MIRA INFORM REPORT

 

 

Report No. :

343220

Report Date :

02.10.2015

 

IDENTIFICATION DETAILS

 

Name :

STARCOM RESOURCES PTE LTD

 

 

Registered Office :

24, Raffles Place, 13-02, Clifford Centre, 048621

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

28.10.2000

 

 

Com. Reg. No.:

200009210-G

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Agricultural Products.

 

 

No. of Employees :

25 [2015]

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Unemployment is very low. The economy depends heavily on exports, particularly of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

200009210-G

COMPANY NAME

:

STARCOM RESOURCES PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/10/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

24, RAFFLES PLACE, 13-02, CLIFFORD CENTRE, 048621, SINGAPORE.

BUSINESS ADDRESS

:

24, RAFFLES PLACE, 13-02, CLIFFORD CENTRE, 048621, SINGAPORE.

TEL.NO.

:

65-63367288

FAX.NO.

:

65-63363118

EMAIL

:

STARCOM@STARCOMRESOURCES.NET

WEB SITE

:

WWW.STARCOMRESOURCES.NET

CONTACT PERSON

:

AJAY KUMAR AGGARWAL ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF AGRICULTURAL PRODUCTS

ISSUED AND PAID UP CAPITAL

:

5,113,862.00 ORDINARY SHARE, OF A VALUE OF SGD 5,793,452.52

SALES

:

USD 424,734,138 [2014]

NET WORTH

:

USD 3,843,293 [2014]

STAFF STRENGTH

:

25 [2015]

BANKER (S)

:

SOCIETE GENERALE
STANDARD CHARTERED BANK
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

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 agricultural products.

 

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

 

Share Capital History

Date

Issue & Paid Up Capital

30/09/2015

SGD 5,793,452.52

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

STARCOM GROUP PTE. LTD.

24, RAFFLES PLACE, 13-02, CLIFFORD CENTRE, 048621, SINGAPORE.

201325504H

5,096,125.00

99.65

WAYPORT DEVELOPMENTS LIMITED

AKARA BUILDING, 24, DE CASTRO STREET, WICKHAMS CAY, 1, TORTOLA, VIRGIN ISLANDS, BRITISH.

T08UF0030

17,737.00

0.35

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

------

5,113,862.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

Status

(%)

As At

201012351M

SINGAPORE

STARCOM GRAIN PTE. LTD.

-

100.00

30/09/2015

200807287H

SINGAPORE

AMBER FARMS PTE. LTD.

-

75.00

30/09/2015



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. AJAY KUMAR AGGARWAL

Address

:

20, VANDA DRIVE, ORCHID VILLAGE, 287858, SINGAPORE.

IC / PP No

:

S6864098I

Nationality

:

SINGAPOREAN

Date of Appointment

:

28/10/2000

 

DIRECTOR 2

 

Name Of Subject

:

RAJEEV PALIWAL

Address

:

614, ELIAS ROAD, 02-114, 510614, SINGAPORE.

IC / PP No

:

S2741294G

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/10/2012



MANAGEMENT

 

 

1)

Name of Subject

:

AJAY KUMAR AGGARWAL

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

RSM CHIO LIM LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

SOO KIAM LENG @ SU JIANLONG

IC / PP No

:

S7510066C

Address

:

48, FLORENCE ROAD, 549501, SINGAPORE.

 

2)

Company Secretary

:

ONG SIEW CHOO

IC / PP No

:

S2592285I

Address

:

472, PASIR RIS DRIVE, 6, 11-466, 510472, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

SOCIETE GENERALE

 

2)

Name

:

STANDARD CHARTERED BANK

 

3)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

200204839

31/10/2002

N/A

SOCIETE GENERALE

-

Unsatisfied

200204840

31/10/2002

N/A

SOCIETE GENERALE

-

Unsatisfied

200204841

31/10/2002

N/A

SOCIETE GENERALE

-

Unsatisfied

C200503578

23/06/2005

N/A

DBS BANK LTD.

-

Unsatisfied

C200503582

23/06/2005

N/A

DBS BANK LTD.

-

Unsatisfied

C201006826

04/08/2010

N/A

LH ASIAN TFF PTE. LTD.

-

Unsatisfied

C201114858

25/11/2011

N/A

SOCIETE GENERALE

-

Unsatisfied

C201206214

07/06/2012

N/A

LH ASIAN TFF PTE. LTD.

-

Unsatisfied

C201300413

10/01/2013

N/A

EFA DYNAMIC TFF PTE. LTD.

-

Unsatisfied

C201303347

01/03/2013

N/A

DBS BANK LTD.

-

Unsatisfied

C201306094

06/05/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201306096

06/05/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201307987

13/06/2013

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

-

Unsatisfied

C201314103

18/10/2013

N/A

WARBA BANK TRADE FINANCE FACILITY S.P.

-

Unsatisfied

 

 

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



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

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

AGRICULTURAL PRODUCTS

 

Total Number of Employees:

YEAR

2015

2014


GROUP

N/A

N/A

COMPANY

25

25

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of agricultural products.

Business activities:
* agricultural commodities
* steel and energy

products dealing:
* oil seeds & extractions/ meals
* grains
* pulses & beans
* edible oil
* coal
* metals
* mineral ores
* chemicals
* fertilizers

subject is a member of the following entities:
* singapore indian chamber of commerce and industry


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-63367288

Match

:

N/A

Address Provided by Client

:

24 RAFFLES PLACE 13-02 CLIFFORD CENTRE,048621,SINGAPORE

Current Address

:

24, RAFFLES PLACE, 13-02, CLIFFORD CENTRE, 048621, SINGAPORE.

Match

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

14.35%

]

Return on Net Assets

:

Favourable

[

44.52%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

23 Days

]

Creditors Ratio

:

Favourable

[

13 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

[

1.10 Times

]

Current Ratio

:

Unfavourable

[

1.10 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

[

1.35 Times

]

Gearing Ratio

:

Unfavourable

[

4.60 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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 : LIMITED

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

2010

2011

2012

2013

2014

 

Population (Million)

5.08

5.18

5.31

5.40

5.47

Gross Domestic Products ( % )

14.5

4.9

1.3

3.7

(3.5)

Consumer Price Index

2.8

5.2

4.6

2.4

2.4

Total Imports (Million)

423,221.8

459,655.1

474,554.0

466,762.0

463,779.1

Total Exports (Million)

478,840.7

514,741.2

510,329.0

513,391.0

518,922.7

 

Unemployment Rate (%)

2.2

2.1

2.0

1.9

1.9

Tourist Arrival (Million)

11.64

13.17

14.49

15.46

15.01

Hotel Occupancy Rate (%)

85.6

86.5

86.4

86.3

85.5

Cellular Phone Subscriber (Million)

1.43

1.50

1.52

1.97

1.98

 

Registration of New Companies (No.)

29,798

32,317

31,892

37,288

41,589

Registration of New Companies (%)

12.8

8.5

(1.3)

9.8

11.5

Liquidation of Companies (No.)

15,126

19,005

17,218

17,369

18,767

Liquidation of Companies (%)

(32.5)

25.6

9.4

(5.3)

8.0

 

Registration of New Businesses (No.)

23,978

23,494

24,788

22,893

35,773

Registration of New Businesses (%)

(10.78)

2.02

5.51

1.70

56.30

Liquidation of Businesses (No.)

24,211

23,005

22,489

22,598

22,098

Liquidation of Businesses (%)

2.8

(5)

(2.2)

0.5

(2.2)

 

Bankruptcy Orders (No.)

1,537

1,527

1,748

1,992

1,757

Bankruptcy Orders (%)

(25.3)

(0.7)

14.5

14.0

(11.8)

Bankruptcy Discharges (No.)

2,252

1,391

1,881

2,584

3,546

Bankruptcy Discharges (%)

(26.3)

(38.2)

35.2

37.4

37.2

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(10.5)

12.10

(0.5)

-

2.80

 

Manufacturing *

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

96.4

100.0

103.5

103.5

105.0

Textiles

122.1

100.0

104.0

87.1

74.9

Wearing Apparel

123.3

100.0

92.1

77.8

49.5

Leather Products & Footwear

81.8

100.0

98.6

109.8

95.9

Wood & Wood Products

104.0

100.0

95.5

107.4

112.0

Paper & Paper Products

106.1

100.0

97.4

103.2

103.4

Printing & Media

103.5

100.0

93.0

86.1

80.3

Crude Oil Refineries

95.6

100.0

99.4

93.5

85.6

Chemical & Chemical Products

97.6

100.0

100.5

104.1

114.0

Pharmaceutical Products

75.3

100.0

109.7

107.2

115.7

Rubber & Plastic Products

112.3

100.0

96.5

92.9

92.8

Non-metallic Mineral

92.5

100.0

98.2

97.6

82.2

Basic Metals

102.2

100.0

90.6

76.5

98.3

Fabricated Metal Products

103.6

100.0

104.3

105.1

105.1

Machinery & Equipment

78.5

100.0

112.9

114.5

124.0

Electrical Machinery

124.1

100.0

99.3

108.5

121.3

Electronic Components

113.6

100.0

90.6

94.3

95.0

Transport Equipment

94.0

100.0

106.3

107.5

103.2

 

Construction

14.20

20.50

28.70

-

22.00

Real Estate

21.3

25.4

31.9

-

145.1

 

Services

Electricity, Gas & Water

4.00

7.00

6.30

-

Transport, Storage & Communication

12.80

7.40

5.30

-

14.20

Finance & Insurance

(0.4)

8.90

0.50

-

6.00

Government Services

9.70

6.90

6.00

-

Education Services

(0.9)

(1.4)

0.30

-

5.98

 

* 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 2000, the Subject is a Private Limited company, focusing on trading of agricultural products. 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. We noted that the issued and paid up capital of the Subject stands at SGD 5,793,453 and having strong backing from its holding company.

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. Being a small company, the Subject's business operation is supported by 25 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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. Given a positive net worth standing at USD 3,843,293, the Subject should be able to maintain its business in the near terms.

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 Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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

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.

STARCOM RESOURCES PTE LTD

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

GROUP

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

USD

USD

USD

USD

SGD

TURNOVER

424,734,138

421,737,258

534,817,316

359,067,970

287,851,823

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

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

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

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

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

Total Turnover

424,734,138

421,737,258

534,817,316

359,067,970

287,851,823

Costs of Goods Sold

(417,656,918)

(419,861,775)

(531,866,534)

(354,141,411)

-

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

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

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

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

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

Gross Profit

7,077,220

1,875,483

2,950,782

4,926,559

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

551,677

(3,713,491)

(1,812,513)

1,114,179

721,114

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

551,677

(3,713,491)

(1,812,513)

1,114,179

721,114

Taxation

-

-

27,720

(155,861)

-

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

551,677

(3,713,491)

(1,784,793)

958,318

721,114

Minority interests

-

-

-

(7,953)

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(1,087,260)

2,626,231

4,411,024

3,725,523

(1,354,038)

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

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

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

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

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

As restated

(1,087,260)

2,626,231

4,411,024

3,725,523

(1,354,038)

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(535,583)

(1,087,260)

2,626,231

4,675,888

(632,924)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(535,583)

(1,087,260)

2,626,231

4,675,888

(632,924)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Lease interest

4,427

-

1,838

1,696

-

Letter of credit

891,284

1,057,500

1,556,231

1,169,244

-

Loan from directors

41,984

67,500

-

-

-

Revolving loans

19,079

38,066

87,671

29,906

-

Term loan / Borrowing

612,854

791,195

502,605

332,275

-

Others

12,357

12,726

58,656

69,782

-

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

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

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

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

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

1,581,985

1,966,987

2,207,001

1,602,903

-

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

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

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

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

-

DEPRECIATION (as per notes to P&L)

55,637

48,327

46,609

36,238

-

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

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

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

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

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

55,637

48,327

46,609

36,238

-

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

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

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

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

 

 

 

BALANCE SHEET

 

STARCOM RESOURCES PTE LTD

 

ASSETS EMPLOYED:

FIXED ASSETS

151,252

128,100

171,628

178,123

729,916

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies

977,333

883,809

883,809

-

-

Associated companies

73,110

166,634

166,634

341,932

-

Others

29,426

29,426

29,426

4,020,632

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,079,869

1,079,869

1,079,869

4,362,564

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,231,121

1,207,969

1,251,497

4,540,687

729,916

Stocks

-

-

-

100,000

-

Trade debtors

27,173,540

26,122,104

36,010,245

28,550,884

-

Other debtors, deposits & prepayments

820,117

792,579

959,614

1,805,452

-

Amount due from subsidiary companies

2,398,839

2,078,077

1,851,500

-

-

Amount due from related companies

235,301

138,598

50,775

11,676

-

Amount due from associated companies

443,843

473,640

548,934

494,651

-

Cash & bank balances

8,017,960

7,005,524

9,834,745

9,165,111

-

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

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

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

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

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

TOTAL CURRENT ASSETS

39,089,600

36,610,522

49,255,813

40,127,774

27,380,059

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

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

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

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

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

TOTAL ASSET

40,320,721

37,818,491

50,507,310

44,668,461

28,109,975

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

14,441,610

17,755,516

38,495,423

25,492,777

-

Other creditors & accruals

3,017,699

3,005,132

4,620

4,620

-

Hire purchase & lease creditors

24,518

14,155

14,666

-

-

Short term borrowings/Term loans

-

1,000,000

-

-

-

Other borrowings

17,576,928

11,667,194

5,751,872

-

-

Amounts owing to related companies

300,000

125,000

-

2,166,363

-

Amounts owing to associated companies

150,000

-

-

-

-

Provision for taxation

8,813

8,813

67,555

527,418

-

Other liabilities

8,708

8,708

8,708

6,714,356

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

35,528,276

33,584,518

44,342,844

34,905,534

19,993,099

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,561,324

3,026,004

4,912,969

5,222,240

7,386,960

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

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

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

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

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

TOTAL NET ASSETS

4,792,445

4,233,973

6,164,466

9,762,927

8,116,876

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,378,876

4,378,876

2,518,458

2,518,458

5,793,453

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

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

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

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

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

TOTAL SHARE CAPITAL

4,378,876

4,378,876

2,518,458

2,518,458

5,793,453

Exchange equalisation/fluctuation reserve

-

-

-

(50,394)

-

Retained profit/(loss) carried forward

(535,583)

(1,087,260)

2,626,231

4,675,888

(632,924)

Others

-

-

962,418

-

-

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

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

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

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

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

TOTAL RESERVES

(535,583)

(1,087,260)

3,588,649

4,625,494

(632,924)

MINORITY INTEREST

-

-

-

301,679

-

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,843,293

3,291,616

6,107,107

7,445,631

5,160,529

Lease obligations

48,702

41,907

57,359

-

-

Others

900,450

900,450

-

2,317,296

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

949,152

942,357

57,359

2,317,296

2,956,347

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

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

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

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

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

4,792,445

4,233,973

6,164,466

9,762,927

8,116,876

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

STARCOM RESOURCES PTE LTD

 

TYPES OF FUNDS

Cash

8,017,960

7,005,524

9,834,745

9,165,111

-

Net Liquid Funds

8,017,960

7,005,524

9,834,745

9,165,111

-

Net Liquid Assets

3,561,324

3,026,004

4,912,969

5,122,240

7,386,960

Net Current Assets/(Liabilities)

3,561,324

3,026,004

4,912,969

5,222,240

7,386,960

Net Tangible Assets

4,792,445

4,233,973

6,164,466

9,762,927

8,116,876

Net Monetary Assets

2,612,172

2,083,647

4,855,610

2,804,944

4,430,613

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

2,133,662

(1,746,504)

394,488

2,717,082

-

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

2,189,299

(1,698,177)

441,097

2,753,320

-

BALANCE SHEET ITEMS

Total Borrowings

17,669,227

12,761,322

5,911,568

29,906

-

Total Liabilities

36,477,428

34,526,875

44,400,203

37,222,830

22,949,446

Total Assets

40,320,721

37,818,491

50,507,310

44,668,461

28,109,975

Net Assets

4,792,445

4,233,973

6,164,466

9,762,927

8,116,876

Net Assets Backing

3,843,293

3,291,616

6,107,107

7,445,631

5,160,529

Shareholders' Funds

3,843,293

3,291,616

6,107,107

7,445,631

5,160,529

Total Share Capital

4,378,876

4,378,876

2,518,458

2,518,458

5,793,453

Total Reserves

(535,583)

(1,087,260)

3,588,649

4,625,494

(632,924)

LIQUIDITY (Times)

Cash Ratio

0.23

0.21

0.22

0.26

-

Liquid Ratio

1.10

1.09

1.11

1.15

-

Current Ratio

1.10

1.09

1.11

1.15

1.37

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

0

0

-

Debtors Ratio

23

23

25

29

-

Creditors Ratio

13

15

26

26

-

SOLVENCY RATIOS (Times)

Gearing Ratio

4.60

3.88

0.97

0

-

Liabilities Ratio

9.49

10.49

7.27

5.00

4.45

Times Interest Earned Ratio

1.35

(0.89)

0.18

1.70

-

Assets Backing Ratio

1.09

0.97

2.45

3.88

1.40

PERFORMANCE RATIO (%)

Operating Profit Margin

0.13

(0.88)

(0.34)

0.31

0.25

Net Profit Margin

0.13

(0.88)

(0.33)

0.26

0.25

Return On Net Assets

44.52

(41.25)

6.40

27.83

8.88

Return On Capital Employed

44.12

(40.75)

6.29

26.92

8.88

Return On Shareholders' Funds/Equity

14.35

(112.82)

(29.22)

12.76

13.97

Dividend Pay Out Ratio (Times)

0

0

0

0

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.74

UK Pound

1

Rs.99.53

Euro

1

Rs.73.80

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

NIT

 

               

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.