MIRA INFORM REPORT

 

 

Report No. :

341038

Report Date :

22.09.2015

 

IDENTIFICATION DETAILS

 

Name :

ASPIAL-LEE HWA JEWELLERY SINGAPORE PTE. LTD.

 

 

Formerly Known As :

WORLD CLASS CONSTRUCTION PTE LTD

 

INNOBRIX PTE LTD

 

 

Registered Office :

55, Ubi Avenue 1, 07-11, Ubi 55 Building, 408935

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

25.03.2000

 

 

Com. Reg. No.:

200002520-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Retail sale of jewellery.

 

 

No. of Employee :

600 [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 – 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.

:

200002520-H

COMPANY NAME

:

ASPIAL-LEE HWA JEWELLERY SINGAPORE PTE. LTD.

FORMER NAME

:

WORLD CLASS CONSTRUCTION PTE LTD (20/11/2003)
INNOBRIX PTE LTD (08/02/2002)

INCORPORATION DATE

:

25/03/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

55, UBI AVENUE 1, 07-11, UBI 55 BUILDING, 408935, SINGAPORE.

BUSINESS ADDRESS

:

55, UBI AVENUE 1, 07-11, UBI 55 BUILDING, 408935, SINGAPORE.

TEL.NO.

:

65-63821111

FAX.NO.

:

65-68417905

EMAIL

:

INFO@ASPIAL.COM

WEB SITE

:

WWW.ASPIAL.COM

CONTACT PERSON

:

KOH WEE SENG ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

RETAIL SALE OF JEWELLERY

ISSUED AND PAID UP CAPITAL

:

25,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 25,000,000.00 

SALES

:

SGD 81,090,000 [2014]

NET WORTH

:

SGD 30,770,000 [2014]

STAFF STRENGTH

:

600 [2015]

BANKER (S)

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED
STANDARD CHARTERED BANK
UNITED OVERSEAS BANK LIMITED

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

POOR

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) retail sale of jewellery.

 

The immediate holding company of the Subject is ASPIAL CORPORATION LIMITED, a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

15/09/2015

SGD 25,000,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

ASPIAL CORPORATION LIMITED

50, RAFFLES PLACE, 32-01, SINGAPORE LAND TOWER, 048623, SINGAPORE.

197001030G

25,000,000.00

100.00

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

------

25,000,000.00

100.00

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

=====

+ Also Director

 

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

Local No

Country

Company

Status

(%)

As At

197702328G

SINGAPORE

GOLDHEART JEWELRY PTE. LTD.

-

100.00

15/09/2015

199707674D

SINGAPORE

ASPIAL-LEE HWA JEWELLERY PTE. LTD.

-

100.00

15/09/2015

200412533G

SINGAPORE

CITIGEMS PTE. LTD.

-

61.50

15/09/2015

 

 

DIRECTORS

 

 

DIRECTOR 1

 

Name Of Subject

:

KO LEE MENG

Address

:

38, BRIGHTON CRESCENT, 559192, SINGAPORE.

IC / PP No

:

S1488574I

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/03/2000

 

DIRECTOR 2

 

Name Of Subject

:

KOH LEE HWEE

Address

:

30, RECREATION LANE, 546581, SINGAPORE.

IC / PP No

:

S1781864C

Nationality

:

SINGAPOREAN

Date of Appointment

:

05/09/2006

 

DIRECTOR 3

 

Name Of Subject

:

KOH WEE SENG

Address

:

10, STREET HELIER'S AVENUE, SERANGOON GARDEN ESTATE, 555807, SINGAPORE.

IC / PP No

:

S6834657F

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/03/2000

 

DIRECTOR 4

 

Name Of Subject

:

LIONEL NGOC MAI

Address

:

EGLANTIERLAAN 27, 2020, ANTWERP, BELGIUM.

IC / PP No

:

10CR24345

Nationality

:

FRENCH

Date of Appointment

:

02/10/2013



 

MANAGEMENT

 

 

 

1)

Name of Subject

:

KOH WEE SENG

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LIM SWEE ANN

IC / PP No

:

S2588619D

Address

:

345, UPPER BUKIT TIMAH ROAD, 02-11, THE HILLSIDE, 588197, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OVERSEA-CHINESE BANKING CORPORATION LIMITED

 

2)

Name

:

STANDARD CHARTERED BANK

 

3)

Name

:

UNITED OVERSEAS BANK LIMITED

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200708476

08/10/2007

N/A

UNITED OVERSEAS BANK LIMITED

-

Unsatisfied

C201112781

12/10/2011

N/A

OVERSEA-CHINESE BANKING CORPORATION LIMITED

-

Unsatisfied

C201312578

13/09/2013

N/A

OVERSEA-CHINESE BANKING CORPORATION 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

:

29202

Year

:

2009

Place

:

SINGAPORE

Court

:

MAGISTRATE COURT

Date Filed

:

23/09/2009

Solicitor Ref

:

LST/T/2681/2008/C

Solicitor Firm

:

TAN LEROY & CHANDRA

Plaintiff

:

THOMAS SEBASTIAN

Defendants

:

ASPIAL-LEE HWA JEWELLERY SINGAPORE PTE. LTD. (200002520)

Hearing Date

:

N/A

Amount Claimed

:

1755

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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CASH
CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

JEWELLERS, GOLD AND SILVERSMITHS

 

Total Number of Employees:

YEAR

2015

2014

GROUP

N/A

N/A

COMPANY

600

600

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) retail sale of jewellery. 

The Group is principally engaged in: 
* jewellery business as a manufacturer and retailer 
* residential property development 

occasion 
* classic solitaire 
* day to day 
* engagement
* evening wear 
* wedding 
type 
* ring
* earring 
* bracelet 
* pendant 
* bangle 
* necklace

material 
* champagne gold 
* champagne gold and purple gold 
* platinum
* platinum and rose gold 
* rose gold 
* stainless steel and silver 
* white gold 
* white gold and champagne gold
* white gold and purple gold 
* white gold and rose gold 
* white gold and yellow gold 
* white gold and yellow gold and rose gold 
* white gold and yellow gold and purple gold
* yellow gold 
* yellow gold and black gold 
* yellow gold and white gold 

gem
* amethyst 
* blue topaz 
* chalcedony 
* citrine 
* coral
* cultured pearl 
* diamond 
* emerald 
* garnet 
* onyx
* peridot 
* rubelite 
* ruby 
* sapphire 
* topaz
* tourmaline 

collection 
* adoration 
* amor* andalusia 
* ascesa 
* audacious 
* aurora 
* belle fleur
* bleu 
* blossom 
* blue belle 
* blushing bliss 
* bond
* calyx 
* camellia 
* cascade 
* celin 
* cerise
* chartreuse chic 
* chimento 
* chrysalis 
* citron charm 
* cobalt concerto
* confetti 
* crossings 
* dance 
* dance of love 
* designer solitaire
* dew 
* diamond bliss 
* diamond temptation 
* divine violet 
* dream day
* dreamweaver 
* drizzle dazzle 
* dulcet 
* duo 
* dusk divine
* eastern elegance 
* eclipse 
* electric geometric 
* elixir 
* elizabeth
* emmeti 
* emotion 
* endless devotion 
* enigma 
* essence
* eternity 
* exotic paisley 
* exotica 
* fahrenheit 
* faith
* fantasy 
* felicity 
* flamboyance 
* flamenco 
* flight of fancy
* foliage 
* forest flame 
* forever 
* furrer jacot 
* fuschia fancy
* gala glamour 
* geometric dreams 
* glamour link 
* glitter knot 
* glitter spring
* glitterati 
* glitz factor 
* gothic chic 
* gracile 
* greta
* immaculate 
* incandescence 
* indigo rose 
* infatuation 
* indescence
* jackie o 
* jacquard 
* jubilee belle 
* junoesque 
* kaleidoscope
* la femme 
* lace embrace 
* lady luxe 
* lariat 
* lattice lace
* lavish love 
* lilac lea 
* links 
* lush delxue 
* lustre
* mantilla 
* midnight bloom 
* minimalist ii 
* mirage 
* mirror mirror
* mondain 
* mosaic 
* mystique 
* nimbus 
* ocean song
* orange mystique 
* oriental essence 
* paradox 
* paramour 
* passion flower
* petite bliss 
* petite rosy 
* pinnacle 
* pirouette 
* pizazz
* potence 
* precious blossom 
* pucci desire 
* pure seduction 
* purple gold
* purple infinity 
* radiant autumn 
* radiant spring 
* rain 
* razzmatazz
* reminiscence 
* renaissance 
* revelation 
* rio 
* rippling ribbon
* rosette 
* ruffled grace 
* scarlet 
* seashell 
* sensuous lines
* shimmer swirl 
* shower of kisses 
* sinuous dance 
* solitaire 
* sophisticate
* soul locket 
* splendour 
* splendrous 
* stardust 
* starlight
* summer sparkler 
* sun kissed 
* swirl 
* tassel tango 
* timeless
* titanium 
* tranquility 
* tribal rose 
* trois 
* twinkle
* twirl 
* two faces 
* velvet hearts 
* versus 
* violet grace
* violet venus 
* violet verve 
* virtue 
* virtuoso 
* viva violet
* vivid 
* weave 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63821111

Match

:

N/A

Address Provided by Client

:

55 UBI AVENUE 1, SINGAPORE 408935

Current Address

:

55, UBI AVENUE 1, 07-11, UBI 55 BUILDING, 408935, SINGAPORE.

Match

:

NO

 

Other Investigations


On 15th September 2015 we contacted one of the staff from the Subject and she provided some information.

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

(0.34%)

]

Return on Net Assets

:

Unfavourable

[

(3.28%)

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject incurred losses during the year due to the inefficient control of its operating costs. 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

:

Unfavourable

[

450 Days

]

Debtor Ratio

:

Favourable

[

3 Days

]

Creditors Ratio

:

Favourable

[

26 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

:

Unfavourable

[

0.08 Times

]

Current Ratio

:

Unfavourable

[

1.15 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

[

(0.78 Times)

]

Gearing Ratio

:

Unfavourable

[

1.02 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. 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. 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 :

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 2000, the Subject is a Private Limited company, focusing on retail sale of jewellery. 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. With strong capital position of SGD 25,000,000, we are confident with the Subject's business and its future growth prospect. The Subject is well backed by a listed holding company which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive. 

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. Being a large entity, the Subject has a steady workforce of 600 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. 

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. 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 SGD 30,770,000, 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. 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

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

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

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

SUMMARY

Currency

SGD

SGD

SGD

SGD

SGD

TURNOVER

81,090,000

92,023,000

83,196,000

76,369,000

74,495,361

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

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

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

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

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

Total Turnover

81,090,000

92,023,000

83,196,000

76,369,000

74,495,361

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

(2,298,000)

790,000

(9,199,000)

3,565,000

3,290,533

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(2,298,000)

790,000

(9,199,000)

3,565,000

3,290,533

Taxation

2,192,000

(23,000)

(282,000)

(477,000)

(413,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(106,000)

767,000

(9,481,000)

3,088,000

2,877,533

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

5,876,000

5,109,000

14,590,000

11,502,000

8,624,467

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

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

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

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

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

As restated

5,876,000

5,109,000

14,590,000

11,502,000

8,624,467

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,770,000

5,876,000

5,109,000

14,590,000

11,502,000

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,770,000

5,876,000

5,109,000

14,590,000

11,502,000

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Term loan / Borrowing

1,233,000

1,467,000

827,000

581,000

-

Others

56,000

56,000

57,000

56,000

-

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

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

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

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

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

1,289,000

1,523,000

884,000

637,000

-

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

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

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

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

-

DEPRECIATION (as per notes to P&L)

94,000

94,000

117,000

146,000

-

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

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

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

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

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

94,000

94,000

117,000

146,000

-

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

993,000

253,000

180,000

258,000

15,913,163

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies

15,453,000

15,453,000

15,577,000

15,577,000

-

Investments

11,000

11,000

11,000

11,000

-

Deferred assets

183,000

-

-

-

-

Others

-

-

57,000

33,000

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

15,647,000

15,464,000

15,645,000

15,621,000

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

16,640,000

15,717,000

15,825,000

15,879,000

15,913,163

Stocks

99,994,000

94,564,000

91,526,000

80,989,000

-

Trade debtors

559,000

484,000

886,000

1,333,000

-

Other debtors, deposits & prepayments

599,000

629,000

670,000

76,000

-

Amount due from subsidiary companies

-

1,818,000

731,000

11,385,000

-

Amount due from related companies

2,179,000

2,108,000

2,171,000

1,935,000

-

Cash & bank balances

1,929,000

4,487,000

3,972,000

812,000

-

Others

2,495,000

2,495,000

2,495,000

2,385,000

-

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

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

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

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

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

TOTAL CURRENT ASSETS

107,755,000

106,585,000

102,451,000

98,915,000

86,422,190

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

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

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

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

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

TOTAL ASSET

124,395,000

122,302,000

118,276,000

114,794,000

102,335,353

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

5,732,000

5,768,000

7,694,000

18,140,000

-

Other creditors & accruals

1,115,000

1,405,000

1,200,000

1,475,000

-

Short term borrowings/Term loans

31,375,000

31,375,000

20,250,000

23,785,000

-

Amounts owing to holding company

33,241,000

32,838,000

43,523,000

16,756,000

-

Amounts owing to subsidiary companies

20,701,000

15,651,000

10,362,000

7,972,000

-

Amounts owing to related companies

63,000

61,000

70,000

48,000

-

Provision for taxation

104,000

88,000

1,253,000

1,391,000

-

Other liabilities

1,294,000

355,000

57,000

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

93,625,000

87,541,000

84,409,000

69,567,000

65,824,320

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

14,130,000

19,044,000

18,042,000

29,348,000

20,597,870

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

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

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

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

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

TOTAL NET ASSETS

30,770,000

34,761,000

33,867,000

45,227,000

36,511,033

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

25,000,000

25,000,000

25,000,000

25,000,000

25,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

25,000,000

25,000,000

25,000,000

25,000,000

25,000,000

Retained profit/(loss) carried forward

5,770,000

5,876,000

5,109,000

14,590,000

11,502,000

Others

-

-

-

-

33

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

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

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

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

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

TOTAL RESERVES

5,770,000

5,876,000

5,109,000

14,590,000

11,502,033

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

30,770,000

30,876,000

30,109,000

39,590,000

36,502,033

Long term loans

-

3,875,000

3,750,000

5,625,000

-

Deferred taxation

-

10,000

8,000

12,000

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

3,885,000

3,758,000

5,637,000

9,000

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

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

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

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

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

30,770,000

34,761,000

33,867,000

45,227,000

36,511,033

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

1,929,000

4,487,000

3,972,000

812,000

-

Net Liquid Funds

1,929,000

4,487,000

3,972,000

812,000

-

Net Liquid Assets

(85,864,000)

(75,520,000)

(73,484,000)

(51,641,000)

20,597,870

Net Current Assets/(Liabilities)

14,130,000

19,044,000

18,042,000

29,348,000

20,597,870

Net Tangible Assets

30,770,000

34,761,000

33,867,000

45,227,000

36,511,033

Net Monetary Assets

(85,864,000)

(79,405,000)

(77,242,000)

(57,278,000)

20,588,870

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

(1,009,000)

2,313,000

(8,315,000)

4,202,000

-

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

(915,000)

2,407,000

(8,198,000)

4,348,000

-

BALANCE SHEET ITEMS

Total Borrowings

31,375,000

35,250,000

24,000,000

29,410,000

-

Total Liabilities

93,625,000

91,426,000

88,167,000

75,204,000

65,833,320

Total Assets

124,395,000

122,302,000

118,276,000

114,794,000

102,335,353

Net Assets

30,770,000

34,761,000

33,867,000

45,227,000

36,511,033

Net Assets Backing

30,770,000

30,876,000

30,109,000

39,590,000

36,502,033

Shareholders' Funds

30,770,000

30,876,000

30,109,000

39,590,000

36,502,033

Total Share Capital

25,000,000

25,000,000

25,000,000

25,000,000

25,000,000

Total Reserves

5,770,000

5,876,000

5,109,000

14,590,000

11,502,033

LIQUIDITY (Times)

Cash Ratio

0.02

0.05

0.05

0.01

-

Liquid Ratio

0.08

0.14

0.13

0.26

-

Current Ratio

1.15

1.22

1.21

1.42

1.31

WORKING CAPITAL CONTROL (Days)

Stock Ratio

450

375

402

387

-

Debtors Ratio

3

2

4

6

-

Creditors Ratio

26

23

34

87

-

SOLVENCY RATIOS (Times)

Gearing Ratio

1.02

1.14

0.80

0.74

-

Liabilities Ratio

3.04

2.96

2.93

1.90

1.80

Times Interest Earned Ratio

(0.78)

1.52

(9.41)

6.60

-

Assets Backing Ratio

1.23

1.39

1.35

1.81

1.46

PERFORMANCE RATIO (%)

Operating Profit Margin

(2.83)

0.86

(11.06)

4.67

4.42

Net Profit Margin

(0.13)

0.83

(11.40)

4.04

3.86

Return On Net Assets

(3.28)

6.65

(24.55)

9.29

9.01

Return On Capital Employed

(3.28)

6.65

(24.55)

9.29

9.01

Return On Shareholders' Funds/Equity

(0.34)

2.48

(31.49)

7.80

7.88

Dividend Pay Out Ratio (Times)

0

0

0

0

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.75

UK Pound

1

Rs.102.17

Euro

1

Rs.74.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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

 

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

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.