

--

 

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.

:

198306094-E

COMPANY NAME

:

MEWAH OILS & FATS PTE LTD

FORMER NAME

:

NGO CHEW HONG COMMODITIES PTE LTD (06/04/1999)
AL AFDAL OILS & FATS PTE LTD (19/11/1996)

INCORPORATION DATE

:

30/12/1983

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

5, INTERNATIONAL BUSINESS PARK, 05-00, MEWAH BUILDING, 609914, SINGAPORE.

BUSINESS ADDRESS

:

5, INTERNATIONAL BUSINESS PARK, 05-00, MEWAH BUILDING, 609914, SINGAPORE.

TEL.NO.

:

65-68295200

FAX.NO.

:

65-63410963

EMAIL

:

MEWAHGROUP@NCHEO.COM

WEB SITE

:

WWW.MEWAHGROUP.COM

CONTACT PERSON

:

LEONG CHOI FOONG ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF OIL AND FATS

ISSUED AND PAID UP CAPITAL

:

3,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 3,000,000.00

SALES

:

USD 2,076,783,774 [2012]

NET WORTH

:

USD 74,349,673 [2012]

STAFF STRENGTH

:

200 [2014]

BANKER (S)

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
SOCIETE GENERALE
STANDARD CHARTERED BANK
PT BANK MANDIRI (PERSERO) TBK

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

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 oil and fats.

 

The immediate holding company of the Subject is NGO CHEW HONG CORPORATION PTE. LTD., a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is MEWAH INTERNATIONAL INC., a company incorporated in CAYMAN ISLANDS.

 

Share Capital History

Date

Issue & Paid Up Capital

02/05/2014

SGD 3,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

NGO CHEW HONG CORPORATION PTE. LTD.

5, INTERNATIONAL BUSINESS PARK, 05-00, MEWAH BUILDING, 609914, SINGAPORE.

199303486

3,000,000.00

100.00

 

 

 

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

------

 

 

 

3,000,000.00

100.00

 

 

 

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

=====

+ Also Director


DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. LEONG CHOI FOONG

Address

:

B-5-7, ENDAH REGAL CONDOMINIUM, 7, JALAN 3/149E, TAMAN SRI ENDAH, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5044690

New IC No

:

560924-10-5466

Date of Birth

:

24/09/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/01/2011

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. LEONG QUEE ME

Address

:

18, JALAN PULAI 66, TAMAN PULAI UTAMA, SKUDAI, 81300 JOHOR BHARU, JOHOR, MALAYSIA.

IC / PP No

:

A1956793

New IC No

:

710727-05-5210

Date of Birth

:

27/07/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/07/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

NGIAM SHEAU HUEY

Address

:

120, TAMPINES STREET 11, 10-306, TAMPINES COURT, 521120, SINGAPORE.

IC / PP No

:

S7668392A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/11/2012

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

LEONG CHOI FOONG

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS LLP

Auditor' Address

:

N/A

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LAURA NG KWEE HONG

 

IC / PP No

:

S1193635J

 

 

 

 

 

Address

:

10, BROOKE ROAD, 08-02, EAST VIEW, 429986, SINGAPORE.

BANKING


Banking relations are maintained principally with :

1)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

 

 

 

 

 

 

 

2)

Name

:

SOCIETE GENERALE

 

 

 

 

 

 

 

 

 

3)

Name

:

STANDARD CHARTERED BANK

 

 

 

 

 

 

 

 

 

4)

Name

:

PT BANK MANDIRI (PERSERO) TBK

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200905903

17/09/2009

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C200905908

18/09/2009

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C200905909

18/09/2009

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201009610

18/10/2010

N/A

SOCIETE GENERALE

-

Unsatisfied

C201009611

18/10/2010

N/A

SOCIETE GENERALE

-

Unsatisfied

C201101171

26/01/2011

N/A

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.("RABOBANK

-

Unsatisfied

C201111259

09/09/2011

N/A

DBS BANK LTD.

-

Unsatisfied

C201112571

07/10/2011

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

C201202935

16/03/2012

N/A

PT BANK MANDIRI (PERSERO) TBK

-

Unsatisfied

C201210669

19/09/2012

N/A

CHINATRUST COMMERCIAL BANK CO., LTD

-

Unsatisfied

C201210673

19/09/2012

N/A

CHINATRUST COMMERCIAL BANK CO., LTD

-

Unsatisfied

C201212298

25/10/2012

N/A

ICICI BANK LIMITED

-

Unsatisfied

C201306511

13/05/2013

N/A

PT BANK MANDIRI (PERSERO) TBK

-

Unsatisfied

C201307240

30/05/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201307285

30/05/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

 

LEGAL ACTION

 

 

Code No

:

99

Case No

:

295

 

 

 

 

 

Year

:

2013

Place

:

SINGAPORE

 

 

 

 

 

Court

:

SESSIONS COURT

 

 

 

 

 

 

 

 

Date Filed

:

09/04/2013

 

 

 

 

 

 

 

 

Solicitor Ref

:

GJC/S1138/2012

 

 

 

 

 

 

 

 

Solicitor Firm

:

GLORIA JAMES-CIVETTA & CO.

 

 

 

 

 

Plaintiff

:

GOSTARESH KHADAMAT BAZARGANI BEHSAZ CO

 

 

 

Defendants

:

MEWAH OILS & FATS PTE LTD (198306094)

 

 

 

 

 

Amount Claimed

:

1102002

 

 

 

 

 

 

 

 

Nature of Claim

:

AED

 

 

 

 

 

 

 

 

Remark

:

SALE OF GOODS & SERVICES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

No winding up petition was found in our databank

 

 

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

OILS AND FATS

 

 

 

 

 

Total Number of Employees:

YEAR

2014

2013

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

200

200

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of oil and fats.


The Group is a global agri-business focused on edible oils and fats with refineries and processing facilities in Malaysia and Singapore and a worldwide marketing network.


The Group is one of the largest palm oil processor in the world by capacity and produce a wide range of refined and fractionated vegetable oils and fats principally from palm and lauric oil, and from soft oils, such as soybean oil, canola oil, sunflower seed oil and corn oil.


Group's business consists of:


1) bulk segment, which sources, manufactures and sells edible oils and fats (including specialty fats) in bulk to wholesalers and processors for a variety of end uses including applications in the food, pharmaceutical and oleochemical industries; and


2) consumer pack segment, which manufactures, packs and sells a wide range of edible oils and fats and specialised bakery and confectionery oils and fats which are sold to end customers in consumer packs under our own brands or to customers who then sell our products under their own brands.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

6568295200

Current Telephone Number

:

65-68295200

Match

:

YES

 

 

 

Address Provided by Client

:

5 INTERNATIONAL BUSINESS PARK, #05-00, MEWAH BUILDING SINGAPORE

Current Address

:

5, INTERNATIONAL BUSINESS PARK, 05-00, MEWAH BUILDING, 609914, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


On 6th May 2014 we contacted one of the staff from the Subject and she provided some information.


The address provided is incomplete.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

14.19%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

221.17%

]

 

Return on Shareholder Funds

:

Unfavourable

[

(25.05%)

]

 

Return on Net Assets

:

Unfavourable

[

(24.88%)

]

 

 

 

 

 

 

 

 

The lower turnover could be due to the intense market competition.The Subject incurred losses during the year due to the inefficient control of its operating costs. 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

[

2 Days

]

 

Debtor Ratio

:

Unfavourable

[

66 Days

]

 

Creditors Ratio

:

Favourable

[

14 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.14 Times

]

 

Current Ratio

:

Unfavourable

[

1.16 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

[

(9.15 Times)

]

 

Gearing Ratio

:

Favourable

[

0.09 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 lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : LIMITED

 

 

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 1983, the Subject is a Private Limited company, focusing on trading of oil and fats. The Subject has been in business for over 3 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future


Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 200 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

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 however is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at USD 74,349,673, the Subject should be able to maintain its business in the near terms.


Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors


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


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

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2012-12-31

2011-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

USD

USD

 

 

 

TURNOVER

2,076,783,774

2,420,119,880

Other Income

9,490,714

5,110,293

 

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

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

Total Turnover

2,086,274,488

2,425,230,173

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(20,646,734)

17,039,276

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

(20,646,734)

17,039,276

Taxation

2,020,383

1,847,957

 

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

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

PROFIT/(LOSS) AFTER TAXATION

(18,626,351)

18,887,233

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

90,752,450

86,865,217

 

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

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

As restated

90,752,450

86,865,217

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

72,126,099

105,752,450

DIVIDENDS - Ordinary (paid & proposed)

-

(15,000,000)

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

72,126,099

90,752,450

 

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

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

 

 

 

Term loan / Borrowing

2,034,173

2,039,297

 

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

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

 

2,034,173

2,039,297

 

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

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

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

6,852,900

6,653,093

 

 

 

Deferred assets

618,965

-

Others

796,498

171,673

 

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,415,463

171,673

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

8,268,363

6,824,766

 

 

 

Stocks

9,560,894

32,957,845

Trade debtors

374,325,403

326,927,423

Other debtors, deposits & prepayments

5,888,041

924,222

Short term deposits

-

28,319,200

Amount due from holding company

-

60,000

Amount due from related companies

25,771

213,068

Cash & bank balances

17,447,306

11,783,261

Others

79,423,361

42,272,789

 

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

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

TOTAL CURRENT ASSETS

486,670,776

443,457,808

 

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

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

TOTAL ASSET

494,939,139

450,282,574

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

77,265,737

58,562,760

Other creditors & accruals

7,788,368

7,672,673

Short term borrowings/Term loans

7,036,624

85,612,063

Deposits from customers

3,262,760

633,487

Amounts owing to holding company

36,480,774

19,820,106

Amounts owing to related companies

242,683,785

142,957,868

Dividends payable/proposed

-

15,000,000

Other liabilities

45,622,491

26,688,779

 

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

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

TOTAL CURRENT LIABILITIES

420,140,539

356,947,736

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

66,530,237

86,510,072

 

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

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

TOTAL NET ASSETS

74,798,600

93,334,838

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

2,223,574

2,223,574

 

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

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

TOTAL SHARE CAPITAL

2,223,574

2,223,574

 

 

 

Retained profit/(loss) carried forward

72,126,099

90,752,450

 

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

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

TOTAL RESERVES

72,126,099

90,752,450

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

74,349,673

92,976,024

 

 

 

Deferred taxation

-

107,255

Others

448,927

251,559

 

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

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

TOTAL LONG TERM LIABILITIES

448,927

358,814

 

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

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

 

74,798,600

93,334,838

 

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

Cash

17,447,306

40,102,461

Net Liquid Funds

17,447,306

40,102,461

Net Liquid Assets

56,969,343

53,552,227

Net Current Assets/(Liabilities)

66,530,237

86,510,072

Net Tangible Assets

74,798,600

93,334,838

Net Monetary Assets

56,520,416

53,193,413

BALANCE SHEET ITEMS

 

 

Total Borrowings

7,036,624

85,612,063

Total Liabilities

420,589,466

357,306,550

Total Assets

494,939,139

450,282,574

Net Assets

74,798,600

93,334,838

Net Assets Backing

74,349,673

92,976,024

Shareholders' Funds

74,349,673

92,976,024

Total Share Capital

2,223,574

2,223,574

Total Reserves

72,126,099

90,752,450

LIQUIDITY (Times)

 

 

Cash Ratio

0.04

0.11

Liquid Ratio

1.14

1.15

Current Ratio

1.16

1.24

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

2

5

Debtors Ratio

66

49

Creditors Ratio

14

9

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.09

0.92

Liabilities Ratio

5.66

3.84

Times Interest Earned Ratio

(9.15)

9.36

Assets Backing Ratio

33.64

41.98

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

(0.99)

0.70

Net Profit Margin

(0.90)

0.78

Return On Net Assets

(24.88)

20.44

Return On Capital Employed

(24.88)

20.44

Return On Shareholders' Funds/Equity

(25.05)

20.31

Dividend Pay Out Ratio (Times)

0.00

0.79

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.65

Euro

1

Rs.83.07

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.