MIRA INFORM REPORT

 

 

Report No. :

356792

Report Date :

29.12.2015

 

IDENTIFICATION DETAILS

 

Name :

VITAL SOLUTIONS PTE LTD

 

 

Formerly Known As :

EPULPNPAPER PTE LTD

 

 

Registered Office :

77, Robinson Road, 21-01, Robinson 77, 068896

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

08.12.1999

 

 

Com. Reg. No.:

199907719-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading Of Paper, Building Materials.

 

 

No. of Employee :

40 [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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – 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.

:

199907719-D

COMPANY NAME

:

VITAL SOLUTIONS PTE LTD

FORMER NAME

:

EPULPNPAPER PTE LTD (30/06/2001)

INCORPORATION DATE

:

08/12/1999

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

77, ROBINSON ROAD, 21-01, ROBINSON 77, 068896, SINGAPORE.

BUSINESS ADDRESS

:

77, ROBINSON ROAD, 21-01, ROBINSON 77, 068896, SINGAPORE.

TEL.NO.

:

65-63259230

FAX.NO.

:

65-62211044

WEB SITE

:

WWW.VITAL.COM.SG

CONTACT PERSON

:

VARADARAJAN KRISHNAN ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF PAPER, BUILDING MATERIALS

ISSUED AND PAID UP CAPITAL

:

9,988,450.00 ORDINARY SHARE, OF A VALUE OF SGD 998,845.00
3,884,168.00 PREFERENCE SHARE, OF A VALUE OF SGD 13,792,111.80

SALES

:

USD 336,320,554 [2014]

NET WORTH

:

USD 37,815,059 [2014]

STAFF STRENGTH

:

40 [2015]

BANKER (S)

:

BNP PARIBAS
CITIBANK N.A.
DBS BANK LTD
INDIAN BANK
STANDARD CHARTERED BANK
CITIBANK BHD
THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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 paper, building materials.

 

Share Capital History

Date

Issue & Paid Up Capital

23/11/2015

SGD 14,790,956.80

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

LENSHERR UNIVERSAL S.A.
[PREFERENCE SGD969519 & ORDINARY SGD3604852]

PASEA ESTATE, ROAD TOWN TOTOLA VIRGIN ISLANDS, BRITISH

T04UF2150

4,574,371.00

32.97

VARADARAJAN KRISHNAN +

9, TANJONG RHU ROAD, 15-03, THE WATERSIDE, THE, 436894, SINGAPORE.

S2663619A

4,158,194.00

29.97

RAJIV DHAR +

9, TANJONG RHU ROAD, 12-03, THE WATERSIDE, THE, 436894, SINGAPORE.

S7078521H

4,158,193.00

29.97

INFOCOMM INVESTMENTS PTE LTD
[PREFERENCE SGD487805]

10, PASIR PANJANG ROAD, 10-01, MAPLETREE BUSINESS CITY 117438 ,SINGAPORE

199608120R

487,805.00

3.52

INTERNATIONAL FINANCE CORPORATION
[PREFERENCE SGD487805]

2121, PENNSYLVANIA AVENUE, N.W. WASHINGTON, D.C. 20433 UNITED STATES

T00UF0372

487,805.00

3.52

GIBSON KENNETH WILLIAM
[ORDINARY SGD6250]

JL BDN I 56-57, CILANDAK, JAKARTA SELATAN INDONESIA

E7059255

6,250.00

0.05

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

------

13,872,618.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

Status

(%)

As At

SINGAPORE

VITAL SOLUTIONS CO. LTD.

-

100.00

31/12/2014

SOUTH AFRICA

VITAL PAPERS (SOUTH AFRICA) PTY. LTD.

-

100.00

31/12/2014

VIRGIN ISLANDS, BRITISH

VIBRANT INDUSTRIES INC.

-

100.00

31/12/2014

INDIA

VITAL PAPER PRODUCTS PVT LTD

-

100.00

31/12/2014

NIGER

VITAL SOLUTIONS (NIGERIA) PTE. LTD.

-

100.00

31/12/2014

INDIA

VITAL PAPER INTERNATIONAL PVT. LTD.

-

98.62

31/12/2014

INDIA

VITAL PAPER INDIA PVT LTD

-

97.02

31/12/2014

AUSTRALIA

VITAL SOLUTIONS (AUST) PTY. LTD.

-

75.00

31/12/2014

GERMANY

VITAL PAPER GMBH

-

72.50

31/12/2014



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

DEVKISHAN SITALDAS VARYANI

Address

:

1366, WOODGREEN WAY HIGHGATE, DAINFEM JOHANNESBURG, SOUTH AFRICA.

IC / PP No

:

Z1422617

Nationality

:

INDIAN

Date of Appointment

:

29/12/1999

 

DIRECTOR 2

 

Name Of Subject

:

HANSON CHEAH

Address

:

FLAT A, BLOCK 17, PROVIDENT CENTRE, NORTH POINT, 23RD FLOOR, HONG KONG.

IC / PP No

:

A21488871

Nationality

:

MALAYSIAN

Date of Appointment

:

01/05/2002

 

DIRECTOR 3

 

Name Of Subject

:

RAJIV DHAR

Address

:

9, TANJONG RHU ROAD, 12-03, THE WATERSIDE, THE, 436894, SINGAPORE.

IC / PP No

:

S7078521H

Nationality

:

SINGAPOREAN

Date of Appointment

:

29/12/1999

Remark

:

PREFERENCE SGD969519NORDINARY SGD3188674

 

DIRECTOR 4

 

Name Of Subject

:

VARADARAJAN KRISHNAN

Address

:

9, TANJONG RHU ROAD, 15-03, THE WATERSIDE, THE, 436894, SINGAPORE.

IC / PP No

:

S2663619A

Nationality

:

SINGAPOREAN

Date of Appointment

:

13/12/1999

Remark

:

PREFERENCE SGD969520 ORDINARY SGD3188674 & ALTERNATE DIRECTOR TO DEVKISHAN SITALDAS VARYANI


MANAGEMENT

 

 

 

1)

Name of Subject

:

VARADARAJAN KRISHNAN

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

NEXIA TS PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LEE SOO CHYE

IC / PP No

:

S1660953F

Address

:

12, WEST COAST CRESCENT, 07-01, WESTCOVE CONDOMINIUM, 128042, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BNP PARIBAS

 

2)

Name

:

CITIBANK N.A.

 

3)

Name

:

DBS BANK LTD

 

4)

Name

:

INDIAN BANK

 

5)

Name

:

STANDARD CHARTERED BANK

 

6)

Name

:

CITIBANK BHD

 

7)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

 

8)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

200202660

14/06/2002

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

200205051

19/11/2002

N/A

BNP PARIBAS

-

Unsatisfied

200205052

19/11/2002

N/A

BNP PARIBAS

-

Unsatisfied

C200605573

21/08/2006

N/A

BNP PARIBAS

-

Unsatisfied

C200701267

14/02/2007

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C200701270

14/02/2007

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C200708456

08/10/2007

N/A

BNP PARIBAS

-

Unsatisfied

C200801803

19/02/2008

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200810381

18/11/2008

N/A

INDIAN BANK

-

Unsatisfied

C201001295

09/02/2010

N/A

CITIBANK N.A.

-

Unsatisfied

C201005797

09/07/2010

N/A

DBS BANK LTD.

-

Unsatisfied

C201010030

25/10/2010

N/A

DBS BANK LTD.

-

Unsatisfied

C201102935

09/03/2011

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

C201102968

10/03/2011

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

C201404340

30/04/2014

N/A

CITIBANK N.A.

-

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

:

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

Percentage

:

60%

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Percentage

:

40%

Export Market

:

SOUTH EAST ASIA

EUROPE

MIDDLE EAST

UNITED STATES

Credit Term

:

N/A

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)

 

 

OPERATIONS

 

Goods Traded

:

PAPER PRODUCT,BUILDING MATERIALS

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

40

40

45

40

40

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of paper, building materials.

The Subject offers two types of products which can be broadly categorized as Paper and Building Materials.

The Subject supplies the entire gambit of materials used in Building from Steel to Glass.

The Subject's products portfolio can be broadly categorized as below:

Newsprint
Coated Grades of paper
Uncoated Grades of paper
Packaging Paper
Specialities
Stationery
More Products...

Building Material:

The Subject offers quality building materials to the construction world. Its Building Materials Division (BMD) started in 2007. Within a short span of time it has gained confidence of customers from all over the world.

The building material that it supplies can be broadly categorized as below:

Iron & Steel
Glass & Mirror
Wood Products
Gypsum Products
Aluminium Composite Panel
More Products


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63259230

Match

:

N/A

Address Provided by Client

:

77 ROBINSON ROADS, NO.41-01, ROBINSON 77 SINGAPORE 068896

Current Address

:

77, ROBINSON ROAD, 21-01, ROBINSON 77, 068896, SINGAPORE.

Match

:

NO

 

Other Investigations


On 28th December 2015, we contacted one of the staff from the Subject and she provided some information.

The Subject had shifted from the address provided.

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

11.61%

]

Return on Net Assets

:

Acceptable

[

17.56%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

8 Days

]

Debtor Ratio

:

Unfavourable

[

82 Days

]

Creditors Ratio

:

Favourable

[

25 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

:

Favourable

[

1.45 Times

]

Current Ratio

:

Unfavourable

[

1.56 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

[

3.75 Times

]

Gearing Ratio

:

Acceptable

[

0.88 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.

Overall Assessment :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.

Overall financial condition of the Subject : FAIR

 

 

 

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 1999, the Subject is a Private Limited company, focusing on trading of paper, building materials. 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. With an issued and paid up capital of SGD 14,790,957 and strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is operating on a medium scale and it has approximately 40 employees in its business operations. 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.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the Subject was at an acceptable 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. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at USD 37,815,059, the Subject should be able to maintain its business in the near terms.

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

GROUP

GROUP

GROUP

GROUP

GROUP

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

336,320,554

318,906,416

257,277,838

289,608,488

262,261,430

Other Income

1,195,122

(230,102)

-

-

-

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

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

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

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

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

Total Turnover

337,515,676

318,676,314

257,277,838

289,608,488

262,261,430

Costs of Goods Sold

(318,053,867)

(297,874,230)

(239,845,699)

(270,572,605)

(245,682,350)

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

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

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

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

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

Gross Profit

19,461,809

20,802,084

17,432,139

19,035,883

16,579,080

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

5,074,096

6,640,741

4,240,103

6,746,648

5,273,388

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

2,782

(36)

-

-

-

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,076,878

6,640,705

4,240,103

6,746,648

5,273,388

Taxation

(674,818)

(707,077)

(474,985)

(944,275)

(672,567)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

4,402,060

5,933,628

3,765,118

5,802,373

4,600,821

Minority interests

(10,684)

20,965

131,490

288,221

158,582

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

4,391,376

5,954,593

3,896,608

6,090,594

4,759,403

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

4,391,376

5,954,593

3,896,608

6,090,594

4,759,403

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

24,454,587

20,143,899

17,917,554

13,914,160

10,669,540

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

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

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

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

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

As restated

24,454,587

20,143,899

17,917,554

13,914,160

10,669,540

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

28,845,963

26,098,492

21,814,162

20,004,754

15,428,943

DIVIDENDS - Ordinary (paid & proposed)

(1,860,318)

(1,643,905)

(1,670,263)

(2,087,200)

(1,514,783)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

26,985,645

24,454,587

20,143,899

17,917,554

13,914,160

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Lease interest

14,540

15,695

17,715

17,711

-

Term loan / Borrowing

82,566

87,281

92,444

119,671

-

Others

1,747,175

1,667,408

1,251,026

1,382,625

-

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

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

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

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

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

1,844,281

1,770,384

1,361,185

1,520,007

-

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

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

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

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

-

DEPRECIATION (as per notes to P&L)

315,759

166,727

134,441

135,951

74,936

AMORTIZATION

1,488

63,140

40,843

29,157

1,610

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

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

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

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

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

317,247

229,867

175,284

165,108

76,546

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

3,662,435

1,824,045

1,696,171

556,714

409,181

Associated companies

34,882

32,100

32,136

26,804

-

Deferred assets

55,725

53,863

-

-

-

Others

51,885

51,885

51,885

51,885

51,885

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

142,492

137,848

84,021

78,689

51,885

Computer software

7,437

-

63,140

-

29,157

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

7,437

-

63,140

-

29,157

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,812,364

1,961,893

1,843,332

635,403

490,223

Stocks

7,413,090

5,336,527

3,745,039

3,822,422

1,154,100

Trade debtors

75,161,539

85,848,738

74,328,970

62,244,338

67,312,130

Other debtors, deposits & prepayments

500,833

704,439

469,391

387,583

529,626

Short term deposits

6,396,436

6,259,155

6,048,782

5,618,748

5,241,811

Cash & bank balances

8,640,463

4,310,306

4,025,084

5,342,171

2,510,371

Others

760,720

47,167

17,663

1,165,903

530,052

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

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

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

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

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

TOTAL CURRENT ASSETS

98,873,081

102,506,332

88,634,929

78,581,165

77,278,090

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

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

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

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

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

TOTAL ASSET

102,685,445

104,468,225

90,478,261

79,216,568

77,768,313

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

21,554,251

18,882,151

16,405,683

15,547,476

18,034,762

Other creditors & accruals

9,373,864

7,739,515

6,695,592

7,542,621

8,761,883

Hire purchase & lease creditors

50,514

46,685

50,456

51,110

24,022

Bank overdraft

-

1,032,680

1,444,945

-

1,014,914

Short term borrowings/Term loans

-

-

-

-

19,202,295

Other borrowings

18,567,603

27,226,332

22,288,287

15,022,411

1,233,145

Bill & acceptances payable

13,034,592

12,123,644

11,419,704

10,886,953

2,882,889

Provision for taxation

630,332

804,620

508,749

664,075

691,417

Other liabilities

60,144

262,447

92,577

22,488

200,331

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

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

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

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

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

TOTAL CURRENT LIABILITIES

63,271,300

68,118,074

58,905,993

49,737,134

52,045,658

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

35,601,781

34,388,258

29,728,936

28,844,031

25,232,432

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

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

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

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

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

TOTAL NET ASSETS

39,414,145

36,350,151

31,572,268

29,479,434

25,722,655

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

11,454,315

11,454,315

11,454,315

11,454,315

11,454,315

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

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

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

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

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

TOTAL SHARE CAPITAL

11,454,315

11,454,315

11,454,315

11,454,315

11,454,315

Retained profit/(loss) carried forward

26,985,645

24,454,587

20,143,899

17,917,554

13,914,160

Others

(129,972)

9,589

276,983

243,525

258,563

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

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

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

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

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

TOTAL RESERVES

26,855,673

24,464,176

20,420,882

18,161,079

14,172,723

MINORITY INTEREST

(494,929)

(505,613)

(484,648)

(353,158)

(64,937)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

37,815,059

35,412,878

31,390,549

29,262,236

25,562,101

Long term loans

1,526,863

843,300

-

-

-

Lease obligations

72,223

93,973

135,450

168,563

-

Hire purchase creditors

-

-

-

-

120,251

Deferred taxation

-

-

46,269

48,635

40,303

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,599,086

937,273

181,719

217,198

160,554

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

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

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

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

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

39,414,145

36,350,151

31,572,268

29,479,434

25,722,655

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

15,036,899

10,569,461

10,073,866

10,960,919

7,752,182

Net Liquid Funds

2,002,307

(2,586,863)

(2,790,783)

73,966

3,854,379

Net Liquid Assets

28,188,691

29,051,731

25,983,897

25,021,609

24,078,332

Net Current Assets/(Liabilities)

35,601,781

34,388,258

29,728,936

28,844,031

25,232,432

Net Tangible Assets

39,406,708

36,350,151

31,509,128

29,479,434

25,693,498

Net Monetary Assets

26,589,605

28,114,458

25,802,178

24,804,411

23,917,778

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

6,921,159

8,411,089

5,601,288

8,266,655

5,273,388

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

7,238,406

8,640,956

5,776,572

8,431,763

5,349,934

BALANCE SHEET ITEMS

Total Borrowings

33,251,795

41,366,614

35,338,842

26,129,037

24,477,516

Total Liabilities

64,870,386

69,055,347

59,087,712

49,954,332

52,206,212

Total Assets

102,685,445

104,468,225

90,478,261

79,216,568

77,768,313

Net Assets

39,414,145

36,350,151

31,572,268

29,479,434

25,722,655

Net Assets Backing

37,815,059

35,412,878

31,390,549

29,262,236

25,562,101

Shareholders' Funds

37,815,059

35,412,878

31,390,549

29,262,236

25,562,101

Total Share Capital

11,454,315

11,454,315

11,454,315

11,454,315

11,454,315

Total Reserves

26,855,673

24,464,176

20,420,882

18,161,079

14,172,723

LIQUIDITY (Times)

Cash Ratio

0.24

0.16

0.17

0.22

0.15

Liquid Ratio

1.45

1.43

1.44

1.50

1.46

Current Ratio

1.56

1.50

1.50

1.58

1.48

WORKING CAPITAL CONTROL (Days)

Stock Ratio

8

6

5

5

2

Debtors Ratio

82

98

105

78

94

Creditors Ratio

25

23

25

21

27

SOLVENCY RATIOS (Times)

Gearing Ratio

0.88

1.17

1.13

0.89

0.96

Liabilities Ratio

1.72

1.95

1.88

1.71

2.04

Times Interest Earned Ratio

3.75

4.75

4.12

5.44

0

Assets Backing Ratio

3.44

3.17

2.75

2.57

2.24

PERFORMANCE RATIO (%)

Operating Profit Margin

1.51

2.08

1.65

2.33

2.01

Net Profit Margin

1.31

1.87

1.51

2.10

1.81

Return On Net Assets

17.56

23.14

17.74

28.04

20.50

Return On Capital Employed

17.76

22.78

17.16

28.33

19.73

Return On Shareholders' Funds/Equity

11.61

16.81

12.41

20.81

18.62

Dividend Pay Out Ratio (Times)

0.42

0.28

0.43

0.34

0.32

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.98.69

Euro

1

Rs.72.55

USD

1

Rs.66.37

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.