MIRA INFORM REPORT

 

 

 

Report Date :

12.12.2008

 

IDENTIFICATION DETAILS

 

Name :

DINOWIC PTE LTD

 

 

Registered Office :

5 Shenton Way #19-08 Uic Building 068808

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2005

 

 

Date of Incorporation :

01.11.1997

 

 

Com. Reg. No.:

199707495K

 

 

Legal Form :

Exempt Pte Ltd

 

 

Line of Business :

Trading in Stainless Steel

 

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  

 

 DINOWIC PTE LTD

 

 

Line Of Business  

 

TRADING IN STAINLESS STEEL

 

 

Parent Company   

 

 -

 

 

Financial Elements

 

                                     FY 2005

                                    COMPANY

Sales                            : S$127,829,123

Networth                                   : S$5,632,703

Paid-Up Capital                                        : S$5,000,000

Net result                      : S$297,471

 

Net Margin(%)               : 0.23  

Return on Equity(%)       : 5.28

Leverage Ratio               : 1.95   

 

Based on the with the Accounting and Corporate Regulatory Authority (ACRA), the paid-up share capital has increased to S$10,000,000.

 

 

COMPANY IDENTIFICATION

 

Subject Company :

DINOWIC PTE LTD

Business Address:

5 SHENTON WAY #19-08 UIC BUILDING

Town:

SINGAPORE

Postcode:

068808

Country:

Singapore

Telephone:

6226 1191

Fax:

6226 1131

ROC Number:

199707495K

 

 

SUMMARY

 

Legal Form:

Exempt Pte Ltd

Date Inc.:

01/11/1997

Summary year :

31/12/2005

All amounts in this report are in :

SGD

Sales:

127,829,123

Networth :

5,632,703

Capital:

5,000,000

Paid-Up Capital:

5,000,000

Employees:

12

Net result :

297,471

Share value:

1

 
 
 
AUDITOR: WU CHIAW CHING & COMPANY                                     
                                                                      
BASED ON ACRA'S RECORD 
                                              NO OF SHARE     CURRENCY                AMOUNT          
ISSUED ORDINARY                10,000,000                SGD                                      10,000,000.00
PAID-UP ORDINARY                 -                             SGD                                      10,000,000.00

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

01/11/1997

 

 

PRINCIPAL(S)

 

DINDAYAL

S2690441B

Director

 

 

DIRECTOR(S)

 

WEE SOON KENG

S0241368Z

Company Secretary

Appointed on :

17/08/2001

 

Street :

69C SHELFORD ROAD WATTEN ESTATE

 

Town:

SINGAPORE

 

Postcode:

288465

 

Country:

Singapore

 

DINDAYAL

S2690441B

Director

Appointed on :

18/11/1997

 

Street :

7 TANJONG RHU ROAD #12-02 THE WATERSIDE

 

Town:

SINGAPORE

 

Postcode:

436887

 

Country:

Singapore

 

NAVNEET DIDWANIA

S7079870J

Director

Appointed on :

05/04/2000

 

Street :

110 TANJONG RHU ROAD #06-05 CAMELOT

 

Town:

SINGAPORE

 

Postcode:

436928

 

Country:

Singapore

 

GOENKA DEEPALI

S7280969F

Director

Appointed on :

29/08/2005

 

Street :

110 TANJONG RHU ROAD #06-05 CAMELOT

 

Town:

SINGAPORE

 

Postcode:

436928

 

Country:

Singapore

 

 

 

ACTIVITY(IES)

Activity Code:

11320

HOLDING COMPANIES

Activity Code:

11760

IMPORTERS And EXPORTERS

Activity Code:

20150

STAINLESS STEEL

 

BASED ON ACRA'S RECORD 
1) OTHER INVESTMENT HOLDING COMPANIES                                 
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

 

BANKERS

 

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

THE TORONTO - DOMINION BANK

OVERSEA-CHINESE BANKING CORPORATIONLIMITED

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

DBS BANK LTD.

 

 

SHAREHOLDERS(S)

 

NAVNEET DIDWANIA

8,500,000

Private Person

 

Street :

110 TANJONG RHU ROAD #06-05 CAMELOT

Town:

SINGAPORE

Postcode:

436928

Country:

Singapore

 

GOENKA DEEPALI

1,500,000

Private Person

 

Street :

110 TANJONG RHU ROAD #06-05 CAMELOT

Town:

SINGAPORE

Postcode:

436928

Country:

Singapore

 

 

FORMER SHAREHOLDER(S)

 

DINDAYAL

4,500,000

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

UNKNOWN

Payments :

REGULAR

Trend :

LEVEL

Financial Situation:

UNKNOWN

 

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

SGD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

21/07/2006

 

 

Balance Sheet Date:

31/12/2005

31/12/2004

31/12/2003

Number of weeks:

52

52

52

Consolidation Code:

COMPANY

COMPANY

COMPANY

 

--- ASSETS

 

Tangible Fixed Assets:

11,741

18,742

19,200

Total Fixed Assets:

11,741

18,742

19,200

Inventories:

3,247,276

5,753,688

735,381

Receivables:

9,073,659

7,997,656

3,909,098

Cash,Banks, Securitis:

4,215,536

1,705,705

403,322

Other current assets:

48,603

12,911

12,719

Total Current Assets:

16,585,074

15,469,960

5,060,520

TOTAL ASSETS:

16,596,815

15,488,702

5,079,720

--- LIABILITIES

 

 

 

Equity capital:

5,000,000

5,000,000

2,000,000

Profit & lost Account:

632,703

335,232

90,554

Total Equity:

5,632,703

5,335,232

2,090,554

L/T deffered taxes:

2,348

2,626

0

Total L/T Liabilities:

2,348

2,626

0

Trade Creditors:

7,961,860

8,098,999

2,946,796

Provisions:

71,483

47,495

9,164

Other Short term Liab.:

2,916,212

1,937,896

24,912

Total short term Liab.:

10,961,764

10,150,844

2,989,166

Prepay. & Def. charges:

12,209

66,454

8,294

TOTAL LIABILITIES:

10,964,112

10,153,470

2,989,166

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

127,829,123

92,455,970

18,845,033

Results of Ord Ops:

1,185,012

736,266

95,385

NET RESULT BEFORE TAX:

373,012

294,799

95,385

Tax :

75,541

50,121

9,164

Net income/loss year:

297,471

244,678

86,221

Interest Paid:

812,000

441,467

 

Depreciation:

8,841

8,381

6,400

Directors Emoluments:

151,490

122,040

 

Wages and Salaries:

184,452

143,720

50,868

Financial Income:

20,687

 

 

 

RATIOS

 

Date Account Lodged:

31/12/2005

31/12/2004

31/12/2003

Turnover per employee:

10652426.92

7704664.17

1570419.42

Net result / Turnover(%):

0

0

0

Fin. Charges / Turnover(%):

0.01

0

 

Stock / Turnover(%):

0.03

0.06

0.04

Net Margin(%):

0.23

0.26

0.46

Return on Equity(%):

5.28

4.59

4.12

Return on Assets(%):

1.79

1.58

1.7

Net Working capital:

5623310

5319116

2071354

Cash Ratio:

0.38

0.17

0.13

Quick Ratio:

1.21

0.96

1.44

Current ratio:

1.51

1.52

1.69

Receivables Turnover:

25.55

31.14

74.68

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

 

THE FINANCIAL STATEMENTS FOR THE YEAR 2005 IS OUTDATED.HENCE, THE FINANCIAL COMMENTS WILL NOT BE CONDUCTED. INSTEAD, AN ADVERSE CHECK ON THE DIRECTORS ARE MADE.                  
                                                                      
LIMITED EXEMPT PRIVATE COMPANY:
                                                                      
WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE  BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS KNOWN AS AN EXEMPT PRIVATE COMPANY.AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A   PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS  DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:
1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.                          
                                                                      
2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS      
   AT THE ANNUAL GENERAL MEETING.
3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.                       
                                                                      
THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY.                                                              
                                                                      
A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE  NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.
                                                                      
EXEMPT FROM AUDIT                                                     
AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL     
REQUIRED TO MAINTAIN PROPER ACCOUNTING RECORDS.

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 01/11/1997 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DINOWIC PTE LTD".                           
                                                                      
THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF10,000,000 SHARES OF A VALUE OF S$10,000,000.                         
                                                                      
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) OTHER INVESTMENT HOLDING COMPANIES                                 
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)  
                                                                      

DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF  THE COMPANY CONSIST OF AN INVESTMENT HOLDING COMPANY AND GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS).          
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:       
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:
* TRADING IN STAINLESS STEEL                                    
                                                                      
PRODUCTS DEALINGS:                                                    
* PRIME, SECONDARY AND SCRAP STAINLESS STEEL                          
  AUSTENITIC, FERRITIC AND MARTENSTIC GRADES
* STAINLESS STEEL IN COILS, SHEETS AND PLATES                         
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:
 
THE SUBJECT IS INVOLVED IN THIRD COUNTRIES SHIPMENT WHICH MEANS THAT THE PRODUCTS ARE TRANSPORTED FROM PRODUCING COUNTRIES TO THE CLIENTS'S COUNTRIES.                                                            
                                                                      
THE PRODUCTS ARE NOT TRANSPORTED TO SINGAPORE AND NEITHER IS IT EXPORTED FROM SINGAPORE. THE PRODUCTS ARE NOT SOLD LOCALLY.           
                                                                      
NUMBER OF EMPLOYEES:                                                  
* 2008: 12
 
NO OTHER TRADE INFORMATION IS AVAILABLE 
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
5 SHENTON WAY                                                         
#19-08 UIC BUILDING
SINGAPORE 068808                                                      
- RENTED PREMISE                                                      
- OWNED BY UIC DEVELOPMENT (PTE) LTD                                  
- DATE OF CHANGE OF ADDRESS: 27/08/2007
 
WEBSITE:                                                              
http://www.dinowic.com                                                
                                                                      
EMAIL:                                                                
dinowic@pacific.net.sg

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THE REPORT ARE:                          
                                                                      
1) DINDAYAL, A SINGAPORE PERMANENT RESIDENT                           
   - HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.
 
2) NAVNEET DIDWANIA, A SINGAPORE PERMANENT RESIDENT                   
   - HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.                     
                                                                      
3) GOENKA DEEPALI, A SINGAPORE PERMANENT RESIDENT                     
   - OTHER DIRECTORSHIP(S) IN OUR DATABASE:
     OMNI GROWTH PTE. LTD.

 

ADVERSE ON DIRECTORS

 

DIRECTOR'S NAME: DINDAYAL                                             
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE      
PROPERTY OWNERSHIP: OWNS 1                                            
ANNUAL VALUE: S$91,800                                                
CO-OWNER (S): NAVNEET DIDWANIA
                                                                      
DIRECTOR'S NAME: NAVNEET DIDWANIA                                     
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE      
PROPERTY OWNERSHIP: OWNS 1                                            
ANNUAL VALUE: S$91,800
CO-OWNER (S): DINDAYAL                                                
                                                                      
DIRECTOR'S NAME:  GOENKA DEEPALI                                      
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.

 

 

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