MIRA INFORM REPORT

 

 

Report No. :

329962

Report Date :

02.07.2015

 

IDENTIFICATION DETAILS

 

Name :

HUAWEI INTERNATIONAL PTE. LTD.

 

 

Registered Office :

15 A, Changi Business Park Central 1, 03-03, Eightrium @ Changi Business Park, 486035

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

17.09.2007

 

 

Com. Reg. No.:

200717119-C

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of telecommunication equipments, ICT solution services

 

 

No of Employees :

40 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Exist

 

NOTES:

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

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

 

Source : CIA

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

200717119-C

COMPANY NAME

:

HUAWEI INTERNATIONAL PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/09/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

15A, CHANGI BUSINESS PARK CENTRAL 1, 03-03, EIGHTRIUM @ CHANGI BUSINESS PARK, 486035, SINGAPORE.

BUSINESS ADDRESS

:

15A, CHANGI BUSINESS PARK CENTRAL 1, EIGHTRIUM @ CHANGI BUSINESS PARK, 03-03, 486035, SINGAPORE.

TEL.NO.

:

65-68254200/62222446

FAX.NO.

:

65-68254211

WEB SITE

:

WWW.HUAWEI.COM

CONTACT PERSON

:

XU ZHIJUN ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF TELECOMMUNICATION EQUIPMENTS, ICT SOLUTION SERVICES

ISSUED AND PAID UP CAPITAL

:

73,150,000.00 ORDINARY SHARE, OF A VALUE OF SGD 73,150,000.00

SALES

:

USD 8,583,096,402 [2013]

NET WORTH

:

USD 917,240,481 [2013]

STAFF STRENGTH

:

40 [2015]

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) trading of telecommunication equipments, ict solution services.

 

The immediate holding company of the Subject is HUAWEI TECHNOLOGIES COOEPERATIEF U.A., a company incorporated in NETHERLANDS.

 

Share Capital History

Date

Issue & Paid Up Capital

07/05/2015

SGD 73,150,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

HUAWEI TECHNOLOGIES COOEPERATIEF U.A.

KARSPELDREEF, 4, 1101CJ, AMSTERDAM ZUIDOOST, NETHERLANDS.

T07UF2156

73,150,000.00

100.00

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

------

73,150,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TENG YUNFANG

Address

:

1, FORT ROAD, 21-02, ONE FORT, 439069, SINGAPORE.

IC / PP No

:

S2692425A

Nationality

:

SINGAPOREAN

Date of Appointment

:

24/09/2012

 

DIRECTOR 2

 

Name Of Subject

:

XU ZHIJUN

Address

:

12C, BUILDING, JINYUAN, SHEKOU DISTRICT, SHENZHEN, CHINA.

IC / PP No

:

KJ0320845

Nationality

:

CHINESE

Date of Appointment

:

17/09/2007

 

DIRECTOR 3

 

Name Of Subject

:

HU HOUKUN

Address

:

LANYUAN BUILDING, 607, SHEKOU, NANSHAN DISTRICT, SHENZHEN, CHINA.

IC / PP No

:

KJ0309530

Nationality

:

CHINESE

Date of Appointment

:

17/09/2007

 

DIRECTOR 4

 

Name Of Subject

:

XU WENWEI

Address

:

62, BLOCK H, TAOYUAN STREET, NANSHAN DISTRICT, SHENZHEN, CHINA.

IC / PP No

:

E04946595

Nationality

:

CHINESE

Date of Appointment

:

08/01/2009

 

DIRECTOR 5

 

Name Of Subject

:

GUO PING

Address

:

BLOCK 6, BINJIANG VILLAGE, FUTIAN, SHENZHEN, CHINA.

IC / PP No

:

KJ0298516

Nationality

:

CHINESE

Date of Appointment

:

08/01/2009

 

DIRECTOR 6

 

Name Of Subject

:

MENG WANZHOU

Address

:

KEFA ROAD, SCIENCE-BASED, INDUSTRIAL PARK, NANSHAN DISTRICT, SHENZHEN SHI, P.R.C, MALAYSIA.

IC / PP No

:

G32666585

Nationality

:

CHINESE

Date of Appointment

:

29/04/2011



MANAGEMENT

 

1)

Name of Subject

:

XU ZHIJUN

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

KPMG LLP

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

ANG SIEW KOON

IC / PP No

:

S1721860C

Address

:

122, YISHUN STREET, 11, 06-463, 760122, SINGAPORE.

 

 

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

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

:

55

Year

:

2012

Place

:

SINGAPORE

Court

:

SUPREME COURT

Date Filed

:

20/01/2012

Solicitor Ref

:

JY/LWSN 332701 JY/LWSN 332701

Solicitor Firm

:

DREW & NAPIER LLC

Plaintiff

:

CREATIVE TECHNOLOGY LTD.
QMAX COMMUNICATIONS PTE. LTD.

Defendants

:

HUAWEI INTERNATIONAL PTE. LTD. (200717119)

Amount Claimed

:

9380988.97

Nature of Claim

:

USD

Remark

:

CONTRACT-OTHERS

 

No winding up petition was found in our databank

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES


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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

TELECOMMUNICATION EQUIPMENTS

Services

:

ICT SOLUTION SERVICES

 

Total Number of Employees:

YEAR

2015

2013

GROUP

N/A

N/A

COMPANY

40

40

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of telecommunication equipments, ict solution services.

The Subject offers the most complete telecom product portfolio, covering mobile, broadband, core network, transmission network, data communication, value-added services, terminals and services.

Products or services:
radio access network:
* lte
* utran
* gsm bss
* cdma bss
* oss & service
* wimax

Software:
* consumer
* enterprise
* bss
* professional service

Core network:
* voice evolution solutions
* multi-media innovation solutions
* internet mobility solutions
* operational simplification solutions
* signaling optimization solutions

Broadband access:
* fttx-odn
* broadband access
* multi-service ag solution

Transport network:
* dwdm backbone
* metro transport
* gmpls/ason
* leased-line solution

Storage & networks security:
* storage
* server
* network security

Services:
* service solutions
* global cases
* articles

Site products:
* energy
* shelter

Datacommunications:
* for carrier
* for education
* for enterprise
* for goverment

Terminal products:
* mobile broadband
* handset
* convergence terminal
* video products


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-68254200/62222446

Match

:

N/A

Address Provided by Client

:

15A, CHANGI BUSINESS PARK CENTRAL 1, EIGHTRIUM @ CHANGI BUSINESS PARK, 03-03,486035,SINGAPORE

Current Address

:

15A, CHANGI BUSINESS PARK CENTRAL 1, EIGHTRIUM @ CHANGI BUSINESS PARK, 03-03, 486035, SINGAPORE.

Match

:

YES

 

Other Investigations


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



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2011 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2011 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

20.42%

]

Return on Net Assets

:

Acceptable

[

14.73%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players. The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

46 Days

]

Debtor Ratio

:

Favourable

[

37 Days

]

Creditors Ratio

:

Favourable

[

17 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

[

1.13 Times

]

Current Ratio

:

Unfavourable

[

1.29 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

[

3.09 Times

]

Gearing Ratio

:

Unfavourable

[

1.82 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 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 :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject's gearing 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 : 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)



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 a Private Limited company, focusing on trading of telecommunication equipments, ict solution services. 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. The Subject is a large entity with strong capital position of SGD 73,150,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is operating on a medium scale and it has approximately 40 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at a favourable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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 917,240,481, 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.

HUAWEI INTERNATIONAL PTE. LTD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

USD

USD

USD

TURNOVER

8,583,096,402

8,620,254,225

8,471,762,628

Other Income

7,175,554

32,265,969

5,732,811

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

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

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

Total Turnover

8,590,271,956

8,652,520,194

8,477,495,439

Costs of Goods Sold

(7,277,920,754)

(7,381,946,951)

(7,538,010,922)

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

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

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

Gross Profit

1,312,351,202

1,270,573,243

939,484,517

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

215,552,729

75,993,460

43,432,430

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

215,552,729

75,993,460

43,432,430

Taxation

(28,262,130)

(24,449,510)

(16,475,747)

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

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

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

PROFIT/(LOSS) AFTER TAXATION

187,290,599

51,543,950

26,956,683

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

779,949,882

728,405,932

731,449,249

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

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

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

As restated

779,949,882

728,405,932

731,449,249

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

967,240,481

779,949,882

758,405,932

DIVIDENDS - Ordinary (paid & proposed)

(100,000,000)

-

(30,000,000)

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

867,240,481

779,949,882

728,405,932

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Term loan / Borrowing

38,245,555

36,921,830

28,704,583

Others

65,082,824

55,510,658

33,376,747

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

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

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

103,328,379

92,432,488

62,081,330

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

2,672,278

18,546,897

1,229,765

Deferred assets

29,547,136

17,379,402

19,378,189

Others

143,959,520

153,134,479

95,115,332

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

173,506,656

170,513,881

114,493,521

Others

-

-

123

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

123

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

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

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

TOTAL LONG TERM ASSETS

176,178,934

189,060,778

115,723,409

Stocks

1,092,640,488

808,938,615

1,044,353,147

Trade debtors

870,367,710

972,532,013

4,765,755,093

Other debtors, deposits & prepayments

11,598,438

688,610

836,027

Short term deposits

678,792,782

338,994,140

-

Amount due from holding company

270,841,960

254,328,222

167,125,569

Amount due from related companies

3,704,261,207

4,295,740,692

160,683,652

Cash & bank balances

1,260,298,217

1,416,830,547

1,617,234,721

Others

893,992,121

556,000,000

123

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

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

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

TOTAL CURRENT ASSETS

8,782,792,923

8,644,052,839

7,755,988,332

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

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

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

TOTAL ASSET

8,958,971,857

8,833,113,617

7,871,711,741

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

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

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

CURRENT LIABILITIES

Trade creditors

331,712,376

499,506,611

152,489,094

Other creditors & accruals

356,652,510

180,441,220

128,620,929

Bank overdraft

423,454,937

-

-

Short term borrowings/Term loans

-

92,568,104

-

Deposits from customers

-

-

19,796,693

Interest payable

18,238,266

22,890,545

32,512,626

Amounts owing to holding company

3,645,173,039

4,250,570,663

4,778,487,804

Amounts owing to related companies

1,755,749,663

1,489,620,566

621,146,068

Provision for taxation

25,433,462

4,687,582

8,498,483

Dividends payable/proposed

10,004,638

-

-

Other liabilities

227,533,394

230,242,725

327,222,809

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

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

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

TOTAL CURRENT LIABILITIES

6,793,952,285

6,770,528,016

6,068,774,506

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,988,840,638

1,873,524,823

1,687,213,826

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

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

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

TOTAL NET ASSETS

2,165,019,572

2,062,585,601

1,802,937,235

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

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

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

SHARE CAPITAL

Ordinary share capital

50,000,000

50,000,000

50,000,000

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

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

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

TOTAL SHARE CAPITAL

50,000,000

50,000,000

50,000,000

Retained profit/(loss) carried forward

867,240,481

779,949,882

728,405,932

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

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

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

TOTAL RESERVES

867,240,481

779,949,882

728,405,932

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

917,240,481

829,949,882

778,405,932

Long term loans

1,247,779,091

1,232,635,719

1,024,531,057

Others

-

-

246

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

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

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

TOTAL LONG TERM LIABILITIES

1,247,779,091

1,232,635,719

1,024,531,303

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

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

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

2,165,019,572

2,062,585,601

1,802,937,235

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

1,939,090,999

1,755,824,687

1,617,234,721

Net Liquid Funds

1,515,636,062

1,755,824,687

1,617,234,721

Net Liquid Assets

896,200,150

1,064,586,208

642,860,679

Net Current Assets/(Liabilities)

1,988,840,638

1,873,524,823

1,687,213,826

Net Tangible Assets

2,165,019,572

2,062,585,601

1,802,937,112

Net Monetary Assets

(351,578,941)

(168,049,511)

(381,670,624)

BALANCE SHEET ITEMS

Total Borrowings

1,671,234,028

1,325,203,823

1,024,531,057

Total Liabilities

8,041,731,376

8,003,163,735

7,093,305,809

Total Assets

8,958,971,857

8,833,113,617

7,871,711,741

Net Assets

2,165,019,572

2,062,585,601

1,802,937,235

Net Assets Backing

917,240,481

829,949,882

778,405,932

Shareholders' Funds

917,240,481

829,949,882

778,405,932

Total Share Capital

50,000,000

50,000,000

50,000,000

Total Reserves

867,240,481

779,949,882

728,405,932

LIQUIDITY (Times)

Cash Ratio

0.29

0.26

0.27

Liquid Ratio

1.13

1.16

1.11

Current Ratio

1.29

1.28

1.28

WORKING CAPITAL CONTROL (Days)

Stock Ratio

46

34

45

Debtors Ratio

37

41

205

Creditors Ratio

17

25

7

SOLVENCY RATIOS (Times)

Gearing Ratio

1.82

1.60

1.32

Liabilities Ratio

8.77

9.64

9.11

Times Interest Earned Ratio

3.09

1.82

1.70

Assets Backing Ratio

43.30

41.25

36.06

PERFORMANCE RATIO (%)

Operating Profit Margin

2.51

0.88

0.51

Net Profit Margin

2.18

0.60

0.32

Return On Net Assets

14.73

8.17

5.85

Return On Capital Employed

12.32

8.17

5.85

Return On Shareholders' Funds/Equity

20.42

6.21

3.46

Dividend Pay Out Ratio (Times)

0.53

0.00

1.11

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.99.89

Euro

1

Rs.70.77

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.