MIRA INFORM REPORT

 

 

 

Report Date :

12.12.2008

 

IDENTIFICATION DETAILS

 

Name :

AHARA PTE. LTD.

 

 

Registered Office :

40 Toh Guan Road East #01-68 Enterprise Hub 608582

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

15.09.2004

 

 

Com. Reg. No.:

200411795W

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

General Importers and Exporters and to Provide Engineering Services

 

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   

 

AHARA PTE. LTD.

 

 

Line Of Business    

 

GENERAL IMPORTERS AND EXPORTERS AND TO PROVIDE ENGINEERING SERVICES

 

 

Parent Company    

 

CLAVON ENGINEERING PTE. LTD.

(PERCENTAGE OF SHAREHOLDINGS: 51.00)

 

 

Financial Elements

 

                                    FY 2007

                                    COMPANY                   

Sales                            : S$ 4,556,174

Networth                                   : S$ 1,317,178

Paid-Up Capital                                       : S$   800,000

Net result                      : S$   246,791

 

Net Margin(%)               :  5.42

Return on Equity(%)       : 18.74

Leverage Ratio               :  1.44

 

 

 

COMPANY IDENTIFICATION

 

Subject Company :

AHARA PTE. LTD.

Business Address:

40 TOH GUAN ROAD EAST #01-68 ENTERPRISE HUB

Town:

SINGAPORE

Postcode:

608582

Country:

Singapore

Telephone:

6261 8038

Fax:

6261 8037

ROC Number:

200411795W

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

15/09/2004

Summary year :

31/12/2007

All amounts in this report are in :

SGD

Sales:

4,556,174

Networth :

1,317,178

Capital:

-

Paid-Up Capital:

800,000

Net result :

246,791

Share value:

1

 
 

AUDITOR: YEO YEW SWEE & COMPANY                                       
                                                                      
BASED ON ACRA'S RECORD 
                               NO OF SHARES   CURRENCY               AMOUNT              
ISSUED ORDINARY         800,000           SGD                        800,000.00
PAID-UP ORDINARY           -                  SGD                         800,000.00

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

15/09/2004

 

 

PRINCIPAL(S)

 

KHAW AH LAI

S2548753B

Director

 

 

DIRECTOR(S)

 

CHEAH KIM SOO (MDM)

S1833955B

Company Secretary

Appointed on :

01/05/2007

 

Street :

1 JALAN MEMBINA #21-03 CENTRAL GREEN CONDOMINIUM

 

Town:

SINGAPORE

 

Postcode:

169479

 

Country:

Singapore

 

CHANG CHIN-HUA

S2198598H

Director

Appointed on :

01/06/2008

 

Street :

55B KING'S ROAD

 

Town:

SINGAPORE

 

Postcode:

268175

 

Country:

Singapore

 

KHAW AH LAI

S2548753B

Director

Appointed on :

12/04/2005

 

Street :

55B KING'S ROAD

 

Town:

SINGAPORE

 

Postcode:

268175

 

Country:

Singapore

 

 

 

ACTIVITY(IES)

 

Activity Code:

11760

IMPORTERS And EXPORTERS

Activity Code:

7865

ENGINEERING CONSULTANCY SERVICES

 
 
BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); 
   GENERAL IMPORTERS AND EXPORTERS                                    
2) ENGINEERING ACTIVITIES; ENGINEERING SERVICES

 

 

SHAREHOLDERS(S)

 

CLAVON ENGINEERING PTE. LTD.

408,000

Company

 

Street :

40 TOH GUAN ROAD EAST #01-68 ENTERPRISE HUB

Town:

SINGAPORE

Postcode:

608582

Country:

Singapore

 

V ALAMELOO

40,000

Private Person

 

Street :

581 WOODLANDS DRIVE 16 #07-496

Town:

SINGAPORE

Postcode:

730581

Country:

Singapore

 

LILY LIM YENG YENG

8,000

Private Person

 

Street :

67 HUME AVENUE #10-08

Town:

SINGAPORE

Postcode:

598744

Country:

Singapore

 

NG POH FAT

344,000

Private Person

 

Street :

67 HUME AVENUE #10-08

Town:

SINGAPORE

Postcode:

598744

Country:

Singapore

 

 

HOLDING COMPANY

 

CLAVON ENGINEERING PTE. LTD.

198403360C

51%

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

SUFFICIeNT

Payments :

REGULAR

Trend :

UPWARD

Financial Situation:

AVERAGE

 

 

FINANCIAL ELEMENTS

 

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

 

Date Account Lodged:

25/06/2008

 

 

Balance Sheet Date:

31/12/2007

31/12/2006

 

Number of weeks:

52

52

 

Consolidation Code:

COMPANY

COMPANY

 

 

--- ASSETS

 

Intangible Fixed Assets:

0

0

 

Tangible Fixed Assets:

37,699

67,265

 

Total Fixed Assets:

37,699

67,265

 

Inventories:

392,190

342,659

 

Receivables:

2,594,886

1,984,097

 

Cash,Banks, Securitis:

177,541

0

 

Other current assets:

6,549

920

 

Total Current Assets:

3,171,166

2,327,676

 

TOTAL ASSETS:

3,208,865

2,394,941

 

--- LIABILITIES

 

 

 

Equity capital:

800,000

800,000

 

Profit & lost Account:

517,178

410,387

 

Total Equity:

1,317,178

1,210,387

 

L/T deffered taxes:

2,118

2,276

 

Other long term Liab.:

18,499

23,169

 

Total L/T Liabilities:

20,617

25,445

 

Trade Creditors:

1,272,397

654,696

 

Short term liabilities:

4,669

4,394

 

Due to Bank:

199,543

83,851

 

Provisions:

23,181

36,365

 

Other Short term Liab.:

257,173

374,051

 

Total short term Liab.:

1,871,070

1,159,109

 

Prepay. & Def. charges:

114,107

5,752

 

TOTAL LIABILITIES:

1,891,687

1,184,554

 

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

4,556,174

3,929,435

 

Gross Profit:

756,892

602,205

 

NET RESULT BEFORE TAX:

260,612

278,164

 

Tax :

13,821

49,364

 

Net income/loss year:

246,791

228,800

 

Interest Paid:

1,193

0

 

Depreciation:

21,812

27,291

 

Dividends:

140,000

0

 

Directors Emoluments:

155,526

79,800

 

Purchases,Sces & Other Goods:

3,799,282

3,327,230

 

Financial Income:

432

533

 

 

RATIOS

 

Date Account Lodged:

31/12/2007

31/12/2006

 

Net result / Turnover(%):

0.05

0.06

 

Fin. Charges / Turnover(%):

0

0

 

Stock / Turnover(%):

0.09

0.09

 

Net Margin(%):

5.42

5.82

 

Return on Equity(%):

18.74

18.9

 

Return on Assets(%):

7.69

9.55

 

Dividends Coverage:

1.76

Infinity

 

Net Working capital:

1300096

1168567

 

Cash Ratio:

0.09

0

 

Quick Ratio:

1.48

1.71

 

Current ratio:

1.69

2.01

 

Receivables Turnover:

205.03

181.78

 

Leverage Ratio:

1.44

0.98

 

 

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)

  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 PASSABLE WITH NET WORTH IMPROVED BY 8.82% FROM S$1,210,387 IN FY 2006 TO S$1,317,178 IN FY 2007. THIS WAS  DUE TO HIGHER ACCUMULATED PROFITS OF S$517,178 (2006: S$410,387); A RISE OF 26.02% FROM THE PRIOR FINANCIAL YEAR.                         
                                                                      
LEVERAGE:
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 68.00% (2006: 56.48%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,272,397 (2006: S$654,696). THE BREAKDOWN WAS AS FOLLOWS:                                                              
*PAYABLE TO RELATED PARTIES - 2007: S$136,729 (2006: S$42,088)
*TRADE PAYABLES - 2007: S$1,135,668 (2006: S$612,608)                 
                                                                      
IN ALL, LEVERAGE RATIO INCREASED FROM 0.98 TIMES TO 1.44 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY.                                                 
                                                                      
LIQUIDITY:                                                            
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 11.26% TO S$1,300,096 (2006: S$1,168,567).                                                  
                                                                      
BOTH CURRENT AND QUICK RATIOS DROPPED TO 1.69 TIMES (2006: 2.01 TIMES) AND 1.48 TIMES (2006: 1.71 TIMES) RESPECTIVELY.
                                                                      
PROFITABILITY:                                                        
REVENUE ROSE BY 15.95% FROM S$3,929,435 IN FY 2006 TO S$4,556,174. NET PROFIT ALSO IMPROVED BY 7.86% TO S$246,791 (2006: S$228,800). HOWEVER, NET MARGIN DROPPED TO 5.42% (2006: 5.82%).
                                                                      
DEBT SERVICING:                                                       
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.THE AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 205 DAYS (2006: 182 DAYS).

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON  15/09/2004 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS  PRESENT NAMESTYLE AS "AHARA PTE. LTD.".                               
                                                                      
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 800,000 SHARES, OF A VALUE OF S$800,000.                              
                                                                      
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY    
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); 
   GENERAL IMPORTERS AND EXPORTERS                                    
2) ENGINEERING ACTIVITIES; ENGINEERING SERVICES                       
                                                                      
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: ENGINEERING SERVICES & WORKS.                      
                                                                      
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUSINESS OF GENERAL IMPORTERS AND EXPORTERS AND TO PROVIDE ENGINEERING SERVICES.
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:       
                                                                      
PRODUCTS DEALING:                                                     
* ABRASIVE BLAST CLEANING EQUIPMENT
* ABRASIVES                                                           
* BLASTING ABRASIVES, GRITS, SHOT, ETC
* BLASTING EQUIPMENT: ABRASIVE - GRIT, SHOT, ETC                      
* BLASTING EQUIPMENT: ABRASIVE-GRIT                                   
* BLASTING EQUIPMENT: ABRASIVE-SHOT
* BOOTHS: PAINT SPRAYING
* COATING THICKNESS MEASURING INSTRUMENTS                             
* GUNS: SPRAY PAINTING
* PAINT SPRAYING GUNS                                                 
* SPRAY PAINTING BOOTHS                                               
* SPRAY PAINTING GUNS                                                 
* SPRAYING EQUIPMENT: PAINT
 
EXPORT COUNTRIES:                                                     
* SINGAPORE                                                           
* MALAYSIA                                                            
* INDONESIA                                                           
* INDIA
* PHILIPPINES                                                         
* VIETNAM                                                             
* KAZAKHSTN                                                           
                                                                      
NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL 
                                                                      
IT IS A SUBSIDIARY COMPANY OF CLAVON ENGINEERING PTE. LTD., INCORPORATED IN THE REPUBLIC OF SINGAPORE. CLAVON ENGINEERING PTE LTD. IS THE ULTIMATE HOLDING COMPANY.
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
40 TOH GUAN ROAD EAST                                                 
#01-68                                                                
ENTERPRISE HUB
SINGAPORE 608582                                                      
DATE OF CHANGE OF ADDRESS: 26/10/2005                                 
- RENTED PREMISE                                                      
- PREMISE OWNED BY: CLAVON ENGINEERING PTE LTD
 
WEBSITE:                                                              
-                                                                     
                                                                      
EMAIL:                                                                
ahara@singnet.com.sg

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:                         
                                                                      
1) CHANG CHIN-HUA, A SINGAPOREAN                                      
   - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:           
     CLAVON ENGINEERING PTE. LTD.
                                                                      
2) KHAW AH LAI, A SINGAPORE PERMANENT RESIDENT                        
   - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:           
     CLAVON ENGINEERING PTE. LTD.                                     
     ABRASIVE ENGINEERING 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.48.71

UK Pound

1

Rs.72.85

Euro

1

Rs.64.70

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions