MIRA INFORM REPORT

 

 

Report Date :

31.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SIVA BULK LIMITED

 

 

Formerly Known As :

CROSSBRIDGE SHIPPING SINGAPORE LIMITED (08/09/2011)

AIWO LIMITED (07/10/2009)

 

 

Registered Office :

8, Temasek Boulevard, 22-02, Suntec Tower Three, 038988

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

03.12.2003

 

 

Com. Reg. No.:

200312317-M

 

 

Legal Form :

Public (Limited By Share)

 

 

Line of Business :

Chartering of ships, barges and boats with crew (freight)

 

 

No of Employees :

9 [2014]

 

 

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 :

Slow But Correct

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. 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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

200312317-M

COMPANY NAME

:

SIVA BULK LIMITED

FORMER NAME

:

CROSSBRIDGE SHIPPING SINGAPORE LIMITED (08/09/2011)
AIWO LIMITED (07/10/2009)

INCORPORATION DATE

:

03/12/2003

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

8, TEMASEK BOULEVARD, 22-02, SUNTEC TOWER THREE, 038988, SINGAPORE.

BUSINESS ADDRESS

:

8 TEMASEK BOULEVARD,#22-02 SUNTEC TOWER THREE, 038988, SINGAPORE.

TEL.NO.

:

65-62388824

FAX.NO.

:

65-68359558

WEB SITE

:

WWW.SIVASHIPPING.COM

CONTACT PERSON

:

DEEPAK BHANDARI ( DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

CHARTERING OF SHIPS, BARGES AND BOATS WITH CREW (FREIGHT)

 

 

 

ISSUED AND PAID UP CAPITAL

:

19,500,000.00 ORDINARY SHARE, OF A VALUE OF USD 19,500,000.00
4,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 4,500,000.00

 

 

 

SALES

:

USD 183,787,000 [2012]

NET WORTH

:

USD 5,564,000 [2012]

 

 

 

STAFF STRENGTH

:

9 [2014]

BANKER (S)

:

DBS BANK LTD

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND

 

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, suing or be sued by other companies. The liabilities of the shareholders are only up to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and must file in its annual return, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) chartering of ships, barges and boats with crew (freight).

 

The immediate holding company of the Subject is SIVA SHIPPING SINGAPORE PTE. LTD., a company incorporated in SINGAPORE.

 

The ultimate holding company of the Subject is SIVA INDUSTRIES AND HOLDINGS LIMITED, a company incorporated in INDIA.

 

The intermediate holding company of the Subject is SIVA GROUP SHIPPING AND TRADING PROJECTS PTE. LTD., a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

29/05/2014

USD 19,500,000.00 & SGD 4,500,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIVA SHIPPING SINGAPORE PTE. LTD.
[19,500,000 USDN4,500,000 SGD]

8, TEMASEK BOULEVARD, 22-02 SUNTEC TOWER THREE, 038988, SINGAPORE.

200922820C

24,000,000.00

100.00

 

 

 

---------------

------

 

 

 

24,000,000.00

100.00

 

 

 

============

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

 

MAURITIUS

CROSSBRIDGE PROJECTS (MAURITIUS) LIMITED

100.00

31/12/2012

 

 

 

 

 

 

MAURITIUS

CROSSBRIDGE PROJECTS LIMITED

100.00

31/12/2012

 

 

 

 

 



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

SIVASANKARAN SARAVANA

Address

:

RV 15, FOUR SEASONS BAIE LAZARE, FRANCE.

IC / PP No

:

N0086177

 

 

 

 

 

 

 

 

 

Nationality

:

SEYCHELLOIS

Date of Appointment

:

19/04/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. DEEPAK BHANDARI

Address

:

26, BAYSHORE ROAD, 26-01, THE BAYSHORE, 469972, SINGAPORE.

IC / PP No

:

G5303030R

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

06/07/2012

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

DEEPAK BHANDARI

 

Position

:

DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

VANEE PRAMESHWARLAL JHUNJHUNWALA

 

IC / PP No

:

S8063763B

 

 

 

 

 

Address

:

638A, PUNGGOL DRIVE, 08-443, 821638, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

NG GEOK LAN (HUANG YULUAN)

 

IC / PP No

:

S1592193E

 

 

 

 

 

Address

:

573, PASIR RIS STREET 53, 14-30, 510573, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201009681

18/10/2010

N/A

DBS BANK LTD.

-

Unsatisfied

C201104571

13/04/2011

N/A

DBS BANK LTD.

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

 

 

LEGAL ACTION

 

Code No

:

99

Case No

:

532

Year

:

2014

Place

:

SINGAPORE

Date Filed

:

21/02/2014

 

 

 

Solicitor

:

JEYABALEN

 

 

 

Solicitor Ref

:

JB/2864/14

 

 

 

Solicitor Firm

:

JEYABALEN & PARTNERS

Plaintiff

:

ARYACORP (S) PTE LTD

 

 

 

Defendants

:

SIVA BULK LIMITED (200312317)

 

 

 

 

 

Amount Claimed

:

64863

 

 

 

 

 

 

 

 

Nature of Claim

:

USD

 

 

 

 

 

 

 

 

Remark

:

OTHERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 



The Subject 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

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

ASIA PACIFIC

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

NCHARTERING OF SHIPS, BARGES, BOATS WITH CREW, FREIGHT SERVICES

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

YEAR

2014

2013

 


GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

9

9

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) chartering of ships, barges and boats with crew (freight).


The Subject provides competitive freight services to dry bulk commodity traders and receivers.


The Subject has grown from an initial focus on the transportation of coal to India to being a freight provider for a range of bulk commodities including minerals and grains across Asia Pacific.

 

The Subject provides chartering vessels for long and short duration and spot freight covers.


The Subject enters into long term and short term charter agreements with ship-owners world over and help their clients move dry bulk cargo around the world, seamlessly and effortlessly.


The Subject's strong network of ship owners gives it control over a large fleet of vessels. this equips crossbridge with the power to charter vessels worldwide with a particular focus on the atlantic, pacific, indian ocean and the mediterranean.

The Subject's operations cover spot fixtures, contracts of affreightment (coa) and period charters of a wide range of commodities that includes coal, coke, iron ore, agro products, steel products and bulk minerals and to provide representation in all major vessel categories from small handy-size vessels upwards.


The trades goods are as follows:


* coal/metallurgical coal
* iron ore
* grain & agro
* limestone & dolomite


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

6562388824

Current Telephone Number

:

65-62388824

Match

:

YES

 

 

 

Address Provided by Client

:

8, TEMASEK BOULEVARD #22-02 SUNTEC TOWER THREE SINGAPORE 038988

Current Address

:

8 TEMASEK BOULEVARD,#22-02 SUNTEC TOWER THREE, 038988, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

(55.98%)

]

 

Return on Net Assets

:

Unfavourable

[

(52.77%)

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

1 Days

]

 

Debtor Ratio

:

Favourable

[

31 Days

]

 

Creditors Ratio

:

Favourable

[

29 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.10 Times

]

 

Current Ratio

:

Unfavourable

[

1.12 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

(16.40 Times)

]

 

Gearing Ratio

:

Unfavourable

[

1.07 Times

]

 

 

 

 

 

 

 

 

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject'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 Subject'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 Subject : POOR

 

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

 

 

 

 

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

 

 

 

 

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

 

 

 

 

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

 

 

 

 

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

 

 

 

 

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

 

 

 

 

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

 

 

 

 

 

* Based on Index of Industrial Production (2011 = 100)

 

 

 

 

 



INDUSTRY ANALYSIS

 

INDUSTRY :

ECONOMY

 

 

 

According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.

 

However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.

 

Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.

 

For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.

 

Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.

 

For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentage points. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.

 

In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.

 

Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.

 

 

 

OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2003, the Subject is a Public Limited Company company, focusing on chartering of ships, barges and boats with crew (freight). Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject's business operation is supported by 9 employees. Overall, we regard that the Subject's management capability is average.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Unfortunately, the high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.

The Subject's payment record regarded as fair. With poor financial condition, the Subject may unable to pay its creditors on the given period of time.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

In view of the above, we only recommend credit be proceeded to the Subject with guarantee.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

SIVA BULK LIMITED

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

USD

USD

USD

USD

 

 

 

 

 

TURNOVER

183,787,000

348,639,000

199,967,000

47,317,000

Other Income

-

-

301,000

-

 

----------------

----------------

----------------

----------------

Total Turnover

183,787,000

348,639,000

200,268,000

47,317,000

 

----------------

----------------

----------------

----------------

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(3,115,000)

(15,139,000)

2,714,000

1,880,000

 

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

(3,115,000)

(15,139,000)

2,714,000

1,880,000

Taxation

-

-

(14,000)

-

 

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

(3,115,000)

(15,139,000)

2,700,000

1,880,000

 

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

(17,779,000)

(2,640,000)

(5,340,000)

(7,220,000)

 

----------------

----------------

----------------

----------------

As restated

(17,779,000)

(2,640,000)

(5,340,000)

(7,220,000)

 

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

(20,894,000)

(17,779,000)

(2,640,000)

(5,340,000)

 

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(20,894,000)

(17,779,000)

(2,640,000)

(5,340,000)

 

=============

=============

=============

=============

 

 

 

 

 

Term loan / Borrowing

175,000

21,000

3,000

-

Others

4,000

81,000

127,000

13,000

 

----------------

----------------

----------------

----------------

 

179,000

102,000

130,000

13,000

 

=============

=============

=============

=============

 

 

 

 

BALANCE SHEET

 

 

SIVA BULK LIMITED

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

120,000

206,000

273,000

39,000

 

 

 

 

 

Others

1,211,000

1,211,000

1,221,000

4,702,000

 

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,211,000

1,211,000

1,221,000

4,702,000

 

 

 

 

 

 

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

1,331,000

1,417,000

1,494,000

4,741,000

 

 

 

 

 

Stocks

642,000

668,000

1,453,000

-

Trade debtors

15,485,000

9,967,000

15,551,000

5,363,000

Other debtors, deposits & prepayments

4,381,000

13,436,000

4,178,000

2,007,000

Amount due from holding company

16,000

-

-

-

Amount due from related companies

-

-

100,000

-

Cash & bank balances

3,409,000

11,264,000

11,067,000

2,394,000

Others

16,723,000

9,309,000

-

27,000

 

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

40,656,000

44,644,000

32,349,000

9,791,000

 

----------------

----------------

----------------

----------------

TOTAL ASSET

41,987,000

46,061,000

33,843,000

14,532,000

 

=============

=============

=============

=============

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

14,377,000

24,853,000

10,275,000

2,775,000

Other creditors & accruals

1,450,000

1,347,000

1,675,000

2,076,000

Short term borrowings/Term loans

5,969,000

4,118,000

1,265,000

-

Amounts owing to holding company

-

330,000

-

-

Amounts owing to subsidiary companies

3,041,000

658,000

-

-

Amounts owing to related companies

-

-

81,000

-

Other liabilities

11,586,000

14,576,000

12,229,000

9,328,000

 

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

36,423,000

45,882,000

25,525,000

14,179,000

 

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

4,233,000

(1,238,000)

6,824,000

(4,388,000)

 

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

5,564,000

179,000

8,318,000

353,000

 

=============

=============

=============

=============

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

22,694,000

14,194,000

7,194,000

694,000

 

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

22,694,000

14,194,000

7,194,000

694,000

 

 

 

 

 

Retained profit/(loss) carried forward

(20,894,000)

(17,779,000)

(2,640,000)

(5,340,000)

Others

3,764,000

3,764,000

3,764,000

4,999,000

 

----------------

----------------

----------------

----------------

TOTAL RESERVES

(17,130,000)

(14,015,000)

1,124,000

(341,000)

 

 

 

 

 

 

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

5,564,000

179,000

8,318,000

353,000

 

 

 

 

 

 

----------------

----------------

----------------

----------------

 

5,564,000

179,000

8,318,000

353,000

 

=============

=============

=============

=============

 

 

 

 

FINANCIAL RATIO

 

 

SIVA BULK LIMITED

 

TYPES OF FUNDS

 

 

 

 

Cash

3,409,000

11,264,000

11,067,000

2,394,000

Net Liquid Funds

3,409,000

11,264,000

11,067,000

2,394,000

Net Liquid Assets

3,591,000

(1,906,000)

5,371,000

(4,388,000)

Net Current Assets/(Liabilities)

4,233,000

(1,238,000)

6,824,000

(4,388,000)

Net Tangible Assets

5,564,000

179,000

8,318,000

353,000

Net Monetary Assets

3,591,000

(1,906,000)

5,371,000

(4,388,000)

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

5,969,000

4,118,000

1,265,000

0

Total Liabilities

36,423,000

45,882,000

25,525,000

14,179,000

Total Assets

41,987,000

46,061,000

33,843,000

14,532,000

Net Assets

5,564,000

179,000

8,318,000

353,000

Net Assets Backing

5,564,000

179,000

8,318,000

353,000

Shareholders' Funds

5,564,000

179,000

8,318,000

353,000

Total Share Capital

22,694,000

14,194,000

7,194,000

694,000

Total Reserves

(17,130,000)

(14,015,000)

1,124,000

(341,000)

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.09

0.25

0.43

0.17

Liquid Ratio

1.10

0.96

1.21

0.69

Current Ratio

1.12

0.97

1.27

0.69

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

1

1

3

0

Debtors Ratio

31

10

28

41

Creditors Ratio

29

26

19

21

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

1.07

23.01

0.15

0.00

Liabilities Ratio

6.55

256.32

3.07

40.17

Times Interest Earned Ratio

(16.40)

(147.42)

21.88

145.62

Assets Backing Ratio

0.25

0.01

1.16

0.51

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

(1.69)

(4.34)

1.36

3.97

Net Profit Margin

(1.69)

(4.34)

1.35

3.97

Return On Net Assets

(52.77)

(8,400.56)

34.19

536.26

Return On Capital Employed

(52.77)

(8,400.56)

34.19

536.26

Return On Shareholders' Funds/Equity

(55.98)

(8,457.54)

32.46

532.58

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.03

UK Pound

1

Rs. 98.91

Euro

1

Rs. 80.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.