MIRA INFORM REPORT

 

 

Report No. :

306524

Report Date :

02.02.2015

 

IDENTIFICATION DETAILS

 

Name :

VALENCY INTERNATIONAL TRADING PTE. LTD.

 

 

Registered Office :

10 Anson Road , 17-23 International Plaza, 079903

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

06.02.2007

 

 

Com. Reg. No.:

200702113-R

 

 

Legal Form :

Exempt Private Company

 

 

Line of Business :

·         Subject is an International Commodity Trading House

·         Subject has been trading in a Diversified Portfolio of Products such as, Agro & Consumer Goods (including Beans & Pulses, Cocoa Beans, Ground Nuts, Packaged Foods, Raw Cashew and Cashew Kernels, Rice, Sesame Seeds & Sugar), Sulphur & Fertilizers as well as Steel & Scrap

 

 

No of Employees :

20 [2014]

 

 

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 :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Singapore

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Singapore ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

200702113-R

COMPANY NAME

:

VALENCY INTERNATIONAL TRADING PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

06/02/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

10 ANSON ROAD , 17-23 INTERNATIONAL PLAZA, 079903, SINGAPORE.

BUSINESS ADDRESS

:

10 ANSON ROAD, #17-23 INTERNATIONAL PLAZA, 079903, SINGAPORE.

TEL.NO.

:

65-62236141

FAX.NO.

:

65-62234252

WEB SITE

:

WWW.VALENCYINTERNATIONAL.COM

CONTACT PERSON

:

PRAVEEN KUMAR JAIN ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

·         Subject is an International Commodity Trading House

·         Subject has been trading in a Diversified Portfolio of Products such as, Agro & Consumer Goods (Beans & Pulses, Cocoa Beans, Ground Nuts, Packaged Foods, Raw Cashew and Cashew Kernels, Rice, Sesame Seeds & Sugar), Sulphur & Fertilizers as well as Steel & Scrap

ISSUED AND PAID UP CAPITAL

:

1,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 10,000,000.00 

SALES

:

USD 441,500,048 [2012]

NET WORTH

:

USD 24,426,661 [2012]

STAFF STRENGTH

:

20 [2014]

BANKER (S)

:

BANK OF BARODA
BANK OF INDIA
HABIB BANK LTD
INDIAN BANK
OVERSEA-CHINESE BANKING CORPORATION LTD
RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
UCO BANK
UNITED OVERSEAS BANK LTD
SOCIETE GENERALE
STANDARD CHARTERED BANK

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

No Complaints 

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

 

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. 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, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

 

The Subject is principally engaged in the (as a / as an) trading of commodity products.

 

 

Share Capital History

Date

Issue & Paid Up Capital

04/12/2014

USD 10,000,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

PRAVEEN KUMAR JAIN +

110, TANJONG RHU ROAD, 05-05 CAMELOT BY-THE-WATER, 436928, SINGAPORE.

S2669189C

680,000.00

68.00

PRADEEP MAHESHWARI

187, TANJONG RHU ROAD, 14-07 SANCTUARY GREEN, 436925, SINGAPORE.

S7761157F

200,000.00

20.00

BASBA NAND BALODI

10B, HOUGANG STREET 11, 05-38 MINTON, THE, 534078, SINGAPORE.

S2706601A

120,000.00

12.00

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

------

1,000,000.00

100.00

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

=====

+ Also Director

 

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

Local No

Country

Company

(%)

As At

201114132E

SINGAPORE

VARDHMAN INVESTMENTS PTE. LTD.

90.00

31/03/2012

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

AJAIB HARI DASS

Address

:

17, JALAN INSAF, SINGAPORE 578013, SINGAPORE.

IC / PP No

:

S0889104D

Nationality

:

SINGAPOREAN

Date of Appointment

:

29/05/2007

 

DIRECTOR 2

Name Of Subject

:

SUNITA JAIN

Address

:

110, TANJONG RHU ROAD, 05-05 CAMELOT, 436928, SINGAPORE.

IC / PP No

:

S2669190G

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/09/2007

 

DIRECTOR 3

Name Of Subject

:

PRAVEEN KUMAR JAIN

Address

:

110, TANJONG RHU ROAD, 05-05 CAMELOT BY-THE-WATER, 436928, SINGAPORE.

IC / PP No

:

S2669189C

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/05/2007

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

PRAVEEN KUMAR JAIN

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

STAMFORD ASSOCIATES LLP

Auditor' Address

:

N/A

 

Auditor

:

STAMFORD ASSOCIATES LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

KOH HUI LIAK

IC / PP No

:

S0059247A

Address

:

842, SIMS AVENUE, 10-764, 400842, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK OF BARODA

 

2)

Name

:

BANK OF INDIA

 

3)

Name

:

HABIB BANK LTD

 

4)

Name

:

INDIAN BANK

 

5)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LTD

 

6)

Name

:

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

 

7)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

 

8)

Name

:

UCO BANK

 

9)

Name

:

UNITED OVERSEAS BANK LTD

 

10)

Name

:

SOCIETE GENERALE

 

11)

Name

:

STANDARD CHARTERED BANK

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200705104

03/07/2007

N/A

INDIAN BANK

-

Unsatisfied

C200709160

26/10/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200709161

26/10/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200808755

19/09/2008

N/A

HABIB BANK LTD

-

Unsatisfied

C200904685

29/07/2009

N/A

UCO BANK

-

Unsatisfied

C200904870

07/08/2009

N/A

OVERSEA-CHINESE BANKING CORPORATION LTD

-

Unsatisfied

C200904872

07/08/2009

N/A

OVERSEA-CHINESE BANKING CORPORATION LTD

-

Unsatisfied

C200905048

17/08/2009

N/A

INDIAN BANK

-

Unsatisfied

C200905589

04/09/2009

N/A

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

-

Unsatisfied

C200907736

25/11/2009

N/A

INDIAN BANK

-

Unsatisfied

C201000460

14/01/2010

N/A

CITIBANK N A

USD 200,000.00

Unsatisfied

C201002633

29/03/2010

N/A

INDIAN BANK

-

Unsatisfied

C201005709

06/07/2010

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

-

Unsatisfied

C201006029

15/07/2010

N/A

BANK OF BARODA

-

Unsatisfied

C201103495

21/03/2011

N/A

UNITED OVERSEAS BANK LTD

-

Unsatisfied

C201107554

22/06/2011

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

-

Unsatisfied

C201107784

28/06/2011

N/A

HABIB BANK LTD

-

Unsatisfied

C201107855

29/06/2011

N/A

HABIB BANK LTD

-

Unsatisfied

C201108569

14/07/2011

N/A

BANGKOK BANK PUBLIC CO LTD

-

Unsatisfied

C201110201

16/08/2011

N/A

BANGKOK BANK PUBLIC CO LTD

-

Unsatisfied

C201200866

18/01/2012

N/A

BANK OF INDIA

-

Unsatisfied

C201210599

18/09/2012

N/A

BANK OF BARODA

-

Unsatisfied

C201212892

08/11/2012

N/A

INDIAN BANK

-

Unsatisfied

C201301434

25/01/2013

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

C201301464

25/01/2013

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

C201302495

13/02/2013

N/A

SOCIETE GENERALE

-

Unsatisfied

C201302496

13/02/2013

N/A

SOCIETE GENERALE

-

Unsatisfied

C201304842

08/04/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201304847

08/04/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201315416

16/11/2013

N/A

INDIAN BANK

-

Unsatisfied

C201316290

06/12/2013

N/A

RHB BANK BERHAD

-

Unsatisfied

C201316294

06/12/2013

N/A

RHB BANK BERHAD

-

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

:

286

Year

:

2013

Place

:

SINGAPORE

Court

:

SESSIONS COURT

Date Filed

:

22/12/2014

Solicitor Ref

:

SRO/AL/201100569

Solicitor Firm

:

PREMIER LAW LLC

Plaintiff

:

ENDAEVOUR PTE LTD

Defendants

:

VALENCY INTERNATIONAL TRADING PTE. LTD. (200702113)

Remark

:

BANKING CREDIT AND SECURITY

 

No winding up petition was found in our databank

 

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

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

AFRICA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)



OPERATIONS

 

Goods Traded

:

COMMODITY PRODUCTS

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

2010

N/A

N/A

N/A

N/A

N/A

COMPANY

n/a

20

20

10

10

12

 

Branch

:

NO

 

Other Information:

The Subject is principally engaged in the (as a / as an) trading of commodity products. 

The Subject is a premier global commodity trading house having wide network in various continents.

Subject has been trading in a Diversified Portfolio of Products such as, Agro & Consumer Goods (including Beans & Pulses, Cocoa Beans, Ground Nuts, Packaged Foods, Raw Cashew and Cashew Kernels, Rice, Sesame Seeds & Sugar), Sulphur & Fertilizers as well as Steel & Scrap

 

 

CURRENT INVESTIGATION


Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62236141

Match

:

N/A

Address Provided by Client

:

10 ANSON ROAD, 17-23 INTERNATIONAL PLAZA,079903,SINGAPORE

Current Address

:

10 ANSON ROAD, #17-23 INTERNATIONAL PLAZA, 079903, SINGAPORE.

Match

:

YES

 

Other Investigations

we contacted one of the staff from the Subject and she provided some information.

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2009 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2012

]

Return on Shareholder Funds

:

Favourable

[

34.33%

]

Return on Net Assets

:

Favourable

[

50.16%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

0 Days

]

Debtor Ratio

:

Favourable

[

43 Days

]

Creditors Ratio

:

Favourable

[

2 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.27 Times

]

Current Ratio

:

Unfavourable

[

1.27 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

[

3.04 Times

]

Gearing Ratio

:

Favourable

[

0.60 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 :

Generally, the Subject's performance has improved with higher turnover and profit. 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 : FAIR

 

 

 

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)

(Source : Department of Statistics)



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 2007, the Subject is an Exempt Private company, focusing on trading of commodity products. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. A paid up capital of USD 10,000,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its director. 

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. 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. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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 24,426,661, 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. 

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.

VALENCY INTERNATIONAL TRADING PTE. LTD.

 

Financial Year End

2012-03-31

2011-03-31

2010-03-31

2009-03-31

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

TURNOVER

441,500,048

264,591,097

129,029,973

108,928,727

Other Income

275,895

4,343,035

76,571

-

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

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

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

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

Total Turnover

441,775,943

268,934,132

129,106,544

108,928,727

Costs of Goods Sold

(425,292,234)

(256,727,372)

(124,300,899)

(104,546,204)

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

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

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

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

Gross Profit

16,483,709

12,206,760

4,805,645

4,382,523

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

9,341,535

7,846,203

1,824,179

1,705,012

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

9,341,535

7,846,203

1,824,179

1,705,012

Taxation

(951,532)

(789,523)

(182,187)

(177,747)

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

8,390,003

7,056,680

1,641,992

1,527,265

Minority interests

(3,340)

-

-

-

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

8,386,663

7,056,680

1,641,992

1,527,265

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

8,386,663

7,056,680

1,641,992

1,527,265

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

11,036,649

3,985,894

2,343,902

757,878

Prior year adjustment

-

(5,925)

-

58,759

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

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

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

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

As restated

11,036,649

3,979,969

2,343,902

816,637

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

19,423,312

11,036,649

3,985,894

2,343,902

TRANSFER TO RESERVES - General

(2,500,000)

-

-

-

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

16,923,312

11,036,649

3,985,894

2,343,902

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

4,589,701

2,574,621

1,544,047

1,481,428

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

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

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

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

4,589,701

2,574,621

1,544,047

1,481,428

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

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

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

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

 

 

 

BALANCE SHEET

 

 

VALENCY INTERNATIONAL TRADING PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

2,761,707

2,875,505

46,194

71,349

Investment properties

1,445,148

-

-

-

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,445,148

-

-

-

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

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

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

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

TOTAL LONG TERM ASSETS

4,206,855

2,875,505

46,194

71,349

Stocks

122,175

-

-

-

Trade debtors

52,361,391

23,470,059

16,076,961

8,537,169

Other debtors, deposits & prepayments

50,009,522

32,643,989

6,277,679

2,456,112

Short term deposits

7,246,761

4,029,816

3,194,153

1,056,263

Cash & bank balances

1,854,825

546,465

837,781

505,334

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

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

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

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

TOTAL CURRENT ASSETS

111,594,674

60,690,329

26,386,574

12,554,878

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

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

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

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

TOTAL ASSET

115,801,529

63,565,834

26,432,768

12,626,227

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

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

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

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

CURRENT LIABILITIES

Trade creditors

2,869,914

1,236,946

4,692,003

272,545

Other creditors & accruals

1,486,695

23,278,755

410,412

107,003

Hire purchase & lease creditors

54,465

46,018

11,635

10,704

Bank overdraft

105,285

70,293

2,014

184,233

Short term borrowings/Term loans

829,957

777,416

679,963

464,820

Other borrowings

10,256,836

494,264

-

-

Bill & acceptances payable

71,373,450

16,731,765

9,677,548

3,165,810

Amounts owing to director

100,768

100,768

325,050

1,815,338

Provision for taxation

951,144

800,506

197,229

171,419

Other liabilities

-

1,261,889

644,942

504,787

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

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

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

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

TOTAL CURRENT LIABILITIES

88,028,514

44,798,620

16,640,796

6,696,659

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

23,566,160

15,891,709

9,745,778

5,858,219

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

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

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

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

TOTAL NET ASSETS

27,773,015

18,767,214

9,791,972

5,929,568

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

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

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

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

SHARE CAPITAL

Ordinary share capital

7,500,000

5,000,000

5,000,000

3,500,000

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

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

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

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

TOTAL SHARE CAPITAL

7,500,000

5,000,000

5,000,000

3,500,000

Retained profit/(loss) carried forward

16,923,312

11,036,649

3,985,894

2,343,902

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

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

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

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

TOTAL RESERVES

16,923,312

11,036,649

3,985,894

2,343,902

MINORITY INTEREST

3,349

-

-

-

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

24,426,661

16,036,649

8,985,894

5,843,902

Long term loans

2,977,069

2,385,005

722,950

-

Hire purchase creditors

369,418

346,081

74,593

79,338

Deferred taxation

(133)

(521)

8,535

6,328

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,346,354

2,730,565

806,078

85,666

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

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

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

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

27,773,015

18,767,214

9,791,972

5,929,568

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

VALENCY INTERNATIONAL TRADING PTE. LTD.

 

TYPES OF FUNDS

Cash

9,101,586

4,576,281

4,031,934

1,561,597

Net Liquid Funds

8,996,301

4,505,988

4,029,920

1,377,364

Net Liquid Assets

23,443,985

15,891,709

9,745,778

5,858,219

Net Current Assets/(Liabilities)

23,566,160

15,891,709

9,745,778

5,858,219

Net Tangible Assets

27,773,015

18,767,214

9,791,972

5,929,568

Net Monetary Assets

20,097,631

13,161,144

8,939,700

5,772,553

BALANCE SHEET ITEMS

Total Borrowings

14,593,030

4,119,077

1,491,155

739,095

Total Liabilities

91,374,868

47,529,185

17,446,874

6,782,325

Total Assets

115,801,529

63,565,834

26,432,768

12,626,227

Net Assets

27,773,015

18,767,214

9,791,972

5,929,568

Net Assets Backing

24,426,661

16,036,649

8,985,894

5,843,902

Shareholders' Funds

24,426,661

16,036,649

8,985,894

5,843,902

Total Share Capital

7,500,000

5,000,000

5,000,000

3,500,000

Total Reserves

16,923,312

11,036,649

3,985,894

2,343,902

LIQUIDITY (Times)

Cash Ratio

0.10

0.10

0.24

0.23

Liquid Ratio

1.27

1.35

1.59

1.87

Current Ratio

1.27

1.35

1.59

1.87

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

0

0

Debtors Ratio

43

32

45

29

Creditors Ratio

2

2

14

1

SOLVENCY RATIOS (Times)

Gearing Ratio

0.60

0.26

0.17

0.13

Liabilities Ratio

3.74

2.96

1.94

1.16

Times Interest Earned Ratio

3.04

4.05

2.18

2.15

Assets Backing Ratio

3.70

3.75

1.96

1.69

PERFORMANCE RATIO (%)

Operating Profit Margin

2.12

2.97

1.41

1.57

Net Profit Margin

1.90

2.67

1.27

1.40

Return On Net Assets

50.16

55.53

34.40

53.74

Return On Capital Employed

49.87

55.18

34.35

52.03

Return On Shareholders' Funds/Equity

34.33

44.00

18.27

26.13

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.88

UK Pound

1

Rs.93.27

Euro

1

Rs.69.94

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

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.