MIRA INFORM REPORT

Report No. :	346226
Report Date :	21.10.2015

IDENTIFICATION DETAILS

Name :	INTER-CONTINENTAL OILS & FATS PTE. LTD.
Registered Office :	150, Beach Road, 16-01, Gateway West, 189720
Country :	Singapore
Financials (as on) :	31.12.2014
Date of Incorporation :	16.05.2002
Com. Reg. No.:	200204156-N
Legal Form :	Private Limited
Line of Business :	Subject is principally engaged in the trading of oil products.
No. of Employees :	130 [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 :	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 – 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.

:

200204156-N

COMPANY NAME

:

INTER-CONTINENTAL OILS & FATS PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/05/2002

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

150, BEACH ROAD, 16-01, GATEWAY WEST, 189720, SINGAPORE.

BUSINESS ADDRESS

:

150, BEACH ROAD, 16-01, GATEWAY WEST, 189720, SINGAPORE.

TEL.NO.

:

65-65766500

FAX.NO.

:

65-62595613

WEB SITE

:

WWW.ICOFGROUP.COM

CONTACT PERSON

:

BAHARI KARIM ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF OIL PRODUCTS

ISSUED AND PAID UP CAPITAL

:

16,667,487.00 ORDINARY SHARE, OF A VALUE OF SGD 16,667,487.00 

SALES

:

USD 4,651,610,585 [2014]

NET WORTH

:

USD 195,368,136 [2014]

STAFF STRENGTH

:

130 [2015]

BANKER (S)

:

ABN AMRO BANK N.V. BNP PARIBAS COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. DBS BANK LTD HSH NORDBANK AG ING BANK N.V. THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH) DEUTSCHE BANK AKTIENGESELLSCHAFT NATIXIS OVERSEA-CHINESE BANKING CORPORATION LIMITED THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED UNITED OVERSEAS BANK LIMITED THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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 oil products.

The immediate holding company of the Subject is MUSIM MAS HOLDINGS PTE. LTD., a company incorporated in SINGAPORE.

Share Capital History

Date	Issue & Paid Up Capital
17/09/2015	SGD 16,667,487.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MUSIM MAS HOLDINGS PTE. LTD.	150, BEACH ROAD, 15-01, GATEWAY WEST, 189720, SINGAPORE.	200703094K	16,667,487.00	100.00
			---------------	------
			16,667,487.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
200610434W	SINGAPORE	ICOF SHIPPING PTE. LTD.	-	100.00	17/09/2015
201021123H	SINGAPORE	IM BIOFUEL PTE. LTD.	-	100.00	17/09/2015

DIRECTORS

DIRECTOR 1

Name Of Subject	:	NG SIEW MOI
Address	:	25, MARGOLIOUTH ROAD, MARGOLIOUTH VILLAS, 258551, SINGAPORE.
IC / PP No	:	S1633151A
Nationality	:	SINGAPOREAN
Date of Appointment	:	05/12/2007

DIRECTOR 2

Name Of Subject	:	BURHAN KARIM
Address	:	JALAN KALIMANTAN, 29/3-B, MEDAN, INDONESIA.
IC / PP No	:	A5138231
Nationality	:	INDONESIAN
Date of Appointment	:	01/03/2010

DIRECTOR 3

Name Of Subject	:	BACHTIAR KARIM
Address	:	JALAN KALIMANTAN, 29/3-B, MEDAN, INDONESIA.
IC / PP No	:	A2921253
Nationality	:	INDONESIAN
Date of Appointment	:	01/03/2010

DIRECTOR 4

Name Of Subject	:	BAHARI KARIM
Address	:	JALAN TAMBAK SAWA 32, WARU SINDOARJO-61256, JAWA TIMUR, INDONESIA.
IC / PP No	:	X019032
Nationality	:	INDONESIAN
Date of Appointment	:	01/03/2010

MANAGEMENT

1)	Name of Subject	:	BAHARI KARIM
	Position	:	DIRECTOR

AUDITOR

Auditor	:	PRICEWATER HOUSECOOPERS LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	TEO MENG KEONG
	IC / PP No	:	S6968331B
	Address	:	269, BUKIT BATOK EAST AVENUE 4, 08-168, 650269, SINGAPORE.

2)	Company Secretary	:	CHAN LAI YIN
	IC / PP No	:	S7480587F
	New IC No	:	780628-08-5282
	Address	:	26, SIMEI STREET 1, 11-08, MELVILLE PARK, 529947, GOPENG, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

ABN AMRO BANK N.V.

2)

Name

:

BNP PARIBAS

3)

Name

:

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

4)

Name

:

DBS BANK LTD

5)

Name

:

HSH NORDBANK AG

6)

Name

:

ING BANK N.V.

7)

Name

:

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

8)

Name

:

DEUTSCHE BANK AKTIENGESELLSCHAFT

9)

Name

:

NATIXIS

10)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

11)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

12)

Name

:

UNITED OVERSEAS BANK LIMITED

13)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200402533	25/05/2004	N/A	ING BANK N.V.	-	Unsatisfied
C200603754	12/06/2006	N/A	DBS BANK LTD.	-	Unsatisfied
C200703150	27/04/2007	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C200703846	23/05/2007	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENILEENBANK B.A	-	Unsatisfied
C200809279	08/10/2008	N/A	THE BANK OF TOKYO-MITSUBISHI UFJ LTD. SINGAPORE BRANCH	-	Unsatisfied
C200900874	04/02/2009	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied
C200901490	09/03/2009	N/A	UNITED OVERSEAS BANK LIMITED	-	Unsatisfied
C200904843	06/08/2009	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C200907622	23/11/2009	N/A	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. SINGAPORE BRANCH	USD 25,000,000.00	Unsatisfied
C200907624	23/11/2009	N/A	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. SINGAPORE BRANCH	USD 25,000,000.00	Unsatisfied
C201003598	30/04/2010	N/A	STANDARD CHARTERED BANK	USD 50,000,000.00	Unsatisfied
C201006336	23/07/2010	N/A	OVERSEAS-CHINESE BANKING CORPORATION LIMITED	-	Unsatisfied
C201006827	04/08/2010	N/A	ABN AMRO BANK N.V.	-	Unsatisfied
C201011483	29/11/2010	N/A	ING BANK N.V.	USD 25,000,000.00	Unsatisfied
C201200407	10/01/2012	N/A	DBS BANK LTD.	-	Unsatisfied
C201202911	16/03/2012	N/A	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)	-	Unsatisfied
C201202912	16/03/2012	N/A	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)	-	Unsatisfied
C201205331	16/05/2012	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201205337	16/05/2012	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201205340	16/05/2012	N/A	THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201205795	28/05/2012	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.	-	Unsatisfied
C201205801	28/05/2012	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.	-	Unsatisfied
C201303496	05/03/2013	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C201303499	05/03/2013	N/A	STANDARD CHARTERED BANK	-	Unsatisfied
C201309228	05/07/2013	N/A	ING BANK N.V.	-	Unsatisfied
C201311146	15/08/2013	N/A	DEUTSCHE BANK AKTIENGESELLSCHAFT	-	Unsatisfied
C201312285	09/09/2013	N/A	NATIXIS	-	Unsatisfied
C201314960	06/11/2013	N/A	CIMB BANK BERHAD	-	Unsatisfied
C201400244	07/01/2014	N/A	OVERSEA-CHINESE BANKING CORPORATION LIMITED	-	Unsatisfied
C201400399	09/01/2014	N/A	DBS BANK LTD.	-	Unsatisfied
C201403042	24/03/2014	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied
C201403824	15/04/2014	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.	-	Unsatisfied
C201403825	15/04/2014	N/A	COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.	-	Unsatisfied
C201411942	30/10/2014	N/A	THE BANK OF TOKYOMITSUBISHI UFJ, LTD. SINGAPORE BRANCH	-	Unsatisfied
C201411944	30/10/2014	N/A	THE BANK OF TOKYOMITSUBISHI UFJ, LTD. SINGAPORE BRANCH	-	Unsatisfied
C201412662	13/11/2014	N/A	DBS BANK LTD.	-	Unsatisfied
C201412665	13/11/2014	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	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	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers. 

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	:	40%
Domestic Markets	:	SINGAPORE
Overseas	:	YES	Percentage	:	60%
Export Market	:	ASIA
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES LETTER OF CREDIT (LC) TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

OIL PRODUCT & OTHER RELATED PRODUCT

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	130	130	130	130	120

Branch

:

NO

Other Information:

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

The Subject is a one-stop global specialist, merchandiser and distributor of tropical oils and derivative products. 

The Subject possesses deep expertise in merchandising and distributing the best and finest tropical oils and derivative products around the world. 

Subject's value proposition begins with how we harness the beauty of nature - naturally and responsibly. 

Subject's tropical oils and dervative products are developed from natural resources harvested with the highest respect for the environment and the people who work and live in it. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-65766500
Match	:	N/A
Address Provided by Client	:	150, BEACH ROAD, 16-01, GATEWAY WEST,189720,SINGAPORE
Current Address	:	150, BEACH ROAD, 16-01, GATEWAY WEST, 189720, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2011 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2011 - 2014	]
Return on Shareholder Funds	:	Favourable	[	35.98%	]
Return on Net Assets	:	Favourable	[	38.36%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	2 Days	]
Debtor Ratio	:	Favourable	[	19 Days	]
Creditors Ratio	:	Favourable	[	2 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.61 Times	]
Current Ratio	:	Unfavourable	[	1.73 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	:	Favourable	[	22.74 Times	]
Gearing Ratio	:	Acceptable	[	0.87 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.
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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.
Overall financial condition of the Subject : STRONG

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2010	2011	2012	2013	2014
Population (Million)	5.08	5.18	5.31	5.40	5.47
Gross Domestic Products ( % )	14.5	4.9	1.3	3.7	(3.5)
Consumer Price Index	2.8	5.2	4.6	2.4	2.4
Total Imports (Million)	423,221.8	459,655.1	474,554.0	466,762.0	463,779.1
Total Exports (Million)	478,840.7	514,741.2	510,329.0	513,391.0	518,922.7
Unemployment Rate (%)	2.2	2.1	2.0	1.9	1.9
Tourist Arrival (Million)	11.64	13.17	14.49	15.46	15.01
Hotel Occupancy Rate (%)	85.6	86.5	86.4	86.3	85.5
Cellular Phone Subscriber (Million)	1.43	1.50	1.52	1.97	1.98
Registration of New Companies (No.)	29,798	32,317	31,892	37,288	41,589
Registration of New Companies (%)	12.8	8.5	(1.3)	9.8	11.5
Liquidation of Companies (No.)	15,126	19,005	17,218	17,369	18,767
Liquidation of Companies (%)	(32.5)	25.6	9.4	(5.3)	8.0
Registration of New Businesses (No.)	23,978	23,494	24,788	22,893	35,773
Registration of New Businesses (%)	(10.78)	2.02	5.51	1.70	56.30
Liquidation of Businesses (No.)	24,211	23,005	22,489	22,598	22,098
Liquidation of Businesses (%)	2.8	(5)	(2.2)	0.5	(2.2)
Bankruptcy Orders (No.)	1,537	1,527	1,748	1,992	1,757
Bankruptcy Orders (%)	(25.3)	(0.7)	14.5	14.0	(11.8)
Bankruptcy Discharges (No.)	2,252	1,391	1,881	2,584	3,546
Bankruptcy Discharges (%)	(26.3)	(38.2)	35.2	37.4	37.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(10.5)	12.10	(0.5)	-	2.80
Manufacturing *	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	96.4	100.0	103.5	103.5	105.0
Textiles	122.1	100.0	104.0	87.1	74.9
Wearing Apparel	123.3	100.0	92.1	77.8	49.5
Leather Products & Footwear	81.8	100.0	98.6	109.8	95.9
Wood & Wood Products	104.0	100.0	95.5	107.4	112.0
Paper & Paper Products	106.1	100.0	97.4	103.2	103.4
Printing & Media	103.5	100.0	93.0	86.1	80.3
Crude Oil Refineries	95.6	100.0	99.4	93.5	85.6
Chemical & Chemical Products	97.6	100.0	100.5	104.1	114.0
Pharmaceutical Products	75.3	100.0	109.7	107.2	115.7
Rubber & Plastic Products	112.3	100.0	96.5	92.9	92.8
Non-metallic Mineral	92.5	100.0	98.2	97.6	82.2
Basic Metals	102.2	100.0	90.6	76.5	98.3
Fabricated Metal Products	103.6	100.0	104.3	105.1	105.1
Machinery & Equipment	78.5	100.0	112.9	114.5	124.0
Electrical Machinery	124.1	100.0	99.3	108.5	121.3
Electronic Components	113.6	100.0	90.6	94.3	95.0
Transport Equipment	94.0	100.0	106.3	107.5	103.2
Construction	14.20	20.50	28.70	-	22.00
Real Estate	21.3	25.4	31.9	-	145.1
Services
Electricity, Gas & Water	4.00	7.00	6.30	-
Transport, Storage & Communication	12.80	7.40	5.30	-	14.20
Finance & Insurance	(0.4)	8.90	0.50	-	6.00
Government Services	9.70	6.90	6.00	-
Education Services	(0.9)	(1.4)	0.30	-	5.98
* 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 2002, the Subject is a Private Limited company, focusing on trading of oil products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. A paid up capital of SGD 16,667,487 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise. 

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. The Subject is a fairly large and rapidly growing company with over 130 staff in its operations The Subject has a good  management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at USD 195,368,136, the Subject should be able to maintain its business in the near terms. 

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.

INTER-CONTINENTAL OILS & FATS PTE. LTD.

Financial Year End	2014-12-31	2013-12-31	2013-06-30	2012-06-30	2011-06-30
Months	12	6	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	4,651,610,585	2,427,489,824	5,084,174,095	5,164,055,044	4,227,442,338
Other Income	7,130,778	6,541,589	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	4,658,741,363	2,434,031,413	5,084,174,095	5,164,055,044	4,227,442,338
Costs of Goods Sold	(4,545,384,459)	(2,351,616,532)	(4,952,056,266)	(5,038,659,057)	(4,131,747,966)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	113,356,904	82,414,881	132,117,829	125,395,987	95,694,372
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	75,765,530	59,892,851	105,693,906	95,365,246	77,248,773
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	75,765,530	59,892,851	105,693,906	95,365,246	77,248,773
Taxation	(5,470,564)	(2,638,036)	(7,082,604)	(8,767,528)	(4,510,778)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	70,294,966	57,254,815	98,611,302	86,597,718	72,737,995
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	170,801,170	193,404,355	142,189,553	122,966,835	71,528,840
	----------------	----------------	----------------	----------------	----------------
As restated	170,801,170	193,404,355	142,189,553	122,966,835	71,528,840
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	241,096,136	250,659,170	240,800,855	209,564,553	144,266,835
DIVIDENDS - Ordinary (paid & proposed)	(55,728,000)	(79,858,000)	(47,396,500)	(67,375,000)	(21,300,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	185,368,136	170,801,170	193,404,355	142,189,553	122,966,835
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Loan from subsidiary companies	-	-	-	-	784,975
Term loan / Borrowing	729,087	497,829	739,000	891,416	710,435
Trust receipts	1,745,869	845,992	1,672,058	2,153,355	1,517,766
Others	1,009,775	416,177	679,553	991,012	557,632
	----------------	----------------	----------------	----------------	----------------
	3,484,731	1,759,998	3,090,611	4,035,783	3,570,808
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	277,526	125,844	248,916	247,987	226,860
	----------------	----------------	----------------	----------------	----------------
	277,526	125,844	248,916	247,987	226,860
	=============	=============	=============	=============	=============

BALANCE SHEET

INTER-CONTINENTAL OILS & FATS PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	627,208	722,945	491,969	561,704	711,889
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	26,711,625	25,411,625	25,211,625	18,215,023	16,913,972
Loans & advances - non-current	-	-	-	-	7,808,221
Others	20,116,000	10,050,000	16,607,880	13,403,112	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	46,827,625	35,461,625	41,819,505	31,618,135	24,722,193
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	47,454,833	36,184,570	42,311,474	32,179,839	25,434,082
Stocks	27,425,979	7,524,050	22,299,658	46,586,627	62,160,472
Trade debtors	248,115,012	479,354,261	380,719,546	331,516,172	510,314,357
Other debtors, deposits & prepayments	2,779,425	1,020,750	838,548	862,002	4,619,688
Short term deposits	1,500,000	6,900,400	-	12,500,608	-
Amount due from holding company	-	-	3,852	-	-
Amount due from subsidiary companies	51,283,508	70,635,937	34,660,605	63,081,098	-
Amount due from related companies	-	-	-	26,231,660	-
Cash & bank balances	42,006,637	59,629,617	51,623,850	57,913,513	30,357,363
Others	2,666,316	100,629	103,218	2,130,824	582,683
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	375,776,877	625,165,644	490,249,277	540,822,504	608,034,563
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	423,231,710	661,350,214	532,560,751	573,002,343	633,468,645
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	20,952,408	27,829,917	107,711,862	38,847,167	207,436,278
Other creditors & accruals	25,156,028	165,527,317	1,268,722	504,489	470,444
Short term borrowings/Term loans	16,666,667	14,166,667	11,391,670	20,383,332	274,759,935
Other borrowings	142,727,729	225,029,154	177,931,096	185,445,268	-
Amounts owing to subsidiary companies	5,975,730	10,550,743	11,412,419	4,419,733	-
Amounts owing to related companies	-	-	-	142,025,945	-
Provision for taxation	4,695,955	6,515,833	7,031,479	8,983,670	4,275,600
Other liabilities	439,057	3,012,746	3,659,148	161,516	1,059,551
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	216,613,574	452,632,377	320,406,396	400,771,120	488,001,808
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	159,163,303	172,533,267	169,842,881	140,051,384	120,032,755
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	206,618,136	208,717,837	212,154,355	172,231,223	145,466,837
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Retained profit/(loss) carried forward	185,368,136	170,801,170	193,404,355	142,189,553	122,966,835
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	185,368,136	170,801,170	193,404,355	142,189,553	122,966,835
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	195,368,136	180,801,170	203,404,355	152,189,553	132,966,835
Long term loans	11,250,000	27,916,667	8,750,000	20,041,670	12,500,002
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	11,250,000	27,916,667	8,750,000	20,041,670	12,500,002
	----------------	----------------	----------------	----------------	----------------
	206,618,136	208,717,837	212,154,355	172,231,223	145,466,837
	=============	=============	=============	=============	=============

FINANCIAL RATIO

INTER-CONTINENTAL OILS & FATS PTE. LTD.

TYPES OF FUNDS
Cash	43,506,637	66,530,017	51,623,850	70,414,121	30,357,363
Net Liquid Funds	43,506,637	66,530,017	51,623,850	70,414,121	30,357,363
Net Liquid Assets	131,737,324	165,009,217	147,543,223	93,464,757	57,872,283
Net Current Assets/(Liabilities)	159,163,303	172,533,267	169,842,881	140,051,384	120,032,755
Net Tangible Assets	206,618,136	208,717,837	212,154,355	172,231,223	145,466,837
Net Monetary Assets	120,487,324	137,092,550	138,793,223	73,423,087	45,372,281
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	79,250,261	61,652,849	108,784,517	99,401,029	80,819,581
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	79,527,787	61,778,693	109,033,433	99,649,016	81,046,441
BALANCE SHEET ITEMS
Total Borrowings	170,644,396	267,112,488	198,072,766	225,870,270	287,259,937
Total Liabilities	227,863,574	480,549,044	329,156,396	420,812,790	500,501,810
Total Assets	423,231,710	661,350,214	532,560,751	573,002,343	633,468,645
Net Assets	206,618,136	208,717,837	212,154,355	172,231,223	145,466,837
Net Assets Backing	195,368,136	180,801,170	203,404,355	152,189,553	132,966,835
Shareholders' Funds	195,368,136	180,801,170	203,404,355	152,189,553	132,966,835
Total Share Capital	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Total Reserves	185,368,136	170,801,170	193,404,355	142,189,553	122,966,835
LIQUIDITY (Times)
Cash Ratio	0.20	0.15	0.16	0.18	0.06
Liquid Ratio	1.61	1.36	1.46	1.23	1.12
Current Ratio	1.73	1.38	1.53	1.35	1.25
WORKING CAPITAL CONTROL (Days)
Stock Ratio	2	1	2	3	5
Debtors Ratio	19	72	27	23	44
Creditors Ratio	2	4	8	3	18
SOLVENCY RATIOS (Times)
Gearing Ratio	0.87	1.48	0.97	1.48	2.16
Liabilities Ratio	1.17	2.66	1.62	2.77	3.76
Times Interest Earned Ratio	22.74	35.03	35.20	24.63	22.63
Assets Backing Ratio	20.66	20.87	21.22	17.22	14.55
PERFORMANCE RATIO (%)
Operating Profit Margin	1.63	2.47	2.08	1.85	1.83
Net Profit Margin	1.51	2.36	1.94	1.68	1.72
Return On Net Assets	38.36	29.54	51.28	57.71	55.56
Return On Capital Employed	38.36	29.54	51.28	57.71	55.56
Return On Shareholders' Funds/Equity	35.98	31.67	48.48	56.90	54.70
Dividend Pay Out Ratio (Times)	0.79	1.39	0.48	0.78	0.29
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.89
UK Pound	1	Rs.100.39
Euro	1	Rs.73.52

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	TPT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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