BRIEF BACKGROUND OF COMPANY
A leading integrated food company, Singapore Food Industries, was established in 1973. It was listed Singapore Exchange Mainboard since 22nd of November, 1999 and comprises 8 percent of the Food & Beverage market share. It is the parent company of United Kingdom, China and Australia.
Singapore Food Industries has achieved various awards such as SME Partner Award, eDistributor award and 2003 Securities Investors Association (Singapore) Most Transparent Company Award (Manufacturing).
Singapore Food Industries engages in three strategic business areas which comprises of food distribution, preparation, manufacturing, processing and abattoirs. It not only involves in the sourcing and importing of fresh fruits, but also chilled and frozen meats, seafood and other food products. These imports are then distributed to supermarkets, hotels, and some government institutions. In addition, SFI is also responsible for producing long shelf-life products under the Farmpride brand. This will includes ready-to-eat meals, sauces, gravies as well as desserts.
The process of unloading to repacking, uploading and distribution of food products are run by its Food Supplies Division. Countries in the Asia Pacific region including Malaysia, Indonesia, Hong Kong and Brunei import the food items from the Singapore Food Industries.
The e-grocery store was set up on the beginning of year 2000 with its aim to provide convenience for its customers.
Food Preparation, Manufacturing and Processing
The core operation of Singapore Food Industries is food preparation. Its one-stop catering provides services for both formal and informal functions which is managed by the Food Catering Division.
The subsidiary of Singapore Food Industries’ manufacturing facility, Shanghai ST Food Industries Company Limited, is involved in the production, sales and distribution of value-added food products.
The operation of food processing involves catching, processing, wholesaling and export of seafood primarily to the East Asian markets.
Singapore Food Industries places hygiene as the top priority when it comes to managing abattoir.
The major customers of SFI not only include companies such as HospitalityBex, government institutions like Singapore Armed forces (SAF), flight kitchens, ship chandlers, hospitals such as Tan Tock Seng Hospital, wholesale and small supermarkets such as NTUC Fairprice, Shop N Save and Cold Storage, wet and dry markets, hotels such as Raffles Hotel and food service outlets like Crystal Jade and Jack’s Place.
SFI also acts as a supplier for overseas countries in Asia Pacific Region. This includes countries like Malaysia, Hong Kong, Cambodia, Brunei, the Maldives and Indonesia. Other than that, countries from India, China, Australia, United Kingdom, Japan and the Middle East are also customers of SFI.
The payment terms for customers will be a term up to 30 days. The letter of credit will be received when an agreement has been made and an order has been placed.
The first payment method SFI’s customers use is advance payment. Proof of advance payment can be found under the category of deposit, prepayments and other receivables taken from the company’s balance sheet.
The second method is to sell goods to SFI’s customers on credit which is also known as open account. Evidence of selling on credit can be found under its operations and financial review as well as its balance sheet – Accounts Receivable. In the review, it stated that, “maximum amount of credit allowed to be extended to each customer,” and “credit limits are determined following credit evaluations on all credit customers.”
The third method is the involvement of a financial document which is in the form of bill exchange. This is also known as clean collection. This can be found under the financial statements...
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