MIRA INFORM REPORT

 

 

Report No. :

493372

Report Date :

23.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

FARLIN TIMBERS PTE LTD

 

 

Formerly Known As :

·         VIRGIN WOOD PRODUCTS PTE LTD

·         FARLIN TIMBERS PTE. LTD

 

 

Registered Office :

435, Orchard Road, 21-01, Wisma Atria, 238877

 

 

Country :

Singapore

 

 

Financials (as on) :

30.06.2016

 

 

Date of Incorporation :

03.08.1994

 

 

Com. Reg. No.:

199405441Z

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

The Subject is engaged in the trading of timber, cashew nuts, sesame seeds.

 

 

No. of Employees :

20 [2018]

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 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. Growth in 2014-17 was slower than during the previous decade, at under 3% annually, 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 growth, and increasing Singaporean wages. 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 member of the Regional Comprehensive Economic Partnership negotiations with the 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.

:

199405441Z

COMPANY NAME

:

FARLIN TIMBERS PTE LTD

FORMER NAME

:

VIRGIN WOOD PRODUCTS PTE LTD (02/10/1997)
FARLIN TIMBERS PTE. LTD. (01/12/1995)

INCORPORATION DATE

:

03/08/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

435, ORCHARD ROAD, 21-01, WISMA ATRIA, 238877, SINGAPORE.

BUSINESS ADDRESS

:

435, ORCHARD ROAD, 21-01 WISMA ATRIA, 238877, SINGAPORE.

TEL.NO.

:

65-63981188

FAX.NO.

:

65-63981177

EMAIL

:

FARLINTIMBERS@FARLINGROUP.COM

WEB SITE

:

WWW.FARLINGROUP.COM

CONTACT PERSON

:

MOHAMMED FAROUK ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF TIMBER, CASHEW NUTS, SESAME SEEDS

ISSUED AND PAID UP CAPITAL

:

55,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 55,000,000.00

SALES

:

USD 665,300,534 [2016]

NET WORTH

:

USD 96,576,170 [2016]

STAFF STRENGTH

:

20 [2018]

BANKER (S)

:

ABN AMRO BANK N.V.
AXIS BANK LIMITED SINGAPORE BRANCH
BANK OF BARODA
BANK OF INDIA
INDIAN BANK
INDIAN OVERSEAS BANK
PUNJAB NATIONAL BANK
SOCIETE GENERALE
STATE BANK OF INDIA, SINGAPORE BRANCH
UCO BANK

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

No Complaints

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. 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, suing or be sued by other companies.

 

An exempt private company with an annual turnover of ≤ SGD10 million, or total assets ≤ SGD10 million or number of employees ≤ 50 (meet at least 2 criteria for immediate past two financial years) are exempted from statutory auditing requirements. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due.

An exempt private company with an annual turnover of more than SGD10 million, or total assets more than SGD10 million or number of employees more than 50 (meet at least 2 criteria for immediate past two financial years) are required to file the audited financial.

 

The Subject is principally engaged in the (as a / as an) trading of timber, cashew nuts, sesame seeds.

 

Share Capital History

Date

Issue & Paid Up Capital

22/02/2018

SGD 55,000,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MOHAMMED FAROUK +

95, GRANGE ROAD, 17-11, GRANGE RESIDENCES, 249616, SINGAPORE.

S2715761J

49,500,000.00

90.00

IMRAN FAROUK +

12, HELY PLACE, MOUNT OMMANEY QLD, 4074, BRISBANE, AUSTRALIA.

PE0392795

5,500,000.00

10.00

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

------

55,000,000.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

IMRAN FAROUK

Address

:

12, HELY PLACE, MOUNT OMMANEY QLD, 4074, BRISBANE, AUSTRALIA.

IC / PP No

:

PE0392795

Nationality

:

AUSTRALIAN

Date of Appointment

:

29/05/2012


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

199405441Z

FARLIN TIMBERS PTE LTD

Director

29/05/2012

5,500,000.00

10.00

USD8,249,773.00

2016

-

22/02/2018

 

DIRECTOR 2

 

Name Of Subject

:

MOHAMMED FAROUK

Address

:

95, GRANGE ROAD, 17-11, GRANGE RESIDENCES, 249616, SINGAPORE.

IC / PP No

:

S2715761J

Nationality

:

AUSTRALIAN

Date of Appointment

:

03/08/1994



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

201010237E

FARLIN ENERGY AND COMMODITIES PTE. LTD.

Director

12/05/2010

1,000,000.00

100.00

282.00

-

-

21/10/2011

2

199405441Z

FARLIN TIMBERS PTE LTD

Director

03/08/1994

49,500,000.00

90.00

USD8,249,773.00

2016

-

22/02/2018

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

MOHAMMED FAROUK

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

J K MEDORA & CO LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

JEANNE SEET BENG CHOO

IC / PP No

:

S1234059A

Address

:

22, MALACCA STREET, 03-02, RB CAPITAL BUILDING, 048980, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ABN AMRO BANK N.V.

 

2)

Name

:

AXIS BANK LIMITED SINGAPORE BRANCH

 

3)

Name

:

BANK OF BARODA

 

4)

Name

:

BANK OF INDIA

 

5)

Name

:

INDIAN BANK

 

6)

Name

:

INDIAN OVERSEAS BANK

 

7)

Name

:

PUNJAB NATIONAL BANK

 

8)

Name

:

SOCIETE GENERALE

 

9)

Name

:

STATE BANK OF INDIA, SINGAPORE BRANCH

 

10)

Name

:

UCO BANK

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200401264

17/03/2004

N/A

INDIAN BANK

-

Unsatisfied

C200401743

06/04/2004

N/A

SOCIETE GENERALE

-

Unsatisfied

C200401744

06/04/2004

N/A

SOCIETE GENERALE

-

Unsatisfied

C200704107

30/05/2007

N/A

UCO BANK

-

Unsatisfied

C200704694

22/06/2007

N/A

BANK OF BARODA

-

Unsatisfied

C200704919

28/06/2007

N/A

INDIAN OVERSEAS BANK

-

Unsatisfied

C200901941

31/03/2009

N/A

AXIS BANK LIMITED SINGAPORE BRANCH

-

Unsatisfied

C200902027

06/04/2009

N/A

AXIS BANK LIMITED SINGAPORE BRANCH

-

Unsatisfied

C200904590

24/07/2009

N/A

STATE BANK OF INDIA

-

Unsatisfied

C200905172

20/08/2009

N/A

BANK OF INDIA

-

Unsatisfied

C201004295

24/05/2010

N/A

CANARA BANK, HONG KONG BRANCH

-

Unsatisfied

C201005135

21/06/2010

N/A

CANARA BANK, HONG KONG BRANCH

-

Unsatisfied

C201007668

31/08/2010

N/A

PUNJAB NATIONAL BANK, HONG KONG

-

Unsatisfied

C201010238

29/10/2010

N/A

BANK OF BARODA

-

Unsatisfied

C201113433

25/10/2011

N/A

UNION BANK OF INDIA, HONG KONG BRANCH

-

Unsatisfied

C201113437

25/10/2011

N/A

UNION BANK OF INDIA, HONG KONG BRANCH

-

Unsatisfied

C201204172

17/04/2012

N/A

STATE BANK OF INDIA

-

Unsatisfied

C201210903

25/09/2012

N/A

EMIRATES NBD PJSC

-

Unsatisfied

C201309056

03/07/2013

N/A

CANARA BANK, HONG KONG BRANCH

-

Unsatisfied

C201508487

27/07/2015

N/A

QATAR NATIONAL BANK S.A.Q.

-

Unsatisfied

C201511596

08/10/2015

N/A

UNION BANK OF INDIA, HONG KONG BRANCH

-

Unsatisfied

C201700570

16/01/2017

N/A

UCO BANK

-

Unsatisfied

C201702787

27/03/2017

N/A

LH ASIAN TFF PTE. LTD.

-

Unsatisfied

C201706991

12/07/2017

N/A

QATAR NATIONAL BANK (Q.P.S.C.)

-

Unsatisfied

C201801317

02/02/2018

N/A

CANARA BANK

-

Unsatisfied

 

 

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.

LEGAL ACTION

 

 

Status

:

PENDING

 

Code No

:

99

Case No

:

131

Year

:

2018

Place

:

SINGAPORE

Type

:

SUPREME COURT

Date Filed

:

06/02/2018

Solicitor

:

GAN JHIA HUEI

Solicitor Ref

:

TT/JH/2017.3684.2

Solicitor Firm

:

GENESIS LAW CORPORATION

Plaintiff

:

EXPORT-IMPORT BANK OF MALAYSIA BERHAD

DEFENDANTS

:

FARLIN TIMBERS PTE LTD (199405441)

Hearing Date

:

N/A

Amount Claimed

:

17529463.51

Nature of Claim

:

USD

Remark

:

BANKING / CREDIT FACILITIES / OVERDRAFT/ GUARANTE

 

No winding up petition was found in our databank

 

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

 

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

NEW ZEALAND

MIDDLE EAST

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

TIMBER, CASHEW NUTS, SESAME SEEDS

 

Total Number of Employees:

 

YEAR

2018

2017

2016

2015

2014

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

20

22

22

20

23

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of timber, cashew nuts, sesame seeds.

The Subject deals with round logs, sawn timber, staging planks and others. It also sells agricultural commodity products.

The Subject sells the products according to its customers' orders.

Its competitive edge lies in its end-to-end supply chain management, integrating all key processes from procurement to final distribution.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63981188

Match

:

N/A

Address Provided by Client

:

435, ORCHARD RAOD, 12-01 WISMA ATRIA, 238877 SINGAPORE

Current Address

:

435, ORCHARD ROAD, 21-01 WISMA ATRIA, 238877, SINGAPORE.

Match

:

YES

 

Other Investigations


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

 

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Decreased

[

5.60%

]

Profit/(Loss) Before Tax

:

Decreased

[

13.08%

]

Return on Shareholder Funds

:

Unfavourable

[

8.54%

]

Return on Net Assets

:

Acceptable

[

20.88%

]

The lower turnover could be due to the unfavourable market conditions.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. 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

:

Favourable

[

38 Days

]

Debtor Ratio

:

Unfavourable

[

102 Days

]

Creditors Ratio

:

Favourable

[

3 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. 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

:

Favourable

[

1.14 Times

]

Current Ratio

:

Unfavourable

[

1.47 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Unfavourable

[

1.86 Times

]

Gearing Ratio

:

Unfavourable

[

2.05 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 :

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. 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 : LIMITED

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

2012

2013

2014

2015

2016*

 

Population (Million)

5.31

5.40

5.47

5.54

5.63

Gross Domestic Products ( % )

1.3

3.7

(3.5)

3.7

4.8

Consumer Price Index

4.6

2.4

2.4

(0.5)

(0.7)

Total Imports (Million)

474,554.0

466,762.0

463,779.1

407,767.9

398,372.0

Total Exports (Million)

510,329.0

513,391.0

518,922.7

476,285.4

468,552.0

 

Unemployment Rate (%)

2.0

1.9

1.9

1.9

2.1

Tourist Arrival (Million)

14.49

15.46

15.01

15.23

16.28

Hotel Occupancy Rate (%)

86.4

86.3

85.5

85.0

-

Cellular Phone Subscriber (Million)

1.52

1.97

1.98

1.99

-

 

Registration of New Companies (No.)

31,892

37,288

41,589

34,243

35,528

Registration of New Companies (%)

(1.3)

9.8

11.5

(17.7)

3.8

Liquidation of Companies (No.)

17,218

17,369

18,767

21,384

-

Liquidation of Companies (%)

9.4

(5.3)

8.0

13.9

-

 

Registration of New Businesses (No.)

24,788

22,893

35,773

28,480

33,326

Registration of New Businesses (%)

5.51

1.70

56.30

(20.39)

17.02

Liquidation of Businesses (No.)

22,489

22,598

22,098

26,116

-

Liquidation of Businesses (%)

(2.2)

0.5

(2.2)

18.2

-

 

Bankruptcy Orders (No.)

1,748

1,992

1,757

1,776

-

Bankruptcy Orders (%)

14.5

14.0

(11.8)

1.0

-

Bankruptcy Discharges (No.)

1,881

2,584

3,546

3,499

-

Bankruptcy Discharges (%)

35.2

37.4

37.2

(1.3)

-

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

5.16

1.78

4.29

3.04

-

Fish Supply & Wholesale

(0.5)

(3.8)

(8.6)

(8.5)

(9.9)

 

Manufacturing #

Food, Beverages & Tobacco

97.9

97.9

99.4

100.0

103.7

Textiles

140.1

119.5

102.7

100.0

93.3

Wearing Apparel

395.4

334.1

212.6

100.0

80.3

Leather Products & Footwear

109.5

122.0

106.5

100.0

93.2

Wood & Wood Products

93.3

103.0

107.2

100.0

90.5

Paper & Paper Products

98.5

104.4

104.5

100.0

99.7

Printing & Media

122.8

113.8

105.968

100.0

86.9

Crude Oil Refineries

107.1

100.7

92.2

100.0

100.5

Chemical & Chemical Products

85.3

88.4

96.7

100.0

97.6

Pharmaceutical Products

103.8

101.421

109.4

100.0

115.9

Rubber & Plastic Products

113.5

109.497

109.2

100.0

87.9

Non-metallic Mineral

108.8

107.4

90.759

100.0

93.6

Basic Metals

91.5

77.2

99.3

100.0

113.1

Fabricated Metal Products

107.314

107.5

107.757

100.0

91.7

Machinery & Equipment

107.3

109.1

118.2

100.0

79.3

Electrical Machinery

80.102

87.4

97.871

100.0

99.3

Electronic Components

100.7

105.0

105.6

100.0

106.3

Transport Equipment

109.9

111.1

106.68

100.0

98.7

 

Construction

28.70

25.40

22.00

-

-

Real Estate

31.9

88.5

145.1

-

-

 

Services

Electricity, Gas & Water

6.30

6.70

6.50

-

-

Transport, Storage & Communication

5.30

9.80

14.20

-

-

Finance & Insurance

0.50

3.30

6.00

-

7.40

Government Services

6.00

6.50

6.30

-

-

Education Services

0.30

3.10

5.98

-

2.40

 

* Estimate / Preliminary

# Based on Index of Industrial Production (2015 = 100)

 

 

INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

The wholesale & retail trade sector expanded by 6.8% in the third quarter of 2015, higher than the 6.0% growth in the preceding quarter. Growth was supported by both the wholesale trade and retail trade segments. The wholesale trade segment was boosted by an increase in both domestic and foreign wholesale trade sales volume. In particular, the domestic wholesale trade index rose by 7.4%, following the 8.1 % increase in the previous quarter. The strong performance in domestic wholesale trade was due to a surge in the sales of petroleum and petroleum products (14%), chemicals & chemical products (39%) and telecommunications & computers (18%).

Similarly, the foreign wholesale trade index rose by 10% in the third quarter of 2015, accelerating from the 6.9% rise in the previous quarter. Growth was driven by improvements in the sales of petroleum & petroleum products (21%), metals, timber & construction materials (10%) and general wholesale trade (8.8%).

Overall retail trade sales volume also recorded resilient growth of 5.6% in the third quarter of 2015, extending the 6.4 % expansion in the second quarter. Growth was supported by a surge in the volume of motor vehicle sales (44%), which was in turn due to a substantial increase in the supply of Certificate of Entitlements. Excluding motor vehicles, retail sales volume increased at a much slower pace of 0.7% over the same period. The increase in retail sales volume (excluding motor vehicles) was due to improved non-discretionary goods sales. For instance, the sales of medical goods & toiletries and department store goods rose by 8.1% and 3.6% respectively.

According to the Retail News Asia, Food and beverage has overtaken fashion as the primary driver of demand for retail real estate in Singapore. Despite declining retail sales and consumer spending, the prime retail sector remained in good shape during the third quarter 2015.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1994, the Subject is an Exempt Private company, focusing on trading of timber, cashew nuts, sesame seeds. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject has a strong capital position of SGD 55,000,000. We are confident with the Subject's business and its future growth prospect.

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 small company, the Subject's business operation is supported by 20 employees. 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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at USD 96,576,170, the Subject should be able to maintain its business in the near terms.

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.



 

Financials

 

PROFIT AND LOSS ACCOUNT

 

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

FARLIN TIMBERS PTE LTD

Note : The Subject is an Exempt Private Company and it is not required by law to file its financials for public view. The below financials are the last financial that submitted by the Subject to the Registrar before changed to Exempt Private Company.

Financial Year End

2016-06-30

2015-06-30

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

USD

USD

TURNOVER

665,300,534

704,761,134

Other Income

356,263

482,727

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

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

Total Turnover

665,656,797

705,243,861

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

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

PROFIT/(LOSS) FROM OPERATIONS

9,342,773

10,749,103

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

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

PROFIT/(LOSS) BEFORE TAXATION

9,342,773

10,749,103

Taxation

(1,093,000)

(1,374,526)

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

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

PROFIT/(LOSS) AFTER TAXATION

8,249,773

9,374,577

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

54,116,021

44,741,444

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

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

As restated

54,116,021

44,741,444

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

62,365,794

54,116,021

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

62,365,794

54,116,021

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

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

INTEREST EXPENSE (as per notes to P&L)

Lease interest

8,909

15,720

Term loan / Borrowing

10,811,794

8,999,769

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

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

10,820,703

9,015,489

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

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

DEPRECIATION (as per notes to P&L)

13,849

367,951

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

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

Total Amortization And Depreciation

13,849

367,951

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

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

 

BALANCE SHEET

 

FARLIN TIMBERS PTE LTD

 

ASSETS EMPLOYED:

FIXED ASSETS

13,997

18,104

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

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

TOTAL LONG TERM ASSETS

13,997

18,104

CURRENT ASSETS

Stocks

68,763,860

66,335,536

Trade debtors

186,006,983

179,637,080

Other debtors, deposits & prepayments

493,552

485,576

Short term deposits

45,689,141

35,540,204

Cash & bank balances

1,191,039

1,552,347

Others

38,755

91,183

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

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

TOTAL CURRENT ASSETS

302,183,330

283,641,926

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

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

TOTAL ASSET

302,197,327

283,660,030

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

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

CURRENT LIABILITIES

Trade creditors

5,601,568

5,146,867

Short term borrowings/Term loans

196,106,915

186,389,052

Bill & acceptances payable

1,537,725

1,330,813

Other liabilities & accruals

328,958

248,089

Amounts owing to related companies

20,071

20,071

Amounts owing to director

700,000

500,000

Provision for taxation

1,157,510

1,357,800

Lease payables

165,310

173,444

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

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

TOTAL CURRENT LIABILITIES

205,618,057

195,166,136

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

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

NET CURRENT ASSETS/(LIABILITIES)

96,565,273

88,475,790

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

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

LONG TERM LIABILITIES

Lease obligations

-

164,397

Deferred taxation

3,100

3,100

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

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

TOTAL LONG TERM LIABILITIES

3,100

167,497

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

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

TOTAL NET ASSETS

96,576,170

88,326,397

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

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

FINANCED BY:

SHARE CAPITAL

Ordinary share capital

34,210,376

34,210,376

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

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

TOTAL SHARE CAPITAL

34,210,376

34,210,376

RESERVES

Retained profit/(loss) carried forward

62,365,794

54,116,021

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

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

TOTAL RESERVES

62,365,794

54,116,021

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

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

SHAREHOLDERS' FUNDS/EQUITY

96,576,170

88,326,397

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

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

 

FINANCIAL RATIO

 

FARLIN TIMBERS PTE LTD

 

TYPES OF FUNDS

Cash

46,880,180

37,092,551

Net Liquid Funds

45,342,455

35,761,738

Net Liquid Assets

27,801,413

22,140,254

Net Current Assets/(Liabilities)

96,565,273

88,475,790

Net Tangible Assets

96,576,170

88,326,397

Net Monetary Assets

27,798,313

21,972,757

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

20,163,476

19,764,592

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

20,177,325

20,132,543

BALANCE SHEET ITEMS

Total Borrowings

197,644,640

187,884,262

Total Liabilities

205,621,157

195,333,633

Total Assets

302,197,327

283,660,030

Net Assets

96,576,170

88,326,397

Net Assets Backing

96,576,170

88,326,397

Shareholders' Funds

96,576,170

88,326,397

Total Share Capital

34,210,376

34,210,376

Total Reserves

62,365,794

54,116,021

GROWTH RATIOS (Year on Year) (%)

Revenue

(5.60)

-

Proft/(Loss) Before Tax

(13.08)

-

Proft/(Loss) After Tax

(12.00)

-

Total Assets

6.54

-

Total Liabilities

5.27

-

LIQUIDITY (Times)

Cash Ratio

0.23

0.19

Liquid Ratio

1.14

1.11

Current Ratio

1.47

1.45

WORKING CAPITAL CONTROL (Days)

Stock Ratio

38

34

Debtors Ratio

102

93

Creditors Ratio

3

3

SOLVENCY RATIOS (Times)

Gearing Ratio

2.05

2.13

Liabilities Ratio

2.13

2.21

Times Interest Earned Ratio

1.86

2.19

Assets Backing Ratio

2.82

2.58

PERFORMANCE RATIO (%)

Operating Profit Margin

1.40

1.53

Net Profit Margin

1.24

1.33

Return On Net Assets

20.88

22.38

Return On Capital Employed

20.88

22.33

Return On Shareholders' Funds/Equity

8.54

10.61

Dividend Pay Out Ratio (Times)

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.05

UK Pound

1

INR 90.41

Euro

1

INR 79.82

SGD

1

INR 49.01

 

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)

 

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.