MIRA INFORM REPORT

 

 

Report No. :

304733

Report Date :

27.01.2015

 

IDENTIFICATION DETAILS

 

Name :

GOLDEN LOTUS CORPORATION PTE. LTD.

 

 

Registered Office :

1, North Bridge Road, 19-04/05, High Street Centre, 179094

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.09.2003

 

 

Com. Reg. No.:

200308907-G

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

Wholesale of Textiles.

 

 

No. of Employee :

2 [2015]

 

 

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 :

Unknown

 

 

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 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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.

:

200308907-G

COMPANY NAME

:

GOLDEN LOTUS CORPORATION PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/09/2003

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1, NORTH BRIDGE ROAD, 19-04/05, HIGH STREET CENTRE, 179094, SINGAPORE.

BUSINESS ADDRESS

:

HIGH STREET CENTRE #19-04/05, 1 NORTH BRIDGE ROAD, 179094, SINGAPORE.

TEL.NO.

:

65-63372472

FAX.NO.

:

N/A

CONTACT PERSON

:

VANGAL RANGARAJAN RANGANATHAN ( DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF TEXTILES

ISSUED AND PAID UP CAPITAL

:

2.00 ORDINARY SHARE, OF A VALUE OF SGD 2.00 

SALES

:

N/A

NET WORTH

:

SGD (39,881) [2012]

STAFF STRENGTH

:

2 [2015]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

NIL

 

 

HISTORY / BACKGROUND

 

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. 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, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

 

The Subject is principally engaged in the (as a / as an) wholesale of textiles.

 

Share Capital History

Date

Issue & Paid Up Capital

23/01/2015

SGD 2.00

 

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

VANGAL RANGARAJAN RANGANATHAN +

207, SERANGOON CENTRAL, 11-198, 550207, SINGAPORE.

S2662860A

1.00

50.00

USHA RANGANATHAN

207, SERANGOON CENTRAL, 11-198, 550207, SINGAPORE.

S2662861Z

1.00

50.00

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

------

2.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

M.THIAGARAJAN

Address

:

PARAMOUNT A21, LANKARAM STREET, TIRUNAGAR MADURAI, 625006, INDIA.

IC / PP No

:

Z149356

Nationality

:

INDIAN

Date of Appointment

:

10/09/2003

 

DIRECTOR 2

 

Name Of Subject

:

VANGAL RANGARAJAN RANGANATHAN

Address

:

207, SERANGOON CENTRAL, 11-198, 550207, SINGAPORE.

IC / PP No

:

S2662860A

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/09/2003




MANAGEMENT

 

 

 

1)

Name of Subject

:

VANGAL RANGARAJAN RANGANATHAN

Position

:

DIRECTOR

 

 

 

AUDITOR


No Auditor found in our databank 

 

 

COMPANY SECRETARIES

 

No company secretary was found in our databank. 

 

 

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

:

N/A

Overseas

:

N/A


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

 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The staff from the registered office refused to disclose the Subject's clientele. 

 

 

OPERATIONS

 

Goods Traded

:

TEXTILES

 

Total Number of Employees:

YEAR

2015

2014

GROUP

N/A

N/A

COMPANY

2

2

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) wholesale of textiles. 

The staff from the registered office refused to disclose the Subject's operation. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63372472

Match

:

N/A

Address Provided by Client

:

1, NORTH BRIDGE ROAD, #19-04/05 HIGH STREET CENTRE SINGAPORE 179094

Current Address

:

HIGH STREET CENTRE #19-04/05, 1 NORTH BRIDGE ROAD, 179094, SINGAPORE.

Match

:

YES


We have contacted the Subject's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

 

Other Investigations


On 22nd January 2015 we contacted one of the staff from the Subject's registered office and she only provided limited information.

She refused to disclose the fax number.

The staff from the registered office refused to comment anything 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 sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.

The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.

In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.

For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2003, the Subject is an Exempt Private company, focusing on wholesale of textiles. 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. With a small issued and a paid up capital of only SGD 2 contributed from individual shareholders, the Subject does not have strong shareholders' backing. Without a strong backing, the Subject may face difficulties in its attempt to further expand its business in the future. 

Being a small company, the Subject's business operation is supported by 2 employees. 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 -39,881. 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 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.

 

Financial Year End

2012-12-31

2011-12-31

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

Other Income

21,568

22

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

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

Total Turnover

21,568

22

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

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

PROFIT/(LOSS) FROM OPERATIONS

18,259

(3,518)

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

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

PROFIT/(LOSS) BEFORE TAXATION

18,259

(3,518)

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

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

PROFIT/(LOSS) AFTER TAXATION

18,259

(3,518)

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(58,142)

(54,624)

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

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

As restated

(58,142)

(54,624)

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(39,883)

(58,142)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(39,883)

(58,142)

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

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

 

 

 

 

BALANCE SHEET

 

 

Cash & bank balances

3,541

3,850

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

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

TOTAL CURRENT ASSETS

3,541

3,850

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

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

TOTAL ASSET

3,541

3,850

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

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

CURRENT LIABILITIES

Trade creditors

8,540

28,308

Other creditors & accruals

34,882

33,682

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

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

TOTAL CURRENT LIABILITIES

43,422

61,990

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

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

NET CURRENT ASSETS/(LIABILITIES)

(39,881)

(58,140)

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

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

TOTAL NET ASSETS

(39,881)

(58,140)

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

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

SHARE CAPITAL

Ordinary share capital

2

2

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

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

TOTAL SHARE CAPITAL

2

2

Retained profit/(loss) carried forward

(39,883)

(58,142)

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

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

TOTAL RESERVES

(39,883)

(58,142)

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

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

SHAREHOLDERS' FUNDS/EQUITY

(39,881)

(58,140)

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

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

(39,881)

(58,140)

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

3,541

3,850

Net Liquid Funds

3,541

3,850

Net Liquid Assets

(39,881)

(58,140)

Net Current Assets/(Liabilities)

(39,881)

(58,140)

Net Tangible Assets

(39,881)

(58,140)

Net Monetary Assets

(39,881)

(58,140)

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

43,422

61,990

Total Assets

3,541

3,850

Net Assets

(39,881)

(58,140)

Net Assets Backing

(39,881)

(58,140)

Shareholders' Funds

(39,881)

(58,140)

Total Share Capital

2

2

Total Reserves

(39,883)

(58,142)

LIQUIDITY (Times)

Cash Ratio

0.08

0.06

Liquid Ratio

0.08

0.06

Current Ratio

0.08

0.06

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

(1.09)

(1.07)

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

1.00

1.00

PERFORMANCE RATIO (%)

Operating Profit Margin

0.00

0.00

Net Profit Margin

0.00

0.00

Return On Net Assets

(45.78)

6.05

Return On Capital Employed

(45.78)

6.05

Return On Shareholders' Funds/Equity

(45.78)

6.05

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.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 

 

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.