MIRA INFORM REPORT

 

 

Report No. :

356182

Report Date :

23.12.2015

 

IDENTIFICATION DETAILS

 

Name :

JUST OIL & GRAIN PTE LTD

 

 

Formerly Known As :

TOP GRAIN PTE LTD

 

 

Registered Office :

22 North Canal Road, 03-01, 048834

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

27.07.1995

 

 

Com. Reg. No.:

199505339-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of oil product and commodities.

 

 

No. of Employee :

18 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

Litigation :

--

 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Unemployment is very low. The economy depends heavily on exports, particularly of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

199505339-D

COMPANY NAME

:

JUST OIL & GRAIN PTE LTD

FORMER NAME

:

TOP GRAIN PTE LTD (12/12/2001)

INCORPORATION DATE

:

27/07/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

22, NORTH CANAL ROAD, 03-01, 048834, SINGAPORE.

BUSINESS ADDRESS

:

22 NORTH CANAL ROAD, 03-01, 048834, SINGAPORE.

TEL.NO.

:

65-62360880

FAX.NO.

:

65-65322218

CONTACT PERSON

:

PAUL ANTONY PARKINSON ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF OIL PRODUCT AND COMMODITIES

ISSUED AND PAID UP CAPITAL

:

14,461,320.00 ORDINARY SHARE, OF A VALUE OF SGD 14,461,320.00

SALES

:

USD 446,079,063 [2014]

NET WORTH

:

USD 8,129,250 [2014]

STAFF STRENGTH

:

18 [2015]

BANKER (S)

:

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.
DBS BANK LTD
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD
STANDARD CHARTERED BANK
RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT
UNITED OVERSEAS BANK LIMITED
RAIFFEISEN BANK INTERNATIONAL AG
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
PT BANK MANDIRI (PERSERO) TBK
HABIB BANK LIMITED

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

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 oil product and commodities.

 

The immediate holding company of the Subject is CHARLESTON HOLDINGS PTE LTD, a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

18/11/2015

SGD 14,461,320.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

CHARLESTON HOLDINGS PTE LTD

22, NORTH CANAL ROAD, 03-01 048834 ,SINGAPORE

198902810M

14,461,320.00

100.00

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

------

14,461,320.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

Status

(%)

As At

200715426M

SINGAPORE

SOLFUELS PTE. LTD.

-

68.00

18/11/2015

201529897M

SINGAPORE

ILLUVA RESOURCES PTE. LTD.

-

50.00

18/11/2015

201524460W

SINGAPORE

JUST AGRITRADE PTE. LTD.

-

50.00

18/11/2015

201329410H

SINGAPORE

JCOAL PTE. LTD.

-

50.00

18/11/2015

200904692Z

SINGAPORE

ST GREEN ENERGY PTE. LTD.

-

50.00

18/11/2015

201329420C

SINGAPORE

JTRACK PTE. LTD.

-

50.00

18/11/2015



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

PAUL ANTONY PARKINSON

Address

:

15, ROBIN ROAD, 11-02, FIFTEEN ROBIN, 258196, SINGAPORE.

IC / PP No

:

F2250572Q

Nationality

:

BRITISH

Date of Appointment

:

27/07/1995

 

DIRECTOR 2

 

Name Of Subject

:

LOU LEONG KOK

Address

:

8A, PATERSON HILL, 15-03, MARQ ON PATERSON HILL, 238568, SINGAPORE.

IC / PP No

:

S0128131C

Nationality

:

SINGAPOREAN

Date of Appointment

:

27/07/1995

 

DIRECTOR 3

 

Name Of Subject

:

AZAM ESSOF KOLIA

Address

:

24, LEEDON ROAD, 267845, SINGAPORE.

IC / PP No

:

S2588201F

Nationality

:

SINGAPOREAN

Date of Appointment

:

08/11/2005


MANAGEMENT

 

 

 

1)

Name of Subject

:

PAUL ANTONY PARKINSON

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

TONY OEI & COMPANY

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

GOH CHYE WAH

IC / PP No

:

S1641609F

Address

:

31, UPPER SERANGOON VIEW, 12-20, BOATHOUSE RESIDENCES, 534043, SINGAPORE.

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

 

2)

Name

:

DBS BANK LTD

 

3)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

 

4)

Name

:

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

 

5)

Name

:

STANDARD CHARTERED BANK

 

6)

Name

:

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

 

7)

Name

:

UNITED OVERSEAS BANK LIMITED

 

8)

Name

:

RAIFFEISEN BANK INTERNATIONAL AG

 

9)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

10)

Name

:

PT BANK MANDIRI (PERSERO) TBK

 

11)

Name

:

HABIB BANK LIMITED

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

200105624

16/11/2001

N/A

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

-

Unsatisfied

C200404943

06/10/2004

N/A

DBS BANK LTD.

-

Unsatisfied

C200604126

27/06/2006

N/A

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

-

Unsatisfied

C200702353

27/03/2007

N/A

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

-

Unsatisfied

C200800568

14/01/2008

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201007274

19/08/2010

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

C201008368

20/09/2010

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C201211471

05/10/2012

N/A

DBS BANK LTD.

-

Unsatisfied

C201212623

02/11/2012

N/A

DBS BANK LTD.

-

Unsatisfied

C201302156

05/02/2013

N/A

UNITED OVERSEAS BANK LIMITED

-

Unsatisfied

C201302160

05/02/2013

N/A

UNITED OVERSEAS BANK LIMITED

-

Unsatisfied

C201302201

06/02/2013

N/A

UNITED OVERSEAS BANK LIMITED

-

Unsatisfied

C201304040

19/03/2013

N/A

RAIFFEISEN BANK INTERNATIONAL AG

-

Unsatisfied

C201402891

19/03/2014

N/A

CIMB BANK BERHAD

-

Unsatisfied

C201402893

19/03/2014

N/A

CIMB BANK BERHAD

-

Unsatisfied

C201402894

19/03/2014

N/A

CIMB BANK BERHAD

-

Unsatisfied

C201510236

08/09/2015

N/A

PT BANK MANDIRI (PERSERO) TBK

-

Unsatisfied

C201510291

09/09/2015

N/A

PT BANK MANDIRI (PERSERO) TBK

-

Unsatisfied

C201511982

19/10/2015

N/A

RAIFFEISEN BANK INTERNATIONAL AG

-

Unsatisfied

C201513019

16/11/2015

N/A

HABIB BANK LIMITED

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

LEGAL ACTION

 

 

Code No

:

99

Case No

:

2026

Year

:

2006

Place

:

SINGAPORE

Court

:

DISTRICT COURT

Date Filed

:

06/06/2006

Solicitor

:

LOO DIP SENG

Solicitor Ref

:

LDS/2006-7728

Solicitor Firm

:

ANG & PARTNERS

Plaintiff

:

SIAM THANANYA MARINE CO LTD

Defendants

:

JUST OIL & GRAIN PTE LTD (199505339)

22 NORTH CANAL ROAD,03-01, 048834, SINGAPORE.

Hearing Date

:

N/A

Amount Claimed

:

57324

Nature of Claim

:

USD

Remark

:

CONTRACT-OTHERS

 

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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA PACIFIC

Credit Term

:

N/A

Payment Mode

:

N/A

 

 

OPERATIONS

 

Goods Traded

:

OIL PRODUCT AND COMMODITIES

 

Total Number of Employees:

 

YEAR

2015

2014

2012

GROUP

N/A

N/A

N/A

COMPANY

18

12

12

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of oil product and commodities.

The Subject is awarded the Global Trader Programme (GTP) status by the Government of Singapore (International Enterprise Singapore) in year 2005. GTP programme is awarded to companies which are well-established international players in their industry and responsible for internatioinal trading, procurement, distribution and transportation of qualifying commodities and products.

The Subject however refused to disclose further information on its operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62360880

Match

:

N/A

Address Provided by Client

:

22 NORTH CANAL ROAD, 03-01,048834,SINGAPORE

Current Address

:

22 NORTH CANAL ROAD, 03-01, 048834, SINGAPORE.

Match

:

YES

 

Other Investigations


On 21st December 2015 we contacted one of the staff from the Subject and she provided some information.

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

24.52%

]

Return on Net Assets

:

Favourable

[

38.89%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

8 Days

]

Creditors Ratio

:

Favourable

[

11 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

:

Favourable

[

1.38 Times

]

Current Ratio

:

Unfavourable

[

1.38 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Acceptable

[

3.60 Times

]

Gearing Ratio

:

Favourable

[

0.76 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. 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 recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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 : STRONG

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2010

2011

2012

2013

2014

 

Population (Million)

5.08

5.18

5.31

5.40

5.47

Gross Domestic Products ( % )

14.5

4.9

1.3

3.7

(3.5)

Consumer Price Index

2.8

5.2

4.6

2.4

2.4

Total Imports (Million)

423,221.8

459,655.1

474,554.0

466,762.0

463,779.1

Total Exports (Million)

478,840.7

514,741.2

510,329.0

513,391.0

518,922.7

 

Unemployment Rate (%)

2.2

2.1

2.0

1.9

1.9

Tourist Arrival (Million)

11.64

13.17

14.49

15.46

15.01

Hotel Occupancy Rate (%)

85.6

86.5

86.4

86.3

85.5

Cellular Phone Subscriber (Million)

1.43

1.50

1.52

1.97

1.98

 

Registration of New Companies (No.)

29,798

32,317

31,892

37,288

41,589

Registration of New Companies (%)

12.8

8.5

(1.3)

9.8

11.5

Liquidation of Companies (No.)

15,126

19,005

17,218

17,369

18,767

Liquidation of Companies (%)

(32.5)

25.6

9.4

(5.3)

8.0

 

Registration of New Businesses (No.)

23,978

23,494

24,788

22,893

35,773

Registration of New Businesses (%)

(10.78)

2.02

5.51

1.70

56.30

Liquidation of Businesses (No.)

24,211

23,005

22,489

22,598

22,098

Liquidation of Businesses (%)

2.8

(5)

(2.2)

0.5

(2.2)

 

Bankruptcy Orders (No.)

1,537

1,527

1,748

1,992

1,757

Bankruptcy Orders (%)

(25.3)

(0.7)

14.5

14.0

(11.8)

Bankruptcy Discharges (No.)

2,252

1,391

1,881

2,584

3,546

Bankruptcy Discharges (%)

(26.3)

(38.2)

35.2

37.4

37.2

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(10.5)

12.10

(0.5)

-

2.80

 

Manufacturing *

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

96.4

100.0

103.5

103.5

105.0

Textiles

122.1

100.0

104.0

87.1

74.9

Wearing Apparel

123.3

100.0

92.1

77.8

49.5

Leather Products & Footwear

81.8

100.0

98.6

109.8

95.9

Wood & Wood Products

104.0

100.0

95.5

107.4

112.0

Paper & Paper Products

106.1

100.0

97.4

103.2

103.4

Printing & Media

103.5

100.0

93.0

86.1

80.3

Crude Oil Refineries

95.6

100.0

99.4

93.5

85.6

Chemical & Chemical Products

97.6

100.0

100.5

104.1

114.0

Pharmaceutical Products

75.3

100.0

109.7

107.2

115.7

Rubber & Plastic Products

112.3

100.0

96.5

92.9

92.8

Non-metallic Mineral

92.5

100.0

98.2

97.6

82.2

Basic Metals

102.2

100.0

90.6

76.5

98.3

Fabricated Metal Products

103.6

100.0

104.3

105.1

105.1

Machinery & Equipment

78.5

100.0

112.9

114.5

124.0

Electrical Machinery

124.1

100.0

99.3

108.5

121.3

Electronic Components

113.6

100.0

90.6

94.3

95.0

Transport Equipment

94.0

100.0

106.3

107.5

103.2

 

Construction

14.20

20.50

28.70

-

22.00

Real Estate

21.3

25.4

31.9

-

145.1

 

Services

Electricity, Gas & Water

4.00

7.00

6.30

-

Transport, Storage & Communication

12.80

7.40

5.30

-

14.20

Finance & Insurance

(0.4)

8.90

0.50

-

6.00

Government Services

9.70

6.90

6.00

-

Education Services

(0.9)

(1.4)

0.30

-

5.98

 

* 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 1995, the Subject is a Private Limited company, focusing on trading of oil product and commodities. 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. The Subject have a strong capital position of SGD 14,461,320. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

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 18 employees. 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.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at a favourable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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 8,129,250, the Subject should be able to maintain its business in the near terms.

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

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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

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

USD

USD

USD

TURNOVER

446,079,063

668,536,130

562,905,418

701,455,307

479,023,230

Other Income

183,800

231,358

-

118,058

-

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

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

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

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

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

Total Turnover

446,262,863

668,767,488

562,905,418

701,573,365

479,023,230

Costs of Goods Sold

(439,593,527)

(660,800,473)

(557,785,876)

(695,468,033)

(473,078,797)

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

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

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

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

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

Gross Profit

6,669,336

7,967,015

5,119,542

6,105,332

5,944,433

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

2,362,945

3,849,930

2,943,382

2,136,169

3,030,404

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,362,945

3,849,930

2,943,382

2,136,169

3,030,404

Taxation

(370,000)

(479,288)

(277,335)

(245,027)

(341,157)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,992,945

3,370,642

2,666,047

1,891,142

2,689,247

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,936,753

1,866,111

1,470,064

1,578,922

889,675

Prior year adjustment

(1)

-

-

-

-

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

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

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

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

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

As restated

2,936,752

1,866,111

1,470,064

1,578,922

889,675

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,929,697

5,236,753

4,136,111

3,470,064

3,578,922

DIVIDENDS - Ordinary (paid & proposed)

(1,800,000)

(2,300,000)

(2,270,000)

(2,000,000)

(2,000,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,129,697

2,936,753

1,866,111

1,470,064

1,578,922

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

29,779

8,402

9,974

8,351

1,651

Hire purchase

6,203

4,358

2,181

-

-

Letter of credit

299,370

329,881

335,857

1,125,357

378,756

Trust receipts

572,291

743,863

880,771

1,564,537

1,153,182

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

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

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

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

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

907,643

1,086,504

1,228,783

2,698,245

1,533,589

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

123,513

48,608

48,608

-

-

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

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

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

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

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

123,513

48,608

48,608

-

-

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

396,838

145,824

194,432

-

-

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies

103,190

5,463,829

132,446

143,646

143,646

Associated companies

150,037

150,037

154,065

154,065

150,000

Investments

-

-

1,500,000

1,500,000

1,500,000

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

253,227

5,613,866

1,786,511

1,797,711

1,793,646

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

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

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

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

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

TOTAL LONG TERM ASSETS

650,065

5,759,690

1,980,943

1,797,711

1,793,646

Stocks

-

-

3,684,589

4,376,900

-

Trade debtors

10,273,957

41,232,574

21,292,823

17,096,746

22,741,087

Other debtors, deposits & prepayments

11,253,520

5,078,269

6,632,603

5,300,170

5,828,838

Short term deposits

1,000,000

-

3,000,000

20,600,000

-

Cash & bank balances

5,490,857

1,038,135

491,968

904,108

106,982

Others

-

5,920,586

4,728,997

12,641,334

-

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

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

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

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

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

TOTAL CURRENT ASSETS

28,018,334

53,269,564

39,830,980

60,919,258

28,676,907

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

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

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

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

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

TOTAL ASSET

28,668,399

59,029,254

41,811,923

62,716,969

30,470,553

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

13,502,833

28,639,964

6,825,845

5,608,884

15,745,515

Other creditors & accruals

445,178

373,922

452,144

701,739

813,891

Hire purchase & lease creditors

60,477

23,200

23,200

-

-

Bank overdraft

1,155,133

340,954

521,838

500,958

575,972

Short term borrowings/Term loans

-

-

-

20,000,000

-

Bill & acceptances payable

4,643,954

20,997,816

26,652,179

29,100,532

6,439,700

Amounts owing to director

-

-

-

100,000

-

Provision for taxation

450,028

543,380

274,000

235,239

317,000

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

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

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

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

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

TOTAL CURRENT LIABILITIES

20,257,603

50,919,236

34,749,206

56,247,352

23,892,078

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,760,731

2,350,328

5,081,774

4,671,906

4,784,829

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

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

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

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

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

TOTAL NET ASSETS

8,410,796

8,110,018

7,062,717

6,469,617

6,578,475

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,999,553

4,999,553

4,999,553

4,999,553

4,999,553

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

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

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

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

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

TOTAL SHARE CAPITAL

4,999,553

4,999,553

4,999,553

4,999,553

4,999,553

Retained profit/(loss) carried forward

3,129,697

2,936,753

1,866,111

1,470,064

1,578,922

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

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

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

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

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

TOTAL RESERVES

3,129,697

2,936,753

1,866,111

1,470,064

1,578,922

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

8,129,250

7,936,306

6,865,664

6,469,617

6,578,475

Hire purchase creditors

281,546

173,712

197,053

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

281,546

173,712

197,053

-

-

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

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

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

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

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

8,410,796

8,110,018

7,062,717

6,469,617

6,578,475

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

6,490,857

1,038,135

3,491,968

21,504,108

106,982

Net Liquid Funds

691,770

(20,300,635)

(23,682,049)

(8,097,382)

(6,908,690)

Net Liquid Assets

7,760,731

2,350,328

1,397,185

295,006

4,784,829

Net Current Assets/(Liabilities)

7,760,731

2,350,328

5,081,774

4,671,906

4,784,829

Net Tangible Assets

8,410,796

8,110,018

7,062,717

6,469,617

6,578,475

Net Monetary Assets

7,479,185

2,176,616

1,200,132

295,006

4,784,829

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

3,270,588

4,936,434

4,172,165

4,834,414

4,563,993

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

3,394,101

4,985,042

4,220,773

4,834,414

4,563,993

BALANCE SHEET ITEMS

Total Borrowings

6,141,110

21,535,682

27,394,270

49,601,490

7,015,672

Total Liabilities

20,539,149

51,092,948

34,946,259

56,247,352

23,892,078

Total Assets

28,668,399

59,029,254

41,811,923

62,716,969

30,470,553

Net Assets

8,410,796

8,110,018

7,062,717

6,469,617

6,578,475

Net Assets Backing

8,129,250

7,936,306

6,865,664

6,469,617

6,578,475

Shareholders' Funds

8,129,250

7,936,306

6,865,664

6,469,617

6,578,475

Total Share Capital

4,999,553

4,999,553

4,999,553

4,999,553

4,999,553

Total Reserves

3,129,697

2,936,753

1,866,111

1,470,064

1,578,922

LIQUIDITY (Times)

Cash Ratio

0.32

0.02

0.10

0.38

0

Liquid Ratio

1.38

1.05

1.04

1.01

1.20

Current Ratio

1.38

1.05

1.15

1.08

1.20

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

2

2

0

Debtors Ratio

8

23

14

9

17

Creditors Ratio

11

16

4

3

12

SOLVENCY RATIOS (Times)

Gearing Ratio

0.76

2.71

3.99

7.67

1.07

Liabilities Ratio

2.53

6.44

5.09

8.69

3.63

Times Interest Earned Ratio

3.60

4.54

3.40

1.79

2.98

Assets Backing Ratio

1.68

1.62

1.41

1.29

1.32

PERFORMANCE RATIO (%)

Operating Profit Margin

0.53

0.58

0.52

0.30

0.63

Net Profit Margin

0.45

0.50

0.47

0.27

0.56

Return On Net Assets

38.89

60.87

59.07

74.72

69.38

Return On Capital Employed

33.98

58.25

54.84

69.35

63.79

Return On Shareholders' Funds/Equity

24.52

42.47

38.83

29.23

40.88

Dividend Pay Out Ratio (Times)

0.90

0.68

0.85

1.06

0.74

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.30

UK Pound

1

Rs.98.71

Euro

1

Rs.72.33

USD

1

Rs.66.19

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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.