MIRA INFORM REPORT

 

 

Report Date :

17.12.2008

 

IDENTIFICATION DETAILS

 

Name :

MCCORMICK INGREDIENTS SOUTHEAST ASIA PRIVATE LIMITED

 

 

Formerly Known As :

BOTANICUS PRIVATE LIMITED

 

 

Registered Office :

4 ENTERPRISE ROAD JURONG 629816

 

 

Country :

Singapore

 

 

Financials (as on) :

30.11.2007

 

 

Date of Incorporation :

06.10.1970

 

 

Com. Reg. No.:

197000904G

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

The Sterilisation of Spices and other Botanical Products for Sale,

Sale of Ground and Whole Spices, and Preparation and Processing of

Seasoning, Spices, Batter and Breading and other Food for Sale

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Subject Company   

 

 MCCORMICK INGREDIENTS SOUTHEAST ASIA PRIVATE LIMITED

 

 

Line Of Business  

 

THE STERILISATION OF SPICES AND OTHER BOTANICAL PRODUCTS FOR SALE,

SALE OF GROUND AND WHOLE SPICES, AND PREPARATION AND PROCESSING OF

SEASONING, SPICES, BATTER AND BREADING AND OTHER FOOD FOR SALE

 

 

Parent Company    

 

MCCORMICK & CO. INC

(PERCENTAGE OF SHAREHOLDING: 100%)

 

 

Financial Elements

 

                                     FY 2007

                                    COMPANY

Sales                            : S$30,448,897

Networth                       : S$12,691,038

Paid-Up Capital             : S$4,533,167

Net result                      : S$3,487,696

 

Net Margin(%)               : 11.45

Return on Equity(%)       : 27.48

Leverage Ratio               : 0.25

 

COMPANY IDENTIFICATION

 

Subject Company :

MCCORMICK INGREDIENTS SOUTHEAST ASIA PRIVATE LIMITED

Former Name :

BOTANICUS PRIVATE LIMITED DATE OF CHANGE : 02/04/1992

Business Address:

4 ENTERPRISE ROAD JURONG

Town:

SINGAPORE

Postcode:

629816

Country:

Singapore

Telephone:

6265 3433

Fax:

6265 3378

ROC Number:

197000904G

Easy Number company:

00004509215227

 

 

PREVIOUS IDENTIFICATION

 

BOTANICUS PRIVATE LIMITED DATE OF CHANGE : 02/04/1992

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

06/10/1970

Summary year :

30/11/2007

All amounts in this report are in :

SGD

Sales:

30,448,897

Networth :

12,691,038

Capital:

 

Paid-Up Capital:

4,533,167

Employees:

55

Net result :

3,487,696

Share value:

 

 
AUDITOR : ERNST & YOUNG LLP                                           
                                                                      
BASED ON ACRA'S 
                                              NO. OF SHARES    CURRENCY       AMOUNT             
ISSUED ORDINARY                2,144,000                SGD            4,533,167.26
PAID-UP ORDINARY                -                             SGD            4,533,167.26

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

06/10/1970

 

 

PRINCIPAL(S)

 

LEE HWEI FONG

S2553329A

Director

 

 

DIRECTOR(S)

 

LEE HWEI FONG

S2553329A

Company Secretary

Appointed on :

13/07/1984

 

Street :

22 HOLLAND DRIVE #10-116

 

Town:

SINGAPORE

 

Postcode:

270022

 

Country:

Singapore

 

RUSSELL EVES

E7604289

Director

Appointed on :

01/09/2004

 

Street :

2/53 BAY ROAD

 

Town:

SANDRINGHAM

 

County:

VIC

 

Postcode:

3191

 

Country:

Australia

 

LEE HWEI FONG

S2553329A

Director

Appointed on :

01/09/1995

 

Street :

22 HOLLAND DRIVE #10-116

 

Town:

SINGAPORE

 

Postcode:

270022

 

Country:

Singapore

 

ALAN DALE WILSON

156245226

Director

Appointed on :

01/06/2007

 

Street :

11 DEEP RUN COURT COCKEYSVILLE, MD 21030

 

County:

MD

 

Country:

United States

 

KEITH EDWARD GIBBONS

JU191721

Director

Appointed on :

02/04/2008

 

Street :

51 HAZELDEN GROVE, LONDON N6H 5A1

 

County:

ON

 

Country:

Canada

 

RUSSELL EVES

E7604289

Managing Director

Appointed on :

01/09/2004

 

Street :

2/53 BAY ROAD

 

Town:

SANDRINGHAM

 

County:

VIC

 

Postcode:

3191

 

Country:

Australia

 

 

 

FORMER DIRECTOR(S)

 

ROBERT GORDON DAVEY

VA934586

 

ALBERT F GOETZE III

012154763

 

HECTOR VELOSO

014877194

 

ROBERT CHARLES WILLIAMSON

053069231

 

HOWARD WELLFORD KYMPTON 3

016037736

 

TAPAN KUMAR CHAKRABARTY

G5671799X

 

CHARLES THOMAS LANGMEAD

016623892

 

MARK TAYLOR TIMBIE

017712551

 

 

 

ACTIVITY(IES)

 

Activity Code:

20000

SPICES

Activity Code:

19100

SEASONINGS

 
 

BASED ON ACRA'S RECORD 
1. WHOLESALE OF PEPPER AND OTHER SPICES;                              
   SALE OF GROUND AND WHOLE SPICES, STERILISATION OF SPICES &         
 BOTANICALS FOR SALE                                                
2. MANUFACTURING AND PROCESSING OF SPICES (INCLUDING CURRY POWDER AND SPICE EXTRACTS);                                                   
PREPARATION & PROCESSING OF SEASONING, SPICES, BATTER & BREADING

 

 

PREMISES/PROPERTY INFORMATIONS

 

 

AVAILABLE

Date:

28/02/2008

Tax rate:

10

Site Address :

4 ENTERPRISE ROAD
SINGAPORE
62816
Singapore

Annual Value:

457,000

 

TAX RATE OF 4% MEANS THE ADDRESS IS OWNER OCCUPIED
TAX RATE OF 12% MEANS THE ADDRESS IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER

 

 

BANKERS

 

DBS BANK LTD.

MIZUHO CORPORATE BANK, LTD

 

 

SHAREHOLDERS(S)

 

MCCORMICK & CO. INC

2,144,000

Company

 

Street :

11350 MCCORMICK ROAD HUNT VALLEY

Town:

MARYLAND

Postcode:

21031

Country:

United States

 

 

FORMER SHAREHOLDER(S)

 

STANGE COMPANY

850,001

 

 

MCCORMICK & CO

2,144,000

 

 

 

HOLDING COMPANY

 

MCCORMICK & CO. INC

UF13580C

100%

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

ABUNDANT

Payments :

REGULAR

Trend :

UPWARD

Financial Situation:

AVERAGE

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

SGD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

31/03/2008

 

 

Balance Sheet Date:

30/11/2007

30/11/2006

30/11/2005

Number of weeks:

52

52

52

Consolidation Code:

COMPANY

COMPANY

COMPANY

 

--- ASSETS

 

Preliminary Exp

33,127

18,716

87,394

Tangible Fixed Assets:

589,742

656,433

735,784

Total Fixed Assets:

622,869

675,149

823,178

Inventories:

8,320,517

6,243,600

2,357,865

Receivables:

5,046,855

3,182,555

3,350,977

Cash,Banks, Securitis:

1,781,429

3,710,109

7,750,471

Other current assets:

59,750

179,296

76,642

Total Current Assets:

15,208,551

13,315,560

13,535,955

TOTAL ASSETS:

15,831,420

13,990,709

14,359,133

--- LIABILITIES

 

 

 

Equity capital:

4,533,167

4,533,167

2,144,000

Profit & lost Account:

8,157,871

6,670,175

7,366,781

Surplus equity:

 

 

2,389,167

Total Equity:

12,691,038

11,203,342

11,899,948

Trade Creditors:

672,314

352,356

603,075

Advanced payments:

91,712

114,886

39,464

Provisions:

741,188

645,366

543,616

Other Short term Liab.:

347,598

464,860

176,292

Total short term Liab.:

3,140,382

2,787,367

2,459,185

Prepay. & Def. charges:

1,287,570

1,209,899

1,096,738

TOTAL LIABILITIES:

3,140,382

2,787,367

2,459,185

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

30,448,897

23,623,539

21,659,222

Gross Profit:

7,248,777

6,216,177

5,513,113

NET RESULT BEFORE TAX:

4,239,291

3,638,149

2,690,332

Tax :

751,595

717,240

414,686

Net income/loss year:

3,487,696

2,920,909

2,275,646

Depreciation:

147,069

154,045

166,511

Dividends:

2,000,000

3,617,515

290,000

Directors Emoluments:

317,593

266,022

268,114

Purchases,Sces & Other Goods:

23,200,120

17,407,362

16,146,109

Wages and Salaries:

3,073,744

3,153,657

2,849,494

Financial Income:

96,299

209,032

49,167

 

RATIOS

 

Date Account Lodged:

30/11/2007

30/11/2006

30/11/2005

Turnover per employee:

553616.31

429518.89

393804.04

Net result / Turnover(%):

0.11

0.12

0.11

Stock / Turnover(%):

0.27

0.26

0.11

Net Margin(%):

11.45

12.36

10.51

Return on Equity(%):

27.48

26.07

19.12

Return on Assets(%):

22.03

20.88

15.85

Dividends Coverage:

1.74

0.81

7.85

Net Working capital:

12068169

10528193

11076770

Cash Ratio:

0.57

1.33

3.15

Quick Ratio:

2.17

2.47

4.51

Current ratio:

4.84

4.78

5.5

Receivables Turnover:

59.67

48.5

55.7

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 CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:                                                        
                                                                      
NET WORTH:                                                            
THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH RISING BY 13.28% FROM S$11,203,342 IN FY 2006 TO S$12,691,038 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$8,157,871 (2006:S$S$6,670,175); A RISE OF 13.28% FROM THE PRIOR FINANCIAL YEAR.       
                                                                      
LEVERAGE:
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY ACCRUALS WHICH MADE UP 41.00% (2006: 43.41%%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,287,570 (2006: S$S$1,209,899). THE BREAKDOWN IS AS FOLLOWS:                                                           
-ACCRUED OPERATING EXPENSES - 2007: S$1,287,570 (2006: S$S$1,209,899)
                                                                      
IN ALL, LEVERAGE RATIO REMAIN STABLE AT 0.25 TIMES AS A RESULT OF A PROPORTIONATE RISE IN TOTAL LIABILITIES AND TOTAL EQUITY.        
                                                                      
LIQUIDITY:
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS STRONG AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 4.84 TIMES, DOWN FROM 4.78 TIMES AND QUICK RATIO FELL TO 2.17 TIMES FROM 2.47 TIMES IN FY 2006.
 
NET WORKING CAPITAL ROSE BY 14.63% FROM S$10,528,193 IN FY 2006 TO S$12,068,169.                                              
                                                                      
CASH AND CASH EQUIVALENTS COMPRISE OF:                                
-CASH AT BANKS AND IN HAND - 2007: S$1,781,429 (2006: S$810,109)
-SHORT TERM DEPOSITS - 2007: - (2006: S$2,900,000)                    
                                                                      
PROFITABILITY:                                                        
REVENUE POSTED AN INCREASE OF 28.89% FROM S$23,623,539 IN FY 2006 TO S$30,448,897 AND NET PROFIT ROSE BY 19.40% TO S$3,487,696 (2006:S$2,920,909). HENCE, NET MARGIN FELL TO 11.45% (2006: 12.36%).        
                                                                      
DEBT SERVICING:                                                       
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.
                                                                      
NON-CURRENT ASSETS:                                                   
THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:                 
-DEFERRED TAX ASSETS - 2007: S$33,127 (2006: S$18,716)
 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON  06/10/1970 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS  NAMESTYLE AS "BOTANICUS PTE LTD".                                     
                                                                      
SUBSEQUENTLY, ON 02/04/1992, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "MCCORMICK INGREDIENTS SOUTHEAST ASIA PRIVATE LIMITED".  
                                                                      
THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 2,144,,000 SHARES OF VALUE S$4,533,167.26.
 
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY      
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1. WHOLESALE OF PEPPER AND OTHER SPICES                               
   SALE OF GROUND AND WHOLE SPICES, STERILISATION OF SPICES &
   BOTANICALS FOR SALE                                                
2. MANUFACTURE AND PROCESSING OF SPICES (INCLUDING CURRY POWDER AND   
   SPICE EXTRACTS)                                                    
   PREPARATION & PROCESSING OF SEASONING, SPICES, BATTER & BREADING
 
DURING THE FINANCIAL YEAR UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THE STERILISATION OF SPICES AND OTHER BOTANICAL PRODUCTS FOR SALE, SALE OF GROUND AND WHOLE SPICES, AND PREPARATION  AND PROCESSING OF SEASONING, SPICES, BATTER AND BREADING AND OTHER FOOD FOR SALE.
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:       
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* MIXING SPICES
* NATURALLY STERILIZED SPICES, HERBS, FLAVOURINGS, BATTER AND BREADER 
  COATING FOR MEATS AND VEGETABLES, INGREDIENTS FOR PROCESSED MEATS   
* MIXING AND BLENDING OF SEASONINGS, DRY MARINADES AND COATING        
  SYSTEMS, INCLUSIVE OF CUSTOMIZED, MADE-TO-ORDER SERVICES            
* PROVIDES R & D SUPPORT FOR THE ABOVE ACTIVITIES
                                                                      
TERMS OF PAYMENT:                                                     
* TRADE AND OTHER RECEIVABLES: 30 DAYS TERM                           
* TRADE AND OTHER PAYABLES   : 30 DAYS TERM
 
 
SUBJECT IS ALSO A MEMBER OF FOLLOWING ENTITIES:                       
* AMERICAN CHAMBER OF COMMERCE                                        
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:
                                                                      
NUMBER OF EMPLOYEES:                                                  
* 2008: 55                                                            
                                                                      
NO OTHER TRADE INFORMATION IS AVAILABLE.
                                                                      
THE IMMEDIATE AND ULTIMATE HOLDING COMPANY IS MCCORMICK & CO INC,     
WHICH IS INCORPORATED IN THE UNITED STATES OF AMERICA.                
                                                                      
NUMBER OF EMPLOYEES (30 NOVEMBER)
* COMPANY - 2006: NOT AVAILABLE (2005: 51; 2004: 51; 2003: 60;        
            2002: 66)                                                 
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
4 ENTERPRISE ROAD
JURONG                                                                
SINGAPORE 629816                                                      
- OWNED PREMISE                                                       
- DATE OF CHANGE OF ADDRESS: -
 
WEBSITE:                                                              
http://www.mccormick.com                                              
                                                                      
EMAIL:                                                                
Lauren_Foo@mccormick.com

 

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THE REPORT ARE:                          
                                                                      
1) ALAN DALE WILSON, AN AMERICAN                                      
   - BASED IN UNITED STATES OF AMERICA.
 
2) RUSSELL EVES, AN AUSTRALIAN                                        
   - BASED IN AUSTRALIA.                                              
                                                                      
3) KEITH EDWARD GIBBONS, A CANADIAN                                   
   - BASED IN CANADA.
                                                                      
4) LEE HWEI FONG, A SINGAPOREAN                                       
   - HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.

 

 

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.47.33

UK Pound

1

Rs.73.92

Euro

1

Rs.66.69

 

 

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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