MIRA INFORM REPORT

 

 

 

Report Date :

09.12.2008

 

IDENTIFICATION DETAILS

 

Name :

REDINGTON DISTRIBUTION PTE. LTD.

 

 

Registered Office :

39 Robinson Road #09-04 068911

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

28.03.2005

 

 

Com. Reg. No.:

200503995E

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

General Merchant and Importer and Exporter of Computers, Computer Peripherals and Components.

 

 

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   

 

REDINGTON DISTRIBUTION PTE. LTD.

 

 

Line Of Business   

 
GENERAL MERCHANT AND IMPORTER AND EXPORTER OF COMPUTERS, COMPUTER PERIPHERALS AND COMPONENTS.

 

 

Parent Company    

 

REDINGTON (INDIA) LIMITED

 (PERCENTAGE OF SHAREHOLDING: 100.00%)

 

 

Financial Elements 

 

FY 2008

CONSOLIDATED

                                               

Sales                                      : US$158,825,051

Networth                                 : US$  6,485,133

Paid-Up Capital                                     : US$  4,000,000

Net result                                : US$  1,057,780

 

Net Margin(%)          :  0.67

Return on Equity(%) : 16.31

Leverage Ratio         :  3.38

 

COMPANY IDENTIFICATION

 

 

Subject Company :

REDINGTON DISTRIBUTION PTE. LTD.

Business Address:

39 ROBINSON ROAD #09-04

Town:

SINGAPORE

Postcode:

068911

Country:

Singapore

Telephone:

6438 6626

Fax:

6438 6616

ROC Number:

200503995E

Easy Number company:

00004513886157

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

28/03/2005

Summary year :

31/03/2008

All amounts in this report are in :

USD

Sales:

158,825,051

Networth :

6,485,133

Capital:

 

Paid-Up Capital:

4,000,000

Employees:

20

Net result :

1,057,780

Share value:

 

 
 
 
AUDITOR: ERNST & YOUNG LLP                                            
                                                                      
BASED ON ACRA'S RECORD 
                               NO OF SHARE     CURRENCY                 AMOUNT          
ISSUED ORDINARY         3,800,000        USD                        4,000,000.00
PAID-UP ORDINARY            -                 USD                         4,000,000.00

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

28/03/2005

 

 

PRINCIPAL(S)

 

RANGAREDDY JAYACHANDRAN

S2220352E

Director

 

 

   DIRECTOR(S)

 

 

NG LAI YING

S2669775A

Company Secretary

Appointed on :

05/05/2005

 

Street :

154 SIMEI STREET 1 #11-69

 

Town:

SINGAPORE

 

Postcode:

520154

 

Country:

Singapore

 

RANGAREDDY JAYACHANDRAN

S2220352E

Director

Appointed on :

28/03/2005

 

Street :

3 GRANGE GARDEN #09-01 GRANGE, THE

 

Town:

SINGAPORE

 

Postcode:

249633

 

Country:

Singapore

 

RAMANATHAN SRINIVASAN

S2566556B

Director

Appointed on :

28/03/2005

 

Street :

15 ARDMORE PARK #05-02 ARDMORE PARK

 

Town:

SINGAPORE

 

Postcode:

259959

 

Country:

Singapore

 

RAJ SHANKAR

S2678584G

Director

Appointed on :

28/03/2005

 

Street :

1 TANJONG RHU ROAD #19-04 THE WATERSIDE

 

Town:

SINGAPORE

 

Postcode:

436879

 

Country:

Singapore

 

 

 

 

ACTIVITY(IES)

 

Activity Code:

11760

IMPORTERS And EXPORTERS

Activity Code:

5088

COMPUTER PERIPHERALS And ACCESSORIES-WHSLE And MFRS

 
 
BASED ON ACRA'S RECORD S 
1) WHOLESALE OF COMPUTER HARDWARE AND PERIPHERAL EQUIPMENT

BANKERS

 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

BNP PARIBAS

DBS BANK LTD.

 

 

SHAREHOLDERS(S)

 

REDINGTON (INDIA) LIMITED

3,800,000

Company

 

Street :

SPL GUINDY HOUSE 95 MOUNT ROAD, GUINDY

Town:

CHENNAI

Postcode:

600032

Country:

India

 

 

HOLDING COMPANY

 

REDINGTON (INDIA) LIMITED

UF39847E

100%

 

 

SUBSIDIARY(IES)

 

REDINGTON BANGLADESH LIMITED

 

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

SUFFICIENT

Payments :

REGULAR

Trend :

LEVEL

Financial Situation:

AVERAGE

 

 

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

USD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

07/08/2008

 

 

Balance Sheet Date:

31/03/2008

31/03/2007

31/03/2006

Number of weeks:

52

52

52

Consolidation Code:

CONSOLIDATED

CONSOLIDATED

CONSOLIDATED

 

--- ASSETS

 

Tangible Fixed Assets:

6,440

15,514

17,475

Total Fixed Assets:

6,440

15,514

17,475

Inventories:

5,543,459

3,705,446

13,619,497

Receivables:

19,245,245

15,497,940

24,675,939

Cash,Banks, Securitis:

2,819,853

1,182,101

581,699

Other current assets:

780,477

1,434,972

4,711,494

Total Current Assets:

28,389,034

21,820,459

43,588,629

TOTAL ASSETS:

28,395,474

21,835,973

43,606,104

--- LIABILITIES

 

 

 

Equity capital:

4,000,000

4,000,000

4,000,000

Reserves:

-2,519

48

 

Profit & lost Account:

2,487,652

1,429,872

860,892

Total Equity:

6,485,133

5,429,920

4,860,892

Trade Creditors:

16,231,538

12,754,702

34,685,573

Advanced payments:

1,047,132

895,643

674,623

Provisions:

236,762

87,474

205,326

Other Short term Liab.:

3,193,903

1,759,144

2,405,318

Total short term Liab.:

21,910,341

16,406,053

38,745,212

Prepay. & Def. charges:

1,201,006

909,090

774,372

TOTAL LIABILITIES:

21,910,341

16,406,053

38,745,212

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

158,825,051

173,651,035

232,149,474

Gross Profit:

4,087,021

3,346,953

3,543,848

Results of Ord Ops:

 

 

1,240,466

NET RESULT BEFORE TAX:

1,336,275

765,948

1,066,306

Tax :

278,495

196,968

205,414

Net income/loss year:

1,057,780

568,980

860,892

Interest Paid:

194,340

326,978

174,160

Depreciation:

13,016

11,590

14,749

Directors Emoluments:

828,274

594,797

483,718

Purchases,Sces & Other Goods:

154,738,030

170,304,082

228,605,626

Wages and Salaries:

900,019

993,166

856,429

Financial Income:

48,987

50,084

80,296

 

 

 

 

 

RATIOS

 

Date Account Lodged:

31/03/2008

31/03/2007

31/03/2006

Turnover per employee:

7941252.55

8682551.75

11607473.7

Net result / Turnover(%):

0.01

0

0

Fin. Charges / Turnover(%):

0

0

0

Stock / Turnover(%):

0.03

0.02

0.06

Net Margin(%):

0.67

0.33

0.37

Return on Equity(%):

16.31

10.48

17.71

Return on Assets(%):

3.73

2.61

1.97

Net Working capital:

6478693

5414406

4843417

Cash Ratio:

0.13

0.07

0.02

Quick Ratio:

1.01

1.02

0.65

Current ratio:

1.3

1.33

1.13

Receivables Turnover:

43.62

32.13

38.27

Leverage Ratio:

3.38

3.02

 

 
 
 
 

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 GROUP WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:                                                        
                                                                      
                                                                      
NET WORTH:
THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY  19.43% TO US$6,485,133 (2007: US$5,429,920). THIS WAS ATTRIBUTED TO A RISE IN ACCUMULATED PROFITS BY 73.98% TO US$2,487,652 IN 2008 FROM US$1,428,872 IN 2007.
 
                                                                      
LEVERAGE:                                                             
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 74.08% (2007: 77.74%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$16,231,538 (2007: US$12,754,702). TRADE CREDITORS CONSISTED OF THE FOLLOWING:                                           
                                                                      
TRADE PAYABLES:                                                       
*  EXTERNAL PARTIES - 2008: US$15,436,188 (2007: US$11,859,570)       
*  HOLDING COMPANY - 2008: US$2,100 (2007: US$64,810)
*  TRUST RECEIPTS  - 2008: US$793,250 (2007: US$830,322)              
                                                                      
                                                                      
IN ALL, LEVERAGE RATIO ROSE FROM 3.02 TIMES IN 2007 TO 3.38 TIMES IN  2008 INDICATING THAT THE COMPANY'S LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.                                      
                                                                      
                                                                      
LIQUIDITY:                                                            
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS CONSIDERED PASSABLE AS SEEN FROM NET WORKING CAPITAL AND LIQUIDITY RATIOS. NET WORKING CAPITAL INCREASED BY 19.66% FROM US$5,414,406 IN 2007 TO US$6,478,693 IN 2008.
 
ON THE OTHER HAND, BOTH CURRENT AND QUICK RATIOS POSTED LOWER BUT SUFFICIENT TO 1.30 TIMES (2007: 1.33 TIMES) AND 1.01 TIMES (2007: 1.02 TIMES) RESPECTIVELY.                                                  
                                                                      
CASH AND CASH EQUIVALENTS ROSE BY 1.39 TIMES FROM US$1,182,101 IN 2007 TO US$2,819,853 IN 2008. BREAKDOWN WAS AS FOLLOWS:                    
                                                                      
*  FIXED DEPOSITS - 2008: US$1,854,043 (2007: US$48,574)              
*  CASH AND BANK BALANCES - 2008: US$965,810 (2007: US$1,133,527)
        
                                                              
PROFITABILITY:                                                        
SUBJECT POSTED A DECREASE IN REVENUE OF 8.54% WHICH AMOUNTED TO US$158,825,051 (2006: US$173,651,035). HOWEVER,  NET PROFIT ROSE BY 85.91% WHICH AMOUNTED TO US$1,057,780 (2006: US$568,980). AS A RESULT, NET MARGIN ROSE TO  0.67% (2007: 0.33%).                              
                                                                      
                                                                      
DEBT SERVICING:
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.      
                                                                      
IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 44 DAYS (2007: 32 DAYS).
                                                                      
                                                                      
NOTES TO FINANCIAL STATEMENTS:                                        
*  CONTINGENT LIABILITIES:                                            
THE GROUP HAD THE FOLLOWING CONTINGENT LIABILITIES AS AT FINANCIAL
YEAR END:                                                             
                                                                      
BILLS DISCOUNTED - 2008: NIL (2007: US$99,880)

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 28/03/2005 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "REDINGTON DISTRIBUTION PTE. LTD.".AS AT 01/12/2008, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF      3,800,000 SHARES OF A VALUE OF US$4,000,000.                          
                                                                                                                                       
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1) WHOLESALE OF COMPUTER HARDWARE AND PERIPHERAL EQUIPMENT
 
 
SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: COMPUTER PERIPHERALS AND ACCESSORIES - WHOLESALERS AND MANUFACTURERS.
 
 
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THAT OF A GENERAL MERCHANT AND IMPORTER AND EXPORTER OF COMPUTERS, COMPUTER PERIPHERALS AND COMPONENTS. THE PRINCIPAL ACTIVITIES OF THE SUBSIDIARY COMPANY ARE MARKETING, SELLING AND MAINTENANCE OF COMPUTER HARDWARE, ACCESSORIES AND SPARE PARTS.
                                                                 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:                                                                                                                                                           
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:
* TRADING OF COMPUTER PERIPHERALS AND RELATED ACCESSORIES, ELECTRONIC 
  COMPONENTS                                                          
                                                                      
                                                                      
TRADE NAMES:
* HEWLETT PACKARD                                                     
* NEC                                                                 
* CANNON                                                              
* COMPAQ                                                              
* INTEL
* CISCO SYSTEMS                                                       
* EMC                                                                 
* APC                                                                 
* SYSTIMAX                                                            
* SEAGATE
* HITACHI                                                             
                                                                      
         

                                                             
TARGET MARKET:                                                        
SOUTHEAST ASIAN MARKET INCLUDING:
* INDIA                                                               
* BANGLADESH                                                          
* SRI LANKA
 
SUBJECT'S CUSTOMERS INCLUDE LARGE OEM'S, RESELLERS, ASSEMBLERS, CALL  
CENTER / BPO'S AND ISP'S WHO QUALIFY FOR DUTY FREE IMPORTS.           
                                                                      
                                                                    
SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY:
* SINGAPORE BUSINESS FEDERATION                                       
                                                                                                                                
NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL
                                                                      
                                                                      
NUMBER OF EMPLOYEES:                                                  
*  20 - ( AS OF 2006)
                                                                      
 
THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF REDINGTON (INDIA) LIMITED,
A COMPANY INCORPORATED IN INDIA.
 
 
REGISTERED AND BUSINESS ADDRESS:                                      
39 ROBINSON ROAD                                                      
#09-04                                                                
SINGAPORE 068911                                                      
DATE OF CHANGE OF ADDRESS: 25/06/2007
- RENTED PREMISE                                                      
- PREMISE OWNED BY: HSBC INSTITUTIONAL TRUST SERVICES (S) LTD AS      
                    TRUSTEE OF CAPITACOMMERCIAL TRUST                 
                                                                      
WEBSITE:
* http://www.redingtonindia.com (PARENT COMPANY'S WEBSITE)            
* http://www.redingtonindia.com/sg/index.asp                          
EMAIL: -

 

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:                         
                                                                      
1) RANGAREDDY JAYACHANDRAN, A SINGAPOREAN                             
   - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE            
     KEWALRAM SINGAPORE LIMITED
     KEWALRAM REALTY LTD                                              
     CADENSWORTH TRADING PTE LTD                                      
     REDINGTON PTE LTD                                                
     OLAM INTERNATIONAL LIMITED                                       
     AQUARIUS INVESTMENT ADVISORS PTE LTD
                                                                      
2) RAMANATHAN SRINIVASAN, A SINGAPORE PERMANENT RESIDENT              
   - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE                       
     REDINGTON PTE LTD                                                
     CADENSWORTH TRADING PTE LTD
                                                                      
3) RAJ SHANKAR, A SINGAPOREAN                                         
   - HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE                          
     REDINGTON PTE LTD

 

 

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.49.22

UK Pound

1

Rs.73.03

Euro

1

Rs.63.14

 

 

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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