MIRA INFORM REPORT

 

 

Report Date :

17.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

1, Temasek Avenue, 19-00, Millenia Tower, 039192

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

17.11.1955

 

 

Com. Reg. No.:

S55FC1163-C

 

 

Legal Form :

Foreign

 

 

Line of Business :

Building Construction & Provide Other Related Service

 

 

No. of Employees :

115 [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 :

--

 

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.

:

S55FC1163-C

COMPANY NAME

:

MITSUBISHI CORPORATION

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/11/1955

COMPANY STATUS

:

EXIST

LEGAL FORM

:

FOREIGN

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

BUSINESS ADDRESS

:

1 TEMASEK AVENUE, #19-00 MILLENIA TOWER, 039192, SINGAPORE.

TEL.NO.

:

65-63381100

FAX.NO.

:

65-63388361

CONTACT PERSON

:

KENJI TAKAHASHI ( GENERAL MANAGER )

PRINCIPAL ACTIVITY

:

BUILDING CONSTRUCTION & PROVIDE OTHER RELATED SERVICE

AUTHORISED CAPITAL

:

JPY 125,000,000,000.00

SALES

:

USD 646,847,535 [2013]

NET WORTH

:

USD 53,882,973 [2013]

STAFF STRENGTH

:

115 [2014]

BANKER (S)

:

MIZUHO CORPORATE BANK, LTD
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

LITIGATION

:

TRACED

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 principally engaged in the (as a / as an) building construction & provide other related service.

 

The immediate holding company of the Subject is MITSUBISHI CORPORATION, a company incorporated in JAPAN.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

12/05/2014

JPY 125,000,000,000.00

JPY 0.00

No shareholders was found in our databank at the time of investigation



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KUNIO ITO

Address

:

33-23, FUJIMIDAI, 2-CHOME, KUNITACHI-SHI, TOKYO, JAPAN.

IC / PP No

:

TF5985832

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

26/06/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. HIDEHIRO KONNO

Address

:

28-3, KAMISOSHIGAYA, 7-CHOME, SETAGAYA-KU, TOKYO, JAPAN.

IC / PP No

:

TF9769245

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

TAKAHISA MIYAUCHI

Address

:

8-2, KITASENZOKU 3-CHOME, OTA-KU, TOKYO, JAPAN.

IC / PP No

:

TK9181890

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

KUNIO FUKUMOTO

Address

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

IC / PP No

:

G5365956Q

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

05/04/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

KAZUO TSUKUDA

Address

:

4-26-2-1402, SHIMO-MARUKO, OHTA-KU, TOKYO, JAPAN.

IC / PP No

:

TH1551180

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

25/06/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

YORIHIKO KOJIMA

Address

:

5-53, MIYAZAKI 6-CHOME, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA, JAPAN.

IC / PP No

:

TE3145927

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

29/06/1995

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

JUN YANAI

Address

:

4-6, GOBANCHO, CHIYODA-KU, TOKYO, 102-0076, JAPAN.

IC / PP No

:

TH6363546

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 8

 

Name Of Subject

:

JUN KINUKAWA

Address

:

1-20-6, NAKAMACHI 1-CHOME, SETAGAYA-KU TOKYO, JAPAN.

IC / PP No

:

TK4296095

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 9

 

Name Of Subject

:

KEN KOBAYASHI

Address

:

24-30, KAMARIYAMINAMI 4-CHOME, KANAZAWA-KU YOKOHAMA-SHI, KANAGAWA-KEN, JAPAN.

IC / PP No

:

TZ0216956

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 10

 

Name Of Subject

:

HIDETO NAKAHARA

Address

:

6-504, SANBANCHO, 9-CHOME, CHIYODA-KU, TOKYO, JAPAN.

IC / PP No

:

TZ0253998

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 11

 

Name Of Subject

:

SHUMA UCHINO

Address

:

2-16-6, IKEHANA YOTSUKAIDO-SHIM, CHIBA, JAPAN.

IC / PP No

:

TH9224185

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 12

 

Name Of Subject

:

SAKIE TACHIBANA FUKUSHIMA

Address

:

11-40-2302, AKASAKA 1-CHOME, MINATOKU, TOKYO, JAPAN.

IC / PP No

:

TK0233839

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 13

 

Name Of Subject

:

HIDEYUKI NABESHIMA

Address

:

19-27, KAMATA, 3-CHOME, SETAGAYA-KU, TOKYO, JAPAN.

IC / PP No

:

TH7731971

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 14

 

Name Of Subject

:

YASUO NAGAI

Address

:

20-1-201, OHARACHO, ASHIYA-SHI, HYOGO, JAPAN.

IC / PP No

:

TG7122154

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 15

 

Name Of Subject

:

RYOZO KATO

Address

:

1-15-507, TAKANAWA, 2-CHOME, MINATO-KU, TOKYO, JAPAN.

IC / PP No

:

TH6470706

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2009

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

KENJI TAKAHASHI

 

Position

:

GENERAL MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

KENJI TAKAHASHI

 

IC / PP No

:

G5138397X

 

 

 

 

 

Address

:

57A, DEVONSHIRE ROAD, 23 - 01, SUITES AT CENTRAL, THE, 239897, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

KUNIO FUKUMOTO

 

IC / PP No

:

G5365956Q

 

 

 

 

 

Address

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MIZUHO CORPORATE BANK, LTD

 

 

 

 

 

 

 

 

 

2)

Name

:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201113090

17/10/2011

N/A

SHINSEI BANK, 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

:

106

 

 

 

 

 

Year

:

2008

Place

:

SINGAPORE

 

 

 

 

 

Court

:

SESSIONS COURT

 

 

 

 

 

 

 

 

Date Filed

:

15/02/2008

 

 

 

 

 

 

 

 

Solicitor

:

KRISHANASAMY RAVINTHERAN

 

 

 

 

 

 

 

 

Solicitor Ref

:

KR.0197.06

 

 

 

 

 

 

 

 

Solicitor Firm

:

K RAVI ASSOCIATES

 

 

 

 

 

Plaintiff

:

SHAZAHAN JAMAL UDDIN

 

 

 

Defendants

:

MITSUBISHI CORPORATION (S55FC1163)

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

 

 

 

 

Amount Claimed

:

350000

 

 

 

 

 

 

 

 

Nature of Claim

:

SGD

 

 

 

 

 

 

 

 

Remark

:

TORT-NEGLIGENCE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

JAPAN

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

BUILDING CONSTRUCTION & PROVIDE OTHER RELATED SERVICE

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

115

115

115

110

106

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) building construction & provide other related service.


The Subject generally classified as a trading company, their operation extends beyond this classification to include activities in manufacturing, logistics, retailing, financing and many others.


The Subject's business fields cover the five business departments of:-

* Energy, Machinery/Metal/Global Environment
* Infrastructure Business Development
* Industrial Finance
* Logistics & Development
* Chemicals and Living Essentials


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

006596493532

Current Telephone Number

:

65-63381100

Match

:

YES

 

 

 

Address Provided by Client

:

1 TEMASEK AVENUE, # 19-00, MILLENIA TOWER SINGAPORE-039192

Current Address

:

1 TEMASEK AVENUE, #19-00 MILLENIA TOWER, 039192, SINGAPORE.

Match

:

YES

 

Other Investigations


On 14th May 2014 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

(1.07%)

]

 

Return on Net Assets

:

Unfavourable

[

1.20%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.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

[

1 Days

]

 

Debtor Ratio

:

Favourable

[

51 Days

]

 

Creditors Ratio

:

Favourable

[

36 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

[

1.19 Times

]

 

Current Ratio

:

Unfavourable

[

1.20 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

[

0.56 Times

]

 

Gearing Ratio

:

Unfavourable

[

2.02 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 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 increased but its turnover showed a  fluctuating trend. This indicate the Subject was slowly losing its market share due to its competitors. 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. 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'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 :

CONSTRUCTION

 

 

 

According to Building and Construction Authority (BCA), Construction sector in Singapore is expected to remain a strong demand of between SGD26-SGD32 billion in year 2013 boosted by stronger public housing and infrastructure construction works.

 

Public sector demand is expected to contribute about 53% of overall industry demand, or SGD14 billion-SGD17 billion. Major public sector projects to be awarded in 2013 include various contracts for the construction of Singapore's new Thomson train line, the expansion of the Kallang Paya Lebar Expressway and Tampines Expressway interchange as well as Nanyang Technological University's Undergraduate Halls of Residence at Nanyang Avenue/Crescent and Energy Market Authority's fourth storage tank for the liquefied natural gas (LNG) terminal at Jurong Island.

 

Private sector construction demand on the other hand, is expected to moderate to SGD12-SGD15 billion in 2013, in light of slower domestic economic growth and continued global economic uncertainties. Private residential construction demand is projected to continue to soften in view of the anticipated continual slow economic growth in 2013, coupled with the significant supply of completed housing units over the next few years.

 

Based on advance estimates, the construction sector grew by 5.9% on a year-on-year basis in fourth quarter of year 2012, moderating from the 7.7% growth in the preceding quarter. For the full year 2012, construction rose 8.8% from 2.6% the previous year. Besides, the total construction demand was sustained at a healthy SGD28.1 billion in 2012.

 

Moreover, the total preliminary construction output (progress payments made for work done) is estimated to be about SGD31 billion in 2012, about 7% higher than the volume in 2011 and comparable to the 2009's record high.

 

Forecast for 2014 and 2015, the average construction demand is projected to be SGD20-SGD28 billion per annum. Barring any unforeseen circumstances, this projection is plausible in view of the strong pipeline of housing and infrastructure construction projects planned by the Government to meet the needs of the population, despite the anticipated lower economic growth rate in the coming years.

 

 

 

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1955, the Subject is a Foreign company, focusing on building construction & provide other related service. Its long establishment in the market has allowed the Subject to build up a good reputation and gain higher market share against its rivals. 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 is a fairly large and rapidly growing company with over 115 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 high gearing ratio clearly implied that the Subject was supported by more debt than equity. However, 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. Given a positive net worth standing at USD 53,882,973, the Subject should be able to maintain its business in the near terms.


The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.


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

2013-03-31

2012-03-31

2011-03-31

2010-03-31

2009-03-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

USD

 

 

 

 

 

 

TURNOVER

646,847,535

984,801,787

807,286,317

512,037,864

677,931,905

 

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

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

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

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

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

Total Turnover

646,847,535

984,801,787

807,286,317

512,037,864

677,931,905

Costs of Goods Sold

(623,479,704)

(953,617,458)

(785,992,954)

-

-

 

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

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

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

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

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

Gross Profit

23,367,831

31,184,329

21,293,363

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(501,672)

11,859,472

5,849,509

1,229,242

8,332,064

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(501,672)

11,859,472

5,849,509

1,229,242

8,332,064

Taxation

(76,675)

(1,972,610)

(1,466,549)

(427,275)

(1,148,533)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(578,347)

9,886,862

4,382,960

801,967

7,183,531

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

54,461,320

44,574,458

40,191,498

39,389,531

32,206,000

 

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

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

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

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

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

As restated

54,461,320

44,574,458

40,191,498

39,389,531

32,206,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

198,817

247,769

345,517

197,523

1,836,168

Term loan / Borrowing

908,790

498,666

547,931

-

-

Others

40,616

318,123

417,686

1,500,202

4,476,505

 

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

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

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

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

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

 

1,148,223

1,064,558

1,311,134

1,697,725

6,312,673

 

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

2,673,449

2,977,386

2,314,061

2,124,196

2,341,397

 

 

 

 

 

 

Others

652,487

652,487

652,487

652,487

652,487

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

652,487

652,487

652,487

652,487

652,487

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,325,936

3,629,873

2,966,548

2,776,683

2,993,884

 

 

 

 

 

 

Stocks

2,220,420

2,451,075

1,434,062

1,470,944

2,793,445

Contract work-in-progress

-

-

-

-

1,211,547

Trade debtors

89,968,791

83,884,929

81,074,875

62,308,748

67,030,543

Other debtors, deposits & prepayments

193,964,543

241,100,421

207,639,033

249,093,737

170,161,724

Amount due from related companies

2,347,719

4,863,901

-

-

-

Cash & bank balances

20,008,197

15,682,805

19,019,303

13,675,677

13,609,214

Others

11,678

397,239

3,047

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

308,521,348

348,380,370

309,170,320

326,549,106

254,806,473

 

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

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

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

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

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

TOTAL ASSET

311,847,284

352,010,243

312,136,868

329,325,789

257,800,357

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

60,903,182

92,235,888

78,517,685

68,738,861

36,561,310

Other creditors & accruals

44,807,716

17,564,466

14,027,238

22,785,668

48,062,279

Bank overdraft

23,852,558

24,168,302

165,156,888

196,576,866

131,553,497

Other borrowings

84,985,053

116,155,899

-

-

-

Amounts owing to related companies

42,773,603

44,757,510

-

-

-

Provision for taxation

541,520

2,591,743

1,432,232

199,805

1,502,297

Other liabilities

25,564

-

8,089,289

546,332

140,630

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

257,889,196

297,473,808

267,223,332

288,847,532

217,820,013

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

50,632,152

50,906,562

41,946,988

37,701,574

36,986,460

 

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

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

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

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

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

TOTAL NET ASSETS

53,958,088

54,536,435

44,913,536

40,478,257

39,980,344

 

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

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

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

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

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

 

 

 

 

 

 

Retained profit/(loss) carried forward

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

 

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

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

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

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

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

TOTAL RESERVES

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

 

 

 

 

 

 

Deferred taxation

75,115

75,115

339,078

286,759

590,813

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

75,115

75,115

339,078

286,759

590,813

 

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

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

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

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

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

 

53,958,088

54,536,435

44,913,536

40,478,257

39,980,344

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

20,008,197

15,682,805

19,019,303

13,675,677

13,609,214

Net Liquid Funds

(3,844,361)

(8,485,497)

(146,137,585)

(182,901,189)

(117,944,283)

Net Liquid Assets

48,411,732

48,455,487

40,512,926

36,230,630

34,193,015

Net Current Assets/(Liabilities)

50,632,152

50,906,562

41,946,988

37,701,574

36,986,460

Net Tangible Assets

53,958,088

54,536,435

44,913,536

40,478,257

39,980,344

Net Monetary Assets

48,336,617

48,380,372

40,173,848

35,943,871

33,602,202

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

108,837,611

140,324,201

165,156,888

196,576,866

131,553,497

Total Liabilities

257,964,311

297,548,923

267,562,410

289,134,291

218,410,826

Total Assets

311,847,284

352,010,243

312,136,868

329,325,789

257,800,357

Net Assets

53,958,088

54,536,435

44,913,536

40,478,257

39,980,344

Net Assets Backing

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

Shareholders' Funds

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

Total Share Capital

0

0

0

0

0

Total Reserves

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.08

0.05

0.07

0.05

0.06

Liquid Ratio

1.19

1.16

1.15

1.13

1.16

Current Ratio

1.20

1.17

1.16

1.13

1.17

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

1

1

1

1

2

Debtors Ratio

51

31

37

44

36

Creditors Ratio

36

35

36

49

20

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

2.02

2.58

3.71

4.89

3.34

Liabilities Ratio

4.79

5.46

6.00

7.19

5.54

Times Interest Earned Ratio

0.56

12.14

5.46

1.72

2.32

Assets Backing Ratio

-

-

-

-

-

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

(0.08)

1.20

0.72

0.24

1.23

Net Profit Margin

(0.09)

1.00

0.54

0.16

1.06

Return On Net Assets

1.20

23.70

15.94

7.23

36.63

Return On Capital Employed

0.83

16.42

3.41

1.23

8.54

Return On Shareholders' Funds/Equity

(1.07)

18.15

9.83

2.00

18.24

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.72

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.