SINGAPORE 1000, SME 1000 AND SINGAPORE INTERNATIONAL 100 RANKING DEFINITIONS & RATIONALISATION

 

RANKING
DEFINITIONS & RATIONALISATION

The Singapore Top 1000 companies are selected and ranked based on their audited financial figures, i.e. Sales/Turnover or Net Profit for financial period ending between 1 June 2011 and 31 May 2012. Comparative financial information is extracted from the companies’ latest financial statements and through XBRL data.

1. Ranking Criteria

For Singapore 1000:
To qualify for the ranking, companies must satisfy the following criteria:

• Be registered with the Accounting & Corporate Regulatory Authority (ACRA) as a limited or private limited company. Only limited exempt private companies, which voluntarily submit their audited financial statements, or whose financials are available from ACRA, will be included in the ranking exercise. Branches of foreign companies, Cooperatives and Company Limited by Guarantee are excluded.
• Have conducted at least 2 full years of operation.
• Have relevant audited financial statements directly submitted to DP Information Network Pte Ltd or be available from ACRA. Companies will be excluded from the ranking where the information is not available or incomplete. Examples include the limited exempt private companies which are not required to file their financial statements or where Sales/Turnover figures are not presented in the audited statements.

For Singapore SME 1000:
Additional Criteria:

• Have an annual Sales/Turnover and Net Profit After Tax of less than SGD 100 million.
• Have Fixed Assets of less than SGD 15 million.
• Have at least 30% Singapore local equity ownership and not be a subsidiary of a Singapore Public Listed Company.

For Singapore International 100:
Additional Criteria:

• Have presence in at least 1 country outside Singapore (presence is defined as including export, overseas branches or offices, overseas distributors or agents, representative office, franchising). Where 100% of the company’s sale revenue is generated outside Singapore, the Steering Committee will decide on the suitability of the company in being celebrated as a Singapore International 100 Company.
• Company must be profitable during the ranking period.
• For public listed companies, they must be incorporated in Singapore and listed on the Singapore Exchange (SGX).
• For non-listed companies, they must have at least 30% Singapore equity.
• With completed survey forms submitted to DP Information Network Pte Ltd or with clear breakdown of local and overseas sales/ turnover in their audited annual reports (for public listed companies). Companies will be excluded from the ranking where the information is not available or incomplete.

2. Honour Roll
The Honour Roll highlights Singapore companies ranked within the top 10 by Sales/Turnover for the past 3 consecutive years.

3. Sales/Turnover
One of the most fundamental measure of a company’s financial performance, representing total Sales/Turnover or Gross Operating Income as reported by the company in its financial statements or as submitted by the company through XBRL to ACRA. The Sales/Turnover figures for individual companies include sales to related or holding companies. The revenue from banks and other financial institutions include interest and non-interest incomes. Figures for the insurance companies include premium incomes and other investment income.

4. Net Profit
Net Profit or Profit/Loss after tax includes Profit/Loss of subsidiaries and associate companies but excludes the adjustment for minority interests. Figures in parenthesis “( )” indicate losses.

5. Total Assets
Total Assets include current assets, fixed assets, investments and amounts owing by related or holding companies at its fiscal year-end.

6. Total Liabilities
Total Liabilities include all current and long-term liabilities at a company’s year-end.

7. Shareholders’ Funds
This is the sum of all paid-up capital, share premium, retained earnings, capital reserves and other reserves at a company’s year-end but excludes minority interests. Currency translation reserves are included as part of the Shareholders’ Funds.

8. Group Consolidated Account
Companies are ranked in terms of consolidated performance, if available. This includes both the performance of the company and its subsidiaries. All inter-company transactions are eliminated upon consolidation.

9. Holding Vs Subsidiary Companies
To ensure that the ranking list is as comprehensive and complete as possible, all individual companies who qualify for this ranking and whose financial statements are available, are ranked. Subsidiary companies are therefore evaluated and ranked as a separate legal entity from its holding companies.

10. Annualisation of Figures
Financial information stated are in respect of the company’s financial year ending within 1 June 2010 - 31 May 2011. For changes in accounting period, annualised Sales/Turnover and Net Profit (After Tax) figures will be taken into consideration. Shareholders’ equity and assets are not annualised. (refer examples 1 & 2)

Below are two examples on the computation :
Example 1-Company with reported Sales/Turnover and Net Profit (After Tax) for over 18 months, will be annualised by using the fraction 12/18 :

	Period from 1 July 2009 to 31 December 2010 ($’000)	Annualised Value For Ranking (Figures Adjusted to 12 months) ($‘000)
Sales/Turnover	150,000	100,000 [i.e. 150,000 x 12/18]
Net Profit	60,000	40,000 [i.e.   60,000 x 12/18]

Example 2-Company which has changed its accounting period from March to December such that there are two accounting periods in 2010, i.e., year ended 31 March 2010 and period ending 31 December 2010 (9 months), will be ranked on the following basis:

	Year ended 31 March 2010 ($’000)	Period ended 31 December 2010 ($’000)	Annualised Value For Ranking (Figures Adjusted to 12 months) ($‘000)
Sales/Turnover	50,000	40,000	52,500 [i.e. 40,000 + (50,000 x 3/12)]
Net Profit	10,000	9,000	11,500 [i.e. 9,000 + (10,000 x 3/12)]
Shareholders’ Funds	20,000	22,000	22,000
Total Assets	60,000	56,000	56,000

11. Current and Previous
Financial information is presented under two columns, namely, ‘Current’ and ‘Previous’. Information reflected under ‘Current’ refers to figures for financial year ending between 1 June 2010 and 31 May 2011. Information reflected under ‘Previous’ refers to the comparative information presented in the financial statements for the year ending between 1 June 2009 and 31 May 2010.

12. Nationality
‘Nationality’ refers to the place of incorporation of a company’s ultimate holding company.

13. Business Classification With Industry Averages
The business classification of a company is determined in accordance to its principal activity in which it generates the main bulk of its Sales/Turnover and Net Profit.

Industry Averages for Peer groups are calculated by averaging the Sales/Turnover and Net Profit figures for all companies listed under a particular business classification.

14. Percentage (%) Change from Previous
This compares a company’s ‘Current’ against its ‘Previous’ performance in percentage (%) terms. Percentage change from the previous is not applicable to companies, which have experienced a negative to positive growth and vice versa. (refer to example 3)

Example 3 - Company’s ‘Current’ against its ‘Previous’ performance in percentage (%) terms.

	Current 2012 ($‘000)	Previous 2011 ($‘000)	Percentage (%) Change from 2011
Company A	50,000	25,000	100
Company B	50,000	(25,000)	NA
Company C	(50,000)	25,000	NA

15. Market Capitalisation
This examines the worth of public listed companies as at 22 October 2010, the latest possible cut-off date in respect to the publication date of this ranking. It measures the company’s worth according to the Stock Exchange of Singapore as at 22 October 2010. The figures shown were derived by multiplying the number of ordinary shares outstanding by the price per ordinary share (last traded price in Singapore Dollar at the close of business on 21 October 2010).

16. Earnings Per Share
Earnings per share (EPS) for public listed companies is calculated by dividing the net profit or loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the same period. For comparison purposes, EPS is shown for both the current and previous years. EPS figures are extracted from the company’s audited accounts and computed on the basis of profit after extraordinary items. Fully diluted EPS figures, if available, are included in the publication.

17. DP Credit Rating
Section 7 lists all DP1 Credit-Rated companies as at December 2011. DP1 is the highest band attainable for a company, rated through the DP Credit Rating approach. DP Credit Rating consists of eight scales ranging from the highest rating of DP1 to DP8 using the acclaimed and globally accepted quantitative model of expected probability of default. The rating measures the probability of default of a company. A company rated DP1, for instance, will have a lower probability of default than a company rated DP8. The model is sensitive to changes in the financial market and therefore more reflective and responsive than a static model which simply makes use of past historical data. DP Credit Rating excludes financial institutions and companies from the property sector.

18. Return On Equity (ROE)
ROE is calculated by taking a year’s Net Profit and dividing it by the Shareholder’s Equity for that year. It is not applicable if the company has incurred a loss and/or has negative shareholders’ fund.

19. Profit Margin
A ratio of profitability calculated as Net Profit divided by Sales/Turnover. Profit Margin is displayed as a percentage, e.g. a 20% profit margin means the company has a net income of $0.20 for each dollar of sales.

20. Return on Assets (ROA)
ROA is calculated by dividing a company’s Net profit by its Total Tangible Assets. It is displayed as a percentage.

21. Foreign Currency Translation
All figures reported in foreign currencies are converted to Singapore dollars at their respective average exchange rate for the ranking period. For example, for companies with December 2010 financial year ending, the average exchange rate is computed by adding all the month end exchange rates from January 2010 to December 2010 and then divided by 12 to determine the average exchange rate.