MIRA INFORM REPORT

Report No. :	505200
Report Date :	26.04.2018

IDENTIFICATION DETAILS

Name :	MANITOWOC CRANE GROUP ASIA PTE. LTD
Formerly Known As :	· MANITOWOC EQUIPMENT WORKS, PTE. LTD. (03/01/2003) · MANITOWOC-PACIFIC PTE. LTD
Registered Office :	42a, Penjuru Road, 07-00, 609164
Country :	Singapore
Financials (as on) :	31.12.2016
Date of Incorporation :	14.02.1994
Com. Reg. No.:	199401055M
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is engaged in the investment holding companies & manufacture and repair of lifting and handling equipment
No. of Employees :	60 [2018]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 electronics, petroleum products, chemicals, medical and optical devices, pharmaceuticals, and on Singapore’s 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. Growth from 2012-2017 was slower than during the previous decade, a result of slowing structural growth - as Singapore reached high-income levels - and soft global demand for exports. Growth recovered to 3.6% in 2017 with a strengthening global economy.

The government is attempting to restructure Singapore’s economy to reduce its dependence on foreign labor, raise productivity growth, and increase wages amid slowing labor force growth and an aging population. Singapore has attracted major investments in advanced manufacturing, pharmaceuticals, and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and technology hub. Singapore is a signatory of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and a party to the Regional Comprehensive Economic Partnership (RCEP) negotiations with nine other ASEAN members plus Australia, China, India, Japan, South Korea, and New Zealand. In 2015, Singapore formed, with the other ASEAN members, the ASEAN Economic Community.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

199401055M

COMPANY NAME

:

MANITOWOC CRANE GROUP ASIA PTE. LTD.

FORMER NAME

:

MANITOWOC EQUIPMENT WORKS, PTE. LTD. (03/01/2003)
MANITOWOC-PACIFIC PTE. LTD. (14/10/1994)

INCORPORATION DATE

:

14/02/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

42A, PENJURU ROAD, 07-00, 609164, SINGAPORE.

BUSINESS ADDRESS

:

42A, PENJURU ROAD, 07-00, 609164, SINGAPORE.

TEL.NO.

:

65-62641188

FAX.NO.

:

65-68624040

WEB SITE

:

WWW.MANITOWOCCRANES.COM

CONTACT PERSON

:

MICHELLE KAY LAY HUA ( DIRECTOR )

PRINCIPAL ACTIVITY

:

INVESTMENT HOLDING COMPANIES & MANUFACTURE AND REPAIR OF LIFTING AND HANDLING EQUIPMENT

ISSUED AND PAID UP CAPITAL

:

21,540,636.00 ORDINARY SHARE, OF A VALUE OF SGD 215,406,360.00
43,806.00 PREFERENCE SHARE, OF A VALUE OF SGD 4,380,600.00

SALES

:

USD 158,112,665 [2016]

NET WORTH

:

USD 227,264,040 [2016]

STAFF STRENGTH

:

60 [2018]

BANKER (S)

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

REGULAR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL 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) investment holding companies & manufacture and repair of lifting and handling equipment.

The immediate holding company of the Subject is MANITOWOC HOLDING ASIA SAS, a company incorporated in FRANCE.

The ultimate holding company of the Subject is MANITOWOC COMPANY INC., a company incorporated in UNITED STATES.

Former Address(es)

Address	As At Date
13 PIONEER SECTOR 1, 628424	N/A

Share Capital History

Date	Issue & Paid Up Capital
23/04/2018	SGD 219,786,960.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MANITOWOC HOLDING ASIA SAS [ORDINARY = SGD 21,540,636 & PREFERENCE = SGD 43,806]	66, CHEMIN DU MOULIN CARRON, 69570, DARDILLY FRANCE	T07UF2669	21,584,442.00	100.00
			---------------	------
			21,584,442.00	100.00
			============	=====

+ Also Director

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

Local No	Country	Company	Status	(%)	As At
	CHINA	MANITOWOC CRANE EQUIPMENT (CHINA) CO. LTD	-	100.00	31/12/2016
	PHILIPPINES	MANITOWOC CRANE GROUP INC	-	100.00	31/12/2016
	CHINA	MANITOWOC CREDIT (CHINA) LEASING CO. LTD.	-	100.00	31/12/2016
	INDIA	MANITOWOC INDIA PRIVATE LIMITED	-	100.00	31/12/2016
	INDIA	POTAIN INDIA PVT LTD	-	100.00	31/12/2016
	CHINA	ZHANG JIA GANG MANITOWOC CRANE TRADING CO. LTD	-	100.00	31/12/2016

DIRECTORS

DIRECTOR 1

Name Of Subject	:	CHRISTOPHE, OLIVIER SIMONCELLI
Address	:	90, CARDIFF GROVE, SERANGOON GARDEN ESTATE, 558956, SINGAPORE.
IC / PP No	:	G3282227X
Nationality	:	FRENCH
Date of Appointment	:	01/07/2016

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	199401055M	MANITOWOC CRANE GROUP ASIA PTE. LTD.	Director	01/07/2016	0.00	-	USD37,067,550.00	2016	-	23/04/2018

DIRECTOR 2

Name Of Subject	:	MICHELLE KAY LAY HUA
Address	:	2D, HONG SAN WALK, 11-10, PALM GARDENS, 689050, SINGAPORE.
IC / PP No	:	S7045055J
Nationality	:	SINGAPOREAN
Date of Appointment	:	11/03/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	199401055M	MANITOWOC CRANE GROUP ASIA PTE. LTD.	Director	11/03/2014	0.00	-	USD37,067,550.00	2016	-	23/04/2018

MANAGEMENT

1)	Name of Subject	:	MICHELLE KAY LAY HUA
	Position	:	DIRECTOR

AUDITOR

Auditor	:	BDO LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	NGIAM MAY LING
	IC / PP No	:	S7306309D
	Address	:	50, RAFFLES PLACE, 32-01, SINGAPORE LAND TOWER, 048623, SINGAPORE.

BANKING

Banking relations are maintained principally with :

1)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201303134	26/02/2013	N/A	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	-	Unsatisfied

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

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

No winding up petition was found in our databank.

LEGAL ACTION
Total PENDING Case(s) : 2
Case Status	:	PENDING
Code No	:	99	Case No	:	345
Year	:	2009	Place	:	SINGAPORE
Court	:	SUPREME COURT
Date Filed	:	22/04/2009
Solicitor Firm	:	HARIDASS HO & PARTNERS
Plaintiff	:	SUNDARESAN KRISHNAMURTHI
DEFENDANTS	:	MANITOWOC CRANE GROUP ASIA PTE. LTD. (199401055)
Hearing Date	:	24/10/2011
Remark	:	TORT-NEGLIGENCE
Case Status	:	PENDING
Code No	:	99	Case No	:	632
Year	:	2008	Place	:	SINGAPORE
Court	:	DISTRICT COURT
Date Filed	:	25/02/2008
Solicitor	:	LIEW KAH INN AUGUSTINE
Solicitor Firm	:	HARIDASS HO & PARTNERS
Plaintiff	:	SUNDARESAN KRISHNAMURTHI
DEFENDANTS	:	MANITOWOC CRANE GROUP ASIA PTE. LTD. (199401055)
Remark	:	TORT-NEGLIGENCE
Total SETTLED Case(s) : 1
Case Status	:	SETTLED
Code No	:	99	Case No	:	143
Year	:	2016	Place	:	SINGAPORE
Court	:	SUPREME COURT
Date Filed	:	12/02/2016
Solicitor	:	NEO KEE HENG
Solicitor Firm	:	HOH LAW CORPORATION
Plaintiff	:	GANGES TRADING CO LTD.
DEFENDANTS	:	MANITOWOC CRANE GROUP ASIA PTE. LTD. (199401055)
Amount Claimed	:	292192.38
Nature of Claim	:	USD
Remark	:	CONTRACT OTHERS

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	:	ASIA
Credit Term	:	N/A
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured	:	LIFTING AND HANDLING EQUIPMENT
Services	:	INVESTMENT HOLDING

Total Number of Employees:
YEAR	2018	2016	2015
GROUP	N/A	N/A	N/A
COMPANY	60	70	70

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) investment holding companies & manufacture and repair of lifting and handling equipment.

Manitowoc is committed to providing the most innovative, advanced and comprehensive range of lifting solutions, with products that have long set the standard for excellence worldwide.

The Subject's cranes are as follows:

Grove mobile telescoping cranes, Manitowoc lattice boom crawler cranes, Potain tower cranes, National Crane boom trucks and Shuttlelift industrial cranes.

In addition to its outstanding product lines, Manitowoc offers outstanding support services through Manitowoc Crane Care.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62641188
Match	:	N/A
Address Provided by Client	:	NO. 42A PENJURU ROAD, #07-00, 609164
Current Address	:	42A, PENJURU ROAD, 07-00, 609164, SINGAPORE.
Match	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2012 - 2016	]
Profit/(Loss) Before Tax	:	Decreased	[	2012 - 2016	]
Return on Shareholder Funds	:	Acceptable	[	16.31%	]
Return on Net Assets	:	Acceptable	[	18.80%	]
The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	10 Days	]
Debtor Ratio	:	Favourable	[	37 Days	]
Creditors Ratio	:	Unfavourable	[	104 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 unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Favourable	[	1.68 Times	]
Current Ratio	:	Unfavourable	[	1.78 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	[	201.71 Times	]
Gearing Ratio	:	Favourable	[	0.00 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 had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The Subject's performance deteriorated over the years with lower turnover and profit. 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : STRONG

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2013	2014	2015	2016	2017*
Population (Million)	5.40	5.47	5.54	5.61	5.61
Gross Domestic Products ( % )	5.1	3.9	2.2	2.4	3.6
Consumer Price Index	2.4	1.0	(0.5)	(0.5)	0.6
Total Imports (Million)	466,762.0	463,779.1	407,767.9	398,372.0	403,300.0
Total Exports (Million)	513,391.0	518,922.7	476,285.4	468,552.0	466,900.0
Unemployment Rate (%)	1.9	1.9	1.9	2.1	-
Tourist Arrival (Million)	15.46	15.01	15.23	16.28	-
Hotel Occupancy Rate (%)	86.3	85.5	84.0	83.1	84.7
Cellular Phone Subscriber (Million)	1.97	1.98	1.99	-	-
Registration of New Companies (No.)	37,288	41,589	34,243	35,227	37,395
Registration of New Companies (%)	9.8	11.5	(17.7)	2.9	6.2
Liquidation of Companies (No.)	17,369	18,767	21,384	23,218	22,379
Liquidation of Companies (%)	(5.3)	8.0	13.9	8.6	(3.6)
Registration of New Businesses (No.)	22,893	35,773	28,480	27,120	22,148
Registration of New Businesses (%)	1.70	56.30	(20.39)	(4.78)	(18.33)
Liquidation of Businesses (No.)	22,598	22,098	26,116	35,866	24,344
Liquidation of Businesses (%)	0.5	(2.2)	18.2	37.3	(32.1)
Bankruptcy Orders (No.)	1,992	1,757	1,776	1,797	1,638
Bankruptcy Orders (%)	14.0	(11.8)	1.0	1.2	(8.9)
Bankruptcy Discharges (No.)	2,584	3,546	3,499	4,359	2,030
Bankruptcy Discharges (%)	37.4	37.2	(1.3)	24.6	(53.4)
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	1.78	4.29	3.04	-	-
Fish Supply & Wholesale	(3.8)	(8.6)	(8.5)	(9.9)	-
Manufacturing #
Food, Beverages & Tobacco	97.9	99.4	100.0	103.7	110.3
Textiles	119.5	102.7	100.0	92.4	84.4
Wearing Apparel	334.1	212.6	100.0	83.4	88.2
Leather Products & Footwear	122.0	106.5	100.0	88.8	79.0
Wood & Wood Products	103.0	107.2	100.0	95.0	92.9
Paper & Paper Products	104.4	104.5	100.0	97.3	96.1
Printing & Media	113.8	105.968	100.0	85.1	73.1
Crude Oil Refineries	100.7	92.2	100.0	104.2	113.5
Chemical & Chemical Products	88.4	96.7	100.0	98.9	105.3
Pharmaceutical Products	101.421	109.4	100.0	113.8	96.0
Rubber & Plastic Products	109.497	109.2	100.0	91.4	93.7
Non-metallic Mineral	107.4	90.759	100.0	89.8	72.9
Basic Metals	77.2	99.3	100.0	106.2	108.3
Fabricated Metal Products	107.5	107.757	100.0	93.8	91.3
Machinery & Equipment	109.1	118.2	100.0	80.8	86.1
Electrical Machinery	87.4	97.871	100.0	101.5	111.7
Electronic Components	105.0	105.6	100.0	114.1	151.4
Transport Equipment	111.1	106.68	100.0	101.0	99.5
Construction	25.40	22.00	-	-	-
Real Estate	88.5	145.1	-	-	-
Services
Electricity, Gas & Water	6.70	6.50	-	-	-
Transport, Storage & Communication	9.80	14.20	-	-	-
Finance & Insurance	3.30	6.00	-	7.40	-
Government Services	6.50	6.30	-	-	-
Education Services	3.10	5.98	-	2.40	-
* Estimate / Preliminary
# Based on Index of Industrial Production (2015 = 100)

INDUSTRY ANALYSIS

INDUSTRY :	ECONOMY
In the fourth quarter of 2017, the economy grew by 3.6% on a year-on-year basis, moderating from the 5.5% growth in the previous quarter. The sectors which contributed the most to growth in the quarter were the manufacturing and finance & insurance sectors. For the whole of 2017, the economy expanded by 3.6%, higher than the 2.4% growth in 2016. All major sectors grew in 2017, with the exception of the construction sector. The manufacturing and finance & insurance sectors were the key contributors to overall GDP growth.
The manufacturing sector expanded by 4.8% in the fourth quarter 2017, slowing from the 19% surge in the third quarter. Growth was led by robust output expansions in the electronics and precision engineering clusters, which more than offset declines in the biomedical manufacturing and transport engineering clusters. For full year 2017, the manufacturing sector grew by 10%, higher than the 3.7% growth in 2016. Growth was primarily driven by the electronics and precision engineering clusters, while output declines in the biomedical manufacturing, transport engineering and general manufacturing clusters weighed on growth.
The services producing industries collectively expanded to 3.5% in the fourth quarter 2017, the same pace of growth as the previous quarter. Among the services sectors, the finance & insurance sector registered the strongest growth at 6.3%, followed by the information & communications (6.0%) and the transportation & storage (5.3%) sectors. Services producing industries as a whole expanded to 2.8% in full year 2017, faster than the 1.4% growth in 2016. All services sectors saw positive growth.
Among the services sectors, the transportation & storage and finance & insurance sectors registered the fastest pace of growth in 2017. Growth of the transportation & storage sector came in at 4.8%, a pickup from the 1.3% in 2016, largely due to stronger growth in the water transport and air transport segments. Similarly, the finance & insurance sector expanded by 4.8%, improving from the 1.6% growth in 2016. The robust performance of the sector was largely because of strong growth in the fund management segment, even as growth in the financial intermediation and insurance segments remained firm.
Besides, the construction sector contracted to 5.0%, extending the 9.3% decline in the third quarter 2017. The output of the sector was weighed down primarily by the weakness in private sector construction activities, as certified payments across all private construction segments declined. Meanwhile, the construction sector contracted to 8.4% in 2017, a reversal from the 1.9% growth in 2016. Output in the sector was primarily weighed down by the weakness in private sector construction works.
In the fourth quarter 2017, total demand rose by 4.9%, lower than the 5.5% growth in the preceding quarter. For the whole of 2017, growth in total demand came in at 4.4%, an improvement from the 1.6% in 2016. External demand was the key contributor to total demand growth (3.0 percentage-points), while the contribution from domestic demand was also positive (1.4 percentage-points).
Total domestic demand rose by 6.6 % in the fourth quarter 2017, following the 8.5% growth in the previous quarter. Growth was supported primarily by the build-up in inventories and also higher consumption expenditure. Gross fixed capital formation also contributed positively to total domestic demand growth in the quarter. For 2017 as a whole, total domestic demand increased by 5.4%, higher than the 3.1% expansion in 2016. Meanwhile, external demand rose by 4.2% in the fourth quarter 2017, similar to the 4.4% growth in the preceding quarter. The increase in external demand was primarily due to higher real merchandise exports. For the full year 2017, external demand grew at a faster pace of 4.1%, compared to the 1.1% growth in 2016.
Total consumption expenditure rose at a slower pace of 4.4% in the fourth quarter 2017, compared to the 5.7% expansion in the previous quarter. For the full year 2017, total consumption expenditure grew by 3.3%, an improvement from the 2.1% growth in 2016, on the back of faster growth in both public and private consumption. Public consumption expanded by 4.1%, compared to 3.5% in 2016, while private consumption grew by 3.1%, compared to 1.7% in the previous year. Expenditure on miscellaneous goods & services, recreation & culture and housing & utilities were the main contributors to private consumption growth.
Since November 2017, the outlook for global growth has improved slightly with the IMF upgrading its global growth forecast for 2018 to 3.9%, partly on the back of higher growth expected in the US due to the recently approved tax reforms. However, as compared to 2017, growth in most of Singapore’s key final demand markets such as the Eurozone, Japan, NIEs and ASEAN-5 is projected to moderate or remain unchanged in 2018. In the US, GDP growth is projected to improve further in 2018, supported by domestic demand and fiscal stimulus arising from the recently approved tax reforms, although there are uncertainties around the extent to which investments would respond to the tax reforms. On the other hand, growth in the Eurozone economy is projected to moderate in 2018, following the rebound seen in 2017. Growth will be underpinned by continued improvements in labour market conditions and largely accommodative monetary policies.
In Asia, China’s growth is also expected to ease in 2018 on the back of a slowdown in investment, even as consumption is likely to remain stable and provide support to growth. Meanwhile, growth in the key ASEAN economies is expected to remain firm in 2018, supported by sustained improvements in domestic demand as well as merchandise exports. On balance, the external demand outlook for Singapore is expected to be slightly weaker in 2018 as compared to 2017. Taking into account the global and domestic economic environments, Ministry of Trade and Industry (MTI) has maintained the 2018 GDP growth forecast at “1.5 to 3.5%”. MTI’s central view is that growth will likely come in slightly above the middle of the forecast range, barring the materialisation of downside risks.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1994, the Subject is a Private Limited company, focusing on investment holding companies & manufacture and repair of lifting and handling equipment. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject has a strong capital position of SGD 219,786,960. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a moderate size company, the Subject has a total workforce of 60 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.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 227,264,040, 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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

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

Financials

PROFIT AND LOSS ACCOUNT

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

MANITOWOC CRANE GROUP ASIA PTE. LTD.

Financial Year End	2016-12-31	2015-12-31	2014-12-31	2013-12-31	2012-12-31
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	158,112,665	182,241,815	205,847,207	195,875,142	222,273,364
Other Income	3,266,700	49,430,320	1,572,898	1,036,667	1,138,599
	----------------	----------------	----------------	----------------	----------------
Total Turnover	161,379,365	231,672,135	207,420,105	196,911,809	223,411,963
Costs of Goods Sold	(133,067,447)	(160,091,189)	(184,513,385)	(168,779,490)	(197,348,941)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	28,311,918	71,580,946	22,906,720	28,132,319	26,063,022
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	42,503,543	60,597,484	9,416,426	11,037,427	(24,103,367)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	42,503,543	60,597,484	9,416,426	11,037,427	(24,103,367)
Taxation	(5,435,993)	(3,889,008)	(1,460,903)	(1,701,096)	(1,179,392)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	37,067,550	56,708,476	7,955,523	9,336,331	(25,282,759)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	95,147,274	38,438,798	65,483,275	56,146,944	81,429,703
	----------------	----------------	----------------	----------------	----------------
As restated	95,147,274	38,438,798	65,483,275	56,146,944	81,429,703
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	132,214,824	95,147,274	73,438,798	65,483,275	56,146,944
DIVIDENDS - Ordinary (paid & proposed)	(45,833,498)	-	(35,000,000)	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	86,381,326	95,147,274	38,438,798	65,483,275	56,146,944
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	211,770	450,678	461,366	522,741	520,819
	----------------	----------------	----------------	----------------	----------------
	211,770	450,678	461,366	522,741	520,819
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	262,040	270,758	278,935	136,376	134,812
	----------------	----------------	----------------	----------------	----------------
Total Amortization And Depreciation	262,040	270,758	278,935	136,376	134,812
	=============	=============	=============	=============	=============

BALANCE SHEET

MANITOWOC CRANE GROUP ASIA PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	131,189	387,816	612,514	712,597	276,450
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	186,565,332	212,024,692	164,592,692	164,427,692	164,427,692
Deferred assets	343,928	352,593	294,508	580,346	561,560
Others	8,000,000	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	194,909,260	212,377,285	164,887,200	165,008,038	164,989,252
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	195,040,449	212,765,101	165,499,714	165,720,635	165,265,702
CURRENT ASSETS
Stocks	4,318,626	3,875,141	5,784,471	33,644,887	26,575,133
Contract work-in-progress	34,312	41,696	-	-	-
Trade debtors	16,097,069	30,153,074	30,589,550	18,797,548	19,030,843
Other debtors, deposits & prepayments	536,224	1,033,830	475,113	685,481	1,040,667
Amount due from holding company	3,700,000	4,500,000	6,469,001	20,129,286	39,226
Amount due from subsidiary companies	42,400,000	42,400,000	45,122,878	29,131,498	37,502,380
Amount due from related companies	4,700,000	900,000	5,928,530	1,876,912	24,756,858
Cash & bank balances	1,581,161	1,928,084	3,776,360	1,234,850	7,426,446
Others	4,355	-	-	596,574	145,223
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	73,371,747	84,831,825	98,145,903	106,097,036	116,516,776
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	268,412,196	297,596,926	263,645,617	271,817,671	281,782,478
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	37,733,898	57,411,866	7,045,708	6,525,253	3,634,836
Other creditors & accruals	-	-	7,064,385	9,230,637	5,384,947
Deposits from customers	-	-	1,630,444	2,193,780	-
Amounts owing to holding company	-	-	105,267	509,861	141,909
Amounts owing to subsidiary companies	-	-	13,061,421	1,190,952	11,214,944
Amounts owing to related companies	-	-	35,785,926	24,408,971	41,084,593
Provision for taxation	1,096,219	847,328	1,024,074	925,495	1,006,873
Other liabilities	2,318,039	3,307,744	6,062,293	7,386,322	8,706,638
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	41,148,156	61,566,938	71,779,518	52,371,271	71,174,740
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	32,223,591	23,264,887	26,366,385	53,725,765	45,342,036
	----------------	----------------	----------------	----------------	----------------
LONG TERM LIABILITIES
Others	-	-	12,544,587	13,080,411	13,578,080
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	-	-	12,544,587	13,080,411	13,578,080
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	227,264,040	236,029,988	179,321,512	206,365,989	197,029,658
	=============	=============	=============	=============	=============
FINANCED BY:
SHARE CAPITAL
Ordinary share capital	140,882,714	140,882,714	140,882,714	140,882,714	140,882,714
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	140,882,714	140,882,714	140,882,714	140,882,714	140,882,714
RESERVES
Retained profit/(loss) carried forward	86,381,326	95,147,274	38,438,798	65,483,275	56,146,944
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	86,381,326	95,147,274	38,438,798	65,483,275	56,146,944
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	227,264,040	236,029,988	179,321,512	206,365,989	197,029,658
	=============	=============	=============	=============	=============

FINANCIAL RATIO

MANITOWOC CRANE GROUP ASIA PTE. LTD.

TYPES OF FUNDS
Cash	1,581,161	1,928,084	3,776,360	1,234,850	7,426,446
Net Liquid Funds	1,581,161	1,928,084	3,776,360	1,234,850	7,426,446
Net Liquid Assets	27,904,965	19,389,746	20,581,914	20,080,878	18,766,903
Net Current Assets/(Liabilities)	32,223,591	23,264,887	26,366,385	53,725,765	45,342,036
Net Tangible Assets	227,264,040	236,029,988	179,321,512	206,365,989	197,029,658
Net Monetary Assets	27,904,965	19,389,746	8,037,327	7,000,467	5,188,823
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	42,715,313	61,048,162	9,877,792	11,560,168	(23,582,548)
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	42,977,353	61,318,920	10,156,727	11,696,544	(23,447,736)
BALANCE SHEET ITEMS
Total Borrowings	0	0	0	0	0
Total Liabilities	41,148,156	61,566,938	84,324,105	65,451,682	84,752,820
Total Assets	268,412,196	297,596,926	263,645,617	271,817,671	281,782,478
Net Assets	227,264,040	236,029,988	179,321,512	206,365,989	197,029,658
Net Assets Backing	227,264,040	236,029,988	179,321,512	206,365,989	197,029,658
Shareholders' Funds	227,264,040	236,029,988	179,321,512	206,365,989	197,029,658
Total Share Capital	140,882,714	140,882,714	140,882,714	140,882,714	140,882,714
Total Reserves	86,381,326	95,147,274	38,438,798	65,483,275	56,146,944
GROWTH RATIOS (Year on Year) (%)
Revenue	(13.24)	(11.47)	5.09	(11.88)	(15.18)
Proft/(Loss) Before Tax	(29.86)	543.53	(14.69)	145.79	(186.61)
Proft/(Loss) After Tax	(34.63)	612.82	(14.79)	136.93	(201.31)
Total Assets	(9.81)	12.88	(3.01)	(3.54)	(1.13)
Total Liabilities	(33.17)	(26.99)	28.83	(22.77)	35.22
LIQUIDITY (Times)
Cash Ratio	0.04	0.03	0.05	0.02	0.10
Liquid Ratio	1.68	1.31	1.29	1.38	1.26
Current Ratio	1.78	1.38	1.37	2.03	1.64
WORKING CAPITAL CONTROL (Days)
Stock Ratio	10	8	10	63	44
Debtors Ratio	37	60	54	35	31
Creditors Ratio	104	131	14	14	7
SOLVENCY RATIOS (Times)
Gearing Ratio	0	0	0	0	0
Liabilities Ratio	0.18	0.26	0.47	0.32	0.43
Times Interest Earned Ratio	201.71	135.46	21.41	22.11	(45.28)
Assets Backing Ratio	1.61	1.68	1.27	1.46	1.40
PERFORMANCE RATIO (%)
Operating Profit Margin	26.88	33.25	4.57	5.63	(10.84)
Net Profit Margin	23.44	31.12	3.86	4.77	(11.37)
Return On Net Assets	18.80	25.86	5.51	5.60	(11.97)
Return On Capital Employed	18.80	25.86	5.15	5.27	(11.20)
Return On Shareholders' Funds/Equity	16.31	24.03	4.44	4.52	(12.83)
Dividend Pay Out Ratio (Times)	1.24	0	4.40	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.7
UK Pound	1	INR 93.14
Euro	1	INR 81.43
SGD	1	INR 50.39

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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