MIRA INFORM REPORT

 

 

Report Date :

02.12.2011

 

IDENTIFICATION DETAILS

 

Name :

ASIAN CARATS PTE LTD

 

 

Registered Office :

1 North Bridge Road #18-01 High Street Centre Singapore 179094

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2005

 

 

Date of Incorporation :

06.02.1996

 

 

Com. Reg. No.:

199600943Z

 

 

Legal Form :

Limited Exempt Private Company

 

 

Line of Business :

Retail Sale of Jewellery

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

Litigation :

Exists

 

           

Executive Summary

 

Company Name

:

ASIAN CARATS PTE LTD

Registration No

:

199600943Z

Date of Registration

:

06/02/1996

Former Name

:

NA

Date of Change of Name

:

NA

Type of Company

:

LIMITED EXEMPT PRIVATE COMPANY

Registered Address

:

1 NORTH BRIDGE ROAD #18-01 HIGH STREET CENTRE SINGAPORE 179094

Date of Change of Address

:

25/10/2004

Contact No.

:

6220 8502

Fax No.

:

6738 2478

Website

:

NA

Registered Activities

:

1. GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)

2. RETAIL SALE OF JEWELLERY

Issued Ordinary Capital*

:

$3,300,000.00 SINGAPORE, DOLLARS ,NO. OF SHARE : 3,300,000

Issued Preference Capital

:

NA

Paid-Up Ordinary Capital

:

$3,300,000.00 SINGAPORE, DOLLARS

Paid-Up Preference Capital

:

NA

* Number of Shares includes number of Issued Treasury Shares

Issued Treasury Capital

:

NA

Paid-Up Treasury Capital

:

NA

No. of Local Subsidiaries

:

NA

No. of Local Associates

:

NA

Auditor

:

HELMI TALIB & CO

Bankers / Financiers

:

UCO BANK

Turnover

:

SINGAPORE, DOLLARS 65,343,624.00

Net Worth

:

SINGAPORE, DOLLARS 2,022,037.00

No. of Bank Charges

:

2

No. of Litigation Suits

:

1

S1000 / SME 500 / FG50 Ranking

:

No found for SINGAPORE 1000 and SME 500

Compounded Annual Growth Rate (CAGR)

:

157.56% (3 years)

 

SHAREHOLDER DETAILS

 

NAME

:

NARENDRA S/O AMRITLAL

SHAREHOLDER ID

:

S1674807B

NATIONALITY

:

SINGAPORE CITIZEN

ADDRESS

:

415 BEDOK NORTH AVENUE 2 #25-99 SINGAPORE 460415

NO. OF ORD SHARES

:

45,000

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

HITESH S/O AMRIT LAL

SHAREHOLDER ID

:

S1772385E

NATIONALITY

:

SINGAPORE CITIZEN

ADDRESS

:

160 HAIG ROAD #07-02 HAIG COURT SINGAPORE 438795

NO. OF ORD SHARES

:

2,045,000

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

SONAL N TIMBADIA

SHAREHOLDER ID

:

S2605983F

NATIONALITY

:

SINGAPORE CITIZEN

ADDRESS

:

152 HAIG ROAD #03-01 HAIG COURT SINGAPORE 438791

NO. OF ORD SHARES

:

600,000

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

ASHA HITESH TIMBADIA

SHAREHOLDER ID

:

S7272163B

NATIONALITY

:

SINGAPORE CITIZEN

ADDRESS

:

160 HAIG ROAD #07-02 HAIG COURT SINGAPORE 438795

NO. OF ORD SHARES

:

600,000

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

DHAVAL GUNVANT SHAH

SHAREHOLDER ID

:

V173555

NATIONALITY

:

INDIAN

ADDRESS

:

41/B SHIVNER 84 NEAPEN SEA RD BOMBAY INDIA

NO. OF ORD SHARES

:

10,000

CURRENCY

:

SINGAPORE, DOLLARS

 

OFFICER DETAILS

 

NAME

:

HITESH S/O AMRIT LAL

ADDRESS

:

160 HAIG ROAD #07-02 HAIG COURT SINGAPORE 438795

POSITION

:

DIRECTOR

SECRETARY

DATE OF APPT

:

06/02/1996

14/04/2004

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S1772385E

 

NAME

:

SONAL N TIMBADIA

ADDRESS

:

152 HAIG ROAD #03-01 HAIG COURT SINGAPORE 438791

POSITION

:

DIRECTOR

DATE OF APPT

:

01/04/2003

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S2605983F

 

NAME

:

ASHA HITESH TIMBADIA

ADDRESS

:

160 HAIG ROAD #07-02 HAIG COURT SINGAPORE 438795

POSITION

:

DIRECTOR

DATE OF APPT

:

01/04/2003

NATIONALITY

:

SINGAPORE CITIZEN

I/C PASSPORT

:

S7272163B

 

 

KEY PERSONNEL PROFILE

 

Name:

HITESH S/O AMRIT LAL

NRIC Number:

S1772385E

Available Address:

160 HAIG ROAD #07-02 HAIG COURT  SINGAPORE 438795

 

 

Current Business Interest

No.

Name

Position

Appt Date

#of Share

%

1

ASIAN CARATS PTE LTD

DIRECTOR

06/02/1996

2045000

61.96

2

ASIAN CARATS PTE LTD

SECRETARY

14/04/2004

2045000

61.96

3

HITESH TRADING CO

MANAGER

01/04/2003

-

-

 

 

Previous Business

No.

Name

 

 

Status

Position

Appt Date

Last Known Inactive Date

1

HITESH TRADING CO

LIVE

OWNER

12/09/1987

01/04/2003

2

MAP EQUIPMENTS

LIVE

OWNER

18/11/1999

01/04/2003

 

Bankruptcy Record

Case No.

Year

Date of Filing

Petitioner Name

Amount

No Trace

 

 

 

 

 

Litigation Search – Writ of Summons

Court

Case No.

Year

Date of Filing

Amount

Cause Category

No Trace

 

 

 

 

 

 

 

SUBSIDIARIES AND ASSOCIATE COMPANIES

 

Company

Shareholdings (%)

 

NA

 

                                                                                                                       

 

BANKERS/ FINANCIERS

 

Subject enjoys a normal banking routine with its bankers. To date, there have been 2 bank charges registered against Subject by its bankers. The charge numbers are:

 

1)

Charge No.

:

C200707304

 

Date of Registration

:

05/09/2007

 

Chargee

:

UCO BANK

 

2)

Charge No.

:

199703745

 

Date of Registration

:

24/06/1997

 

Chargee

:

UCO BANK

 

 

LITIGATION

 

To date, there have been 1 litigation suits filed against Subject.

 

 

Current Year

On/After 01 Jan 2010

Past Years

W.e.f 01 Jan 2010

 

Court (Claim under normal circumstances)

Magistrate (< $80,000)

0

1

District ($80,000 - $250,000)

0

0

High (>$250,000)

0

0

 

Winding Up Trace

 

No

In litigation/Dissolved/Struck Off/In receivership

No

 

The details are as follows:

 

1)

Court

:

Magistrate Court

 

Case No.

:

31297

 

Date of Filing

:

30/11/1998

 

Amount

:

0.00

 

Cause

:

Contracts - Employment

 

Case Status

:

CONCLUDED

 

Plaintiff

:

NG KHEM SHENG

 

COMPLIANCE RECORDS

 

Date of Last AGM

:

30/06/2009

Date of Last AR

:

29/07/2009

Date of A/C Laid At Last AGM

:

31/12/2008

 

 

FINANCIAL HIGHLIGHTS

 

Financial Figures

Company

 

DEC 2005

% Change

DEC 2004

MAR 2003

MAR 2002

Currency

SINGAPORE, DOLLARS

 

SGD - SIN

SINGAPORE, DOLLARS

SINGAPORE, DOLLARS

Profit and Loss Key Figures

 

 

 

 

 

Turnover

65,343,624

-6.00

69,513,561

2,399,913

3,824,434

Profit/(Loss) Before Tax

390,722

-21.00

494,586

23,542

(11,521)

Profit After Tax attributable to Shareholders

390,722

-21.00

494,586

23,542

(11,521)

 

 

 

 

 

 

Balance Sheet Key Figures

 

 

 

 

 

Total Assets

12,384,164

-12.17

14,100,177

2,017,565

3,334,255

Current Assets

12,008,860

-12.37

13,703,602

2,017,565

3,334,255

Non Current Assets

375,304

-5.36

396,575

0

0

 

 

 

 

 

 

Total Liabilities

10,362,127

-16.90

12,468,862

4,263,014

5,603,246

Current Liabilities

10,362,127

-16.90

12,468,862

4,263,014

5,603,246

Non Current Liabilities

0

NA

0

0

0

 

 

 

 

 

 

Shareholders' Funds

2,022,037

23.95

1,631,315

2,245,449

2,268,991

Share Capital

3,300,000

0.00

3,300,000

300,000

300,000

Total Reserves

(1,277,963)

NA

(1,668,685)

(2,545,449)

(2,568,991)

 

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

 

Company

 

DEC 2005

DEC 2004

MAR 2003

MAR 2002

Growth %

 

 

 

 

Year-on-Year Growth

-6.00

2,796.50

-37.25

NA

 

 

 

 

 

Profitability

 

 

 

 

Profit Margin (%)

0.60

0.71

0.98

NA

Return on Equity (%)

19.32

30.32

1.05

NA

Return on Assets (%)

3.16

3.51

1.17

NA

 

 

 

 

 

Leverage

 

 

 

 

Total Debt/Equity (Times)

5.12

7.64

1.90

2.47

Current Debt/Equity (Times)

5.12

7.64

1.90

2.47

Long Term Debt To Equity (Times)

NA

NA

NA

NA

Total Asset To Total Equity (Times)

6.12

8.64

0.90

1.47

 

 

 

 

 

Asset Management

 

 

 

 

Total Assets Turnover (Times)

5.28

4.93

1.19

1.15

Fixed Assets Turnover (Times)

174.11

175.28

NA

NA

 

 

 

 

 

Liquidity

 

 

 

 

Current Ratio (Times)

1.16

1.10

0.47

0.60

 

 

 

 

 

 

FINANCIAL COMMENTARY

 

Compound Annual Growth Rate

The company's CAGR is 157.56% (3 years).

 

CAGR is the year-over-year growth rate of a company over a specified period. Instead of looking at the average growth rate, CAGR allow users to look at the annualized growth rate of a company over a given period, a more indicative measure of growth of a company’s performance over a given period.

 

 

Profitability

The company yielded a rate of net profit on sales of 0.60 per cent in FY05 (FY04: 0.71 per cent). The company is now able to book in SINGAPORE, DOLLARS 0.01 of profit for every SINGAPORE, DOLLARS of sales in FY05, as compared with SINGAPORE, DOLLARS 0.01 a year ago.

 

 

 

Liquidity

 

Current ratio stood at 1.16 times in FY05 (FY04: 1.10 times). This means that the company has SINGAPORE, DOLLARS 1.16 of current assets for every SINGAPORE, DOLLARS of current liability incurred.

 

A minimum figure of 1.0 would be considered the lowest limit that this figure should reach. Any business that has a current ratio near 1.0 may be heading for liquidity problems, and would need to be closely monitored. A figure greater than 2.0 would be more desirable, to act as a buffer against any short-term liquidity problems, and give creditors/bank managers a degree of comfort when granting credit/finance.

 

 

Leverage

Total debt-to-equity ratio notched 5.12 times in FY05, compared with 7.64 times in FY04. This means that the company requires additional external financing of SINGAPORE, DOLLARS 5.12 for every SINGAPORE, DOLLARS injected into its operations.

 

Generally, a total debt-to-equity ratio of less than 0.5 times is preferred. The ratio measures the proportion of the company's reliance on external debt for financing, relative to the shareholder's fund. A lower ratio would imply a greater financial safety and operating freedom for the company.

 

 

Efficiency Ratio

 

 

Return on equity was 19.32 per cent for Subject in the current financial period, as compared to 30.32 per cent a year ago. The return on equity measures the return earned on the owner's investment.  Generally, the higher this return, the better off the owner.

 

Return on assets stood at 3.16 per cent (FY04: 3.51 per cent). The return on asset measures the overall effectiveness of management in generating profit with its available assets.

 

Total assets turnover ratio logged at 5.28 times in FY05 (FY04: 4.93 times). This ratio measures the company's ability to make productive use of its total assets to generate sales which reflects the efficiency of the management in utilising its resources.

 

DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.65

UK Pound

1

Rs.81.06

Euro

1

Rs.69.51

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

 

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.