MIRA INFORM REPORT

 

 

 

 

Report Date :

05.11.2014

 

IDENTIFICATION DETAILS

 

Name :

EMARS RESOURCES PTE. LTD.

 

 

Registered Office :

20, Collyer Quay, 09-04, 049319,

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

26.03.2013

 

 

Com. Reg. No.:

201308011-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of manganese, coal, pet coke and scrap metal

 

 

No. of Employees :

03 [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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

 

 

 


Company name and address

 

 

REGISTRATION NO.

:

201308011-H

COMPANY NAME

:

EMARS RESOURCES PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

26/03/2013

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

20, COLLYER QUAY, 09-04, 049319, SINGAPORE.

BUSINESS ADDRESS

:

20, COLLYER QUAY, 09-04, 049319, SINGAPORE.

TEL.NO.

:

65-62261960/84310225

FAX.NO.

:

65-62277148

WEB SITE

:

EMARSRESOURCES.COM

CONTACT PERSON

:

PREMJIT ROY ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF MANGANESE, COAL, PET COKE AND SCRAP METAL

ISSUED AND PAID UP CAPITAL

:

1.00 ORDINARY SHARE, OF A VALUE OF SGD 1.00
200,000.00 PREFERENCE SHARE, OF A VALUE OF USD 200,000.00

SALES

:

USD 9,863,372 [2014]

NET WORTH

:

USD 328,559 [2014]

STAFF STRENGTH

:

3 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

POOR

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private 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, 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) trading of manganese, coal, pet coke and scrap metal.

 

Share Capital History

Date

Issue & Paid Up Capital

18/09/2014

SGD 200,001.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

RIG CONSULTANTS PRIVATE LIMITED
[SG= 1 & USD= 200000]

FLAT 2C & 2D, GREEN ACRES, 2, NAZAR ALI LANE, KOLKATA WEST BENGAL-WB, 700019, INDIA.

T14UF0013

200,001.00

100.00

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

------

200,001.00

100.00

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

=====

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

SUSHIL KUMAR MEHROTRA

Address

:

18F. TOWER-1 SVC-16, 375, PRINCE ANWAR, SHAH ROAD, KOLKATA, 700 068, INDIA.

IC / PP No

:

Z1569256

Nationality

:

INDIAN

Date of Appointment

:

07/11/2013

 

DIRECTOR 2

 

Name Of Subject

:

MALA ROY

Address

:

2ND FR, 192/DN N.S.C BOSE ROAD, LP-15/49/2, KOLKATA, 700 040, INDIA.

IC / PP No

:

J1883894

Nationality

:

INDIAN

Date of Appointment

:

07/11/2013

 

DIRECTOR 3

 

Name Of Subject

:

MR. PREMJIT ROY

Address

:

1ST-FR, 192/D N.S.C BOSE ROAD, LP-15/49/2, KOLKATA, 700 040, INDIA.

IC / PP No

:

J1875336

Nationality

:

INDIAN

Date of Appointment

:

07/11/2013

 

DIRECTOR 4

 

Name Of Subject

:

RICHARD IVAN CREET

Address

:

3, HACIENDA GROVE 04-07, THE HACIENDA, 457909, SINGAPORE.

IC / PP No

:

F2099880Q

Nationality

:

INDIAN

Date of Appointment

:

16/12/2013



MANAGEMENT

 

 

1)

Name of Subject

:

PREMJIT ROY

Position

:

DIRECTOR

 

 

 

AUDITOR


No Auditor found in our databank


 

COMPANY SECRETARIES

 

1)

Company Secretary

:

TAN LEONG WOON

IC / PP No

:

S1430937C

Address

:

187, BUKIT BATOK WEST AVENUE 6, 05-151, 650187, SINGAPORE.

 

 

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


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

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject 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

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

Import Countries

:

INDONESIA

 


 

CLIENTELE

 

Local

:

NO

 

 

Overseas

:

YES

Percentage

:

100%

Export Market

:

CHINA

Credit Term

:

N/A

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

MANGANESE, COAL, PET COKE AND SCRAP METAL

 

Total Number of Employees:

YEAR

2014


GROUP

N/A

COMPANY

3

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of manganese, coal, pet coke and scrap metal.

The Subject is trading of commodities such as metal and coal.

The Subject is the commodities trading arm of the Emars Group.

The Subject's core competency in iron ore exploration and trading.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62261960/84310225

Match

:

N/A

Address Provided by Client

:

80 ANSON ROAD FUJI XEROX TOWERS #24-01 079907 SINGAPORE

Current Address

:

20, COLLYER QUAY, 09-04, 049319, SINGAPORE.

Match

:

NO

 

Other Investigations

 

we contacted one of the staff from the Subject and he provided some information on the Subject.

The Subject already shifted from the address provided.

The Subject refused to disclose its banker.


FINANCIAL ANALYSIS

 

 

Profitability

Return on Shareholder Funds

:

Favourable

[

39.13%

]

Return on Net Assets

:

Favourable

[

44.90%

]

Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

0 Days

]

Creditors Ratio

:

Favourable

[

0 Days

]

As the Subject is a service oriented company, the Subject does not need to keep 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

[

22.90 Times

]

Current Ratio

:

Favourable

[

22.90 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

:

Acceptable

[

7.78 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : STRONG

 

 

 

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 :

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 2013, the Subject is a Private Limited company, focusing on trading of manganese, coal, pet coke and scrap metal. The Subject 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. The capital standing of the Subject is weak. The Subject may face difficulties to expand its business compared to other large corporation. Without a strong capital, the business expansion opportunities of the Subject is limited.

The Subject focuses only on overseas market. This global approach has enabled the Subject to generate a better growth sales.  Being an export-oriented company, the Subject however is subjected to certain inherent risk of global economy slowdown, foreign currencies fluctuations and stiff competition in the international market. Being a small company, the Subject's business operation is supported by 3 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Based on its unaudited financial, the subject is a profit making company and managed to generate a positive networth of USD328,559. As there has no audited financial provided, it is advisable to pay more attention on the subject's business operation.

Investigation revealed that the Subject's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The Subject faces foreign currency fluctuation which may affect its overall operating costs.

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

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

EMARS RESOURCES PTE. LTD.

 

Financial Year End

2014-03-31

Months

12

Consolidated Account

Company

Audited Account

NO

Unqualified Auditor's Report (Clean Opinion)

NO

Financial Type

FULL

Currency

USD

TURNOVER

9,863,372

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

Total Turnover

9,863,372

Costs of Goods Sold

(7,803,701)

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

Gross Profit

2,059,671

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

PROFIT/(LOSS) FROM OPERATIONS

128,559

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

PROFIT/(LOSS) BEFORE TAXATION

128,559

Taxation

0

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

PROFIT/(LOSS) AFTER TAXATION

128,559

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

PROFIT AVAILABLE FOR APPROPRIATIONS

128,559

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

128,559

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

INTEREST EXPENSE (as per notes to P&L)

Others

18,971

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

18,971

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

 

 

BALANCE SHEET

 

 

EMARS RESOURCES PTE. LTD.

 

Other debtors, deposits & prepayments

29,521

Cash & bank balances

3,461

Others

310,577

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

TOTAL CURRENT ASSETS

343,559

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

TOTAL ASSET

343,559

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

Other creditors & accruals

15,000

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

TOTAL CURRENT LIABILITIES

15,000

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

NET CURRENT ASSETS/(LIABILITIES)

328,559

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

TOTAL NET ASSETS

328,559

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

SHARE CAPITAL

Ordinary share capital

200,000

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

TOTAL SHARE CAPITAL

200,000

Retained profit/(loss) carried forward

128,559

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

TOTAL RESERVES

128,559

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

SHAREHOLDERS' FUNDS/EQUITY

328,559

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

328,559

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

 

 

 

FINANCIAL RATIO

 

 

EMARS RESOURCES PTE. LTD.

 

TYPES OF FUNDS

Cash

3,461

Net Liquid Funds

3,461

Net Liquid Assets

328,559

Net Current Assets/(Liabilities)

328,559

Net Tangible Assets

328,559

Net Monetary Assets

328,559

BALANCE SHEET ITEMS

Total Borrowings

0

Total Liabilities

15,000

Total Assets

343,559

Net Assets

328,559

Net Assets Backing

328,559

Shareholders' Funds

328,559

Total Share Capital

200,000

Total Reserves

128,559

LIQUIDITY (Times)

Cash Ratio

0.23

Liquid Ratio

22.90

Current Ratio

22.90

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

Debtors Ratio

0

Creditors Ratio

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

Liabilities Ratio

0.05

Times Interest Earned Ratio

7.78

Assets Backing Ratio

1.64

PERFORMANCE RATIO (%)

Operating Profit Margin

1.30

Net Profit Margin

1.30

Return On Net Assets

44.90

Return On Capital Employed

44.90

Return On Shareholders' Funds/Equity

39.13

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.76.67

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.