MIRA INFORM REPORT

 

 

 

Report Date :

01.12.2008

 

IDENTIFICATION DETAILS

 

Name :

PEGASUS SEWING MACHINE PTE LTD

 

 

Registered Office :

135 Joo Seng Road #03-04 368363

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

03/11/1981

 

 

Com. Reg. No.:

198105124G

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Import, Export and Wholesale of Industrial Sewing Machines and all other related products.                       

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

Subject Company   

 

PEGASUS SEWING MACHINE PTE LTD

 

 

Line Of Business   

 
IMPORT, EXPORT AND WHOLESALE OF INDUSTRIAL SEWING MACHINES AND ALL  OTHER RELATED PRODUCTS.                      

 

 

Parent Company    

 

PEGASUS SEWING MACHINE MFG CO LTD

 (PERCENTAGE OF SHAREHOLDING: 100.00%)

 

 

Financial Elements 

 

                                              FY 2007

                                              COMPANY

                                               

Sales                                       : US$56,212,812

Networth                                 : US$ 8,868,605

Paid-Up Capital                                      : US$   183,434

Net result                                : US$ 1,878,311

 

Net Margin(%)          :  3.34

Return on Equity(%) : 21.18

Leverage Ratio         :  2.53

 

Company Identification

 

Subject Company :

PEGASUS SEWING MACHINE PTE. LTD.

Business Address:

135 JOO SENG ROAD #03-04

Town:

SINGAPORE

Postcode:

368363

Country:

Singapore

Telephone:

6296 3638

Fax:

6297 2353

ROC Number:

198105124G

Easy Number company:

00004524931678

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

03/11/1981

Summary year :

31/12/2007

All amounts in this report are in :

USD

Sales:

56,212,812

Networth :

8,868,605

Capital:

183,434

Paid-Up Capital:

183,434

Employees:

20

Net result :

1,878,311

Share value:

 

 
 
 
BASED ON ACRA'S RECORD 
                               NO OF SHARE     CURRENCY     AMOUNT           
ISSUED ORDINARY         400,000          SGD             400,000.00       
PAID-UP ORDINARY           -                  SGD            400,000.00
                                                                      
AUDITOR: DELOITTE & TOUCHE LLP
 
 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

03/11/1981

 

 

PRINCIPAL(S)

 

MASAO KATSURA

G5536724N

Managing Director

 

 

DIRECTOR(S)

 

CHAN LILY

S2668267C

Company Secretary

Appointed on :

13/11/2000

 

Street :

259A COMPASSVALE ROAD #13-609

 

Town:

SINGAPORE

 

Postcode:

541259

 

Country:

Singapore

 

HIROMICHI MIMA

TG7690298

Director

Appointed on :

03/02/1982

 

Street :

1-11-2 NIGAWA TAKADAI TAKARAZUKA-CITY, HYOGO

 

Country:

Japan

 

MASAO KATSURA

G5536724N

Director

Appointed on :

10/07/2000

 

Street :

25 LEONIE HILL ROAD #14-03 GRANGEFORD APARTMENT

 

Town:

SINGAPORE

 

Postcode:

239196

 

Country:

Singapore

 

MORIAKI SHIMIZU

TF6592648

Director

Appointed on :

05/01/1998

 

Street :

12-31 OKAMOTO 5-CHOME HIGASHINADA-KU, HYOGO PREFECTURE

 

Town:

KOBE CITY

 

Country:

Japan

 

TAN CHOON CHUAN

S1658663C

Director

Appointed on :

21/07/2003

 

Street :

1 LEICESTER ROAD #04-12 ONE LEICESTER

 

Town:

SINGAPORE

 

Postcode:

358828

 

Country:

Singapore

 

MASAYUKI OKUMURA

TG3563028

Director

Appointed on :

02/06/2008

 

Street :

IKEDAHONMACHI 4-37, NEYAGAWA

 

Town:

OSAKA

 

Postcode:

572-0030

 

Country:

Japan

 

MASAO KATSURA

G5536724N

Managing Director

Appointed on :

10/07/2000

 

Street :

25 LEONIE HILL ROAD #14-03 GRANGEFORD APARTMENT

 

Town:

SINGAPORE

 

Postcode:

239196

 

Country:

Singapore

 

MASAYUKI OKUMURA

TG3563028

Managing Director

Appointed on :

02/06/2008

 

Street :

IKEDAHONMACHI 4-37, NEYAGAWA

 

Town:

OSAKA

 

Postcode:

572-0030

 

Country:

Japan

 

 

 

FORMER DIRECTOR(S)

 

TANAKA SYOZO

G1800027

 

MORIMOTO YASUO

Unknown

 

HIROSHI ODA

MZ0101114

 

KEIZO BANDO

TE0392156

 

 

 

ACTIVITY(IES)

 

Activity Code:

11760

IMPORTERS And EXPORTERS

Activity Code:

19200

SEWING MACHINES - INDUSTRIAL

 
 
 
BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); 
   IMPORTERS, EXPORTERS AND WHOLESALERS OF INDUSTRIAL SEWING MACHINES

 

 

BANKERS

 

SUMITOMO MITSUI BANKING CORPORATION

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (THE BANK OF TOKYO-MITSUBISHI, LTD)

 

 

SHAREHOLDERS(S)

 

PEGASUS SEWING MACHINE MFG CO LTD

400,000

Company

 

Street :

7-2 SAGISU 5-CHOME FUKUSHIMA-KU

Town:

OSAKA

Postcode:

553

Country:

Japan

 

 

HOLDING COMPANY

 

PEGASUS SEWING MACHINE MFG CO LTD

UF15280K

100%

 

 

PAYMENT HISTORY AND EXPERIENCES

 

 

Trade Morality:

AVERAGE

Liquidity :

SUFFICIENT

Payments :

REGULAR

Trend :

UPWARD

Financial Situation:

GOOD

 

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

USD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

 

 

 

Balance Sheet Date:

31/12/2007

31/12/2006

31/12/2004

Number of weeks:

52

52

52

Consolidation Code:

COMPANY

COMPANY

COMPANY

 

--- ASSETS

 

Preliminary Exp

 

 

54,448

Intangible Fixed Assets:

54,448

54,448

 

Tangible Fixed Assets:

163,135

186,256

100,868

Total Fixed Assets:

217,583

240,704

155,316

Inventories:

11,614,047

9,136,390

6,239,730

Receivables:

16,878,588

14,252,141

10,645,657

Cash,Banks, Securitis:

2,370,892

937,566

2,214,135

Other current assets:

101,250

144,693

97,728

Total Current Assets:

30,964,777

24,470,790

19,197,250

TOTAL ASSETS:

31,182,360

24,711,494

19,352,566

--- LIABILITIES

 

 

 

Equity capital:

183,434

183,434

183,434

Profit & lost Account:

8,685,171

6,806,860

4,422,201

Total Equity:

8,868,605

6,990,294

4,605,635

Long Term Loans:

25,361

103,900

 

Total L/T Liabilities:

25,361

103,900

 

Trade Creditors:

21,581,670

16,893,837

14,675,085

Due to Bank:

195,453

154,544

 

Provisions:

394,506

462,584

71,846

Total short term Liab.:

22,288,394

17,617,300

14,746,931

Prepay. & Def. charges:

116,765

106,335

 

TOTAL LIABILITIES:

22,313,755

17,721,200

14,746,931

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

56,212,812

55,783,187

42,656,300

Gross Profit:

8,598,669

7,944,360

5,804,490

Results of Ord Ops:

 

 

519,551

NET RESULT BEFORE TAX:

2,239,507

2,216,951

298,383

Tax :

361,196

441,000

 

Net income/loss year:

1,878,311

1,775,951

298,383

Interest Paid:

 

 

221,168

Depreciation:

69,597

82,100

 

Directors Emoluments:

145,482

139,875

98,300

Purchases,Sces & Other Goods:

47,614,143

47,838,827

36,851,810

Wages and Salaries:

1,277,970

1,072,837

764,424

 

 

RATIOS

 

Date Account Lodged:

31/12/2007

31/12/2006

31/12/2004

Turnover per employee:

2810640.6

2789159.35

2132815

Net result / Turnover(%):

0.03

0.03

0.01

Fin. Charges / Turnover(%):

 

 

0.01

Stock / Turnover(%):

0.21

0.16

0.15

Net Margin(%):

3.34

3.18

0.7

Return on Equity(%):

21.18

25.41

6.48

Return on Assets(%):

6.02

7.19

1.54

Net Working capital:

8676383

6853490

4450319

Cash Ratio:

0.11

0.05

0.15

Quick Ratio:

0.86

0.86

0.87

Current ratio:

1.39

1.39

1.3

Receivables Turnover:

108.09

91.98

89.84

Leverage Ratio:

2.53

2.56

 

 
 

Net Margin                                                                        : (100*Net income loss year)/Net sales 

Return on Equity                                                                : (100*Net income loss year)/Total equity

Return on Assets                                                               : (100*Net income loss year)/Total fixed assets

Net Working capital                                                           : (Total current assets/Total short term liabilities)/1000

Cash Ratio                                                                         : Cash Bank securities/Total short term liabilities

Quick Ratio                                                                        : (Cash Bank securities+Receivables)/Total Short term liabilities

Current ratio                                                                      : Total current assets/Total short term liabilities

Inventory Turnover                                                             : (360*Inventories)/Net sales 

Receivables Turnover                                                       : (Receivable*360)/Net sales 

Leverage Ratio                                                                  : Total liabilities/(Total equity-Intangible assets)

 

 

FINANCIAL COMMENTS

 

THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:                                                        
                                                                      
                                                                      
NET WORTH:
THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 26.87% FROM US$6,990,294 IN FY 2006 TO US$8,868,605 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$8,685,171 (2006:US$6,806,860); A RISE OF 27.59% FROM THE PRIOR FINANCIAL YEAR.
 
                                                                      
LEVERAGE:                                                             
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 96.83% (2006: 95.89%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$21,581,670 (2006: US$16,893,837). THE BREAKDOWN IS AS FOLLOWS:                                                           
                                                                      
TRADE PAYABLE:                                                        
*  HOLDING COMPANY - 2007: US$19,924,765 (2006: US$15,174,894)        
*  OUTSIDE PARTIES - 2007: US$ 1,656,905 (2006: US$ 1,718,943)
OVERALL, THE LEVERAGE RATIO HAD IMPROVED TO 2.53 TIMES (2006: 2.56 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.                         
                                                                      
                                                                      
LIQUIDITY:                                                            
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. NET WORKING CAPITAL IMPROVED BY 26.60% FROM US$6,853,490 IN FY 2006 TO US$8,676,383 IN FY 2007.                                              
             
                                                         
ON THE OTHER HAND, BOTH CURRENT AND QUICK RATIOS REMAINED STABLE TO 1.39 TIMES (2006: 1.39 TIMES) AND 0.86 TIMES (2006: 0.86 TIMES) RESPECTIVELY.                                                         
      
                                                                
CASH AND CASH EQUIVALENTS SIGNIFICANTLY ROSE BY 1.53 TIMES AND AMOUNTED TO US$2,370,892 (2006: US$937,566). BREAKDOWN WAS AS FOLLOWS:
                                                                      
*  CASH AT BANK - 2007: US$601,705 (2006: US$624,003)                 
*  FIXED DEPOSITS - 2007: US$1,750,000 (2006: US$300,000)             
*  CASH ON HAND - 2007: US$19,187 (2006: US$13,563,000)
 
 
FIXED DEPOSITS BEAR INTEREST AT AN AVERAGE RATE OF 4.79% (2006: 4.64%) PER ANNUM AND FOR A TENURE OF APPROXIMATELY 30 DAYS (2006: 30 DAYS).  
                                                                      
                                                                      
PROFITABILITY:
REVENUE POSTED AN INCREASE OF 0.77% FROM US$55,783,187 IN FY 2006 TO US$56,212,812 IN FY 2007. SIMILARLY, NET PROFIT ROSE BY 5.76% TO US$1,878,311 (2006: US$1,775,951). HENCE, NET MARGIN ROSE TO 3.34% (2006: 3.18%).
 
 
REVENUE CONSISTED OF:                                                 
*  SALE OF GOODS - 2007: US$56,212,812 (2006: US$55,783,187)          
                                                                      
                                                                      
DEBT SERVICING:
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS 
CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.       
           
                                                           
IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 108 DAYS
(2006: 92 DAYS).
 
                                                                     
NOTES TO FINANCIAL STATEMENTS:                                        
*  LONG TERM LOAN:                                                    
THE LOAN BEARS INTEREST AT AN AVERAGE EFFECTIVE RATE OF 3.08% (2006:  
2.99%) PER ANNUM AND IS DENOMINATED IN JAPANESE YEN.

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/11/1981 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "PEGASUS SEWING MACHINE PTE. LTD.".              
                                                                      
THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 400,000 SHARES OF A VALUE OF S$400,000.                               
                                                                      
                                                                      
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); 
   IMPORTERS, EXPORTERS AND WHOLESALERS OF INDUSTRIAL SEWING MACHINES
 
THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: SEWING MACHINES-HOUSEHOLD                          
                                                                      
                                                            
DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF IMPORT, EXPORT AND WHOLESALE OF INDUSTRIAL SEWING MACHINES AND ALL OTHER RELATED PRODUCTS.                       
                                                                      
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
                                                                      
                

                                                      
BACKGROUND:                                                           
PEGASUS SEWING MACHINES IS THE GLOBALLY RECOGNISED LEADING COMPANY FOR
CHAIN STITCH MACHINES.
                                                                      
ESTABLISHED IN 1914 IN JAPAN, PEGASUS HAVE BEEN THE PIONEER OF MANY   
KEY DEVELOPMENTS IN THE FIELD OF OVERLOCK, SAFETY CHAINSTITCH AND     
INTERLOCK MACHINERY. DRAWING ON INFORMATION AND DATA RECEIVED         
DOMESTICALLY FROM JAPAN AND ALSO FROM AROUND WORLD, PEGASUS HAVE
CONTINUOUSLY BEEN IMPROVING AND INNOVATING ITS PRODUCTS TO MEET THE   
NEW STRINGENT STANDARDS OF QUALITY CONTROL AND PRODUCTION EFFICIENCY  
EXPECTED BY THE GARMENT INDUSTRY OF TODAY.                            
                                                                      
HIGH SPEED, DURABLE, OPERATOR AND TECHNICALLY FRIENDLY, BEAUTIFUL
SEAMS ARE SOME OF THE WORDS THAT ARE SYNONYMOUS WITH THE NAME OF      
PEGASUS. COUPLED WITH EFFICIENT AND RESPONSIBLE MANPOWER, PEGASUS IS  
POISED TO TAKE ON THE NEW CHALLENGES OF THE APPAREL INDUSTRY WITH     
VIGOUR AND CONFIDENCE.
 
NEW CUTTING EDGE TECHNOLOGY AND CHAINSTITCH KNOW-HOW HAVE LEAD TO THE 
CREATION OF THE WORLD'S SMALLEST CYLINDERBED INTERLOCK MACHINE, THE   
WORLD'S FASTEST OVERLOCK MACHINES, THE WORLD'S FASTEST INTERLOCK      
MACHINES AND THE LIST GOES ON.
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* IMPORTER AND EXPORTER OF INDUSTRIAL SEWING MACHINES
 
PRODUCT DEALINGS:                                                     
* SAFETY STITCH SEWING MACHINES                                       
* CHAIN STITCH SEWING MACHINES
 
BRANDNAME:                                                            
* PEGASUS                                                             
 
SERVICES:
* MACHINE STOCK                                                       
* SALES PROMOTION                                                     
* SPARE PARTS AND TECHNICAL BACK UP FOR PEGASUS MACHINES
 
TERMS OF PAYMENT:                                                     
* TRADE AND OTHER RECEIVABLES: N/A                                    
* TRADE AND OTHER PAYABLES   : 120 DAYS TERM
                                                                      
MACHINE COORDINATION FOR DIFFERENT TYPES OF CLOTHING:                 
* TEE SHIRTS                                                          
* PANTIES                                                             
* TRAINING WEAR
* DRESS SHIRT                                                         
* JEANS (FRONT)                                                       
* UNDERSHIRTS (FRONT)                                                 
* BRIEFS                                                              
* POLO SHIRTS
* KNIT SHIRTS                                                         
* ATHLETIC SHIRTS                                                     
* BLOUSE                                                              
* SWEAT SHIRTS                                                        
* TRAINING WEAR (TOP)
* TRAINING WEAR (BOTTOM) BACK                                         
* JEANS BACK                                                          
  
                                                                    
SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:                        
* JAPANESE CHAMBER OF COMMERCE & INDUSTRY
* SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY                   
 
                                                                     
IMPORT COUNTRIES:                                                     
* JAPAN                                                               
* CHINA
                                                                      
                                                                      
EXPORT COUNTRIES:                                                     
* SOUTH EAST ASIA REGION
  
                                                                    
FROM THE TELE-INTERVIEW CONDUCTED, SUBJECT CONFIRMED ITS BUSINESS ADDRESS, CONTACT NUMBERS AND LINE OF BUSINESS. SUBJECT ALSO REVEALED THAT THEY HAVE ABOUT 20 EMPLOYEES. NO OTHER TRADE INFORMATION WAS AVAILABLE 
                                                                      
                                                                      
NUMBER OF EMPLOYEES:                                                  
* COMPANY - 2006: 20+
                                                                      
THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF PEGASUS SEWING MACHINE MFG
CO. LTD, INCORPORATED IN JAPAN, WHICH IS ALSO THE COMPANY'S ULTIMATE  
HOLDING COMPANY.
 
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
135 JOO SENG ROAD                                                     
#03-04                                                                
SINGAPORE 368363
DATE OF CHANGE OF ADDRESS: 07/03/2008                                 
- RENTED PREMISE                                                      
- PREMISE OWNED BY: HSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE)     
                    LIMITED AS TRUSTEE OF MACARTHURCOOK INDUSTRIAL    
                    REIT
                                                                      
                                                                     
ADDRESS PROVIDED BY CLIENT:                                           
300 BEACH ROAD
#29-06 THE CONCOURSE                                                  
SINGAPORE 199555                                                      
- SUBJECT'S PREVIOUS ADDRESS AS VERIFIED VIA TELE-INTERVIEW
                                                                      
WEBSITE: http://www.pegasus.com.sg                                    
EMAIL  : info@pegasus.com.sg

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THE REPORT ARE:                          
                                                                      
1) MASAO KATSURA, A JAPANESE                                          
   - BASED IN SINGAPORE.
 
2) TAN CHOON CHUAN, A SINGAPOREAN                                     
   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.        
                                                                      
3) MORIAKI SHIMIZU, A JAPANESE                                        
   - BASED IN JAPAN.
                                                                      
4) MASAYUKI OKUMURA, A JAPANESE                                       
   - BASED IN JAPAN.                                                  
                                                                      
5) HIROMICHI MIMA, A JAPANESE
   - BASED IN JAPAN.

 

 

GENERAL COMMENTS

 

SINGAPORE'S COUNTRY RATING 2008                                                 
                                                                                
                                                                                
INVESTMENT GRADE
                                                                                
IN SINGAPORE, THE POLITICAL AND ECONOMIC SITUATION IS VERY GOOD. A QUALITY      
BUSINESS ENVIRONMENT HAS A POSITIVE INFLUENCE ON CORPORATE PAYMENT BEHAVIOUR.   
CORPORATE DEFAULT PROBABILITY IS VERY LOW ON AVERAGE.      
                     
ECONOMIC GROWTH REMAINED STRONG IN 2007 AND IN Q1 2008 (6.7%) THANKS TO A SHARP
INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REAL     
WAGES, AND A POSITIVE WEALTH EFFECT PRODUCED BY RISING PROPERTY PRICES. IN THIS 
CONTEXT, BANKRUPTCIES CONTINUE TO DECLINE, AS REFLECTED BY THE FAVOURABLE COFACE
PAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN  
ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIAL
TRANSPARENCY.                     
                                             
HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTH
IN THE UNITED STATES, SINGAPORE'S NUMBER TWO TRADING PARTNER. THE FOREIGN TRADE 
CONTRIBUTION TO GROWTH WILL THUS DECLINE ESPECIALLY WITH EXPORTS REPRESENTING   
210 PER CENT OF GDP.
 
INFLATION ACCELERATED IN 2007 AND REACHED 7.5% IN MAY 2008 BECAUSE OF RISING RAW
MATERIAL PRICES. INDEED, SINGAPORE IMPORTS ALMOST ALL ITS ENERGY AND FOOD.      
HOWEVER, FOR THE ENTIRE YEAR, INFLATION SHOULD MODERATE AND REACH 2.8%.         
THE FINANCIAL SITUATION HAS REMAINED ROBUST AS THE EQUILIBRIUM OF PUBLIC SECTOR 
FINANCES AND THE SOLIDITY OF A BANKING SYSTEM POISED TO ADOPT BASEL II
PRUDENTIAL STANDARDS ATTEST. EXTERNAL ACCOUNTS CONTINUE MOREOVER TO SHOW LARGE  
SURPLUSES THANKS TO GOOD PERFORMANCE IN A RANGE OF SECTORS INCLUDING            
ELECTRONICS, TRANSPORT, CONSTRUCTION, TOURISM, AND FINANCIAL SERVICES. THE      
DECLINE EXPECTED IN THE CURRENT ACCOUNT SURPLUS IN 2008 SHOULD NOT JEOPARDISE   
SINGAPORE'S EXCEPTIONAL FINANCIAL SOLIDITY.
UNDERPINNED BY SUBSTANTIAL FISCAL RESERVES AND A LARGE MAJORITY IN PARLIAMENT,  
THE PEOPLE'S ACTION PARTY OF PRIME MINISTER LEE HSIEN LOONG HAS SOUGHT AT ONCE  
TO MAKE THE CITY-STATE MORE ATTRACTIVE TO FOREIGN INVESTORS AND TO BOLSTER THE  
SPECIALISATION IN HIGH-VALUE ADDED SECTORS TO MEET THE GROWING COMPETITION FROM 
LOW-COST ASIAN ECONOMIES. BESIDES REDUCTIONS IN CORPORATE INCOME TAX AND TAX
INCENTIVES FOR COMPANIES SETTING UP OPERATIONS IN SINGAPORE, THE GOVERNMENT     
CONTINUES TO PURSUE ITS INFRASTRUCTURE AND R&D INVESTMENT POLICY.               
                                                                                
ASSETS                                                                          
"              THE COUNTRY HAS BEEN PURSUING AMBITIOUS DIVERSIFICATION STRATEGY,
ESPECIALLY TO HIGH VALUE-ADDED SECTORS LIKE CHEMICALS, PHARMACEUTICALS, AND     
FINANCE.                                                                        
"              IT IS AMONG THE MOST ADVANCED COUNTRIES OF ASIA IN QUALITY                    
COMPETITIVENESS TERMS.                                                          
"              SINGAPORE HAS BECOME A MAJOR EXPORTER OF CAPITAL IN ASIA IN MANY ECONOMIC
SECTORS -SUCH AS FINANCE, TELECOMMUNICATIONS, TRANSPORT - NOTABLY VIA THE STATE-
OWNED TEMASEK HOLDING COMPANY                                                   
"              THE ECONOMY HAS BENEFITED FROM THE COUNTRY'S POLITICAL STABILITY AND          
EXCELLENT BUSINESS CLIMATE.
WEAKNESSES                                                                      
"              SKILLED LABOUR IS IN SHORT SUPPLY IN THE SECTORS THE COUNTRY WISHES TO        
DEVELOP.                                                                        
"              THE AGEING POPULATION COULD ULTIMATELY UNDERMINE ECONOMIC PERFORMANCE.        
"              GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE
LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.                                   
"              THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN.             
                                                                                
                                                                                                                                                                
WHOLESALE AND RETAIL TRADE SECTOR                                               
PAST PERFORMANCE                                                                
THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 2Q 2008, HIGHER THAN THE
5.5% GROWTH IN 1Q 2008. NON-OIL RE-EXPORTS GREW BY 14.0% IN 2Q 2008, STRONGER   
THAN THE 11.0% GROWTH IN 1Q 2008. RETAIL SALES FELL BY 2.9% IN 2Q 2008. HOWEVER,
THIS REPRESENTED A DECLINE OVER A RELATIVELY HIGHER BASE IN 2Q 2007(8.1%        
GROWTH). EXCLUDING MOTOR VEHICLES, RETAIL SALES FELL BY 1.4% IN 2Q 2008, IN     
CONTRAST TO THE 1.4% GROWTH IN 1Q 2008.
                                                                                
DOMESTIC WHOLESALE TRADE INDEX                                                  
THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 11.1% IN 2Q 2008 OVER 1Q 2008.     
EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.9%.
AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.5% IN 2Q 2008 OVER 1Q 2008. 
EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 1.9%.                               
                                                                                
ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 25.4% OVER
THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 4.7%. AFTER
REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 2.0% IN 2Q  
2008 OVER 2Q 2007.                                                              
                                                                                
ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED HIGHER DOMESTIC
SALES AFTER RECORDING SLOWER BUSINESS IN THE PREVIOUS QUARTER.
                                                                                
DOMESTIC SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND INDUSTRIAL AND 
CONSTRUCTION MACHINERY REGISTERED INCREASES OF 22.7% AND 21.1% IN 2Q 2008.      
                                                                                
PETROLEUM AND PETROLEUM PRODUCTS, AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY
20.2% AND 12.6% RESPECTIVELY IN 2Q 2008 OVER 1Q 2008. AFTER ADJUSTING FOR PRICE 
CHANGES, SALES REMAINED AT SIMILAR LEVELS AS 1Q 2008.                           
                                                                                
CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 15.2%. IT WAS FOLLOWED BY  
DOMESTIC SALES OF FOOD, BEVERAGES AND TOBACCO, SHIP CHANDLERS AND BUNKERING, AND
HOUSEHOLD EQUIPMENT AND FURNITURE WHICH CONTRACTED BY 4.1% TO 6.9% OVER 1Q 2008.
                                                                                
ON A YEAR-ON-YEAR BASIS, THE WHOLESALE SECTORS RECORDED MIXED PERFORMANCE IN    
DOMESTIC SALES IN 2008 OVER 2Q 2007.
THE DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND      
BUNKERING, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND CHEMICALS AND CHEMICAL
PRODUCTS ROSE BY 17.8% TO 54.7% IN 2Q 2008. SALES OF TIMBER, PAINTS AND         
CONSTRUCTION MATERIALS ROSE BY 8.7% OVER 2Q 2007.
CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 24.6%. WHOLESALE TRADE OF  
FOOD, BEVERAGES AND TOBACCO, HOUSEHOLD EQUIPMENT AND FURNITURE, AND TRANSPORT   
EQUIPMENT FELL BY 7.7% TO 9.3%. DOMESTIC SALES OF ELECTRONIC COMPONENTS DECLINED
BY 4.3% IN 2Q 2008 WHILE TELECOMMUNICATIONS AND COMPUTERS REMAINED STABLE.
FOREIGN WHOLESALE TRADE INDEX                                                   
                                                                                
FOREIGN WHOLESALE TRADE SALES ROSE BY 11.8% IN 2Q 2008 OVER 1Q 2008. EXCLUDING  
PETROLEUM, SALES ROSE BY 4.7%.
AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 6.7% OVER 1Q 2008. EXCLUDING   
PETROLEUM, SALES ROSE SLIGHTLY BY 1.0%.                                         
                                                                                
ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 28.4% OVER 1Q 2008.    
EXCLUDING PETROLEUM, SALES ROSE BY 15.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS
SALES ROSE SLIGHTLY BY 1.1% OVER 2Q 2007.                                       
                                                                                
COMPARED TO 1Q 2008, FOREIGN SALES ROSE IN THE MAJORITY OF WHOLESALE SECTORS IN 
2Q 2008.
FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 21.9% 
IN 2Q 2008 OVER 1Q 2008, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED
BY PETROLEUM AND PETROLEUM PRODUCTS, AND HOUSEHOLD EQUIPMENT AND FURNITURE WITH 
INCREASES OF 19.4$ AND 16.1% RESPECTIVELY. FOREIGN SALES OF SHIP CHANDLERS AND  
BUNKERING ROSE BY 8.1% IN 2Q 2008 OVER 1Q 2008.TIMBER, PAINTS AND CONSTRUCTION
MATERIALS, CHEMICALS AND CHEMICAL PRODUCTS, AND INDSUTRIAL AND CONSTRUCTION     
MACHINERY ALSO ROSE BY BETWEEN 5.8% TO 7.2%.                                    
                                                                                
AFTER ADJUSTING FOR PRICE INCREASES, THE SALES VOLUME OF PETROLEUM AND PETROLEUM
PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, SHIP CHANDLERS AND BUNKERING
CONTRACTED COMPARED TO 1Q 2008.                                                 
                                                                                
CONVERSELY, FOREIGN SALES OF TELECOMMUNICATIONS AND COMPUTERS, AND GENERAL      
WHOLESALE TRADE FELL IN 2Q 2008 OVER 1Q 2008. SALES OF ELECTRONIC COMPONENTS    
REMAINED STABLE AS COMPARED TO 1Q 2008.
                                                                                
COMPARED TO A YEAR AGO, MOST WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN 
FOREIGN SALES IN 2Q 2008.                                                       
                                                                                
WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGHER GROWTH
RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 94.8% IN 2Q 2008 OVER A YEAR    
AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 77.3% OVER A YEAR AGO.    
                                                                                
WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, 
SHIP CHANDLERS AND BUNKERING REPORTED HIGHER FOREIGN SALES OF 43.7% AND 38.1%
RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF  
PETROLEUM AND PETROLEUM PRODUCTS FELL BY 10.7% WHILE SALES VOLUME OF SHIP       
CHANDLERS AND BUNKERING DECLINED BY 13.6.                                       
                                                                                
GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT,
AND                                                                             
HOUSEHOLD EQUIPMENT AND FURNITURE, AND INDUSTRIAL AND CONSTRUCTION MACHINERY    
ALSO REGISTERED STRONG SALES GROWTH OF BETWEEN 5.8% TO 24.7%.                   
                                                                                
CONVERSELY, FOREIGN SALES OF ELECTRONIC COMPONENTS, TIMBER, PAINTS AND
CONSTRUCTION MATERIALS, AND TELECOMMUNICATIONS AND COMPUTERS FELL BY 4.9% TO    
8.6%                                                                            
IN 2Q 2008 COMPARED TO 2Q 2007.                                                 
                                                                                
NEWS
RETAIL SPENDING DOWN FOR THIRD STRAIGHT MONTH                                   
RETAIL SPENDING FELL FOR THE THIRD STRAIGHT MONTH IN AUGUST AS DEMAND FOR CARS  
AND RECREATIONAL GOODS DROPPED AMID THE COUNTRY'S FIRST RECESSION SINCE 2002.   
WHILE SPENDING ROSE 4.2% FROM AUGUST LAST YEAR, IT WAS 5.8% FROM JULY THIS YEAR,
ACCORDING TO THE RETAIL SALES INDEX RELEASED BY THE DEPARTMENT OF STATISTICS
(DOS) YESTERDAY.                                                                
TOTAL RETAIL SALES IN AUGUST WERE ESTIMATED AT S$2.71 BILLION, DOWN FROM S$2.88 
BILLION IN JULY.                                                                
THE SLOWDOWN IN SPENDING MEANT PEOPLE SPLASHED OUT LESS ON CARS, FURNITURE AND  
HOUSEHOLD EQUIPMENT, PETROL, APPAREL, FOOTWEAR AND RECREATIONAL GOODS.
SALES FELL ACROSS THE BOARD FROM THEIR JULY TAKINGS, WITH DECLINES RANGING FROM 
3.6% TO 20.4%.                                                                  
BUT THERE WAS A DOUBLE-DIGIT RISE IN SALES OF BIG-TICKET LUXURY ITEMS.          
TELECOMMUNICATIONS APPARATUS AND COMPUTER RETAILERS ENJOYED SALES GROWTH OF     
19.5%, WHILE THE WATCH AND JEWELLERY SECTOR'S RECEIPTS ROSE BY 13.6% IN JULY.
A RECENT STRAITS TIMES SURVEY OF 62 TENANTS IN SIX ORCHARD ROAD MALLS FOUND     
RETAIL REVENUES HAVE FALLEN BY AS MUCH AS 30.0% IN THE PAST THREE WEEKS,        
COINCIDING WITH THE BANK FAILURES, STOCK MARKET ROUTS AND GROWING FEARS OVER THE
GLOBAL FINANICAL TURMOIL.                                                       
SEVERAL STORES HAVE ALSO LAUNCHED MID-SEASON SALES, AN EXERCISE UNUSUALLY
UNDERTAKEN ONLY IN PARTICULARY SLOW PERIODS.                                    
THE AUGUST FIGURES WERE MORE ENCOURAGING, HOWEVER, WHEN COMPARED WITH THE SAME  
PERIOD LAST YEAR. VIRTUALLY ALL SEGMENTS, FROM DEPARTMENT STORES TO             
SUPERMARKETS, REPORTED DOUBLE-DIGIT GROWTHS OF 11.2 TO 29.6%. HOWEVER, MOTOR    
VEHICLE SALES FELL 12.9% AND RECREATIONAL GOODS SALES CONTRACTED BY 6.8%.
INFLATION MAY HAVE PUSHED SALES FIGURES UP. AFTER REMOVING THE EFFECT OF HIGHER 
PRICES, WHICH WOULD GIVE A HIGHER OVERALL SALES VALUE, RETAIL SALES ACTUALLY    
REMAINED UNCHANGED FROM A YEAR AGO.                                             
VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL      
PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.
PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH, 
ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.           
PETROL SALES ROSE 28.2% IN FEBRUARY.                                            
                                                                                
MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN
FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT    
MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL   
PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.                          
                                                                                
THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES
ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.          
OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR       
VEHICLES, SALES VOLUME ROSE BY 12.5%.                                           
                                                                                
OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY
CONSUMER SPENDING. "THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY
IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN," SHE SAID.    
THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION,       
COMPARED WITH S$2.59 BILLION IN FEBRUARY.
OUTLOOK                                                                         
                                                                                
GENERALLY, THE MAJORITY OF WHOLESALERS, WITH A NET WEIGHTED BALANCE OF 55% OF   
FIRMS, FORECASTS BUSINESS ACTIVITIES IN THE COMING MONTHS, TO REMAIN AT SIMILAR 
LEVELS. FOR THE REMAINING WHOLESALE FIRMS, A WEIGHTED 22% OF THEM EXPECTS BETTER
BUSINESS CONDITIONS TO IMPROVE. THESE FIRMS ARE MAINLY IN THE BUSINESS OF       
WHOLESALE TRADE OF INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS,   
AND COMPUTER AND ACCESSORIES. ON THE OTHER HAND, A WEIGHTED 23% OF WHOLESALERS, 
MAINLY FROM FOOD AND BEVERAGES, AND PETROLEUM AND PETROLEUM PRODUCTS, FORECAST  
BUSINESS CONDITIONS TO DETERIORATE IN THE COMING MONTHS. ON THE WHOLE, A NET
WEIGHTED BALANCE OF 1% OF FIRMS EXPECTS GENERAL BUSINESS OUTLOOK TO REMAIN LESS 
FAVOURABLE.                                                                     
                                                                                
A NET WEIGHTED BALANCE OF 20% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS    
CONDITIONS FOR THE PERIOD ENDING DECEMBER 2008. MOTOR VEHICLES RETAILERS, AND
JEWWELLERY AND WATCHES CONTINUE TO PREDICT SLOWER SALES IN THE MONTHS AHEAD.    
                                                                                
EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE                       
                SINGAPORE DEPARTMENT OF STATISTICS                              
                THE STRAITS TIMES
                                                                                
                                                                                

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.52

UK Pound

1

Rs.75.08

Euro

1

Rs.63.72

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

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