MIRA INFORM REPORT

 

 

Report No. :

326817

Report Date :

18.06.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

1, Temasek Avenue, 19-00, Millenia Tower, 039192

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

17.11.1955

 

 

Com. Reg. No.:

S55FC1163-C

 

 

Legal Form :

Foreign

 

 

Line of Business :

Building construction & provide other related service

 

 

No. of Employees :

120 [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 :

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 – 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. Unemployment is very low. 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. Growth in 2014 was slower at 13.9%, 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. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

S55FC1163-C

COMPANY NAME

:

MITSUBISHI CORPORATION

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/11/1955

COMPANY STATUS

:

EXIST

LEGAL FORM

:

FOREIGN

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

BUSINESS ADDRESS

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

TEL.NO.

:

65-63381100

FAX.NO.

:

65-63388361

CONTACT PERSON

:

KENJI TAKAHASHI ( GENERAL MANAGER )

PRINCIPAL ACTIVITY

:

BUILDING CONSTRUCTION & PROVIDE OTHER RELATED SERVICE

AUTHORISED CAPITAL

:

JPY 125,000,000,000.00

SALES

:

USD 648,044,958 [2014]

NET WORTH

:

USD 51,303,147 [2014]

STAFF STRENGTH

:

120 [2015]

BANKER (S)

MIZUHO CORPORATE BANK, LTD
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is principally engaged in the (as a / as an) building construction & provide other related service.

 

The immediate holding company of the Subject is MITSUBISHI CORPORATION, a company incorporated in JAPAN.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

12/03/2015

JPY 125,000,000,000.00

JPY 0.00

 

No shareholders was found in our databank at the time of investigation

dIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KUNIO ITO

Address

:

33-23, FUJIMIDAI, 2-CHOME, KUNITACHI-SHI, TOKYO, JAPAN.

IC / PP No

:

TF5985832

Nationality

:

JAPANESE

Date of Appointment

:

26/06/2007

 

DIRECTOR 2

 

Name Of Subject

:

KAZUYUKI MORI

Address

:

1-12-23 SAGINUMA, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA JAPAN, JAPAN.

IC / PP No

:

TH8624521

Nationality

:

JAPANESE

Date of Appointment

:

20/06/2014

 

DIRECTOR 3

 

Name Of Subject

:

KEN KOBAYASHI

Address

:

24-30, KAMARIYAMINAMI 4-CHOME, KANAZAWA-KU, YOKOHAMA-SHI, KANAGAWA-KEN, JAPAN.

IC / PP No

:

TZ0216956

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2010

 

DIRECTOR 4

 

Name Of Subject

:

TAKAHISA MIYAUCHI

Address

:

3-8-2, KITASENZOKU, OTA-KU, TOKYO, JAPAN.

IC / PP No

:

TK9181890

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

DIRECTOR 5

 

Name Of Subject

:

HIDEHIRO KONNO

Address

:

28-3, KAMISOSHIGAYA, 7-CHOME, SETAGAYA-KU, TOKYO, JAPAN.

IC / PP No

:

TF9769245

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2010

 

DIRECTOR 6

 

Name Of Subject

:

SHUMA UCHINO

Address

:

2-16-6, IKEHANA YOTSUKAIDO-SHIM, CHIBA, JAPAN.

IC / PP No

:

TH9224185

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

DIRECTOR 7

 

Name Of Subject

:

RYOZO KATO

Address

:

1-15-507, TAKANAWA, 2-CHOME, MINATO-KU, TOKYO, JAPAN.

IC / PP No

:

TH6470706

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2009

 

DIRECTOR 8

 

Name Of Subject

:

SAKIE TACHIBANA FUKUSHIMA

Address

:

11-40-2302, AKASAKA 1-CHOME, MINATOKU, TOKYO, JAPAN.

IC / PP No

:

TK0233839

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

DIRECTOR 9

 

Name Of Subject

:

JUN YANAI

Address

:

4-6, GOBANCHO, CHIYODA-KU, TOKYO, JAPAN.

IC / PP No

:

TH6363546

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

DIRECTOR 10

 

Name Of Subject

:

YASUHITO HIROTA

Address

:

6-52-14, SHIMOUMA, SETAGAYA-KU, TOKYO, JAPAN.

IC / PP No

:

TH7412139

Nationality

:

JAPANESE

Date of Appointment

:

20/06/2014

 

DIRECTOR 11

 

Name Of Subject

:

HIDETO NAKAHARA

Address

:

6-504, SANBANCHO, 9-CHOME, CHIYODA-KU, TOKYO, JAPAN.

IC / PP No

:

TZ0253998

Nationality

:

JAPANESE

Date of Appointment

:

24/06/2009

 

DIRECTOR 12

 

Name Of Subject

:

JUN KINUKAWA

Address

:

1-20-6, NAKAMACHI, SETAGAYA-KU, TOKYO, JAPAN.

IC / PP No

:

TK4296095

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2013

 

DIRECTOR 13

 

Name Of Subject

:

KAZUO TSUKUDA

Address

:

26-2-1402, SHIMOMARUKO 4- CHOME, OTA-KU, TOKYO, JAPAN.

IC / PP No

:

TH1551180

Nationality

:

JAPANESE

Date of Appointment

:

25/06/2008

 

DIRECTOR 14

 

Name Of Subject

:

YORIHIKO KOJIMA

Address

:

5-53, MIYAZAKI 6-CHOME, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA, JAPAN.

IC / PP No

:

TE3145927

Nationality

:

JAPANESE

Date of Appointment

:

29/06/1995



MANAGEMENT

 

 

 

1)

Name of Subject

:

KENJI TAKAHASHI

Position

:

GENERAL MANAGER

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

KENJI TAKAHASHI

IC / PP No

:

G5138397X

Address

:

6, NAROOMA ROAD, DUNEARN ESTATE, 298300, SINGAPORE.

Remarks

:

AGENT

 

2)

Company Secretary

:

KUNIO FUKUMOTO

IC / PP No

:

G5365956Q

Address

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

Remarks

:

AGENT

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MIZUHO CORPORATE BANK, LTD

 

2)

Name

:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201113090

17/10/2011

N/A

SHINSEI BANK, LIMITED

-

Unsatisfied

 

LITIGATION CHECK AGAINST SUBJECT


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

LEGAL ACTION

 

 

Code No

:

99

Case No

:

106

Year

:

2008

Place

:

SINGAPORE

Court

:

SESSIONS COURT

Date Filed

:

15/02/2008

Solicitor

:

KRISHANASAMY RAVINTHERAN

Solicitor Ref

:

KR.0197.06

Solicitor Firm

:

K RAVI ASSOCIATES

Plaintiff

:

SHAZAHAN JAMAL UDDIN

Defendants

:

MITSUBISHI CORPORATION (S55FC1163)

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

Amount Claimed

:

350000

Nature of Claim

:

SGD

Remark

:

TORT-NEGLIGENCE

 

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

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

JAPAN

Credit Term

:

AS AGREED

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Services

:

BUILDING CONSTRUCTION & PROVIDE OTHER RELATED SERVICE

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

120

120

115

115

110

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) building construction & provide other related service.

The Subject generally classified as a trading company, their operation extends beyond this classification to include activities in manufacturing, logistics, retailing, financing and many others.

The Subject's business fields cover the five business departments of:-

* Energy, Machinery/Metal/Global Environment
* Infrastructure Business Development
* Industrial Finance
* Logistics & Development
* Chemicals and Living Essentials

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63381100

Match

:

N/A

Address Provided by Client

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER,039192,SINGAPORE

Current Address

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

Match

:

YES

 

Other Investigations


On 17th June 2015 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

(5.03%)

]

Return on Net Assets

:

Unfavourable

[

(3.42%)

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.Higher losses before tax during the year could be due to the higher operating costs incurred. 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

:

Favourable

[

1 Days

]

Debtor Ratio

:

Favourable

[

52 Days

]

Creditors Ratio

:

Favourable

[

41 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

[

1.18 Times

]

Current Ratio

:

Unfavourable

[

1.19 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

[

(2.13 Times)

]

Gearing Ratio

:

Unfavourable

[

2.75 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 increased but its turnover showed a  fluctuating trend. This indicate the Subject was slowly losing its market share due to its competitors. 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)

 

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 1955, the Subject is a Foreign company, focusing on building construction & provide other related service. 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.

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 120 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.

Despite the higher turnover, the Subject suffered pre-tax losses which reflected a highly competitive business environment. 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 USD 51,303,147, 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 Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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.

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.

 

Financial Year End

2014-03-31

2013-03-31

2012-03-31

2011-03-31

2010-03-31

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

FULL

FULL

Currency

USD

USD

USD

USD

USD

TURNOVER

648,044,958

646,847,535

984,801,787

807,286,317

512,037,864

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

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

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

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

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

Total Turnover

648,044,958

646,847,535

984,801,787

807,286,317

512,037,864

Costs of Goods Sold

(631,045,054)

(623,479,704)

(953,617,458)

(785,992,954)

(491,859,645)

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

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

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

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

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

Gross Profit

16,999,904

23,367,831

31,184,329

21,293,363

20,178,219

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

(2,579,826)

(501,672)

11,859,472

5,849,509

1,229,242

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(2,579,826)

(501,672)

11,859,472

5,849,509

1,229,242

Taxation

-

(76,675)

(1,972,610)

(1,466,549)

(427,275)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(2,579,826)

(578,347)

9,886,862

4,382,960

801,967

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

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

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

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

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

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

As restated

53,882,973

54,461,320

44,574,458

40,191,498

39,389,531

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

134,331

198,817

247,769

345,517

197,523

Term loan / Borrowing

203,911

908,790

498,666

547,931

-

Others

484,713

40,616

318,123

417,686

1,500,202

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

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

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

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

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

822,955

1,148,223

1,064,558

1,311,134

1,697,725

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

345,701

361,391

409,714

293,908

349,299

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

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

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

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

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

345,701

361,391

409,714

293,908

349,299

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

2,996,462

2,673,449

2,977,386

2,314,061

2,124,196

Others

-

-

652,487

652,487

652,487

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

652,487

652,487

652,487

INTANGIBLE ASSETS

Deferred/Expenditure carried forward

652,487

652,487

-

-

-

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

652,487

652,487

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,648,949

3,325,936

3,629,873

2,966,548

2,776,683

Stocks

2,082,679

2,220,420

2,451,075

1,434,062

1,470,944

Contract work-in-progress

219,320

11,678

-

-

-

Trade debtors

92,761,221

92,316,510

83,884,929

81,074,875

62,308,748

Other debtors, deposits & prepayments

181,663,313

193,964,543

241,100,421

207,639,033

249,093,737

Amount due from related companies

1,273,113

-

4,863,901

-

-

Cash & bank balances

19,585,546

20,008,197

15,682,805

19,019,303

13,675,677

Others

-

-

397,239

3,047

-

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

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

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

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

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

TOTAL CURRENT ASSETS

297,585,192

308,521,348

348,380,370

309,170,320

326,549,106

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

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

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

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

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

TOTAL ASSET

301,234,141

311,847,284

352,010,243

312,136,868

329,325,789

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

70,982,461

64,488,252

92,235,888

78,517,685

68,738,861

Other creditors & accruals

30,066,562

44,807,716

17,564,466

14,027,238

22,785,668

Bank overdraft

15,832,768

23,852,558

24,168,302

165,156,888

196,576,866

Short term borrowings/Term loans

89,729,784

39,188,533

-

-

-

Other borrowings

35,602,589

84,985,053

116,155,899

-

-

Amounts owing to related companies

-

-

44,757,510

-

-

Provision for taxation

506,000

541,520

2,591,743

1,432,232

199,805

Other liabilities

7,135,715

25,564

-

8,089,289

546,332

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

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

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

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

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

TOTAL CURRENT LIABILITIES

249,855,879

257,889,196

297,473,808

267,223,332

288,847,532

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

47,729,313

50,632,152

50,906,562

41,946,988

37,701,574

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

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

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

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

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

TOTAL NET ASSETS

51,378,262

53,958,088

54,536,435

44,913,536

40,478,257

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

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

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

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

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

Retained profit/(loss) carried forward

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

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

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

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

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

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

TOTAL RESERVES

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

Deferred taxation

75,115

75,115

75,115

339,078

286,759

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

75,115

75,115

75,115

339,078

286,759

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

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

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

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

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

51,378,262

53,958,088

54,536,435

44,913,536

40,478,257

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

TYPES OF FUNDS

Cash

19,585,546

20,008,197

15,682,805

19,019,303

13,675,677

Net Liquid Funds

3,752,778

(3,844,361)

(8,485,497)

(146,137,585)

(182,901,189)

Net Liquid Assets

45,646,634

48,411,732

48,455,487

40,512,926

36,230,630

Net Current Assets/(Liabilities)

47,729,313

50,632,152

50,906,562

41,946,988

37,701,574

Net Tangible Assets

50,725,775

53,305,601

54,536,435

44,913,536

40,478,257

Net Monetary Assets

45,571,519

48,336,617

48,380,372

40,173,848

35,943,871

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

(1,756,871)

646,551

12,924,030

7,160,643

2,926,967

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

(1,411,170)

1,007,942

13,333,744

7,454,551

3,276,266

BALANCE SHEET ITEMS

Total Borrowings

141,165,141

148,026,144

140,324,201

165,156,888

196,576,866

Total Liabilities

249,930,994

257,964,311

297,548,923

267,562,410

289,134,291

Total Assets

301,234,141

311,847,284

352,010,243

312,136,868

329,325,789

Net Assets

51,378,262

53,958,088

54,536,435

44,913,536

40,478,257

Net Assets Backing

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

Shareholders' Funds

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

Total Share Capital

0

0

0

0

0

Total Reserves

51,303,147

53,882,973

54,461,320

44,574,458

40,191,498

LIQUIDITY (Times)

Cash Ratio

0.08

0.08

0.05

0.07

0.05

Liquid Ratio

1.18

1.19

1.16

1.15

1.13

Current Ratio

1.19

1.20

1.17

1.16

1.13

WORKING CAPITAL CONTROL (Days)

Stock Ratio

1

1

1

1

1

Debtors Ratio

52

52

31

37

44

Creditors Ratio

41

38

35

36

51

SOLVENCY RATIOS (Times)

Gearing Ratio

2.75

2.75

2.58

3.71

4.89

Liabilities Ratio

4.87

4.79

5.46

6.00

7.19

Times Interest Earned Ratio

(2.13)

0.56

12.14

5.46

1.72

Assets Backing Ratio

-

-

-

-

-

PERFORMANCE RATIO (%)

Operating Profit Margin

(0.40)

(0.08)

1.20

0.72

0.24

Net Profit Margin

(0.40)

(0.09)

1.00

0.54

0.16

Return On Net Assets

(3.42)

1.20

23.70

15.94

7.23

Return On Capital Employed

(2.59)

0.82

16.42

3.41

1.23

Return On Shareholders' Funds/Equity

(5.03)

(1.07)

18.15

9.83

2.00

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.63.85

UK Pound

1

Rs.101.00

Euro

1

Rs.72.46

 

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.