Megachem Limited Annual Report 2015 37 Balance Sheet Highlights 31 December 2015 31 December 2014 Variance 31 December 2015 vs 31 December 2014 Fav(Unfav) Cash (S$mil) 11.1 9.0 2.1 Borrowings (S$mil) 18.3 21.9 3.6 Current ratio 2.07 1.74 0.33 Gearing ratio 0.43 0.52 0.09 Net assets per share attributable to equity holders of the Company (cents) 31.65 31.45 0.20 Inventory turnover (days) 101 90 (11) Trade receivables turnover (days) 93 89 (4) As at Property, plant and equipment Property, plant and equipment decreased by S$1.5 million or 10.9% mainly due to depreciation charge of S$1.5 million and net exchange losses on translation of S$0.5 million which arose mainly from the land in Malaysia. This was offset by capital expenditure of S$0.4 million during the year. Associated companies The decrease in the carrying value of our investment by S$1.6 million or 23.1% was mainly due to dividend return of S$2.3 million offset by net positive contribution from our associated companies of S$0.9 million. Trade receivables Net third party trade receivables decreased by S$3.9 million or 13.4% from S$29.4 million as at 31 December 2014 to S$25.5 million as at 31 December 2015 as a result of lower sales achieved for the current year. Turnover days for FY 2015 increased to 93 days from 89 days in FY 2014 as proportion of receivables from South America remained high. Inventory Inventory decreased marginally by S$0.5 million or 2.4% to S$21.0 million as at 31 December 2015. This was in line with slower sales in FY 2015. Inventory turnover days increased to 101 days as compared to 90 days in the previous year. Other current assets Other current assets of S$1.9 million, which consist mainly of advances to suppliers and prepayments, increased marginally by S$50,000 or 2.7% as compared to S$1.8 million as at 31 December 2014 mainly due to higher prepayment of taxes offset by lower advance payments to suppliers for inventory purchase. Financial assets and financial liabilities held for trading Both financial assets and liabilities held for trading remained relatively unchanged as compared to 31 December 2014. Trade and other payables Corresponding to the decrease in inventory, trade payables declined from S$7.4 million as at 31 December 2014 to S$7.1 million as at end of current year. 2. BALANCE SHEET ANALYSIS
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