MIRA INFORM REPORT

 

 

Report Date :

09.10.2014

 

IDENTIFICATION DETAILS

 

Name :

WELCOME TRADING CO. PTE LTD

 

 

Registered Office :

1, North Bridge Road, 12-04/05, High St Center Building, 179094

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

31.03.1971

 

 

Com. Reg. No.:

197100306-E

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Commodity Products such as Rubber, Metal, Steel and Others.

 

 

No. of Employees :

13 [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 :

No Complaints

 

 

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.

:

197100306-E

COMPANY NAME

:

WELCOME TRADING CO. PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

31/03/1971

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

1, NORTH BRIDGE ROAD, 12-04/05, HIGH ST CENTER BUILDING, 179094, SINGAPORE.

BUSINESS ADDRESS

:

1, NORTH BRIGDE ROAD, 12-04/05, HIGH STREET CENTRAL BUILDING, 179094, SINGAPORE.

TEL.NO.

:

65-63385001

FAX.NO.

:

65-63368821

CONTACT PERSON

:

LIM KUEH CHONG ( MANAGING DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF COMMODITY PRODUCTS SUCH AS RUBBER, METAL, STEEL AND OTHERS

 

 

 

ISSUED AND PAID UP CAPITAL

:

3,800,000.00 ORDINARY SHARE, OF A VALUE OF SGD 4,250,000.00

 

 

 

SALES

:

USD 116,753,433 [2013]

NET WORTH

:

USD 3,957,867 [2013]

 

 

 

STAFF STRENGTH

:

13 [2014]

BANKER (S)

:

UNITED OVERSEAS BANK LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

WEAK

 

 

 

COMMERCIAL RISK

:

LOW

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) trading of commodity products such as rubber, metal, steel and others.

 

The immediate holding company of the Subject is WELCOME HOLDING PRIVATE LIMITED, a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

03/10/2014

SGD 4,250,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

WELCOME HOLDING PRIVATE LIMITED

SINGAPORE

198102806R

2,937,500.00

77.30

MR. LIM KUEH CHONG +

38, LUCKY VIEW, 467470, SINGAPORE.

S0549384F

532,500.00

14.01

STONE HARBOUR WORLDWIDE CORP

NERING CHAMBERS, P.O.BOX 905, ROAD TOWN, TORTOLA, VIRGIN ISLANDS, BRITISH.

T12UF3266K

270,000.00

7.11

EST OF YONGKIART KIARTARITARA

461, YAMARAJ SUKUM LANE, SUAPA ROAD, BANGKOK, THAILAND.

H010783

60,000.00

1.58

 

 

 

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

------

 

 

 

3,800,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

 

HONG KONG

WELCOME OVERSEAS AGENCY LIMITED

100.00

31/12/2013

 

 

 

 

 

196800032R

SINGAPORE

COMFORT LEATHER SHOE MANUFACTORY PRIVATE LIMITED

62.49

31/12/2013

 

 

 

 

 




DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

LIM CHIEW WAH

Address

:

38, LUCKY VIEW, 467470, SINGAPORE.

IC / PP No

:

S7527546C

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

03/07/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

LIM CHIEW LIN

Address

:

367, YISHUN RING ROAD, 12-1538, 760367, SINGAPORE.

IC / PP No

:

S1675762D

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/06/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

LIM QUIK SHEN

Address

:

38, TAMAN SELAMAT, KIMNAN PARK, 416434, SINGAPORE.

IC / PP No

:

S2052493F

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/05/1974

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LIM KUEH CHONG

Address

:

38, LUCKY VIEW, 467470, SINGAPORE.

IC / PP No

:

S0549384F

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

31/03/1971

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

1)

Name of Subject

:

LIM KUEH CHONG

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

TAN KIAN TIN & CO.

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LIM CHIEW WAH

 

IC / PP No

:

S7527546C

 

 

 

 

 

Address

:

38, LUCKY VIEW, 467470, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

BANKING

 


Banking relations are maintained principally with:

 

1)

Name

:

UNITED OVERSEAS BANK LTD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201302173

06/02/2013

N/A

DBS BANK LIMITED

-

Unsatisfied

C201302388

08/02/2013

N/A

DBS BANK LIMITED

-

Unsatisfied

C201304657

03/04/2013

N/A

MALAYAN BANKING BERHAD

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.


PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The Subject refused to disclose its suppliers.

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

COMMODITY PRODUCTS SUCH AS RUBBER, METAL, STEEL AND OTHERS

 

 

 

 

 

Total Number of Employees:

YEAR

2014

2013

 


GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

13

11

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of commodity products such as rubber, metal, steel and others.

The Subject is engaged in the Commercial trades that include Non-Ferrous metals, Construction and Commercial Steel, Rubber (Natural and Synthetic grades) and Paper Products.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

6563385001

Current Telephone Number

:

65-63385001

Match

:

YES

 

 

 

Address Provided by Client

:

1 NORTH BRIDGE ROAD, # 12-05, HIGH STREET CENTRE SINGAPORE 179094

Current Address

:

1, NORTH BRIGDE ROAD, 12-04/05, HIGH STREET CENTRAL BUILDING, 179094, SINGAPORE.

Match

:

NO

 

Other Investigations


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 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

(9.96%)

]

 

Return on Net Assets

:

Unfavourable

[

0.86%

]

 

 

 

 

 

 

 

 

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

[

2 Days

]

 

Debtor Ratio

:

Favourable

[

24 Days

]

 

Creditors Ratio

:

Favourable

[

4 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

:

Acceptable

[

0.97 Times

]

 

Current Ratio

:

Unfavourable

[

1.02 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

:

Unfavourable

[

0.08 Times

]

 

Gearing Ratio

:

Favourable

[

0.26 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 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 increased but its turnover showed a  fluctuating trend. This indicate the Subject was slowly losing its market share due to its competitors. 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. 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 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 1971, the Subject is a Private Limited company, focusing on trading of commodity products such as rubber, metal, steel and others. The Subject has been in business for over two 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 Subject's paid up capital is SGD 4,250,000. Hence, 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. Being a small company, the Subject's business operation is supported by 13 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.

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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its 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 3,957,867, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth .

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 normally.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

 

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

WELCOME TRADING CO. PTE LTD

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

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

SGD

SGD

SGD

 

 

 

 

 

 

TURNOVER

116,753,433

202,872,667

188,241,975

165,467,691

143,531,553

 

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

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

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

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

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

Total Turnover

116,753,433

202,872,667

188,241,975

165,467,691

143,531,553

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(394,016)

616,593

(1,174,895)

926,710

2,042,055

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(394,016)

616,593

(1,174,895)

926,710

2,042,055

Taxation

-

-

(20,182)

-

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(394,016)

616,593

(1,195,077)

926,710

2,042,055

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

(1,699,083)

(2,315,676)

(1,637,921)

(2,564,631)

(4,606,686)

 

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

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

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

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

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

As restated

(1,699,083)

(2,315,676)

(1,637,921)

(2,564,631)

(4,606,686)

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(2,093,099)

(1,699,083)

(2,832,998)

(1,637,921)

(2,564,631)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(2,093,099)

(1,699,083)

(2,832,998)

(1,637,921)

(2,564,631)

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

24,118

88,876

117,931

151,294

152,379

Letter of credit

18,710

45,442

-

-

-

Term loan / Borrowing

26,267

-

-

16,899

19,048

Trust receipts

84,381

149,978

136,066

109,444

142,573

Others

274,417

845,251

815,915

690,865

206,775

 

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

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

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

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

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

 

427,893

1,129,547

1,069,912

968,502

520,775

 

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

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

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

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

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

 

BALANCE SHEET

 

 

WELCOME TRADING CO. PTE LTD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

2,194,220

2,070,506

2,574,538

2,609,329

2,655,285

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

1,413,317

1,526,956

1,868,078

1,868,078

1,868,078

Investment properties

-

-

-

97,038

98,655

Others

166,910

148,602

246,394

187,834

380,333

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,580,227

1,675,558

2,114,472

2,152,950

2,347,066

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,774,447

3,746,064

4,689,010

4,762,279

5,002,351

 

 

 

 

 

 

Stocks

486,120

1,908,903

1,515,734

635,057

2,022,471

Trade debtors

7,584,022

3,253,893

8,396,567

4,302,734

8,339,203

Other debtors, deposits & prepayments

492,701

561,600

322,245

631,912

539,932

Amount due from holding company

-

18,343

119,989

-

-

Amount due from director

23,069

82,559

64,891

27,789

26,964

Cash & bank balances

947,437

1,801,071

1,337,360

1,765,848

977,865

Others

-

-

1,842,162

1,958,260

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

9,533,349

7,626,369

13,598,948

9,321,600

11,906,435

 

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

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

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

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

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

TOTAL ASSET

13,307,796

11,372,433

18,287,958

14,083,879

16,908,786

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,400,487

828,659

1,211,792

13,929

774,365

Other creditors & accruals

271,685

359,019

68,876

1,009,247

1,279,809

Bank overdraft

-

1,029,781

1,678,753

2,174,498

2,299,379

Short term borrowings/Term loans

1,015,855

-

-

-

-

Other borrowings

-

-

9,644,811

4,933,313

7,687,691

Amounts owing to holding company

22,191

-

74,254

-

-

Amounts owing to subsidiary companies

1,451,615

632,274

876,214

-

-

Amounts owing to related companies

-

94,744

57,293

-

-

Amounts owing to director

-

7,256

-

127,340

86,069

Other liabilities

5,188,096

4,069,019

106,099

119,169

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

9,349,929

7,020,752

13,718,092

8,377,496

12,127,313

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

183,420

605,617

(119,144)

944,104

(220,878)

 

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

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

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

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

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

TOTAL NET ASSETS

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

3,473,925

3,473,925

4,250,000

4,250,000

4,250,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

3,473,925

3,473,925

4,250,000

4,250,000

4,250,000

 

 

 

 

 

 

Capital reserve

-

-

2,844,688

2,844,688

2,844,688

Revaluation reserve

2,325,232

2,325,232

-

-

-

Retained profit/(loss) carried forward

(2,093,099)

(1,699,083)

(2,832,998)

(1,637,921)

(2,564,631)

Others

251,809

251,607

308,176

249,616

251,416

 

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

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

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

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

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

TOTAL RESERVES

483,942

877,756

319,866

1,456,383

531,473

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

 

 

 

 

 

 

 

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

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

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

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

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

 

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

WELCOME TRADING CO. PTE LTD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

947,437

1,801,071

1,337,360

1,765,848

977,865

Net Liquid Funds

947,437

771,290

(341,393)

(408,650)

(1,321,514)

Net Liquid Assets

(302,700)

(1,303,286)

(1,634,878)

309,047

(2,243,349)

Net Current Assets/(Liabilities)

183,420

605,617

(119,144)

944,104

(220,878)

Net Tangible Assets

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

Net Monetary Assets

(302,700)

(1,303,286)

(1,634,878)

309,047

(2,243,349)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,015,855

1,029,781

11,323,564

7,107,811

9,987,070

Total Liabilities

9,349,929

7,020,752

13,718,092

8,377,496

12,127,313

Total Assets

13,307,796

11,372,433

18,287,958

14,083,879

16,908,786

Net Assets

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

Net Assets Backing

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

Shareholders' Funds

3,957,867

4,351,681

4,569,866

5,706,383

4,781,473

Total Share Capital

3,473,925

3,473,925

4,250,000

4,250,000

4,250,000

Total Reserves

483,942

877,756

319,866

1,456,383

531,473

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.10

0.26

0.10

0.21

0.08

Liquid Ratio

0.97

0.81

0.88

1.04

0.82

Current Ratio

1.02

1.09

0.99

1.11

0.98

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

2

3

3

1

5

Debtors Ratio

24

6

16

9

21

Creditors Ratio

4

1

2

0

2

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.26

0.24

2.48

1.25

2.09

Liabilities Ratio

2.36

1.61

3.00

1.47

2.54

Times Interest Earned Ratio

0.08

1.55

(0.10)

1.96

4.92

Assets Backing Ratio

1.14

1.25

1.08

1.34

1.13

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

(0.34)

0.30

(0.62)

0.56

1.42

Net Profit Margin

(0.34)

0.30

(0.63)

0.56

1.42

Return On Net Assets

0.86

40.13

(2.30)

33.21

53.60

Return On Capital Employed

0.86

32.45

(1.68)

24.05

36.19

Return On Shareholders' Funds/Equity

(9.96)

14.17

(26.15)

16.24

42.71

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.61.46

UK Pound

1

Rs.98.77

Euro

1

Rs.77.65

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

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.