MIRA INFORM REPORT

 

 

Report Date :

29.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ARES TECHTRADE PTE. LTD.

 

 

Registered Office :

17, Phillip Street, 05-01, Grand Building, 048695

 

 

Country :

Singapore

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

14.05.2008

 

 

Com. Reg. No.:

200809496-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the trading of metal and metal scraps.

 

 

No of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 


 

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 – 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

 


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

200809496-M

COMPANY NAME

:

ARES TECHTRADE PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

14/05/2008

COMPANY STATUS

:

EXIST

LEGAL FORM

:

Private Limited

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

17, Phillip Street, 05-01, Grand Building, 048695, Singapore.

BUSINESS ADDRESS

:

17 Phillip Street, #05-01, Grand Building, 048695, Singapore.

TEL.NO.

:

65-65387777

FAX.NO.

:

65-65333227

CONTACT PERSON

:

LEE LAI NAH ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF METAL AND METAL SCRAPS

ISSUED AND PAID UP CAPITAL

:

2,000.00 ORDINARY SHARE, OF A VALUE OF SGD 2,000.00

SALES

:

N/A

NET WORTH

:

SGD (4,069) [2012]

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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 metal and metal scraps.



 

Share Capital History

Date

Issue & Paid Up Capital

27/10/2014

SGD 2,000.00


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

LEE LAI NAH +

73, CAVENAGH ROAD, 02-376, CAVENAGH GARDENS, 229624, SINGAPORE.

S1607980D

2,000.00

100.00

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

------

2,000.00

100.00

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

=====

+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

LEE LAI NAH

Address

:

73, CAVENAGH ROAD, 02-376, CAVENAGH GARDENS, 229624, SINGAPORE.

IC / PP No

:

S1607980D

Nationality

:

SINGAPOREAN

Date of Appointment

:

14/05/2008




MANAGEMENT

 

 

1)

Name of Subject

:

LEE LAI NAH

Position

:

DIRECTOR

 

AUDITOR


No Auditor found in our databank

COMPANY SECRETARIES

 

1)

Company Secretary

:

CLIFFORD EMMANUEL GERMAIN ABAYASEKARA

IC / PP No

:

S2191478I

Address

:

407B, FERNVALE ROAD, 04-13, 792407, 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

:

YES

Overseas

:

YES



CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

METAL AND METAL SCRAPS

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of metal and metal scraps.

The Subject act as a International Trading Company incorporated in Singapore.

The Subject is mainly dealing in metal and metal scraps.

The Subject is currently trading in HMS 1-2,stainless steel scraps coils and pipes in both secondary and used, Aauminum scrap and lead battery scrap.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-65387777

Match

:

N/A

Address Provided by Client

:

17 PHILIPS STREEET 05-01 GRAND BUILDING SINGAPORE 048695

Current Address

:

17 PHILLIP STREET, #05-01, GRAND BUILDING, 048695, SINGAPORE.

Match

:

YES

 

Other Investigations


On 27th October 2014 we contacted one of the staff from the Subject's registered office and she provided some information.

She refused to disclose the number of employees.

The Subject and its Company Secretary refused to comment on the Subject's nil turnover.



FINANCIAL ANALYSIS

 

The Subject's turnover was nil during the year indicate that it was inactive. As a result, we are unable to comment on its financial performance.

Overall financial condition of the Subject : N/A

 

 

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 2008, the Subject is a Private Limited company, focusing on trading of metal and metal scraps. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. With a small issued and paid up capital of SGD 2,000 contributed by individual shareholders, the Subject may face difficulties in its attempt to further expand its business in the future compared to other competitor.

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. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of SGD -4,069. Therefore, the Subject as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.

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. Overall the Subject has a good control over its resources.

The industry shows an upward trend and this trend is very likely to sustain in the near terms.

Based on the above unfavourable condition, we regard granting credit to the Subject to be quite risky. Hence, credit is not recommended.

 

 

PROFIT AND LOSS ACCOUNT

 

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

ARES TECHTRADE PTE. LTD.

 

Financial Year End

2012-06-30

2011-06-30

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

PROFIT/(LOSS) FROM OPERATIONS

(4,518)

(4,220)

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

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

PROFIT/(LOSS) BEFORE TAXATION

(4,518)

(4,220)

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

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

PROFIT/(LOSS) AFTER TAXATION

(4,518)

(4,220)

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(1,551)

2,669

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

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

As restated

(1,551)

2,669

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(6,069)

(1,551)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(6,069)

(1,551)

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

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

 

 

 

 

BALANCE SHEET

 

ARES TECHTRADE PTE. LTD.

 

Cash & bank balances

6,435

3,622

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

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

TOTAL CURRENT ASSETS

6,435

3,622

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

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

TOTAL ASSET

6,435

3,622

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

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

Other creditors & accruals

2,005

2,010

Amounts owing to director

8,499

1,163

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

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

TOTAL CURRENT LIABILITIES

10,504

3,173

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

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

NET CURRENT ASSETS/(LIABILITIES)

(4,069)

449

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

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

TOTAL NET ASSETS

(4,069)

449

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

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

SHARE CAPITAL

Ordinary share capital

2,000

2,000

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

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

TOTAL SHARE CAPITAL

2,000

2,000

Retained profit/(loss) carried forward

(6,069)

(1,551)

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

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

TOTAL RESERVES

(6,069)

(1,551)

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

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

SHAREHOLDERS' FUNDS/EQUITY

(4,069)

449

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

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

(4,069)

449

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

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

 

 

 

 

FINANCIAL RATIO

 

ARES TECHTRADE PTE. LTD.

 

TYPES OF FUNDS

Cash

6,435

3,622

Net Liquid Funds

6,435

3,622

Net Liquid Assets

(4,069)

449

Net Current Assets/(Liabilities)

(4,069)

449

Net Tangible Assets

(4,069)

449

Net Monetary Assets

(4,069)

449

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

10,504

3,173

Total Assets

6,435

3,622

Net Assets

(4,069)

449

Net Assets Backing

(4,069)

449

Shareholders' Funds

(4,069)

449

Total Share Capital

2,000

2,000

Total Reserves

(6,069)

(1,551)

LIQUIDITY (Times)

Cash Ratio

0.61

1.14

Liquid Ratio

0.61

1.14

Current Ratio

0.61

1.14

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

0

0

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

(2.58)

7.07

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

(2.03)

0.22

PERFORMANCE RATIO (%)

Operating Profit Margin

0.00

0.00

Net Profit Margin

0.00

0.00

Return On Net Assets

111.03

(939.87)

Return On Capital Employed

111.03

(939.87)

Return On Shareholders' Funds/Equity

111.03

(939.87)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.98.93

Euro

1

Rs.77.92

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 


 

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.