EXECUTIVE SUMMARY
|
REGISTRATION
NO.
|
:
|
201132066-R
|
|
COMPANY NAME
|
:
|
TATA
INTERNATIONAL SINGAPORE PTE. LIMITED
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION
DATE
|
:
|
01/11/2011
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE
LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
REGISTERED
ADDRESS
|
:
|
22, TANJONG
KLING ROAD, 628048, SINGAPORE.
|
|
BUSINESS
ADDRESS
|
:
|
22, TANJONG
KLING ROAD, 628048, SINGAPORE.
|
|
TEL.NO.
|
:
|
65-62651233
|
|
FAX.NO.
|
:
|
65-62658317
|
|
WEB SITE
|
:
|
WWW.TATAINTERNATIONAL.COM
|
|
CONTACT PERSON
|
:
|
ANIRUDDHA BANERJEE
( DIRECTOR )
|
|
|
|
|
|
|
|
PRINCIPAL
ACTIVITY
|
:
|
TRADING OF
LEATHER, MINERAL, METAL
|
|
|
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
14,100,000.00
ORDINARY SHARE, OF A VALUE OF USD 14,100,000.00
|
|
|
|
|
SALES
|
:
|
USD
887,964,662 [2014]
|
|
NET WORTH
|
:
|
USD 54,849,919
[2014]
|
|
|
|
|
STAFF STRENGTH
|
:
|
10 [2015]
|
|
BANKER (S)
|
:
|
|
STANDARD
CHARTERED BANK
ABN AMRO BANK N.V.
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL
CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
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 leather, mineral, metal.
The immediate holding company of the
Subject is TATA INTERNATIONAL LIMITED, a company incorporated in INDIA.
Share Capital
History
|
Date
|
Issue &
Paid Up Capital
|
|
27/02/2015
|
USD
14,100,000.00
|
The major shareholder(s) of the Subject
are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
TATA
INTERNATIONAL LIMITED
|
BLOCK A,
SHIVSAGAR ESTATES, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, 400018, INDIA.
|
T12UF1693
|
14,100,000.00
|
100.00
|
|
|
|
---------------
|
------
|
|
|
|
14,100,000.00
|
100.00
|
|
|
|
============
|
=====
|
+ Also Director
The Subject's interest in other companies
(Subsidiaries/Associates) are shown as follow :
Local No
|
Country
|
Company
|
(%)
|
As At
|
|
UNITED KINGDOM
|
TATA STEEL
INTERNATIONAL UK LIMITED
|
100.00
|
31/03/2013
|
|
|
|
|
|
|
UNITED STATES
|
TATA STEEL
INTERNATIONAL NORTH AMERICA INC
|
100.00
|
31/03/2013
|
|
|
|
|
|
|
HONG KONG
|
TATA STEEL INTERNATIONAL
HONG KONG LIMITED
|
100.00
|
31/03/2013
|
|
|
|
|
|
DIRECTORS
DIRECTOR 1
|
Name Of
Subject
|
:
|
AJAY MURLIDHAR
PONKSHE
|
|
Address
|
:
|
3, YASHODHAN,
SAHAYOG MANDIR ROAD, NAUPADA, THANE, 400602, INDIA.
|
|
IC / PP No
|
:
|
H8165619
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of
Appointment
|
:
|
01/11/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of
Subject
|
:
|
ANIRUDDHA
BANERJEE
|
|
Address
|
:
|
75, MEYER
ROAD, 10-01, HAWAII TOWER, 437901, SINGAPORE.
|
|
IC / PP No
|
:
|
G5803929U
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of
Appointment
|
:
|
01/11/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of
Subject
|
:
|
ARUN KUMAR
VORA
|
|
Address
|
:
|
S-2, ORCHID APARTMENTS,
161, 5TH MAIN, DEFENCE COLONY, INDIRANAGAR, BANGALORE, 2ND FLOOR, 560038,
INDIA.
|
|
IC / PP No
|
:
|
G8038934
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of
Appointment
|
:
|
25/09/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of
Subject
|
:
|
NOEL TATA
|
|
Address
|
:
|
WINDMERE,
CUFFE PARADE, COLABA, MUMBAI, 5TH FLOOR, 400005, INDIA.
|
|
IC / PP No
|
:
|
LT0076205
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
IRISH
|
|
Date of
Appointment
|
:
|
25/09/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of
Subject
|
:
|
RAVINDRA
PISHARODY
|
|
Address
|
:
|
9, BUILDING 1,
HILL PARK ESTATE, AG BELL ROAD, MUMBAI, 400006, INDIA.
|
|
IC / PP No
|
:
|
Z2340297
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of
Appointment
|
:
|
25/09/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 6
|
Name Of
Subject
|
:
|
KOTTAMASU
VENKATESWARA RAO
|
|
Address
|
:
|
45, MANDALAY
ROAD, 17-01, MANDALE HEIGHTS, 308225, SINGAPORE.
|
|
IC / PP No
|
:
|
S2674660D
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of
Appointment
|
:
|
22/04/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of
Subject
|
:
|
ANIRUDDHA
BANERJEE
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
DELOITTE &
TOUCHE LLP
|
|
Auditor'
Address
|
:
|
N/A
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company
Secretary
|
:
|
TAY TUAN LENG
|
|
IC / PP No
|
:
|
S7432140B
|
|
|
|
|
|
Address
|
:
|
635, PASIR RIS
DRIVE, 1, 11-600, 510635, SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
LEE WEI HSIUNG
|
|
IC / PP No
|
:
|
S7927166G
|
|
|
|
|
|
Address
|
:
|
633, JURONG
WEST STREET, 65, 10-310, 640633, SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
STANDARD
CHARTERED BANK
|
|
|
|
|
|
|
|
|
|
2)
|
Name
|
:
|
ABN AMRO BANK
N.V.
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge
Description
|
Chargee Name
|
Total Charge
|
Status
|
|
C201213345
|
19/11/2012
|
N/A
|
ICICI BANK
LIMITED
|
-
|
Unsatisfied
|
|
C201300973
|
18/01/2013
|
N/A
|
STANDARD
CHARTERED BANK
|
-
|
Unsatisfied
|
|
C201300999
|
18/01/2013
|
N/A
|
STANDARD
CHARTERED BANK
|
-
|
Unsatisfied
|
|
C201303322
|
01/03/2013
|
N/A
|
STANDARD
CHARTERED BANK
|
-
|
Unsatisfied
|
|
C201403437
|
03/04/2014
|
N/A
|
ABN AMRO BANK
N.V.
|
-
|
Unsatisfied
|
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
|
:
|
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
|
:
|
ASIA
|
|
Credit Term
|
:
|
N/A
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Total Number
of Employees:
|
|
YEAR
|
2015
|
2014
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
10
|
10
|
|
|
|
|
|
|
|
Other
Information:
The Subject is principally engaged in the (as a / as an) trading of leather,
mineral, metal.
The Key products offered by the Subject are including steel, metallics and
rolls, products for the aluminium industry (customised engineering products)
and module mounting systems (solar).
CURRENT INVESTIGATION
Latest fresh investigations carried out on
the Subject indicated that :
|
Telephone
Number Provided By Client
|
:
|
N/A
|
|
Current
Telephone Number
|
:
|
65-62651233
|
|
Match
|
:
|
N/A
|
|
|
|
|
Address
Provided by Client
|
:
|
N/A
|
|
Current
Address
|
:
|
22, TANJONG
KLING ROAD, 628048, SINGAPORE.
|
|
Match
|
:
|
N/A
|
|
|
|
Other
Investigations
On 26th February 2015 we contacted one of the staff from the Subject and she
provided some information.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
253.50%
|
]
|
|
|
Profit/(Loss)
Before Tax
|
:
|
Decreased
|
[
|
(214.79%)
|
]
|
|
|
Return on
Shareholder Funds
|
:
|
Unfavourable
|
[
|
6.75%
|
]
|
|
|
Return on Net
Assets
|
:
|
Unfavourable
|
[
|
8.22%
|
]
|
|
|
|
|
|
|
|
|
|
The increase
in turnover could be due to the Subject adopting an aggressive marketing
strategy.The management had succeeded in turning the Subject into a profit
making company. The profit could be due to better control of its operating costs
and efficiency in utilising its resources. The unfavourable return on
shareholders' funds could indicate that the Subject was inefficient in
utilising its assets to generate returns.
|
|
|
|
|
|
|
|
|
Working
Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
30 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
85 Days
|
]
|
|
|
Creditors
Ratio
|
:
|
Favourable
|
[
|
40 Days
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's stocks
were moving fast thus reducing its holding cost. This had reduced funds
being tied up in stocks. The high debtors' ratio could indicate that the
Subject was weak in its credit control. However, the Subject could also
giving longer credit periods to its customers in order to boost its sales
or to capture / retain its market share. The Subject had a favourable
creditors' ratio where the Subject could be taking advantage of the cash
discounts and also wanting to maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Acceptable
|
[
|
0.86 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.12 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
|
[
|
1.35 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
4.32 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 higher
turnover had helped to reduce the Subject's losses. 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'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 : 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 sectors have expanded by 2.0% in the third quarter of
2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the
wholesale and retail sector expanded by 5.0%, after declining by 1.4% the
year before. Growth of the sector was driven by the wholesale trade
segment.
|
|
|
The domestic
wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating
from the 6.6% growth in the previous quarter. The slower growth was due to
a decline in the sales of furniture and household equipment (-12%) and
petroleum and petroleum products (-0.6%). For the full year, the domestic
wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On
the other hand, the foreign wholesale trade index has increased by a slower
pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the
preceding quarter. The slowdown was due to a fall in the sales of
telecommunication equipment and computer (-3.8%) and petroleum and
petroleum products (-2.5%). For the full year, the growth of the foreign
wholesale trade index moderated slightly to 8.6% from 9.1% in the previous
year.
|
|
|
In the fourth
quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6%
decline in the previous quarter. Excluding motor vehicles, retail sales
volume increased by 0.4%, a slower pace of expansion as compared to the
1.6% gain in the preceding quarter. The sales volume of motor vehicles fell
by 33% in the fourth quarter of 2013, extending the 32% decline in the
previous quarter. Meanwhile, the sales of several discretionary items also
fell in the fourth quarter of 2013. For instance, the sales of
telecommunications apparatus and computers fell by 12%, while the sales of
furniture and household equipment declined by 5.4%.
|
|
|
For the full
year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion
in 2012. Excluding motor vehicle sales, the retail sales volume grew by
1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery
recorded the largest increase (11%) in sales in 2013, followed by optical
goods and book (3%) and medical goods and toiletries (3%). By contrast, the
sales of telecommunications apparatus and computer (-7.3%), furniture and
household equipment (-4.2%) and petrol service stations (-1.4) declined in
2013.
|
|
|
|
OVERALL
INDUSTRY OUTLOOK : AVERAGE GROWTH
|
CREDIT RISK EVALUATION
& RECOMMENDATION
|
Incorporated in 2011, the Subject is a Private Limited company, focusing on
trading of leather, mineral, metal. The Subject has been in business for less
than 5 years and it has slowly been building up contact with its clients
while competing in the industry. However, it has yet to enjoy a stable
market shares as it need to compete many well established players in the
same field. With an issued and paid up capital of USD 14,100,000 and strong
shareholders' backing, the Subject has the ability to further expand its
business in the future.
From the investigation revealed, 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.
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.
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. The high gearing
ratio clearly implied that the Subject was supported by more debt than
equity. Thus, the Subject is exposed to high financial risk. Given a positive
net worth standing at USD 54,849,919, the Subject should be able to
maintain its business in the near terms.
Having a strong assets backing, the Subject possesses latent assets as
collateral for further financial extension. Hence, it has good chance of
getting loans if the needs arises. The Subject's supplier are from both the
local and overseas countries. This will eliminates the risk of dependency
on deliveries from a number of key suppliers and insufficient quantities of
its raw materials. Overall the Subject has a good control over its
resources.
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
|
2014-03-31
|
2013-03-31
|
2012-03-31
|
|
Months
|
12
|
12
|
12
|
|
Consolidated
Account
|
GROUP
|
GROUP
|
Company
|
|
Audited
Account
|
YES
|
YES
|
YES
|
|
Unqualified
Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
|
Currency
|
USD
|
USD
|
USD
|
|
|
|
|
|
TURNOVER
|
887,964,662
|
251,193,253
|
386,335
|
|
Other Income
|
8,235,206
|
786,980
|
-
|
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
896,199,868
|
251,980,233
|
386,335
|
|
Costs of Goods
Sold
|
(818,281,041)
|
(234,260,883)
|
(343,746)
|
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
77,918,827
|
17,719,350
|
42,589
|
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
PROFIT/(LOSS)
FROM OPERATIONS
|
2,582,230
|
(2,249,497)
|
(44,610)
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE
TAXATION
|
2,582,230
|
(2,249,497)
|
(44,610)
|
|
Taxation
|
1,118,449
|
(262,137)
|
-
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS)
AFTER TAXATION
|
3,700,679
|
(2,511,634)
|
(44,610)
|
|
----------------
|
----------------
|
----------------
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
As previously
reported
|
(2,556,244)
|
(44,610)
|
-
|
|
----------------
|
----------------
|
----------------
|
|
As restated
|
(2,556,244)
|
(44,610)
|
-
|
|
----------------
|
----------------
|
----------------
|
|
PROFIT
AVAILABLE FOR APPROPRIATIONS
|
1,144,435
|
(2,556,244)
|
(44,610)
|
|
----------------
|
----------------
|
----------------
|
|
RETAINED
PROFIT/(LOSS) CARRIED FORWARD
|
1,144,435
|
(2,556,244)
|
(44,610)
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
INTEREST
EXPENSE (as per notes to P&L)
|
|
|
|
|
Term loan /
Borrowing
|
4,664,011
|
915,957
|
-
|
|
Others
|
2,653,654
|
450,423
|
-
|
|
----------------
|
----------------
|
----------------
|
|
7,317,665
|
1,366,380
|
-
|
|
=============
|
=============
|
|
BALANCE SHEET
|
ASSETS
EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
66,490
|
119,252
|
-
|
|
|
|
|
|
Deferred
assets
|
1,379,342
|
216,950
|
-
|
|
Others
|
85,534,621
|
600,000
|
-
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS
|
86,913,963
|
816,950
|
-
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG
TERM ASSETS
|
86,980,453
|
936,202
|
-
|
|
|
|
|
|
Stocks
|
72,517,866
|
26,982,958
|
-
|
|
Trade debtors
|
205,724,367
|
60,376,469
|
22,459
|
|
Other debtors,
deposits & prepayments
|
17,361,527
|
8,364,320
|
-
|
|
Cash &
bank balances
|
8,984,033
|
57,272,104
|
96,968
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT
ASSETS
|
304,587,793
|
152,995,851
|
119,427
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
391,568,246
|
153,932,053
|
119,427
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Trade
creditors
|
88,881,121
|
55,670,526
|
-
|
|
Other
creditors & accruals
|
10,825,013
|
11,066,953
|
55,904
|
|
Short term
borrowings/Term loans
|
171,472,629
|
45,142,711
|
-
|
|
Amounts owing
to related companies
|
-
|
-
|
8,133
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT
LIABILITIES
|
271,178,763
|
111,880,190
|
64,037
|
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
33,409,030
|
41,115,661
|
55,390
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET
ASSETS
|
120,389,483
|
42,051,863
|
55,390
|
|
=============
|
=============
|
=============
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share
capital
|
14,100,000
|
14,100,000
|
100,000
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE
CAPITAL
|
14,100,000
|
14,100,000
|
100,000
|
|
|
|
|
|
Exchange
equalisation/fluctuation reserve
|
911,571
|
(1,043,154)
|
-
|
|
Retained
profit/(loss) carried forward
|
1,144,435
|
(2,556,244)
|
(44,610)
|
|
Others
|
38,693,913
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
40,749,919
|
(3,599,398)
|
(44,610)
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS'
FUNDS/EQUITY
|
54,849,919
|
10,500,602
|
55,390
|
|
|
|
|
|
Long term
loans
|
65,509,000
|
31,551,261
|
-
|
|
Others
|
30,564
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG
TERM LIABILITIES
|
65,539,564
|
31,551,261
|
-
|
|
----------------
|
----------------
|
----------------
|
|
120,389,483
|
42,051,863
|
55,390
|
|
=============
|
=============
|
=============
|
|
|
|
|
FINANCIAL RATIO
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
8,984,033
|
57,272,104
|
96,968
|
|
Net Liquid
Funds
|
8,984,033
|
57,272,104
|
96,968
|
|
Net Liquid
Assets
|
(39,108,836)
|
14,132,703
|
55,390
|
|
Net Current
Assets/(Liabilities)
|
33,409,030
|
41,115,661
|
55,390
|
|
Net Tangible
Assets
|
120,389,483
|
42,051,863
|
55,390
|
|
Net Monetary
Assets
|
(104,648,400)
|
(17,418,558)
|
55,390
|
|
BALANCE SHEET
ITEMS
|
|
|
|
|
Total
Borrowings
|
236,981,629
|
76,693,972
|
0
|
|
Total
Liabilities
|
336,718,327
|
143,431,451
|
64,037
|
|
Total Assets
|
391,568,246
|
153,932,053
|
119,427
|
|
Net Assets
|
120,389,483
|
42,051,863
|
55,390
|
|
Net Assets
Backing
|
54,849,919
|
10,500,602
|
55,390
|
|
Shareholders'
Funds
|
54,849,919
|
10,500,602
|
55,390
|
|
Total Share
Capital
|
14,100,000
|
14,100,000
|
100,000
|
|
Total Reserves
|
40,749,919
|
(3,599,398)
|
(44,610)
|
|
LIQUIDITY
(Times)
|
|
|
|
|
Cash Ratio
|
0.03
|
0.51
|
1.51
|
|
Liquid Ratio
|
0.86
|
1.13
|
1.86
|
|
Current Ratio
|
1.12
|
1.37
|
1.86
|
|
WORKING CAPITAL
CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
30
|
39
|
0
|
|
Debtors Ratio
|
85
|
88
|
21
|
|
Creditors
Ratio
|
40
|
87
|
0
|
|
SOLVENCY
RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
4.32
|
7.30
|
0.00
|
|
Liabilities
Ratio
|
6.14
|
13.66
|
1.16
|
|
Times Interest
Earned Ratio
|
1.35
|
(0.65)
|
0.00
|
|
Assets Backing
Ratio
|
8.54
|
2.98
|
0.55
|
|
PERFORMANCE
RATIO (%)
|
|
|
|
|
Operating
Profit Margin
|
0.29
|
(0.90)
|
(11.55)
|
|
Net Profit
Margin
|
0.42
|
(1.00)
|
(11.55)
|
|
Return On Net
Assets
|
8.22
|
(2.10)
|
(80.54)
|
|
Return On
Capital Employed
|
8.22
|
(2.10)
|
(80.54)
|
|
Return On
Shareholders' Funds/Equity
|
6.75
|
(23.92)
|
(80.54)
|
|
Dividend Pay
Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
|
NOTES TO
ACCOUNTS
|
|
|
|
|
Contingent
Liabilities
|
0
|
0
|
0
|
|