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
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
|
|