MIRA INFORM REPORT

Report Date :

03.12.2013

IDENTIFICATION DETAILS

Name :	SARAOGI GLOBAL PTE LTD
Registered Office :	141, Cecil Street, 07 - 05, Tung Ann Association Building, 069541
Country :	Singapore
Financials (as on) :	31.03.2013
Date of Incorporation :	21.06.2012
Com. Reg. No.:	201215352-Z
Legal Form :	Private Limited Company
Line of Business :	Trader of coals, logistic services
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

RATING		TATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Singapore ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	201215352-Z
COMPANY NAME	:	SARAOGI GLOBAL PTE. LTD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	21/06/2012
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	141, CECIL STREET, 07 - 05, TUNG ANN ASSOCIATION BUILDING, 069541, SINGAPORE.
BUSINESS ADDRESS	:	141, CECIL STREET, 07-05, TUNG ANN ASSOCIATION BUILDING, 069541, SINGAPORE.
TEL.NO.	:	65-62219783
FAX.NO.	:	65-62219793
CONTACT PERSON	:	ANIL KUMAR ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF COALS, LOGISTIC SERVICES
ISSUED AND PAID UP CAPITAL	:	51,000.00 ORDINARY SHARE, OF A VALUE OF USD 51,000.00
SALES	:	USD 8,037,543 [2013]
NET WORTH	:	USD 183,385 [2013]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	POOR
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	MODERATE
GENERAL REPUTATION	:	POOR
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) trading of coals, logistic services.

The immediate and ultimate holding company of the SC is SARAOGI UDYOG PRIVATE LIMITED, a company incorporated in INDIA.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
SARAOGI UDYOG PRIVATE LIMITED	21, HEMANTA BASU SARANI, SUITE 212, KOLKATA 700001, 2ND FLOOR, INDIA.	T12UF2265	51,000.00	100.00
			---------------	------
			51,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	ANIL KUMAR SARAOGI
Address	:	DL-20 SECTOR-II, SALT LAKE CITY, KOLKATA 700091, INDIA.
IC / PP No	:	G5430058
Nationality	:	INDIAN
Date of Appointment	:	21/06/2012

DIRECTOR 2

Name Of Subject	:	RISHABH KUMAR SARAOGI
Address	:	DL-20 SECTOR-II, SALT LAKE CITY, KOLKATA 700091, INDIA.
IC / PP No	:	H5923549
Nationality	:	INDIAN
Date of Appointment	:	21/06/2012

DIRECTOR 3

Name Of Subject	:	PERMINDRA MOHAN JAUHAR
Address	:	352, ANG MO KIO STREET 32, 08 - 133, 560352, SINGAPORE.
IC / PP No	:	S263478I
Nationality	:	SINGAPOREAN
Date of Appointment	:	21/06/2012

MANAGEMENT

1)	Name of Subject	:	ANIL KUMAR
	Position	:	DIRECTOR

AUDITOR

Auditor	:	S. RENGANATHAN & CO.
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	SHIV RAJ KAPUR
	IC / PP No	:	S2640515G
	Address	:	122, SIMEI STREET 1, 11 - 436, 520122, SINGAPORE.

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation. 

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. 

No legal action was found in our databank. 

No winding up petition was found in our databank. 

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The staff from the registered office refused to disclose the SC's suppliers. 

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[		]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[	X	]

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The staff from the registered office refused to disclose its clientele information. 

OPERATIONS

Goods Traded

:

COALS

Services

:

LOGISTIC

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading of coals, logistic services. 

The staff from the registered office refused to disclose further information on the SC's operation. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62219783
Match	:	N/A
Address Provided by Client	:	141, CECIL STREET, 07-05 TUNS ANN ASSOCIATION BUILDING SINGAPORE 069541
Current Address	:	141, CECIL STREET, 07-05, TUNG ANN ASSOCIATION BUILDING, 069541, SINGAPORE.
Match	:	NO

Other Investigations

we contacted one of the staff from the registered office and she provided some information on the SC.

She refused to disclose its number of employees.

The address provided is incorrect.

FINANCIAL ANALYSIS

Profitability
Return on Shareholder Funds	:	Favourable	[	72.19%	]
Return on Net Assets	:	Favourable	[	61.95%	]
Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Unfavourable	[	166 Days	]
Debtor Ratio	:	Favourable	[	2 Days	]
Creditors Ratio	:	Unfavourable	[	315 Days	]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.55 Times	]
Current Ratio	:	Unfavourable	[	1.02 Times	]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Unfavourable	[	<3.69 Times>	]
Gearing Ratio	:	Unfavourable	[	4.51 Times	]
The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.
Overall Assessment :
Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the SC : LIMITED

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	<0.8>	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	<2.2>	4.3	12.8	8.5	<1.3>
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	<32.5>	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	<10.78>	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	<0.8>	11.4	2.8	<5>	<2.2>
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	<15.9>	<11.5>	<25.3>	<0.7>	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	<7.7>	103.7	<26.3>	<38.2>	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	<0.32>	3.25	<0.48>	4.25	3.64
Fish Supply & Wholesale	<6.31>	<1.93>	<10.5>	12.10	<0.5>
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	<36.9>	14.20	20.50	28.70
Real Estate	<11.2>	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	<1.3>	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	<5.9>	<16.4>	<0.4>	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	<0.9>	<1.4>	0.30
* Based on Index of Industrial Production (2011 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.
The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.
In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.
For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2012, the SC is a Private Limited company, focusing on trading of coals, logistic services. The SC was newly established and it has yet to build up a stable clientele base in the market. It is likely to incur start-up costs during the initial years of its operations. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 

Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 

The poor payment habit may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the SC normally.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

SARAOGI GLOBAL PTE. LTD.

Financial Year End	2013-03-31
Months	12
Consolidated Account	Company
Audited Account	YES
Unqualified Auditor's Report (Clean Opinion)	YES
Financial Type	FULL
Currency	USD
TURNOVER	8,037,543
	----------------
Total Turnover	8,037,543
	----------------
PROFIT/(LOSS) FROM OPERATIONS	144,417
	----------------
PROFIT/(LOSS) BEFORE TAXATION	144,417
Taxation	<12,032>
	----------------
PROFIT/(LOSS) AFTER TAXATION	132,385
	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	132,385
	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	132,385
	=============
INTEREST EXPENSE (as per notes to P&L)
Others	<30,819>
	----------------
	<30,819>

BALANCE SHEET

SARAOGI GLOBAL PTE. LTD.

CURRENT ASSETS
Stocks	3,654,000
Trade debtors	36,352
Other debtors, deposits & prepayments	16,964
Cash & bank balances	4,253,955
	----------------
TOTAL CURRENT ASSETS	7,961,271
	----------------
TOTAL ASSET	7,961,271
	=============
CURRENT LIABILITIES
Trade creditors	6,938,326
Short term borrowings/Term loans	827,528
Provision for taxation	12,032
	----------------
TOTAL CURRENT LIABILITIES	7,777,886
	----------------
NET CURRENT ASSETS/(LIABILITIES)	183,385
	----------------
TOTAL NET ASSETS	183,385
	=============
SHARE CAPITAL
Ordinary share capital	51,000
	----------------
TOTAL SHARE CAPITAL	51,000
RESERVES
Retained profit/(loss) carried forward	132,385
	----------------
TOTAL RESERVES	132,385
	----------------
SHAREHOLDERS' FUNDS/EQUITY	183,385
	----------------
	183,385
	=============

FINANCIAL RATIO

SARAOGI GLOBAL PTE. LTD.

TYPES OF FUNDS
Cash	4,253,955
Net Liquid Funds	4,253,955
Net Liquid Assets	<3,470,615>
Net Current Assets/(Liabilities)	183,385
Net Tangible Assets	183,385
Net Monetary Assets	<3,470,615>
BALANCE SHEET ITEMS
Total Borrowings	827,528
Total Liabilities	7,777,886
Total Assets	7,961,271
Net Assets	183,385
Net Assets Backing	183,385
Shareholders' Funds	183,385
Total Share Capital	51,000
Total Reserves	132,385
LIQUIDITY (Times)
Cash Ratio	0.55
Liquid Ratio	0.55
Current Ratio	1.02
WORKING CAPITAL CONTROL (Days)
Stock Ratio	166
Debtors Ratio	2
Creditors Ratio	315
SOLVENCY RATIOS (Times)
Gearing Ratio	4.51
Liabilities Ratio	42.41
Times Interest Earned Ratio	<3.69>
Assets Backing Ratio	3.60
PERFORMANCE RATIO (%)
Operating Profit Margin	1.80
Net Profit Margin	1.65
Return On Net Assets	61.95
Return On Capital Employed	61.95
Return On Shareholders' Funds/Equity	72.19
Dividend Pay Out Ratio (Times)	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.23
UK Pound	1	Rs.102.14
Euro	1	Rs.84.64

INFORMATION DETAILS

Report Prepared by :

MNL

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.