MIRA INFORM REPORT

 

 

Report Date :

03.11.2014

 

IDENTIFICATION DETAILS

 

Name :

ABADI TRADING PTE LTD

 

 

Registered Office :

236, Bishan Street, 22, 08-152, 570236

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.11.1994

 

 

Com. Reg. No.:

199408454-N

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

Subject is engaged in the general trading.

 

 

No of Employees :

10 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Unknown

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% 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.

:

199408454-N

COMPANY NAME

:

ABADI TRADING PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/11/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

Exempt Private

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

236, Bishan Street, 22, 08-152, 570236, Singapore.

BUSINESS ADDRESS

:

Blk 236, Bishan Street 22 #08-152, Thomson, 570236, Singapore.

TEL.NO.

:

65-64590904

FAX.NO.

:

N/A

CONTACT PERSON

:

LIM ( STAFF )

PRINCIPAL ACTIVITY

:

GENERAL TRADING

ISSUED AND PAID UP CAPITAL

:

2.00 ORDINARY SHARE, OF A VALUE OF SGD 2.00 

SALES

:

SGD 63,300 [2013]

NET WORTH

:

SGD (13,600) [2013]

STAFF STRENGTH

:

10 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. 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, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

 

The Subject is principally engaged in the (as a / as an) general trading.

 

Share Capital History

Date

Issue & Paid Up Capital

31/10/2014

SGD 2.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

KAREN WONG POH NYUK +

236, BISHAN STREET, 22, 08-152, 570236, SINGAPORE.

S1354881A

1.00

50.00

LIM AI POH +

236, BISHAN STREET, 22, 08-152, 570236, SINGAPORE.

S2012797Z

1.00

50.00

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

------

2.00

100.00

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

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

KAREN WONG POH NYUK

Address

:

236, BISHAN STREET, 22, 08-152, 570236, SINGAPORE.

IC / PP No

:

S1354881A

Nationality

:

SINGAPOREAN

Date of Appointment

:

18/11/1994

 

DIRECTOR 2

 

Name Of Subject

:

LIM AI POH

Address

:

236, BISHAN STREET, 22, 08-152, 570236, SINGAPORE.

IC / PP No

:

S2012797Z

Date of Appointment

:

18/11/1994




MANAGEMENT

 

 

1)

Name of Subject

:

LIM

Position

:

STAFF

 

AUDITOR


No Auditor found in our databank 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LIM AI POH

IC / PP No

:

S2012797Z

Address

:

236, BISHAN STREET, 22, 08-152, 570236, SINGAPORE.

 

BANKING


No Banker found in our databank. 

ENCUMBRANCE (S)


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

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The staff from the registered office refused to disclose the Subject's suppliers. 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The staff from the registered office refused to disclose the Subject's clientele. 

OPERATIONS

 

Goods Traded

:

GENERAL TRADING

 

Total Number of Employees:

YEAR

2014


GROUP

N/A

COMPANY

10

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) general trading. 

The staff from the registered office refused to disclose the Subject's operation. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

96363508 / 64590904

Current Telephone Number

:

65-64590904

Match

:

YES

Address Provided by Client

:

236 BISHAN ST- 22,#08-152 SINGAPORE-570236

Current Address

:

BLK 236, BISHAN STREET 22 #08-152, THOMSON, 570236, SINGAPORE.

Match

:

NO

 

Other Investigations


On 30th October 2014 we contacted one of the staff from the Subject 's registered office and she only provided limited information.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

13.24%

]

Profit/(Loss) Before Tax

:

Increased

[

20.31%

]

Return on Shareholder Funds

:

Unfavourable

[

(156.78%)

]

Return on Net Assets

:

Unfavourable

[

(159.13%)

]

The higher turnover could be attributed to the favourable market condition and the Subject could be gaining the market share progressively.The Subject's management have been efficient in controlling 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

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

0 Days

]

Creditors Ratio

:

Favourable

[

0 Days

]

As the Subject is a service oriented company, the Subject does not need to keep 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

:

Acceptable

[

0.98 Times

]

Current Ratio

:

Unfavourable

[

0.98 Times

]

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Favourable

[

67.63 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject 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 :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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)



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 1994, the Subject is an Exempt Private company, focusing on general trading. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Being a small company with an issued and a paid up capital of only SGD 2 contributed from individual shareholders, the Subject does not have strong shareholders' backing. The Subject may face difficulties in its attempt to further expand its business in the future. 

Being a small company, the Subject's business operation is supported by 10 employees. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of SGD -13,600. 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 industry shows an upward trend and this trend is very likely to sustain in the near terms. 

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.

ABADI TRADING PTE LTD

 

Financial Year End

2013-12-31

2012-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

TURNOVER

63,300

55,900

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

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

Total Turnover

63,300

55,900

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

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

PROFIT/(LOSS) FROM OPERATIONS

21,322

17,722

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

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

PROFIT/(LOSS) BEFORE TAXATION

21,322

17,722

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

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

PROFIT/(LOSS) AFTER TAXATION

21,322

17,722

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(34,924)

(52,646)

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

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

As restated

(34,924)

(52,646)

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(13,602)

(34,924)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(13,602)

(34,924)

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

320

428

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

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

320

428

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

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

 

 

 

 

BALANCE SHEET

 

ABADI TRADING PTE LTD

 

Trade debtors

47

46

Cash & bank balances

804,195

400,424

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

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

TOTAL CURRENT ASSETS

804,242

400,470

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

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

TOTAL ASSET

804,242

400,470

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

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

Other creditors & accruals

802,704

419,934

Amounts owing to director

15,138

15,458

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

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

TOTAL CURRENT LIABILITIES

817,842

435,392

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

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

NET CURRENT ASSETS/(LIABILITIES)

(13,600)

(34,922)

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

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

TOTAL NET ASSETS

(13,600)

(34,922)

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

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

SHARE CAPITAL

Ordinary share capital

2

2

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

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

TOTAL SHARE CAPITAL

2

2

Retained profit/(loss) carried forward

(13,602)

(34,924)

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

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

TOTAL RESERVES

(13,602)

(34,924)

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

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

SHAREHOLDERS' FUNDS/EQUITY

(13,600)

(34,922)

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

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

(13,600)

(34,922)

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

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

 

 

 

 

FINANCIAL RATIO

 

ABADI TRADING PTE LTD

 

TYPES OF FUNDS

Cash

804,195

400,424

Net Liquid Funds

804,195

400,424

Net Liquid Assets

(13,600)

(34,922)

Net Current Assets/(Liabilities)

(13,600)

(34,922)

Net Tangible Assets

(13,600)

(34,922)

Net Monetary Assets

(13,600)

(34,922)

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

817,842

435,392

Total Assets

804,242

400,470

Net Assets

(13,600)

(34,922)

Net Assets Backing

(13,600)

(34,922)

Shareholders' Funds

(13,600)

(34,922)

Total Share Capital

2

2

Total Reserves

(13,602)

(34,924)

LIQUIDITY (Times)

Cash Ratio

0.98

0.92

Liquid Ratio

0.98

0.92

Current Ratio

0.98

0.92

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

0

0

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

(60.14)

(12.47)

Times Interest Earned Ratio

67.63

42.41

Assets Backing Ratio

(6,800.00)

(17,461.00)

PERFORMANCE RATIO (%)

Operating Profit Margin

33.68

31.70

Net Profit Margin

33.68

31.70

Return On Net Assets

(159.13)

(51.97)

Return On Capital Employed

(159.13)

(51.97)

Return On Shareholders' Funds/Equity

(156.78)

(50.75)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.77.19

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.