MIRA INFORM REPORT

Report No. :	308003
Report Date :	18.02.2015

IDENTIFICATION DETAILS

Name :	PERMASTEELISA PACIFIC HOLDINGS LTD.
Formerly Known As :	PERMASTEELISA PACIFIC PTE LTD
Registered Office :	2, International Business Park, 11-11, The Strategy, 609930
Country :	Singapore
Financials (as on) :	31.12.2013
Date of Incorporation :	07.04.1990
Com. Reg. No.:	199001653-D
Legal Form :	Public (Limited By Share)
Line of Business :	· engaged as an engineering and construction.  · Engaged in Designing, Fabrication, Supply and installation of Architectural Exterior Facades (Curtain Wall) and Internal Partition systems for both Commercial and Residential Buildings.
No of Employees :	150 [2015]

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but Correct
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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.

:

199001653-D

COMPANY NAME

:

PERMASTEELISA PACIFIC HOLDINGS LTD.

FORMER NAME

:

PERMASTEELISA PACIFIC PTE LTD (20/09/1997)
PERMASTEEL-ISA (PACIFIC) PTE LTD (01/10/1991)

INCORPORATION DATE

:

07/04/1990

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

2, INTERNATIONAL BUSINESS PARK, 11-11, THE STRATEGY, 609930, SINGAPORE.

BUSINESS ADDRESS

:

2 INTERNATIONAL BUSINESS PARK #11-11 TOWER 1 THE STRATEGY, 609930, SINGAPORE.

TEL.NO.

:

65-68614733

FAX.NO.

:

65-68612527

WEB SITE

:

WWW.PERMASTEELISAGROUP.COM

CONTACT PERSON

:

HUBERTUS JOHANNES MARINUS VAN DER STAAK ( CEO )

PRINCIPAL ACTIVITY

:

ENGINEERING AND CONSTRUCTION

ISSUED AND PAID UP CAPITAL

:

309,418,000.00 ORDINARY SHARE, OF A VALUE OF SGD 75,380,800.00 

SALES

:

SGD 82,856,483 [2013]

NET WORTH

:

SGD 75,569,143 [2013]

STAFF STRENGTH

:

150 [2015]

BANKER (S)

:

DBS BANK LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

Slow but Correct

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) engineering and construction.

The ultimate holding company of the Subject is LIXIL GROUP CORPORATION, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
17/02/2015	SGD 75,380,800.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
CHOO YEAN GEOK @ LEE YEAN GEOK	342, CHOA CHU KANG LOOP, 12 - 31, 680342, SINGAPORE.	S0357051G	40,000.00	0.01
WONG KHEI LUUN	342, CHOA CHU KANG LOOP, 12-31, 680342, SINGAPORE.	S6825604F	21,000.00	0.01
CHIA HUI TECK	31, EAST COAST TERRACE, 458941, SINGAPORE.	S0672751D	20,000.00	0.01
ANNE WAT LAI YOKE	10, LORONG 7, TOA PAYOH, 25-209, 310010, SINGAPORE.	S7111378G	15,000.00	0.00
SUBIR RANJAN DASGUPTA	1, PECK HAY ROAD, 12-03, CASA CAIRNHLL, 228305, SINGAPORE.	S26595087H	10,000.00	0.00
OON SOON TECK	145, SERANGOON AVENUE, 3, 09-08, THE SPRINGBLOOM, 556122, SINGAPORE.	S1600605Z	10,000.00	0.00
LEE AH LENG	38, LORONG 5, TOA PAYOH, 10-467, 310038, SINGAPORE.	S0898996F	10,000.00	0.00
SIM SENG LEE	726, TAMPINES STREET, 71, 11-185, 520726, SINGAPORE.	S6941496F	5,000.00	0.00
ONG BENG YEOW	46, PAVILLION PLACE, 658382, SINGAPORE.	S6974613F	1,000.00	0.00
REMAINING SHAREHOLDERS	-	-	309,286,000.00	99.96
			---------------	------
			309,418,000.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	(%)	As At
	HONG KONG	GARTNER CONTRACTING CO., LIMITED	100.00	31/12/2012
	HONG KONG	JOSEF GARTNER & CO (HK) LIMITED	100.00	31/12/2012
	THAILAND	GLOBAL ARCHITECTURAL CO., LTD.	100.00	31/12/2012
	AUSTRALIA	PERMASTEELISA (VICTORIA) PTY. LTD	100.00	31/12/2012
	CHINA	DONGGUAN PERMASTEELISA CURTAIN WALL CO., LTD.	100.00	31/12/2012
	MONGOLIA	PERMASTEELISA MONGLIA LLC	100.00	31/12/2012
	CHINA	JOSEF GARTNAR CURTAIN WALL (SUZHOU) CO LTD	100.00	31/12/2012
	PHILIPPINES	PERMASTEELISA PHILIPPINES INC.	99.99	31/12/2012
	TAIWAN	PERMASTEELISA TAIWAN LTD	99.99	31/12/2012
	JAPAN	PERMASTEELISA JAPAN K.K.	99.80	31/12/2012
	MACAU	PERMASTEELISA MACAU LTD.	99.00	31/12/2012
	HONG KONG	PERMASTEELISA MACAU LTD.	99.00	31/12/2012
	MACAU	JOSEF GARTNER (MACAU) LIMITED	96.00	31/12/2012
	INDIA	PERMASTEELISA (INDIA) PRIVATE LIMITED	76.00	31/12/2012
373288V	MALAYSIA	GLOBAL WALL (MALAYSIA) SDN. BHD.	70.00	31/12/2012
	AUSTRALIA	PERMASTEELISA PTY. LIMITED	54.00	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	ELISABETTA FLOCCARI
Address	:	VIA PIANALE, 1/C - 31020, SAN PIETRO DI FELETTO (TV), ITALY.
IC / PP No	:	AA2428612
Nationality	:	ITALIAN
Date of Appointment	:	25/11/2013

DIRECTOR 2

Name Of Subject	:	DANIELE CROSE
Address	:	VIALE DON LUIGI, STURZO, 15-31050, CARPENEDO (VE), ITALY.
IC / PP No	:	F 534382
Nationality	:	ITALIAN
Date of Appointment	:	25/11/2013

DIRECTOR 3

Name Of Subject	:	HUBERTUS JOHANNES MARINUS VAN DER STAAK
Address	:	58, MOUNT SINAI DRIVE, MOUNT SINAI, 277111, SINGAPORE.
IC / PP No	:	S27675231
Nationality	:	SINGAPOREAN
Date of Appointment	:	20/12/2006

DIRECTOR 4

Name Of Subject	:	ALESSIO MELIADO
Address	:	97, ROBERTSON QUAY, 26-08, RIVERGATE, 238257, SINGAPORE.
IC / PP No	:	G3078463X
Nationality	:	ITALIAN
Date of Appointment	:	28/10/2014

DIRECTOR 5

Name Of Subject	:	KLAUS ERNST LOTHER
Address	:	GEORG-WEINHART-STRASSE 16, GUNDELFINGEN, GERMANY.
IC / PP No	:	9289052685
Nationality	:	GERMAN
Date of Appointment	:	25/02/2015

MANAGEMENT

1)	Name of Subject	:	HUBERTUS JOHANNES MARINUS VAN DER STAAK
	Position	:	CEO

AUDITOR

Auditor	:	DELOITTE & TOUCHE LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	LEE BEE FONG
	IC / PP No	:	S7376654J
	Address	:	118D, JALAN MEMBINA, 07-103, 164118, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
6900254	-	N/A	ABN AMRO BANK N V	$ DO 1,700,000.00	Unsatisfied
9005458	-	N/A	TEH DEVELOPMENT BANK OF SINGAPORE LTD	-	Unsatisfied
9300345	-	N/A	TEH DEVELOPMENT BANK OF SINGAPORE LTD	-	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.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[		]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[	X	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Services

:

ENGINEERING AND CONSTRUCTION

Total Number of Employees:
YEAR	2015	2014
GROUP	N/A	N/A
COMPANY	150	150

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) engineering and construction. 

Engaged in Designing, Fabrication, Supply and installation of Architectural Exterior Facades (Curtain Wall) and Internal Partition systems for both Commercial and Residential Buildings.

Permasteelisa Group is a worldwide leading Contractor in the engineering, project management, manufacturing and installation of architectural envelopes and interior systems.

The Group brings its Know-How and expertise to all projects, in particular when dealing with Special Features Buildings, beginning with the design development phases all the way to the successful completion, achieving the customer's expectations. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6568614733
Current Telephone Number	:	65-68614733
Match	:	YES
Address Provided by Client	:	2 INTERNATIONAL BUSINESS PARK #11-11, TOWER 1 THE STRATEGY SINGAPORE
Current Address	:	2 INTERNATIONAL BUSINESS PARK #11-11 TOWER 1 THE STRATEGY, 609930, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	(20.49%)	]
Return on Net Assets	:	Unfavourable	[	(20.40%)	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject incurred losses during the year due to the inefficient control of its operating costs. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	140 Days	]
Debtor Ratio	:	Favourable	[	43 Days	]
Creditors Ratio	:	Unfavourable	[	125 Days	]
The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Favourable	[	1.02 Times	]
Current Ratio	:	Unfavourable	[	1.02 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	:	Unfavourable	[	(12.30 Times)	]
Gearing Ratio	:	Unfavourable	[	1.46 Times	]
The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. 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's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : POOR

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 :	CONSTRUCTION
For the whole of 2013, the sector expanded by 5.9%, slower than the growth of 8.6% in the previous year. Total construction output increased by 5.4% on the back of robust private and public residential building activities. Besides, total construction demand increased by 17% to $36 billion in 2013, setting a new record high. The increase was driven by robust construction demand from the public sector.
Public sector construction demand rose by 56% to $15 billion in 2013. The increase was supported by a ramp-up of public-housing developments and significant increase in civil engineering construction demand on account of the award of various Thomson MRT Line contracts. Besides, despite a slight drop of 1.1%, total private sector construction demand remained relatively strong at $21 billion. Demand was fuelled by residential developments, where contracts awarded increased by 15% to reach $9.8 billion in 2013, the highest on record. Besides, civil engineering construction demand contracted by 45% due to the high base in 2012. However, the value of civil engineering contracts awarded in 2013 was still higher than that achieved between 2009 and 2011, supported largely by the construction of major utilities and berth facilities.
In 2013, construction output has increased by 5.4% to reach $33 billion, surpassing the previous peak of $32 billion in 2012. Growth was underpinned by strong on-site construction activities for public and private residential, private industrial and civil engineering developments. Total construction output in 2014 is projected to rise to between $34 billion and $36 billion, supported by record high levels of contracts awarded in 2013 and continued robust on-site activities from the high levels of demand since 2011.
Public sector construction output reached $12 billion in 2013, comparable to that achieved in 2012, supported largely by an increase in onsite construction activities for public housing (18%) and institutional and other building (4.7%) projects. Some of the major institutional building projects under construction included the Singapore University of Technology and Design (SUTD) Campus Phase 1, Ng Teng Fong Hospital, National Heart Centre, National Art Gallery and Victoria Concert Hall. Additionally, even though civil engineering construction output has contracted by 9.6% in 2013, progress payments remained robust at $4.8 billion, supported by new rail construction such as the Downtown Line Stages 2 & 3 as well as other infrastructure projects like Tuas West Extension and Marina Coastal Expressway.
Private sector construction output expanded by 8.3% to $21 billion in 2013, underpinned by growth across all development types. In particular, robust growth in on-site construction activities for residential developments (13%) and civil engineering (14%) projects supported overall output growth.
BCA forecasts total construction demand in 2014 to be between $31 billion and $38 billion. Demand from the public sector is expected to strengthen to between $19 billion and $22 billion, contributing close to 60% of projected total construction demand. The boost to overall demand is likely to come from stronger institutional and civil engineering construction works. At the same time, private sector demand is projected to soften to between $12 billion and $16 billion, due to the anticipated reduction in residential construction demand as property market sentiments remain subdued following the various property cooling measures.
Furthermore, BMI continues to expect construction and infrastructure growth in Singapore to moderate over the 2014-2020 period. Real growth for the construction sector is forecast to slow from 5.9% in 2014 to3.0% in 2019, while real growth for the infrastructure sector is expected to fall from 12.7% in 2014 to 4.0%in 2019. This moderation is primarily due to declining housing demand, longer construction periods for planned infrastructure projects and a poor export outlook, which could curb investment in non-residential buildings.
In September 2014, Singapore's Land Transit Authority (LTA) announced that Phase 2 of the Mass Rapid Transit (MRT) system's Downtown Line would open ahead of schedule in Q116. The project had previously been delayed by financial troubles at one of its key contractors, and was expected to come online only by Q216. Phase 2 of the Downtown Line will include 12 stations, nine of which will be completely new. The project's total cost is estimated at approximately SGD800mn.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1990, the Subject is a Public Limited Company, focusing on engineering and construction. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. A paid up capital of SGD 75,380,800 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited. 

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. The Subject is a fairly large and rapidly growing company with over 150 staff in its 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. 

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject 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 high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at SGD 75,569,143, the Subject should be able to maintain its business in the near terms. 

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. 

In view of the above, we recommend credit be granted to the Subject with close monitoring.

PROFIT AND LOSS ACCOUNT

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

PERMASTEELISA PACIFIC HOLDINGS LTD.

Financial Year End	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
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	SUMMARY	SUMMARY
Currency	SGD	SGD	SGD	SGD	SGD
TURNOVER	82,856,483	100,430,502	148,703,508	116,143,707	150,158,850
Other Income	1,735,351	1,986,134	13,792,671	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	84,591,834	102,416,636	162,496,179	116,143,707	150,158,850
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(16,695,156)	3,559,625	9,547,486	7,185,987	96,739,395
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(16,695,156)	3,559,625	9,547,486	7,185,987	96,739,395
Taxation	1,212,187	(1,363,640)	(2,001,007)	(1,189,769)	(3,715,101)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(15,482,969)	2,195,985	7,546,479	5,996,218	93,024,294
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	16,264,946	14,068,961	6,522,482	526,264	(92,498,030)
	----------------	----------------	----------------	----------------	----------------
As restated	16,264,946	14,068,961	6,522,482	526,264	(92,498,030)
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	781,977	16,264,946	14,068,961	6,522,482	526,264
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	781,977	16,264,946	14,068,961	6,522,482	526,264
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Lease interest	8,115	10,636	-	-	-
Loan from holding company	56,288	799	11,704	-	-
Loan from subsidiary companies	1,188,537	1,657,046	1,672,514	-	-
Others	2,494	215	14,686	-	-
	----------------	----------------	----------------	----------------	----------------
	1,255,434	1,668,696	1,698,904	-	-
	=============	=============	=============

BALANCE SHEET

PERMASTEELISA PACIFIC HOLDINGS LTD.

ASSETS EMPLOYED:
FIXED ASSETS	428,619	590,023	662,567	70,619,186	70,126,673
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	63,492,932	63,821,262	65,192,812	-	-
Deferred assets	3,440,981	1,039,556	811,650	-	-
Others	-	-	6,808,532	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	66,933,913	64,860,818	72,812,994	-	-
Others	5,296,073	2,579,515	7,667	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	5,296,073	2,579,515	7,667	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	72,658,605	68,030,356	73,483,228	70,619,186	70,126,673
Contract work-in-progress	31,715,846	41,501,764	33,816,670	-	-
Trade debtors	9,772,607	19,176,538	16,427,444	-	-
Other debtors, deposits & prepayments	25,674,259	20,534,499	13,372,209	-	-
Loans & advances - current portion	81,827,322	70,097,663	85,866,660	-	-
Cash & bank balances	4,050,567	2,481,455	11,878,733	-	-
Others	931,085	1,685,349	246,766	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	153,971,686	155,477,268	161,608,482	147,198,110	118,271,557
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	226,630,291	223,507,624	235,091,710	217,817,296	188,398,230
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	28,392,472	32,478,963	36,315,624	-	-
Other creditors & accruals	6,181,873	9,634,280	10,050,274	-	-
Hire purchase & lease creditors	42,752	42,752	-	-	-
Short term borrowings/Term loans	110,000,938	79,422,206	82,151,182	-	-
Amounts owing to holding company	50,385	512	605	-	-
Amounts owing to subsidiary companies	470,814	874,137	740,831	-	-
Provision for taxation	-	-	1,919,880	-	-
Other liabilities	5,815,553	9,461,157	14,298,194	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	150,954,787	131,914,007	145,476,590	136,138,795	112,378,285
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	3,016,899	23,563,261	16,131,892	11,059,315	5,893,272
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	75,675,504	91,593,617	89,615,120	81,678,501	76,019,945
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	75,380,800	75,380,800	75,380,800	75,380,800	75,380,800
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	75,380,800	75,380,800	75,380,800	75,380,800	75,380,800
Retained profit/(loss) carried forward	781,977	16,264,946	14,068,961	6,522,482	526,264
Others	(593,634)	(201,242)	(35,629)	(331,570)	(73,590)
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	188,343	16,063,704	14,033,332	6,190,912	452,674
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	75,569,143	91,444,504	89,414,132	81,571,712	75,833,474
Lease obligations	106,361	149,113	200,988	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	106,361	149,113	200,988	106,789	186,471
	----------------	----------------	----------------	----------------	----------------
	75,675,504	91,593,617	89,615,120	81,678,501	76,019,945
	=============	=============	=============	=============	=============

FINANCIAL RATIO

PERMASTEELISA PACIFIC HOLDINGS LTD.

TYPES OF FUNDS
Cash	4,050,567	2,481,455	11,878,733	-	-
Net Liquid Funds	4,050,567	2,481,455	11,878,733	-	-
Net Liquid Assets	3,016,899	23,563,261	16,131,892	11,059,315	5,893,272
Net Current Assets/(Liabilities)	3,016,899	23,563,261	16,131,892	11,059,315	5,893,272
Net Tangible Assets	70,379,431	89,014,102	89,607,453	81,678,501	76,019,945
Net Monetary Assets	2,910,538	23,414,148	15,930,904	10,952,526	5,706,801
BALANCE SHEET ITEMS
Total Borrowings	110,150,051	79,614,071	82,352,170	-	-
Total Liabilities	151,061,148	132,063,120	145,677,578	136,245,584	112,564,756
Total Assets	226,630,291	223,507,624	235,091,710	217,817,296	188,398,230
Net Assets	75,675,504	91,593,617	89,615,120	81,678,501	76,019,945
Net Assets Backing	75,569,143	91,444,504	89,414,132	81,571,712	75,833,474
Shareholders' Funds	75,569,143	91,444,504	89,414,132	81,571,712	75,833,474
Total Share Capital	75,380,800	75,380,800	75,380,800	75,380,800	75,380,800
Total Reserves	188,343	16,063,704	14,033,332	6,190,912	452,674
LIQUIDITY (Times)
Cash Ratio	0.03	0.02	0.08	-	-
Liquid Ratio	1.02	1.18	1.11	-	-
Current Ratio	1.02	1.18	1.11	1.08	1.05
WORKING CAPITAL CONTROL (Days)
Stock Ratio	140	151	83	-	-
Debtors Ratio	43	70	40	-	-
Creditors Ratio	125	118	89	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	1.46	0.87	0.92	-	-
Liabilities Ratio	2.00	1.44	1.63	1.67	1.48
Times Interest Earned Ratio	(12.30)	3.13	6.62	-	-
Assets Backing Ratio	0.93	1.18	1.19	1.08	1.01
PERFORMANCE RATIO (%)
Operating Profit Margin	(20.15)	3.54	6.42	6.19	64.42
Net Profit Margin	(18.69)	2.19	5.07	5.16	61.95
Return On Net Assets	(20.40)	5.71	12.55	8.80	127.26
Return On Capital Employed	(19.06)	5.55	12.55	8.80	127.26
Return On Shareholders' Funds/Equity	(20.49)	2.40	8.44	7.35	122.67

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.95.99
Euro	1	Rs.71.00

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	MNL

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%)

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