Movement presented with Raw Materials (RM) and Finished Goods (FG) split across all three product lines. All values in SGD. Slow-moving threshold applied: RM 150 days, FG 90 days (finance basis).
| Movement Item | RM (SGD) | FG (SGD) | Total (SGD) | Total (USD) |
|---|---|---|---|---|
| Opening Balance: 30 Sep 2025 | 942,284 | 1,650,480 | 2,592,764 | 1,906,459 |
| RM Goods Receipts (Purchases) | 393,090 | , | 393,090 | 293,333 |
| FG Production Receipts | , | 779,110 | 779,110 | 581,355 |
| RM Goods Issues to Production | (381,911) | , | (381,911) | (284,996) |
| FG Goods Issues: Sales Deliveries | , | (645,150) | (645,150) | (481,256) |
| Physical Inventory Adjustments | (1,435) | , | (1,435) | (1,070) |
| Closing Balance: 31 Oct 2025 | 952,028 | 1,784,440 | 2,736,468 | 2,042,226 |
| MoM Variance | +9,744 | +133,960 | +143,704 | +135,767 |
| MoM Change % | +1.0% | +8.1% | +5.5% | +7.1% |
USD converted at MAS rate 31 Oct 2025 (0.7463) for closing and movements; opening USD at 30 Sep 2025 rate (0.7353). MoM USD variance includes FX rate effect of +USD 28,520 from SGD strengthening.
| Product Line | Opening RM | Opening FG | Opening Total | Closing RM | Closing FG | Closing Total | MoM Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Aerospace | 687,060 | 1,064,800 | 1,751,860 | 654,496 | 1,272,200 | 1,926,696 | +174,836 | +10.0% |
| Automotive | 138,108 | 361,980 | 500,088 | 166,066 | 322,530 | 488,596 | (11,492) | −2.3% |
| Industrial | 117,116 | 223,700 | 340,816 | 131,466 | 189,710 | 321,176 | (19,640) | −5.8% |
| Total | 942,284 | 1,650,480 | 2,592,764 | 952,028 | 1,784,440 | 2,736,468 | +143,704 | +5.5% |
The inventory build is concentrated entirely in Aerospace, which increased SGD 174,836 (+10.0%). This reflects three production completions in October: Actuator Arm Brackets (SGD 236,800), Pressure Sensor Housings (SGD 214,200), and additional Turbine Bracket Assemblies (SGD 151,200): against FG sales deliveries of SGD 394,800. Aerospace FG closed at SGD 1,272,200, representing 71.3% of total finished goods.
Automotive and Industrial both saw modest inventory reductions, with RM additions offset by production consumption and FG sales activity. The RM pool is relatively stable overall (+SGD 9,744) as purchasing activity largely matched production consumption.
| Product Line | FG Closing (SGD) | Monthly COGS (SGD) | DIO: Oct 2025 | DIO: Sep 2025 | Change | Signal |
|---|---|---|---|---|---|---|
| Aerospace | 1,272,200 | 1,066,667 | 35.8 days | 30.0 days | +5.8 days | WORSENING |
| Automotive | 322,530 | 555,000 | 17.4 days | 20.0 days | −2.6 days | IMPROVING |
| Industrial | 189,710 | 261,667 | 21.8 days | 26.0 days | −4.2 days | IMPROVING |
| Total | 1,784,440 | 1,883,334 | 28.4 days | 26.0 days | +2.4 days | MONITOR |
DIO calculated as: (Closing FG Value / Monthly COGS) × 30. Monthly COGS derived from YTD actuals (Apr–Sep 2025) divided by 6 months. Used for trend comparison only: not for P&L reporting.
Working capital attribution: The SGD 143,704 inventory build translates to +USD 135,767 in additional cash tied. Of the USD increase, approximately USD 107,246 is attributable to inventory volume growth (the physical build in Aerospace FG), and USD 28,520 reflects SGD/USD rate movement: the SGD strengthened from 0.7353 to 0.7463, increasing the USD-equivalent carrying value of the existing September balance by SGD 2,592,764 × 0.0110 = SGD 28,520.
Aerospace DIO worsening to 35.8 days from 30.0 days is the primary working capital concern. Production completed ahead of deliveries scheduled for November. Automotive and Industrial both show improving DIO, reflecting clean conversion cycles for those product lines in October.
Portfolio concentration analysis based on Q3 FY2025 closing inventory values. Gross margin rates sourced from Q3 FY2025 P&L actuals. GM at Risk is calculated as closing total inventory value multiplied by the applicable product line gross margin rate: representing the maximum gross profit content embedded in on-hand stock. Concentration threshold: any product line exceeding 40% of total portfolio is flagged.
| Product Line | RM Value (SGD) | FG Value (SGD) | Total (SGD) | Total (USD) | Portfolio % | GM % | GM at Risk (SGD) | Flag |
|---|---|---|---|---|---|---|---|---|
| Aerospace | 654,496 | 1,272,200 | 1,926,696 | 1,437,893 | 70.4% | 24% | 462,407 | EXCEEDS 40%: concentration risk |
| Automotive | 166,066 | 322,530 | 488,596 | 364,639 | 17.9% | 19% | 92,833 | WITHIN LIMIT |
| Industrial | 131,466 | 189,710 | 321,176 | 239,694 | 11.7% | 31% | 99,565 | WITHIN LIMIT |
| Total Portfolio | 952,028 | 1,784,440 | 2,736,468 | 2,042,226 | 100.0% | , | 654,805 | , |
At SGD 1,926,696 (USD 1,437,893), Aerospace represents 70.4% of total inventory value: materially exceeding the 40% concentration threshold. The FG component of SGD 1,272,200 reflects October production completions in high-unit-cost components: Actuator Arm Brackets, Pressure Sensor Housings, and Turbine Bracket Assemblies. At a 24% gross margin, the embedded GM at Risk is SGD 462,407. Aerospace RM includes Inconel 718 and titanium alloys: materials with long lead times and limited spot market liquidity, creating asymmetric write-down exposure if customer orders are delayed or cancelled. Aerospace DIO has moved to 35.8 days. The delivery hold on SO-2025-8852 (FG-AER-0031: Landing Gear Pin Set, SGD 94,800 GI posted) should be resolved with AeroCo Ltd in November to confirm revenue recognition timing.
Automotive carries SGD 488,596 (17.9% of portfolio) with a 19% gross margin: the lowest of the three product lines, reflecting steel price pressure identified in Q2. GM at Risk of SGD 92,833 is the smallest in absolute terms. DIO improved to 17.4 days (from 20.0 in September), indicating healthy FG conversion. October saw a net inventory reduction of SGD 11,492, which is constructive for working capital. No slow-moving concerns under the 90-day FG finance threshold.
Industrial holds SGD 321,176 (11.7% of portfolio) at a 31% gross margin, the highest of the three lines. GM at Risk of SGD 99,565 is disproportionately strong relative to the inventory investment. DIO improved to 21.8 days. Net inventory decreased SGD 19,640 in October. Despite lower absolute scale, Industrial delivers the highest margin return per dollar of inventory deployed and warrants priority in any capital reallocation discussion.
| Material | Description | Product Line | Category | Days No Movement | Qty on Hand | Value (SGD) | Finance Threshold Status |
|---|---|---|---|---|---|---|---|
| RM-AER-0062 | PTFE Sheet 6mm 600×600mm | Aerospace | Raw Materials | 136 days | 360 | 44,820 | APPROACHING: 14 days to 150-day threshold |
| RM-AUTO-0044 | Brass Rod CZ121 20mm dia | Automotive | Raw Materials | 114 days | 380 | 14,782 | BELOW THRESHOLD: 36 days to 150-day limit |
| All Finished Goods items reviewed: none breach the 90-day FG finance threshold. Items FG-AER-0024, FG-AER-0031, FG-AUTO-0027, FG-IND-0022 flagged by SAP at 90-day system threshold are all CLEAR under finance threshold assessment (all had movement within October). | |||||||
SAP system slow-moving flags are generated at a 90-day threshold applied uniformly to all categories. Finance thresholds are RM: 150 days, FG: 90 days. Items flagged by SAP that do not breach the finance RM threshold of 150 days are not considered slow-moving for balance sheet provisioning purposes. RM-AER-0062 (PTFE Sheet) requires monitoring: if no goods issue occurs before 30 November 2025 it will breach the finance threshold and a write-down assessment will be required.
Only actual anomalies identified in the SAP extract are disclosed below. Boilerplate data quality flags are not included per project data quality rule.