MIRA INFORM REPORT

 

 

Report No. :

347706

Report Date :

30.10.2015

 

IDENTIFICATION DETAILS

 

Name :

JUKI SINGAPORE PTE LTD

 

 

Registered Office :

20, Bendemeer Road, 04-12, 339914

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

17.03.1995

 

 

Com. Reg. No.:

199501853-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

The Subject is engaged in trading of industrial sewing machines.

 

 

No. of Employees :

50

 

 

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 :

Slow but correct 

 

 

Litigation :

Clear

 

 

NOTES:

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

 

 

ECGC Country Risk Classification List – 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

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

Malaysia 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.

:

199501853-K

COMPANY NAME

:

JUKI SINGAPORE PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/03/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

20, BENDEMEER ROAD, 04-12, 339914, SINGAPORE.

BUSINESS ADDRESS

:

20, BENDEMEER ROAD, 04-12, CYBERHUB, 339914, SINGAPORE.

TEL.NO.

:

65-65534388

FAX.NO.

:

65-65525568

EMAIL

:

JUKI@JUKISIN.COM.SG

WEB SITE

:

WWW.JUKI.COM.SG

CONTACT PERSON

:

MINORU NITTA ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF INDUSTRIAL SEWING MACHINES

ISSUED AND PAID UP CAPITAL

:

13,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 13,000,000.00 

SALES

:

USD 297,059,350 [2014]

NET WORTH

:

USD 14,507,896 [2014]

STAFF STRENGTH

:

50 [2015]

BANKER (S)

 

DBS BANK LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

SATISFACTORY

PAYMENT

:

SLOW BUT CORRECT 

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 industrial sewing machines.

 

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

 

 

Share Capital History

Date

Issue & Paid Up Capital

20/08/2015

SGD 13,000,000.00

 

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

 

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

JUKI CORPORATION

2-11-1, TSURUMAKI, TAMA-SHI, TOKYO, 206-8551, JAPAN.

S95UF0314

13,000,000.00

100.00

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

------

13,000,000.00

100.00

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

=====

+ Also Director

 

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

 



Local No

Country

Company

(%)

As At

VIETNAM

JUKI MACHINERY VIETNAM COMPANY LTD

100.00

31/12/2013

INDIA

JUKI INDIA PRIVATE LIMITED

100.00

31/12/2013

SRI LANKA

JUKI LANKA SERVICE CENTRE (PRIVATE) LIMITED

100.00

31/12/2013

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MINORU NITTA

Address

:

12, KITCHENER LINK, 22-26, CITY SQUARE RESIDENCES, 207224, SINGAPORE.

IC / PP No

:

G5102673Q

Nationality

:

JAPANESE

Date of Appointment

:

01/02/2011

 

DIRECTOR 2

 

Name Of Subject

:

RYUZO NAKAGAWA

Address

:

ROOM 3E, SHERWOOD RESIDENCE, 127, PASTEUR ST, DIST. 3, HO CHI MINH CITY, VIETNAM.

IC / PP No

:

TZ0666102

Nationality

:

JAPANESE

Date of Appointment

:

01/02/2011

 

DIRECTOR 3

 

Name Of Subject

:

NORIHIKO ISHIZUKA

Address

:

766, SUKHUMVIT ROAD, 766/180, KEYNE BY SANSIRI, KLONGTON, KLONGTOEY, BANGKOK, 10110, THAILAND.

IC / PP No

:

TH1951193

Nationality

:

JAPANESE

Date of Appointment

:

26/07/2012

 

DIRECTOR 4

 

Name Of Subject

:

MR. LOOI KAM HONG

Address

:

137, SUNSET WAY, 08-14, CLEMENTI PARK, 597159, SINGAPORE.

IC / PP No

:

S2530975H

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/12/1996

 

DIRECTOR 5

 

Name Of Subject

:

NORIAKI SAITO

Address

:

UNIT 2504, P3-33, ELITE RESIDENCE, DUBAI MARINA, DUBAI, UNITED ARAB EMIRATES.

IC / PP No

:

MZ0756666

Nationality

:

JAPANESE

Date of Appointment

:

17/06/2013

 

 

MANAGEMENT

 

1)

Name of Subject

:

MINORU NITTA

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE LLP

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

JENNIFER LEE SIEW JEE

IC / PP No

:

S1336064B

Address

:

2, ENG KONG ROAD, 599081, SINGAPORE.

 

 

 

 

BANKING


Banking relations are maintained principally with :

 

1)

Name

:

DBS BANK LTD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201307603

05/06/2013

N/A

DBS BANK LTD.

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT

 

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

No legal action was found in our databank.


No winding up petition was found in our databank.

 

 

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

Local

:

YES

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

:

MIDDLE EAST

ASIA PACIFIC

Credit Term

:

180 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

INDUSTRIAL SEWING MACHINES

Product Brand Name

:

JUKI

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

 


GROUP

N/A

N/A

N/A

N/A

COMPANY

50

50

50

50

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of industrial sewing machines. 


Background of subject:


The Subject ("Juki Singapore"), a wholly-owned subsidiary of Juki Corporation, Japan, was primarily established in year 1982 as a representative office. Over the years, it has expanded its operation significantly through expansions and become the regional head quarters covering the entire regions of South-East Asia, Middle East, Asia Pacific and Oceania.


Products dealings:

* general machines category: 1-2 needle, lockstitch machine, overlock/safety stitch machine, zigzag stitching machine, covering stitch machine, double chainstitch machine, special purpose machine


* automatic machine category: button sewing machine, artacking/shape-tacking machine, eyelet buttonholing machine, computer-controlled, cycle machine, automatic button sewing indexed, automatic machine


* LHD machine category: flat-bed sewing machine, long arm sewing machine, cylinder-bed sewing machine, post-bed sewing machine, extra heavy-weight material machine

Services:
* engineering support

- provide training and technical consultancy to factory managers and supervisors

* support in attachment

- supply specialized assistance in training and consultancy in the area of attachment

* maintenance support- provide customers with machine knowledge, machine installation and maintenance services
* after sales support

- sales & marketing section are well-trained to respond to their customers' queries on proposal and price quotation. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-65534388

Match

:

N/A

Address Provided by Client

:

20 BENDEMEER ROAD #04-12 CYBERHUB SINGAPORE 339914

Current Address

:

20, BENDEMEER ROAD, 04-12, CYBERHUB, 339914, SINGAPORE.

Match

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

3.85%

]

Return on Net Assets

:

Acceptable

[

18.04%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Unfavourable

[

140 Days

]

Debtor Ratio

:

Unfavourable

[

94 Days

]

Creditors Ratio

:

Favourable

[

15 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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

:

Unfavourable

[

0.47 Times

]

Current Ratio

:

Unfavourable

[

1.07 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

1.42 Times

]

Gearing Ratio

:

Unfavourable

[

2.86 Times

]

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

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : POOR

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

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 1995, the Subject is a Private Limited company, focusing on trading of industrial sewing machines. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a good reputation in the market. It should have received supports from its regular customers. With an issued and paid up capital of SGD 13,000,000 and strong backing from its holding company, the Subject has the ability to further expand its business in the future compared to other corporation.


Over the years, the Subject has 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 50 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. 


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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 14,507,896, the Subject should be able to maintain its business in the near terms. 


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. 


Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

PROFIT AND LOSS ACCOUNT

 

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

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

USD

TURNOVER

297,059,350

260,821,194

215,217,126

221,697,750

186,718,993

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

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

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

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

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

Total Turnover

297,059,350

260,821,194

215,217,126

221,697,750

186,718,993

Costs of Goods Sold

(265,597,991)

(225,569,048)

(192,794,629)

(213,875,842)

-

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

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

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

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

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

Gross Profit

31,461,359

35,252,146

22,422,497

7,821,908

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

773,431

291,936

803,670

740,557

1,341,777

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

773,431

291,936

803,670

740,557

1,341,777

Taxation

(215,184)

21,556

(106,829)

(151,058)

(314,278)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

558,247

313,492

696,841

589,499

1,027,499

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

5,869,869

5,556,377

4,859,536

4,270,037

3,242,538

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

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

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

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

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

As restated

5,869,869

5,556,377

4,859,536

4,270,037

3,242,538

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

6,428,116

5,869,869

5,556,377

4,859,536

4,270,037

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

6,428,116

5,869,869

5,556,377

4,859,536

4,270,037

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

1,845,304

1,942,952

1,471,189

1,269,124

-

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

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

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

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

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

1,845,304

1,942,952

1,471,189

1,269,124

-

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

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

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

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

-

DEPRECIATION (as per notes to P&L)

126,000

89,326

803,670

79,107

110,093

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

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

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

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

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

126,000

89,326

803,670

79,107

110,093

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

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

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

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

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

 

 

BALANCE SHEET

 

ASSETS EMPLOYED:

FIXED ASSETS

342,782

145,162

139,348

97,944

127,706

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies

1,554,294

1,554,294

1,554,294

1,054,294

1,054,294

Associated companies

36,406

36,406

36,406

36,406

36,406

Deferred assets

-

26,907

26,907

153,638

19,428

Others

-

70,765

56,361

56,361

51,554

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,590,700

1,688,372

1,673,968

1,300,699

1,161,682

Others

56,361

-

-

-

-

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

56,361

-

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,989,843

1,833,534

1,813,316

1,398,643

1,289,388

Stocks

114,033,155

101,201,563

100,703,289

84,126,148

60,039,632

Trade debtors

76,542,123

51,151,415

41,607,543

38,997,132

35,896,346

Other debtors, deposits & prepayments

690,709

602,032

787,818

374,331

365,275

Short term deposits

-

2,500,000

5,000,000

5,250,000

10,303,000

Amount due from holding company

3,344,730

3,090,070

46,285

242,639

317,300

Amount due from subsidiary companies

4,419,797

2,229,358

6,125,742

7,505,792

8,344,824

Amount due from related companies

2,807,886

4,341,475

1,866,752

823,984

1,982,596

Amount due from associated companies

212,023

159,565

794,687

526,418

740,264

Cash & bank balances

3,001,538

1,057,834

1,360,568

1,100,234

1,887,953

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

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

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

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

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

TOTAL CURRENT ASSETS

205,051,961

166,333,312

158,292,684

138,946,678

119,877,190

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

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

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

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

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

TOTAL ASSET

207,041,804

168,166,846

160,106,000

140,345,321

121,166,578

===========

===========

===========

===========

===========

CURRENT LIABILITIES

Trade creditors

11,140,495

9,935,491

10,757,691

9,396,023

87,045,940

Other creditors & accruals

2,561,858

1,874,236

411,565

1,083,595

3,003,223

Short term borrowings/Term loans

41,479,656

32,000,000

36,500,000

30,000,000

18,470,000

Amounts owing to holding company

134,181,320

106,797,424

92,746,281

80,673,014

-

Amounts owing to subsidiary companies

1,041,367

541,015

541,851

56,691

-

Amounts owing to related companies

1,690,360

2,815,503

5,016,742

5,166,993

-

Amounts owing to associated companies

312,052

253,528

411,310

657,339

-

Provision for taxation

121,200

-

84,403

372,350

297,598

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

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

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

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

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

TOTAL CURRENT LIABILITIES

192,528,308

154,217,197

146,469,843

127,406,005

108,816,761

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

12,523,653

12,116,115

11,822,841

11,540,673

11,060,429

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

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

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

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

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

TOTAL NET ASSETS

14,513,496

13,949,649

13,636,157

12,939,316

12,349,817

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

8,079,780

8,079,780

8,079,780

8,079,780

8,079,780

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

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

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

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

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

TOTAL SHARE CAPITAL

8,079,780

8,079,780

8,079,780

8,079,780

8,079,780

Retained profit/(loss) carried forward

6,428,116

5,869,869

5,556,377

4,859,536

4,270,037

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

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

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

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

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

TOTAL RESERVES

6,428,116

5,869,869

5,556,377

4,859,536

4,270,037

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

14,507,896

13,949,649

13,636,157

12,939,316

12,349,817

Deferred taxation

5,600

-

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

5,600

-

-

-

-

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

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

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

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

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

14,513,496

13,949,649

13,636,157

12,939,316

12,349,817

===========

===========

===========

===========

===========

 

 

FINANCIAL RATIO

 

TYPES OF FUNDS

Cash

3,001,538

3,557,834

6,360,568

6,350,234

12,190,953

Net Liquid Funds

3,001,538

3,557,834

6,360,568

6,350,234

12,190,953

Net Liquid Assets

(101,509,502)

(89,085,448)

(88,880,448)

(72,585,475)

(48,979,203)

Net Current Assets/(Liabilities)

12,523,653

12,116,115

11,822,841

11,540,673

11,060,429

Net Tangible Assets

14,457,135

13,949,649

13,636,157

12,939,316

12,349,817

Net Monetary Assets

(101,515,102)

(89,085,448)

(88,880,448)

(72,585,475)

(48,979,203)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

2,618,735

2,234,888

2,274,859

2,009,681

1,341,777

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

2,744,735

2,324,214

3,078,529

2,088,788

1,451,870

BALANCE SHEET ITEMS

Total Borrowings

41,479,656

32,000,000

36,500,000

30,000,000

18,470,000

Total Liabilities

192,533,908

154,217,197

146,469,843

127,406,005

108,816,761

Total Assets

207,041,804

168,166,846

160,106,000

140,345,321

121,166,578

Net Assets

14,513,496

13,949,649

13,636,157

12,939,316

12,349,817

Net Assets Backing

14,507,896

13,949,649

13,636,157

12,939,316

12,349,817

Shareholders' Funds

14,507,896

13,949,649

13,636,157

12,939,316

12,349,817

Total Share Capital

8,079,780

8,079,780

8,079,780

8,079,780

8,079,780

Total Reserves

6,428,116

5,869,869

5,556,377

4,859,536

4,270,037

LIQUIDITY (Times)

Cash Ratio

0.02

0.02

0.04

0.05

0.11

Liquid Ratio

0.47

0.42

0.39

0.43

0.55

Current Ratio

1.07

1.08

1.08

1.09

1.10

WORKING CAPITAL CONTROL (Days)

Stock Ratio

140

142

171

139

117

Debtors Ratio

94

72

71

64

70

Creditors Ratio

15

16

20

16

170

SOLVENCY RATIOS (Times)

Gearing Ratio

2.86

2.29

2.68

2.32

1.50

Liabilities Ratio

13.27

11.06

10.74

9.85

8.81

Times Interest Earned Ratio

1.42

1.15

1.55

1.58

0

Assets Backing Ratio

1.79

1.73

1.69

1.60

1.53

PERFORMANCE RATIO (%)

Operating Profit Margin

0.26

0.11

0.37

0.33

0.72

Net Profit Margin

0.19

0.12

0.32

0.27

0.55

Return On Net Assets

18.04

16.02

16.68

15.53

10.86

Return On Capital Employed

17.97

16.02

16.68

15.53

10.86

Return On Shareholders' Funds/Equity

3.85

2.25

5.11

4.56

8.32

Dividend Pay Out Ratio (Times)

0

0

0

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.15

UK Pound

1

Rs.99.36

Euro

1

Rs.71.25

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

               

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.