MIRA INFORM REPORT

 

 

 

Report Date :

18.12.2008

 

IDENTIFICATION DETAILS

 

Name :

INTER-CONTINENTAL OILS & FATS PTE LTD

 

 

Registered Office :

150 Beach Road #16-01 Gateway West

 

 

Country :

Singapore

 

 

Financials (as on) :

30.06.2006

 

 

Date of Incorporation :

16.05.2002

 

 

Com. Reg. No.:

200204156N

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Trading of Palm Oil, Palm Related Commodities and Soft Oils.

 

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   

 

INTER-CONTINENTAL OILS & FATS PTE LTD

 

 

Line Of Business   

 
TRADING OF PALM OIL, PALM RELATED COMMODITIES AND SOFT OILS.

 

 

Parent Company    

 

MUSIM MAS HOLDINGS PTE. LTD.

PERCENTAGE OF SHAREHOLDING: 100.00%)

 

 

Financial Elements 

 

                                              FY 2006

                                              COMPANY

                                               

Sales                                      : US$628,892,615

Networth                                 : US$ 16,204,188

Paid-Up Capital                         : US$ 5,632,746

Net result                                : US$ 3,337,917

Net Margin(%)                          :  0.53

Return on Equity(%)                 : 20.60

Leverage Ratio                         :  2.41

 

 

company identification

 

Subject Company :

INTER-CONTINENTAL OILS & FATS PTE. LTD.

Business Address:

150 BEACH ROAD #16-01 GATEWAY WEST

Town:

SINGAPORE

Postcode:

189720

Country:

Singapore

Telephone:

6353 6563

Fax:

6259 5613/62994590

ROC Number:

200204156N

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

16/05/2002

Summary year :

30/06/2006

All amounts in this report are in :

USD

Sales:

628,892,615

Networth :

16,204,188

Paid-Up Capital:

5,632,746

Employees:

70

Net result :

3,337,917

 
 
 

AUDITOR 

 
PRICEWATERHOUSECOOPERS                                      
                             
                                         

BASED ON ACRA'S RECORD 

 
                                              NO OF SHARES   CURRENCY               AMOUNT              
ISSUED ORDINARY                16,667,487               SGD                        16,667,487.00
PAID-UP ORDINARY                -                             SGD                       16,667,487.00

              

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

16/05/2002

 

 

PRINCIPAL(S)

 

NG SIEW MOI

S1633151A

Director

 

 

DIRECTOR(S)

 

CHO FORM PO

S7367687H

Company Secretary

Appointed on :

25/03/2008

 

Street :

202 YISHUN STREET 21 #04-87

 

Town:

SINGAPORE

 

Postcode:

760202

 

Country:

Singapore

 

LIN MOI HEYANG

S2750922C

Company Secretary

Appointed on :

01/09/2007

 

Street :

210 ANG MO KIO AVENUE 3 #07-1614

 

Town:

SINGAPORE

 

Postcode:

560210

 

Country:

Singapore

 

NG SIEW MOI

S1633151A

Director

Appointed on :

05/12/2007

 

Street :

25 MARGOLIOUTH ROAD MARGOLIOUTH VILLAS

 

Town:

SINGAPORE

 

Postcode:

258551

 

Country:

Singapore

 

 

 

FORMER DIRECTOR(S)

 

CHAN CHEOW HIONG

S1591659A

 

UNG CHIEW HWA

S2560290J

 

CHAN TAK YEE HELEN

S2593629I

 

NG SIEW KUAN

S1414237A

 

 

 

ACTIVITY(IES)

 

Activity Code:

22190

TRADING COMPANIES

Activity Code:

4990

COMMISSION MERCHANTS

Activity Code:

15870

PALM OIL

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

 

 

CHARGES

 

 

AVAILABLE

Date:

12/06/2006

Amount:

0

Comments :

 
CHARGE NO: C200603754                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: DBS BANK LTD.

 

 

 

AVAILABLE

Date:

28/11/2005

Amount:

0

Comments :

 
CHARGE NO: C200507389                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: HSH NORDBANK AG

 

 

 

NOT AVAILABLE

Date:

06/09/2005

Amount:

0

Comments :

 
CHARGE NO: C200505354 (DISCHARGED)                                    
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: BNP PARIBAS

 

 

 

AVAILABLE

Date:

25/05/2004

Amount:

0

Comments :

 
CHARGE NO: C200402533                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: ING BANK N.V.

 

 

 

AVAILABLE

Date:

23/03/2004

Amount:

0

Comments :

 
CHARGE NO: C200401379                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: FORTIS BANK S.A./N.V.

 

 

 

AVAILABLE

Date:

27/04/2007

Amount:

0

Comments :

 
CHARGE NO: C200703150                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

 

 

 

AVAILABLE

Date:

23/05/2007

Amount:

0

Comments :

 
CHARGE NO: C200703846                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK

 

 

 

AVAILABLE

Date:

25/02/2008

Amount:

0

Comments :

 
CHARGE NO: C200801932                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWNING                            
CHARGEE: HSH NORDBANK AG

 

 

 

AVAILABLE

Date:

18/02/2003

Amount:

0

Comments :

 
CHARGE NO : C200300636,C200300618                                     
AMOUNT SECURED : 0.00 AND ALL MONIES OWING                            
CHARGEE : FORTIS BANK S.A/N.V.

 

 

 

NOT AVAILABLE

Date:

31/07/2003

Amount:

10,000,000

Comments :

 
CHARGE NO : C200303663 (DISCHARGED)                                   
AMOUNT SECURED : USD10000000.00                                       
CHARGEE : RAIFFEISEN ZENTRALBANK OESTRREICH AKTIENGESELLSCHAFT

 

 

 

NOT AVAILABLE

Date:

30/01/2003

Amount:

0

Comments :

 
CHARGE NO : C200300282 (DISCHARGED)                                   
AMOUNT SECURED : 0.00 AND ALL MONIES OWING                            
CHARGEE : COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A

 

 

BANKERS

 

FORTIS BANK S.A./N.V.

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B A

RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT

ING BANK N.V.

DBS BANK LTD.

HSH NORDBANK AG

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

AMERICAN EXPRESS BANK LTD

 

 

SHAREHOLDERS(S)

 

MUSIM MAS HOLDINGS PTE. LTD.

16,667,487

Company

 

Street :

8 CROSS STREET #11-00 PWC BUILDING

Town:

SINGAPORE

Postcode:

048424

Country:

Singapore

 

 

FORMER SHAREHOLDER(S)

 

NG SIEW KUAN

1

 

 

CHAN CHEOW HIONG

1

 

 

UNITED RESOURCES HOLDING INC.

10,000,000

 

 

HOLDING COMPANY

 

MUSIM MAS HOLDINGS PTE. LTD.

200703094K

100%

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

SUFFICIENT

Payments :

REGULAR

Trend :

UPWARD

Financial Situation:

AVERAGE

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

USD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

 

Date Account Lodged:

16/01/2007

 

 

Balance Sheet Date:

30/06/2006

30/06/2005

 

Number of weeks:

52

52

 

Consolidation Code:

COMPANY

COMPANY

 

 

--- ASSETS

 

Tangible Fixed Assets:

316,492

201,245

 

Total Fixed Assets:

316,492

201,245

 

Receivables:

1,299,442

455,866

 

Short Term Fin. Assets:

45,063,718

40,276,251

 

Cash,Banks, Securitis:

8,331,407

8,122,458

 

Other current assets:

181,132

457,357

 

Total Current Assets:

54,875,699

49,311,932

 

TOTAL ASSETS:

55,192,191

49,513,177

 

--- LIABILITIES

 

 

 

Equity capital:

5,632,746

5,632,746

 

Profit & lost Account:

10,571,442

7,233,525

 

Total Equity:

16,204,188

12,866,271

 

Trade Creditors:

13,666,461

24,559,677

 

Due to Bank:

24,537,895

11,567,751

 

Provisions:

546,099

396,212

 

Other Short term Liab.:

104,079

0

 

Total short term Liab.:

38,988,003

36,646,906

 

Prepay. & Def. charges:

133,469

123,266

 

TOTAL LIABILITIES:

38,988,003

36,646,906

 

 

 

PROFIT & LOSS ACCOUNT                   

 

Net Sales

628,892,615

627,714,649

 

Gross Profit:

10,999,309

10,236,791

 

NET RESULT BEFORE TAX:

3,745,484

2,284,394

 

Tax :

407,567

299,451

 

Net income/loss year:

3,337,917

1,984,943

 

Interest Paid:

583,234

360,918

 

Depreciation:

108,417

62,402

 

Directors Emoluments:

121,280

170,935

 

Purchases,Sces & Other Goods:

617,893,306

617,477,858

 

Wages and Salaries:

1,360,123

800,140

 

Financial Income:

212,303

90,965

 

 

 

RATIOS

 

Date Account Lodged:

30/06/2006

30/06/2005

 

Turnover per employee:

8984180.21

8967352.13

 

Net result / Turnover(%):

0.01

0

 

Fin. Charges / Turnover(%):

0

0

 

Net Margin(%):

0.53

0.32

 

Return on Equity(%):

20.6

15.43

 

Return on Assets(%):

6.05

4.01

 

Net Working capital:

15887696

12665026

 

Cash Ratio:

0.21

0.22

 

Quick Ratio:

0.25

0.23

 

Current ratio:

1.41

1.35

 

Receivables Turnover:

0.74

0.26

 

Leverage Ratio:

2.41

2.85

 

 

 

Net Margin          : (100*Net income loss year)/Net sales 

Return on Equity                                 : (100*Net income loss year)/Total equity

Return on Assets                                : (100*Net income loss year)/Total fixed assets

Net Working capital                            : (Total current assets/Total short term liabilities)/1000

Cash Ratio            : Cash Bank securities/Total short term liabilities

Quick Ratio           : (Cash Bank securities + Receivables)/Total Short term liabilities

Current ratio         : Total current assets/Total short term liabilities

Inventory Turnover                               : (360*Inventories)/Net sales 

Receivables Turnover                         : (Receivable*360)/Net sales 

Leverage Ratio                                    : Total liabilities/(Total equity-Intangible assets)

 

 

FINANCIAL COMMENTS

 

THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW   OF THE FOLLOWING:                                                     

                                                                      
                                                                      
NET WORTH:
THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING BY 25.94%   AMOUNTING TO USD16,204,188 (2005: USD12,866,271). THIS WAS DUE TO HIGHER RETAINED EARNINGS BROUGHT FORWARD OF USD10,571,442  (2005: USD7,233,525).
                                                                     
LEVERAGE:                                                            

THE LEVERAGE RATIO HAD IMPROVED TO 2.41 TIMES (2005: 2.85 TIMES),  INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.

                                                                      
IN THE SHORT TERM, TRADE CREDITORS DECREASED BY 44.35%, AMOUNTING TO  USD13,666,461 (2005: USD24,559,677). AMOUNT DUE TO BANKS IN THE FORM 

OF TRUST RECEIPTS OF USD24,537,895 (2005: USD11,567,751) ARE SECURED  BY THE PLEDGED OF GOODS PURCHASED BY THE COMPANY.

 
                                                                      
LIQUIDITY:                                                           

THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY. NET WORKING CAPITAL REGISTERED HIGHER AT USD15,887,696 (2005: USD12,665,026). ON THE OTHER HAND, THE QUICK RATIO WAS LACKING AT 0.25 TIMES (2005:    0.23 TIMES) WHILE THE CURRENT RATIO WAS SUFFICIENT AT 1.41 TIMES  (2005: 1.35 TIMES).

 
PROFITABILITY:                                                        
REVENUE FOR FY2006 IMPROVED MARGINALLY BY 0.19%, AMOUNTING TO USD628,892,615 (2005: USD627,714,649). NET INCOME SURGED BY 68.16%, ACCOUNTING FOR USD3,337,917 (2005: USD1,984,943). THUS, NET MARGIN STOOD HIGHER AT 0.53% (2005: 0.32%).                 
                                                                      
DEBT SERVICING:                                                       
DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT NET WORKING CAPITAL, IMPROVED REVENUES AND NET INCOMES, AND IF TRADE RECEIVABLES WERE FORTHCOMING.

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 16/05/2002 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "INTER-CONTINENTAL OILS & FATS PTE. LTD.".
 
AS AT 04/08/2008, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 16,667,487 SHARES OF A VALUE OF S$16,667,487.                         
    

                                                                  
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)  
 
2) WHOLESALE ON A FEE CONTRACT BASIS (EG COMMISSION AGENCIES)
                                                                      
SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: IMPORTERS & EXPORTERS.
 
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TRADING OF PALM OIL, PALM RELATED COMMODITIES AND SOFT  OILS.
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:       
                                                                              
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:
 
* IMPORT AND EXPORT OF PETROLEUM AND RELATED PRODUCTS                 
                                                                    
PRODUCTS:                                                             
* TOILET SOAPS
* LAUNDRY SOAPS                                                       
* TOILET & LAUNDRY SOAP CHIPS                                         
* MARGARINE                                                           
* SHORTENING                                                          
* PURE VEGETABLE GHEE
* GLYCERINE                                                           
                                                                     
EXPORT COUNTRIES:                                                     
* MAINLY TO THE INDIA CONTINENTAL
* OTHERS: AFRICA ETC.                                                 
                                                                   
BRANDS:                                                               
* HARMONY
* LARK                                                                
* LIESEL BOTANICAL                                                    
* MEDICARE
 

FROM THE TELE-INTERVIEW CONDUCTED, SUBJECT CONFIRMED ITS BUSINESS ADDRESSAND CONTACT NUMBERS. SUBJECT ALSO REVEALED THAT THEY HAVE ABOUT 70 EMPLOYEES. FURTHER ENQUIRIES WERE REJECTED. NO OTHER TRADE INFORMATION WAS AVAILABLE

 

THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING CORPORATION IS UNITED  RESOURCES HOLDINGS INC, INCORPORATED IN THE BRITISH VIRGIN ISLANDS.

 
REGISTERED ADDRESS:                                                   
150 BEACH ROAD                                                        
#16-04                                                                
GATEWAY WEST                                                          
SINGAPORE 189720
DATE OF CHANGE OF ADDRESS: 31/03/2004                                 
- PROPERTY RECORD WAS NOT AVAILBLE                                    
 
BUSINESS ADDRESS:                                                     
150 BEACH ROAD
#16-01                                                                
GATEWAY WEST                                                          
SINGAPORE 189720                                                      
- PROPERTY RECORD WAS NOT AVAILABLE                                   
- TEL NO: 6353 9041 (INCORRECT)
- FAX NO: 6259 5613                                                   
WEBSITE: -                                                            
EMAIL : general@icof.com.sg

 

 

MANAGEMENT

 

THE DIRECTOR AT THE TIME OF THIS REPORT IS:                           
                                                                      
1) NG SIEW MOI, A SINGAPOREAN                                         
   - HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE  MUSIM MAS HOLDINGS 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.47.08

UK Pound

1

Rs.71.17

Euro

1

Rs.66.98

 

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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