MIRA INFORM REPORT

 

 

 

Report Date :

06.12.2008

 

IDENTIFICATION DETAILS

 

Name :

ADANI GLOBAL PTE LTD

 

 

Registered Office :

3 Shenton Way #19-08 Shenton House 068805

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

08.04.2000

 

 

Com. Reg. No.:

200003047N

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Importers, Exporters, Traders and Commission Agents for Bulk Commodities 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 :

No Complaints

 

 

Litigation :

Exists

 

Subject Company   

 

ADANI GLOBAL PTE LTD

 

 

Line Of Business  

 

IMPORTERS, EXPORTERS, TRADERS & COMMISSION AGENTS FOR BULK COMMODITIES PRODUCTS

 

 

Parent Company    

 

-

 

 

Financial Elements

 

                                     FY 2008

                                    COMPANY

Sales                            : US$1,490,979,626

Networth                                   : US$34,257,775

Paid-Up Capital                                      : US$27,600,000

Net result                      : US$3,100,404

 

Net Margin(%)               : 0.21

Return on Equity(%)       : 9.05

Leverage Ratio               : -

 

COMPANY IDENTIFICATION

 

Subject Company :

ADANI GLOBAL PTE LTD

Business Address:

3 SHENTON WAY #19-08 SHENTON HOUSE

Town:

SINGAPORE

Postcode:

068805

Country:

Singapore

Telephone:

6225 2070

Fax:

6225 2537

ROC Number:

200003047N

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

08/04/2000

Summary year :

31/03/2008

All amounts in this report are in :

USD

Sales:

1,490,979,626

Networth :

34,257,775

Capital:

 

Paid-Up Capital:

27,600,000

Employees:

14

Net result :

3,100,404

Share value:

 

 
AUDITOR: PRUDENTIAL PUBLIC ACCOUNTING CORPORATION                     
                                                                      

BASED ON ACRA'S RECORD 
                                              NO.OF SHARES      CURRENCY            AMOUNT          
ISSUED ORDINARY                43,117,530               SGD                        43,117,530.00
PAID-UP ORDINARY               -                              SGD                        43,117,530.00

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

08/04/2000

 

 

PRINCIPAL(S)

VINOD SHANTILAL SHAH

S2648276C

Director

 

 

 

 

 

DIRECTOR(S)

 

CLIFFORD EMMANUEL GERMAIN ABAYASEKARA

S2191478I

Company Secretary

Appointed on :

21/03/2007

 

Street :

33A SURIN AVENUE CHARLTON COURT

 

Town:

SINGAPORE

 

Postcode:

535617

 

Country:

Singapore

 

VINOD SHANTILAL SHAH

S2648276C

Director

Appointed on :

05/05/2000

 

Street :

99 MEYER ROAD #24-01 THE SOVEREIGN

 

Town:

SINGAPORE

 

Postcode:

437920

 

Country:

Singapore

 

CHATURVEDI ATUL

G0009575

Director

Appointed on :

19/06/2007

 

Street :

B 11, SHANTI ENCLAVE OPP PUSPARAJ TOWER JUGES BUNGALOW ROAD, VASTRAPUR

 

Town:

AHMEDABAD

 

Country:

India

 

 

 

FORMER DIRECTOR(S)

 

CHANG CHUNG-LING

F2411912L

 

SHAH BAVIK BHARATKUMAR

M039025

 

JOSEPH SELVAMALAR

S0089626H

 

SEE GUAT NGO

S1287660B

 

PRADEEP MITTAL

E9442640

 

 

 

ACTIVITY(IES)

Activity Code:

11760

IMPORTERS And EXPORTERS

Activity Code:

4990

COMMISSION MERCHANTS

Activity Code:

22190

TRADING COMPANIES

Activity Code:

5010

COMMODITY TRADERS

 

BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)
2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)

 

CHARGES

 

 

AVAILABLE

Date:

09/02/2004

Amount:

0

Comments :

 
CHARGE NO: C200400664                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): MOSCOW NARODNY BANK LIMITED

 

 

AVAILABLE

Date:

30/01/2004

Amount:

0

Comments :

 
CHARGE NO: C200400567                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

 

 

AVAILABLE

Date:

18/07/2001

Amount:

0

Comments :

 
CHARGE NO: 200103310, 200103311                                       
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): BANK OF INDIA

 

 

AVAILABLE

Date:

30/12/2004

Amount:

0

Comments :

 
CHARGE NO: C200406727                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): THE BANK OF TOKYO-MITSUBISHI UFJ,LTD. SINGAPORE BRANCH

 

 

AVAILABLE

Date:

20/10/2004

Amount:

0

Comments :

 
CHARGE NO: C200405199, C200405202                                     
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): NATEXIS BANQUES POPULAIRES

 

 

AVAILABLE

Date:

28/05/2004

Amount:

0

Comments :

 
CHARGE NO: C200402570                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): KBC BANK N.V.

 

 

AVAILABLE

Date:

17/02/2004

Amount:

0

Comments :

 
CHARGE NO: C200400778                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): MOSCOW NARODNY BANK LIMITED

 

 

AVAILABLE

Date:

01/08/2005

Amount:

0

Comments :

 
CHARGE NO: C200504478                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): DBS BANK LTD.

 

 

AVAILABLE

Date:

16/11/2005

Amount:

0

Comments :

 
CHARGE NO: C200507087, C200507088                                     
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTBANK, FRANKFURT

 

 

AVAILABLE

Date:

18/11/2005

Amount:

0

Comments :

 
CHARGE NO: C200507162, C200507163                                     
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.

 

 

AVAILABLE

Date:

07/08/2008

Amount:

0

Comments :

 
CHARGE NO: C200807372                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): MIZUHO CORPORATE BANK, LTD

 

 

AVAILABLE

Date:

12/12/2005

Amount:

0

Comments :

 
CHARGE NO: C200507645                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): MALAYAN BANKING BERHAD

 

 

AVAILABLE

Date:

15/12/2005

Amount:

0

Comments :

 
CHARGE NO: C200507749                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): MALAYAN BANKING BERHAD

 

 

AVAILABLE

Date:

17/10/2006

Amount:

0

Comments :

 
CHARGE NO: C200606951                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): HABIB BANK LIMITED

 

 

AVAILABLE

Date:

18/05/2007

Amount:

0

Comments :

 
CHARGE NO: C200703752, C200703751                                     
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): UTI BANK LTD. SINGAPORE BRANCH

 

 

 

AVAILABLE

Date:

08/05/2007

Amount:

0

Comments :

 
CHARGE NO: C200703399                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): UCO BANK

 

 

AVAILABLE

Date:

07/03/2007

Amount:

0

Comments :

 
CHARGE NO: C200701800, C200701802                                     
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): MIZUHO CORPORATE BANK, LTD

 

 

AVAILABLE

Date:

02/02/2007

Amount:

0

Comments :

 
CHARGE NO: C200701001, C200701002                                     
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): UTI BANK LTD. SINGAPORE BRANCH

 

 

AVAILABLE

Date:

21/07/2008

Amount:

0

Comments :

 
CHARGE NO: C200806728                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): STANDARD CHARTERED BANK

 

 

AVAILABLE

Date:

07/07/2008

Amount:

0

Comments :

 
CHARGE NO: C200806123                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): STANDARD CHARTERED BANK

 

 

AVAILABLE

Date:

22/05/2008

Amount:

0

Comments :

 
CHARGE NO: C200804646                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): STATE BANK OF INDIA

 

 

BANKERS

 

MOSCOW NARODNY BANK LIMITED

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

BANK OF INDIA

KBC BANK N.V.

COOPERATIEVE CENTRALE RAIFFEISEN- BOERENLEENBANK BA

DZ BANK AG DEUTSCHE ZENTRAL- GENOSSENSCHAFTSBANK, FRANKFURT AM MAIN

STANDARD CHARTERED BANK

UTI BANK LTD, SINGAPORE BRANCH

UCO BANK

MIZUHO CORPORATE BANK LTD

 

 

SHAREHOLDERS(S)

 

ADANI GLOBAL LTD

43,117,530

Company

 

Street :

SUITE 501, ST JAMES COURT ST DENIS STREET

Town:

PORT LOUIS

Country:

Mauritius

 

 

HOLDING COMPANY

ADANI GLOBAL LTD

UF28100C

100%

 

 

 

 

 

SUBSIDIARY(IES)

 

PT ADANI GLOBAL

 

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

UNKNOWN

Payments :

UNKNOWN

Trend :

UNKNOWN

Financial Situation:

UNKNOWN

 

 

 

LITIGATION(S)

 

Type Of Case:

High Court - W/S

Case Number:

HWS00908/2004

Defendant

ADANI GLOBAL PTE LTD

ROC # : 200003047N

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

USD

 

Audit Qualification:

 

 

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

12/07/2008

 

 

Balance Sheet Date:

31/03/2008

31/03/2007

31/12/2005

Number of weeks:

52

64

52

Consolidation Code:

COMPANY

COMPANY

COMPANY

 

--- ASSETS

 

Tangible Fixed Assets:

137,377

18,330

20,203

Investments

9,500,000

657,400

 

Total Fixed Assets:

9,637,377

675,730

20,203

Inventories:

 

38,534

 

Receivables:

229,917,343

243,194,426

61,379,146

Cash,Banks, Securitis:

40,204,260

20,048,534

24,304,826

Other current assets:

 

 

91,512

Total Current Assets:

270,121,603

263,281,494

85,775,484

TOTAL ASSETS:

279,758,980

263,957,224

85,795,687

--- LIABILITIES

 

 

 

Equity capital:

27,600,000

5,000,000

8,850,000

Reserves:

812,889

 

 

Profit & lost Account:

5,844,886

3,557,371

2,543,019

Total Equity:

34,257,775

8,557,371

11,393,019

Long Term Loans:

60,781,817

136,523,636

 

Total L/T Liabilities:

60,781,817

136,523,636

 

Trade Creditors:

132,639,279

86,636,424

67,333,535

Due to Bank:

51,219,525

31,848,064

5,883,471

Provisions:

744,977

295,847

266,500

Other Short term Liab.:

115,607

95,882

885,412

Total short term Liab.:

184,719,388

118,876,217

74,402,668

Prepay. & Def. charges:

 

 

33,750

TOTAL LIABILITIES:

245,501,205

255,399,853

74,402,668

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

1,490,979,626

1,256,982,307

1,145,658,195

Gross Profit:

50,572,214

43,132,927

53,956,496

NET RESULT BEFORE TAX:

3,765,404

1,335,861

1,380,616

Tax :

665,000

267,616

270,000

Net income/loss year:

3,100,404

1,068,245

1,110,616

Interest Paid:

15,600,397

9,973,553

3,036,875

Depreciation:

17,461

17,069

17,695

Directors Emoluments:

 

 

81,700

Purchases,Sces & Other Goods:

1,440,407,412

1,213,849,380

1,091,701,699

Wages and Salaries:

 

 

279,010

Financial Income:

917,539

529,621

315,179

 

RATIOS

 

Date Account Lodged:

31/03/2008

31/03/2007

31/12/2005

Turnover per employee:

106498544.71

89784450.5

81832728.21

Net result / Turnover(%):

0

0

0

Fin. Charges / Turnover(%):

0.01

0.01

0

Stock / Turnover(%):

 

0

 

Net Margin(%):

0.21

0.08

0.1

Return on Equity(%):

9.05

12.48

9.75

Return on Assets(%):

1.11

0.4

1.29

Net Working capital:

85402215

144405277

11372816

Cash Ratio:

0.22

0.17

0.33

Quick Ratio:

1.46

2.21

1.15

Current ratio:

1.46

2.21

1.15

Receivables Turnover:

55.51

69.65

19.29

Leverage Ratio:

 

 

 

 
 
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
Dividends Coverage   : Net income loss year/Dividends
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

 

AS THE FINANCIAL STATEMENT IS NOT AUDITED. HENCE, FINANCIAL ANALYSIS   IS NOT CONDUCTED. IN REPLACEMENT, AN ADVERSE CHECK ON ITS LOCAL  DIRECTORS IS MADE.

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON   08/04/2000 AS A LIMITED PRIVATE COMPANY BY SHARES AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ADANI GLOBAL PTE LTD".                      
                                                                      
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 43,117,530 SHARES OF A VALUE OF S$43,117,530.                         
                                                                      
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 AND EXPORTERS)
2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)      
                                                                      
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: TRADING COMPANIES
                                                                      
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON BUSINESS AS GENERAL MERCHANTS, IMPORTERS AND EXPORTERS, COMMISSION AGENTS AND MANUFACTURER'S REPRESENTATIVE. FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:       
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* IMPORTERS, EXPORTERS, TRADERS & COMMISSION AGENTS FOR BULK          
COMMODITIES PRODUCTS SUCH AS PETROLEUM, PETROCHEMICALS, COAL, AGRO
COMMODITIES, SUGAR, WHEAT, SOYABEAN MEAL, CASTOR OIL ETC.             
                                                                      
PRODUCTS:                                                             
* AGRO-PRODUCTS COAL & COKE                                           
* TEXTILES
* FERTILIZERS                                                         
* STEEL                                                               
* SCRAP                                                               
* MARINE PRODUCTS                                                     
* PETROCHEMICALS
* PETROLEUM OIL                                                       
* LUBRICANTS                                                          
* ETC.                                                                
                                                                      
HEADQUARTER OFFICE:
* AHMEDABAD                                                           
                                                                      
METRO BRANCHES:                                                       
* MUMBAI                                                              
* DELHI
* KOLKATA                                                             
* CHENNAI                                                             
                                                                      
OTHER BRANCHES:                                                       
* MUNDRA
* VADODARA                                                            
* SURAT                                                               
* GOA                                                                 
* BELEKERI                                                            
* BANGLORE
* INDORE                                                              
* COIMBATORE                                                          
* HOSPET                                                              
* JAMSHEDPUR
 
OVERSEAS OFFICES:                                                     
* DUBAI ( UAE )                                                       
* INDONESIA                                                           
* USA
 
SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY:                          
* SINGAPORE CHINESE CHAMBER OF COMMERCE & INDUSTRY                    
                                                                      
FROM THE PREVIOUS TELE-INTERVIEW CONDUCTED , THE FOLLOWING WAS GATHERED:
                                                                      
NUMBER OF EMPLOYEES:                                                  
* 2008: 14                                                            
                                                                      
TERMS OF PAYMENT:
* CASH TERM ONLY                                                      
                                                                      
NO OTHER TRADE INFORMATION WAS AVAILABLE 
                                                                      
SUBJECT IS A WHOLLY OWNED SUBSIDIARY OF ADANI GLOBAL LIMITED, INCORPORATED IN MAURITIUS. THE ULTIMATE HOLDING COMPANY IS ADANI ENTERPRISE LIMITED, INCORPORATED IN INDIA.                            
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
3 SHENTON WAY
#19-08                                                                
SHENTON HOUSE                                                         
SINGAPORE 068805                                                      
DATE OF CHANGE OF ADDRESS: 16/11/2004                                 
- PREMISE OWNED BY: PUSHKARRAI B DESAI AND ASHVIN BAPULAL DESAI
                                                                      
WEBSITE:                                                              
www.adanigroup.com (HOLDING COMPANY'S)                                
                                                                      
EMAIL:
sales@adani.com.sg

 

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:                         
                                                                      
1) CHATURVEDI ATUL, AN INDIAN                                         
   - BASED IN INDIA.
 
2) VINOD SHANTILAL SHAH, A SINGAPORE PERMANENT RESIDENT               
   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 

 

ADVERSE ON DIRECTORS

 

DIRECTOR'S NAME: VINOD SHANTILAL SHAH                                 
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE      
PROPERTY OWNERSHIP: NIL                                               
ANNUAL VALUE: N.A.                                                    
CO-OWNER(S): N.A.
                                                                      
*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF  
IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER 
REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR      
VACANT.
 

 

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.49.69

UK Pound

1

Rs.72.96

Euro

1

Rs.63.46

 

 

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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