MIRA INFORM REPORT

 

 

Report No. :

302164

Report Date :

09.01.2015

 

IDENTIFICATION DETAILS

 

Name :

AAVANTI INDUSTRIES PTE LTD

 

 

Registered Office :

17, Phillip Street, 05-01, Grand Building, 048695

 

 

Country :

Singapore

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

21.07.1993

 

 

Com. Reg. No.:

199304717-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Edible Oil, Steel Products, Agriculture Products.

 

 

No. of Employee :

14 [2014]

 

 

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 – 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.

:

199304717-K

COMPANY NAME

:

AAVANTI INDUSTRIES PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/07/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

17, PHILLIP STREET, 05-01, GRAND BUILDING, 048695, SINGAPORE.

BUSINESS ADDRESS

:

16 RAFFLES QUAY, HONG LEONG BUILDING, #39-03, 048581, SINGAPORE.

TEL.NO.

:

65-64386821/65388233

FAX.NO.

:

65-65382183

CONTACT PERSON

:

EASAW S/O V E THOMAS ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF EDIBLE OIL, STEEL PRODUCTS, AGRICULTURE PRODUCTS

ISSUED AND PAID UP CAPITAL

:

7,870,000.00 ORDINARY SHARE, OF A VALUE OF SGD 7,870,000.00 

SALES

:

USD 2,470,938,427 [2013]

NET WORTH

:

USD 34,168,714 [2013]

STAFF STRENGTH

:

14 [2014]

BANKER (S)

:

DBS BANK LTD
SOCIETE GENERALE
OVERSEA-CHINESE BANKING CORPORATION LTD
HSH NORDBANK AG
THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of edible oil, steel products, agriculture products.

 

The immediate holding company of the Subject is MERDALE INVESTMENT COMPANY LIMITED, a company incorporated in JERSEY.

 

Share Capital History

 

Date

Issue & Paid Up Capital

08/01/2015

SGD 7,870,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

EASAW S/O V E THOMAS +

2, WILBY ROAD, 276291, SINGAPORE.

S1206857C

1.00

0.00

ANJULA THOMAS NEE KHANDELWAL +

2, WILBY ROAD, 276291, SINGAPORE.

S2183449A

1.00

0.00

MERDALE INVESTMENT COMPANY LIMITED

SAINT JAMES HOUSE NEW SAINT JAMES PLACE SAINT HELIER JERSEY JE 4 8WB CHANNEL ISLANDS, JERSEY.

UKT08UF0334

7,869,998.00

100.00

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

------

7,870,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

200909117C

SINGAPORE

AAVANTI OFFSHORE PTE. LTD.

100.00

30/06/2013

201108552R

SINGAPORE

RF SOLUTIONS PTE. LTD.

100.00

30/06/2013

SINGAPORE

INVESTMENT AND COMMERCIAL ENTERPRISE PTE. LTD.

99.90

30/06/2013

200107825M

SINGAPORE

JUST CONSOLIDATED PTE LTD

50.00

30/06/2013

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

EASAW S/O V E THOMAS

Address

:

2, WILBY ROAD, 276291, SINGAPORE.

IC / PP No

:

S1206857C

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/02/1998

 

DIRECTOR 2

 

Name Of Subject

:

ANJULA THOMAS NEE KHANDELWAL

Address

:

2, WILBY ROAD, 276291, SINGAPORE.

IC / PP No

:

S2183449A

Nationality

:

SINGAPOREAN

Date of Appointment

:

21/07/1993

 

 

MANAGEMENT

 

1)

Name of Subject

:

EASAW S/O V E THOMAS

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

PRUDENTIAL PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

RAMANUJAM JEYAPRIYA

IC / PP No

:

S7136299Z

Address

:

565B, EAST COAST ROAD, IVORY APARTMENTS, 429080, SINGAPORE.

 

2)

Company Secretary

:

LEE LAI NAH

IC / PP No

:

S1607980D

Address

:

73, CAVENAGH ROAD, 02-376, CAVENAGH GARDENS, 229624, SINGAPORE.

 

 

BANKING


Banking relations are maintained principally with :

 

1)

Name

:

DBS BANK LTD

 

2)

Name

:

SOCIETE GENERALE

 

3)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LTD

 

4)

Name

:

HSH NORDBANK AG

 

5)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

 

6)

Name

:

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

9504610

26/07/1995

N/A

SOCIETE GENERALE

-

Unsatisfied

200005623

21/11/2000

N/A

DBS BANK LTD

-

Unsatisfied

200104805

03/10/2001

N/A

SOCIETE GENERALE

-

Unsatisfied

200205650

24/12/2002

N/A

SOCIETE GENERALE

-

Unsatisfied

C200305583

19/11/2003

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200400106

07/01/2004

N/A

OVERSEA-CHINESE BANKING CORPORATION LTD

-

Unsatisfied

C200506980

10/11/2005

N/A

THE HONGKONG & SHANGHAI BANKING CORPORATION LTD

-

Unsatisfied

C200604202

29/06/2006

N/A

SOCIETE GENERALE

-

Unsatisfied

C200604204

29/06/2006

N/A

SOCIETE GENERALE

-

Unsatisfied

C200604205

29/06/2006

N/A

SOCIETE GENERALE

-

Unsatisfied

C200702493

02/04/2007

N/A

SOCIETE GENERALE

-

Unsatisfied

C200702495

02/04/2007

N/A

SOCIETE GENERALE

-

Unsatisfied

C200702496

02/04/2007

N/A

SOCIETE GENERALE

-

Unsatisfied

C200702643

05/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702867

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200710757

06/12/2007

N/A

DBS BANK LTD

-

Unsatisfied

C200710804

07/12/2007

N/A

DBS BANK LTD

-

Unsatisfied

C200710812

07/12/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200800042

02/01/2008

N/A

OVERSEA-CHINESE BANKING CORPORATION LTD

-

Unsatisfied

C200803803

23/04/2008

N/A

DBS BANK LTD

-

Unsatisfied

C200806325

11/07/2008

N/A

HSH NORDBANK AG

-

Unsatisfied

C200808077

28/08/2008

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200810012

03/11/2008

N/A

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201005563

02/07/2010

N/A

COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

-

Unsatisfied

C201005568

02/07/2010

N/A

COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

-

Unsatisfied

C201010231

29/10/2010

N/A

SOCIETE GENERALE

-

Unsatisfied

C201010233

29/10/2010

N/A

SOCIETE GENERALE

-

Unsatisfied

C201010236

29/10/2010

N/A

SOCIETE GENERALE

-

Unsatisfied

C201201940

20/02/2012

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

-

Unsatisfied

C201201989

21/02/2012

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

-

Unsatisfied

C201300643

14/01/2013

N/A

STATE BANK OF INDIA

-

Unsatisfied

C201308858

01/07/2013

N/A

CHINATRUST COMMERCIAL BANK CO., LTD.

-

Unsatisfied

C201308860

01/07/2013

N/A

CHINATRUST COMMERCIAL BANK CO., LTD.

-

Unsatisfied

C201402945

21/03/2014

N/A

SOCIETE GENERALE

-

Unsatisfied

C201402946

21/03/2014

N/A

SOCIETE GENERALE

-

Unsatisfied

C201402948

21/03/2014

N/A

SOCIETE GENERALE

-

Unsatisfied

C201413623

03/12/2014

N/A

COOPERATIEVE CENTRALE RAIFFEISENBOERENLEENBANK B.A.(''RABOBANK NEDERLAND, RABOBANK INTERNATIONAL'')

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%



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

:

WORLDWIDE

Credit Term

:

15 - 30 DAYS

Payment Mode

:

CHEQUES
CASH
LETTER OF CREDIT (LC)

 

 

OPERATIONS

 

Goods Traded

:

EDIBLE OIL, STEEL PRODUCTS, AGRICULTURE PRODUCTS

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

COMPANY

14

15

15

15

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of edible oil, steel products, agriculture products. 

The Subject refused to reveal detail information regarding to its business operation. 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-64386821/65388233

Match

:

N/A

Address Provided by Client

:

PHILIPS STREET HEX 05-01 GRAND BUILDING SINGAPORE 048695

Current Address

:

16 RAFFLES QUAY, HONG LEONG BUILDING, #39-03, 048581, SINGAPORE.

Match

:

YES

 

Other Investigations


On 6th January 2015 we contacted one of the staff from the Subject and she provided some information.

The address provided belongs to the Subject's registered office.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

0.90%

]

Return on Net Assets

:

Favourable

[

40.73%

]

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

1 Days

]

Debtor Ratio

:

Favourable

[

21 Days

]

Creditors Ratio

:

Favourable

[

19 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

:

Acceptable

[

0.99 Times

]

Current Ratio

:

Unfavourable

[

1.02 Times

]

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Unfavourable

[

1.05 Times

]

Gearing Ratio

:

Unfavourable

[

4.13 Times

]

 

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

Overall Assessment :

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : 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)



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 1993, the Subject is a Private Limited company, focusing on trading of edible oil, steel products, agriculture products. 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. With an issued and paid up capital of SGD 7,870,000 and strong backing from its holding company, the Subject has the ability to further expand its business in the future compared to other corporation. 


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. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

 
The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at USD 34,168,714, 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 normally.

 

 

 

PROFIT AND LOSS ACCOUNT

 

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

AAVANTI INDUSTRIES PTE LTD

 

Financial Year End

2013-06-30

2012-06-30

2011-06-30

2010-06-30

2009-06-30

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

2,470,938,427

2,487,347,793

1,986,406,114

1,405,288,793

1,552,931,671

Other Income

10,621,533

9,779,120

16,614,614

-

-

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

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

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

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

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

Total Turnover

2,481,559,960

2,497,126,913

2,003,020,728

1,405,288,793

1,552,931,671

Costs of Goods Sold

(2,450,737,082)

(2,463,357,482)

(1,974,160,617)

-

-

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

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

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

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

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

Gross Profit

30,822,878

33,769,431

28,860,111

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

622,237

8,588,110

16,797,345

2,518,599

1,219,488

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

-

-

-

(27,193)

(44,175)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

622,237

8,588,110

16,797,345

2,491,406

1,175,313

Taxation

(285,954)

(170,876)

(330,675)

(1,062,733)

590,036

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

336,283

8,417,234

16,466,670

1,428,673

1,765,349

Minority interests

(29,697)

(308,413)

(26,558)

-

-

Pre-acquisition profit/(loss)

-

-

-

(29,000)

-

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

306,586

8,108,821

16,440,112

1,399,673

1,765,349

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

306,586

8,108,821

16,440,112

1,399,673

1,765,349

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

28,985,552

20,876,731

6,066,443

4,780,386

3,058,015

Prior year adjustment

-

-

(1,629,824)

-

-

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

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

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

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

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

As restated

28,985,552

20,876,731

4,436,619

4,780,386

3,058,015

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

29,292,138

28,985,552

20,876,731

6,180,059

4,823,364

TRANSFER TO RESERVES - General

-

-

-

(113,616)

(42,978)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

29,292,138

28,985,552

20,876,731

6,066,443

4,780,386

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Trust receipts

2,358,566

3,427,473

1,514,877

1,437,564

2,612,546

Others

11,091,217

15,090,071

6,145,489

7,886,714

18,584,407

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

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

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

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

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

13,449,783

18,517,544

7,660,366

9,324,278

21,196,953

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

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

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

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

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

 

 

BALANCE SHEET

 

ASSETS EMPLOYED:

FIXED ASSETS

3,108,884

3,050,521

188,125

31,117,383

7,849,251

Associated companies

758,795

715,964

646,439

550,465

289,573

Investment properties

498,336

504,222

510,108

515,994

521,880

Others

8,747,372

-

-

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

10,004,503

1,220,186

1,156,547

1,066,459

811,453

Own goodwill

-

382,118

-

-

-

Goodwill on consolidation

-

-

-

11,401,019

11,157,640

Others

14,175,317

12,043,005

-

-

-

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

14,175,317

12,425,123

-

11,401,019

11,157,640

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

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

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

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

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

TOTAL LONG TERM ASSETS

27,288,704

16,695,830

1,344,672

43,584,861

19,818,344

Stocks

9,552,322

16,968,494

24,703,382

1,862,688

1,303,687

Trade debtors

139,737,552

238,986,768

311,371,286

106,250,483

205,303,047

Other debtors, deposits & prepayments

20,404,592

71,977,961

40,081,193

1,488,673

1,156,200

Short term deposits

73,576,500

86,521,097

-

1,212,366

5,416,550

Amount due from associated companies

-

109,687

1,042,752

-

-

Cash & bank balances

33,946,608

20,932,635

48,379,879

14,563,410

5,134,487

Others

26,750,845

83,377,852

69,381,288

7,053,486

13,785,707

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

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

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

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

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

TOTAL CURRENT ASSETS

303,968,419

518,874,494

494,959,780

132,431,106

232,099,678

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

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

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

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

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

TOTAL ASSET

331,257,123

535,570,324

496,304,452

176,015,967

251,918,022

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

127,626,630

149,137,257

196,068,170

63,100,340

61,463,917

Other creditors & accruals

12,164,635

28,841,595

20,116,031

3,542,687

2,247,968

Hire purchase & lease creditors

17,120

-

-

-

-

Short term borrowings/Term loans

140,604,112

262,985,296

231,233,304

73,143,147

160,811,237

Deposits from customers

685,758

22,476,591

-

-

-

Amounts owing to associated companies

1,705,425

-

-

-

-

Provision for taxation

340,699

311,131

343,161

994,856

251,876

Other liabilities

13,565,050

39,436,656

12,598,625

970,856

808,977

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

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

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

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

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

TOTAL CURRENT LIABILITIES

296,709,429

503,188,526

460,359,291

141,751,886

225,583,975

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,258,990

15,685,968

34,600,489

(9,320,780)

6,515,703

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

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

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

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

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

TOTAL NET ASSETS

34,547,694

32,381,798

35,945,161

34,264,081

26,334,047

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,779,070

4,779,070

4,779,070

4,779,070

4,779,070

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

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

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

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

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

TOTAL SHARE CAPITAL

4,779,070

4,779,070

4,779,070

4,779,070

4,779,070

Revaluation reserve

-

-

-

22,443,287

-

Exchange equalisation/fluctuation reserve

(484,925)

(304,583)

18,868

-

-

Retained profit/(loss) carried forward

29,292,138

28,985,552

20,876,731

6,066,443

4,780,386

Others

-

(2,020,870)

9,814,553

(512,902)

(774,718)

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

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

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

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

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

TOTAL RESERVES

28,807,213

26,660,099

30,710,152

27,996,828

4,005,668

MINORITY INTEREST

582,431

562,667

48,550

1,116,957

31,261

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

34,168,714

32,001,836

35,537,772

33,892,855

8,815,999

Long term loans

378,980

379,962

407,389

371,226

17,518,048

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

378,980

379,962

407,389

371,226

17,518,048

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

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

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

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

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

34,547,694

32,381,798

35,945,161

34,264,081

26,334,047

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

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

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

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

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

 

 

FINANCIAL RATIO

 

TYPES OF FUNDS

Cash

107,523,108

107,453,732

48,379,879

15,775,776

10,551,037

Net Liquid Funds

107,523,108

107,453,732

48,379,879

15,775,776

10,551,037

Net Liquid Assets

(2,293,332)

(1,282,526)

9,897,107

(11,183,468)

5,212,016

Net Current Assets/(Liabilities)

7,258,990

15,685,968

34,600,489

(9,320,780)

6,515,703

Net Tangible Assets

20,372,377

19,956,675

35,945,161

22,863,062

15,176,407

Net Monetary Assets

(2,672,312)

(1,662,488)

9,489,718

(11,554,694)

(12,306,032)

BALANCE SHEET ITEMS

Total Borrowings

141,000,212

263,365,258

231,640,693

73,514,373

178,329,285

Total Liabilities

297,088,409

503,568,488

460,766,680

142,123,112

243,102,023

Total Assets

331,257,123

535,570,324

496,304,452

176,015,967

251,918,022

Net Assets

34,547,694

32,381,798

35,945,161

34,264,081

26,334,047

Net Assets Backing

34,168,714

32,001,836

35,537,772

33,892,855

8,815,999

Shareholders' Funds

34,168,714

32,001,836

35,537,772

33,892,855

8,815,999

Total Share Capital

4,779,070

4,779,070

4,779,070

4,779,070

4,779,070

Total Reserves

28,807,213

26,660,099

30,710,152

27,996,828

4,005,668

LIQUIDITY (Times)

Cash Ratio

0.36

0.21

0.11

0.11

0.05

Liquid Ratio

0.99

1.00

1.02

0.92

1.02

Current Ratio

1.02

1.03

1.08

0.93

1.03

WORKING CAPITAL CONTROL (Days)

Stock Ratio

1

2

5

0

0

Debtors Ratio

21

35

57

28

48

Creditors Ratio

19

22

36

16

14

SOLVENCY RATIOS (Times)

Gearing Ratio

4.13

8.23

6.52

2.17

20.23

Liabilities Ratio

8.69

15.74

12.97

4.19

27.58

Times Interest Earned Ratio

1.05

1.46

3.19

1.27

1.06

Assets Backing Ratio

4.26

4.18

7.52

4.78

3.18

PERFORMANCE RATIO (%)

Operating Profit Margin

0.03

0.35

0.85

0.18

0.08

Net Profit Margin

0.01

0.33

0.83

0.10

0.11

Return On Net Assets

40.73

83.71

68.04

34.48

84.96

Return On Capital Employed

28.53

59.74

67.95

25.26

59.62

Return On Shareholders' Funds/Equity

0.90

25.34

46.26

4.13

20.02

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.97

UK Pound

1

Rs.94.97

Euro

1

Rs.74.43

 

 

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.