MIRA INFORM REPORT

 

 

 

Report Date :

19.12.2008

 

IDENTIFICATION DETAILS

 

Name :

SHIMADZU (ASIA PACIFIC) PTE LTD

 

 

Registered Office :

16 Science Park Drive #01-01 The Pasteur 118227

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

18.10.1989

 

 

Com. Reg. No.:

198904521E

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Importing, Exporting, Buying, Selling, Repairing and Dealing in Analytical, Medical and Industrial Goods.             

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Very Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists

 

Subject Company   

 

SHIMADZU (ASIA PACIFIC) PTE LTD

 

 

Line Of Business  

 

IMPORTING, EXPORTING, BUYING, SELLING, REPAIRING AND DEALING IN ANALYTICAL, MEDICAL AND INDUSTRIAL GOODS.             

 

 

Parent Company    

 

SHIMADZU CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100.00%)

 

 

Financial Elements 

 

                                                FY 2007

                                                COMPANY

                                               

Sales                                      : YEN121,120,833,000

Networth                                 : YEN  4,242,257,000

Paid-Up Capital                         : YEN    200,359,000

Net result                                : YEN  1,152,090,000

Net Margin(%)                          :  9.51

Return on Equity(%)                 : 27.16

Leverage Ratio                         :  0.68

 

COMPANY IDENTIFICATION

 

Subject Company :

SHIMADZU (ASIA PACIFIC) PTE LTD

Business Address:

16 SCIENCE PARK DRIVE #01-01 THE PASTEUR

Town:

SINGAPORE

Postcode:

118227

Country:

Singapore

Telephone:

6778 6280

Fax:

6779 2935

ROC Number:

198904521E

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

18/10/1989

Summary year :

31/12/2007

All amounts in this report are in :

JPY

Sales:

12,120,833,000

Networth :

4,242,257,000

Capital:

6,000,000

Paid-Up Capital:

200,359,000

Net result :

1,152,090,000

Share value:

1

 
 

AUDITOR: DELOITTE & TOUCHE LLP                                        
 
BASED ON ACRA'S RECORD 
                                                                      
                                              NO OF SHARE     CURRENCY                AMOUNT
ISSUED ORDINARY                 3,150,000               SGD                         3,150,000.00      
PAID-UP ORDINARY                 -                                           SGD                                       3,150,000.00

 

 

REFERENCES

 

 

Litigation:

YES

Company status :

TRADING

Started :

18/10/1989

 

 

PRINCIPAL(S)

 

TSUGUO KISHDA

G5630494R

Managing Director

 

 

DIRECTOR(S)

 

LEE SIEW JEE JENNIFER

S1336064B

Company Secretary

Appointed on :

28/06/2007

 

Street :

2 ENG KONG ROAD

 

Town:

SINGAPORE

 

Postcode:

599081

 

Country:

Singapore

 

FUMIO TSUJI

TZ0037794

Director

Appointed on :

01/07/2004

 

Street :

6-39-5, MAKAMI-CHO TAKATSUKI CITY

 

Town:

OSAKA PREFECTURE

 

Country:

Japan

 

SHUNJI FUKUI

TE8059874

Director

Appointed on :

01/07/2004

 

Street :

43-4, NAGAO, MOBARA-SHI

 

Town:

CHIBA

 

Country:

Japan

 

TSUGUO KISHDA

G5630494R

Director

Appointed on :

02/10/2001

 

Street :

23 LEONIE HILL #10-03 LEONIE GARDEN

 

Town:

SINGAPORE

 

Postcode:

239224

 

Country:

Singapore

 

YOSHIAKI MASE

TF7844033

Director

Appointed on :

28/06/2007

 

Street :

SHIMADZU CHOFU DORMITORY (B) 304 1-7-16 NISHI TSUTSUJI GAOKA CHOFU CITY

 

Town:

TOKYO

 

Country:

Japan

 

JUN DOMOTO

TG2887769

Director

Appointed on :

28/06/2007

 

Street :

102 TOKYO DOEL-ARS TAMA PLAZA 3-27 SHIN-ISHIKAWA AOBA-KU YOKOHAMA-SHI

 

Town:

KANAGAWA

 

Country:

Japan

 

TSUGUO KISHDA

G5630494R

Managing Director

Appointed on :

02/10/2001

 

Street :

23 LEONIE HILL #10-03 LEONIE GARDEN

 

Town:

SINGAPORE

 

Postcode:

239224

 

Country:

Singapore

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORMER DIRECTOR(S)

 

EIJI SONODA

TG4424705

 

KOJI FURUSAWA

TF1660865

 

HARA TASUKU

L9090744

 

KAWABE YSAUTSUGU

SN2021788

 

KAKINUMA SHIGEMASA

N9091098

 

TAKAGI YASUMITSU

SN9149705

 

JULIANA LOH JOO HUI

S2558149J

 

KEN EMORI

F0377421W

 

TSUNEKAZU MATSUYAMA

MN2477822

 

SHIGEHIKO HATTORI

MN9206672

 

SHIGETSUGU TANAKA

MQ4075811

 

AKIRA NAKAMOTO

TF5044364

 

 

 

ACTIVITY(IES)

Activity Code:

19027

SCIENTIFIC APPARATUS And INSTRUMENTS

Activity Code:

12720

LABORATORY EQUIPMENT And SUPPLIES

Activity Code:

807

ANALYTICAL INSTRUMENTS

Activity Code:

12655

LABORATORIES - ANALYTICAL

Activity Code:

22790

ULTRASONIC EQUIPMENT And SUPPLIES

 

 
BASED ON ACRA'S RECORD 
(1) RESEARCH AND EXPERIMENTAL DEVELOPMENT ON LIFE SCIENCES;           
    RESEARCH & DEVELOPMENT, IMPORT, EXPORT, REPAIR ANALYTICAL, MEDICAL
    & INDUSTRIAL GOODS                                                
(2) HARDWARE CONSULTANCY (INCLUDING SYSTEMS CONSULTANCY)

 

 

BANKERS

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (THE BANK OF TOKYO-MITSUBISHI, LTD)

 

 

SHAREHOLDERS(S)

 

SHIMADZU CORPORATION

3,150,000

Company

 

Street :

1 NISHINOKYO-KUWABARACHO NAKAGYO-KU KYOTO

Postcode:

604-8511

Country:

Japan

 

 

HOLDING COMPANY

 

SHIMADZU CORPORATION

UF02485G

100%

 

 

SUBSIDIARY(IES)

 

SHIMADZU MEDICAL SYSTEMS (OCEANIA) PTY LTD

 

 

SHIMADZU PHILIPPINES CORPORATION

 

 

SHIMADZU SCIENTIFIC INSTRUMENTS (OCEANIA) PTY LTD

 

 

SHIMADZU SINGAPORE PTE LTD

 

 

SHIMADZU MEDICAL (INDIA) PRIVATE LIMITED (F.K.A. SHIMADZU (INDIA) PRIVATE LIMITED)

 

 

SHIMADZU ANALYTICAL (INDIA) PRIVATELIMITED

 

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

SUFFICIENT

Payments :

REGULAR

Trend :

UPWARD

Financial Situation:

GOOD

 

 

 

LITIGATION(S)

 

 

Type Of Case:

Magistrate Court - W/S

Case Number:

MCS017093/2000

Defendant

SHIMADZU (ASIA PACIFIC) PTE LTD

ROC # : 198904521E

 

 

FINANCIAL ELEMENTS

 

 

All amounts in this report are in :

JPY

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

09/07/2008

 

 

Balance Sheet Date:

31/12/2007

31/12/2006

31/12/2005

Number of weeks:

52

52

52

Consolidation Code:

COMPANY

COMPANY

COMPANY

 

--- ASSETS

 

Tangible Fixed Assets:

109,525,000

77,772,000

67,591,000

Investments

295,779,000

295,779,000

181,145,000

Total Fixed Assets:

405,304,000

373,551,000

248,736,000

Inventories:

1,107,550,000

1,024,877,000

716,592,000

Receivables:

2,849,330,000

2,431,674,000

2,400,380,000

Cash,Banks, Securitis:

2,671,845,000

3,031,507,000

2,446,194,000

Other current assets:

78,949,000

60,586,000

106,834,000

Total Current Assets:

6,707,674,000

6,548,644,000

5,670,000,000

TOTAL ASSETS:

7,112,978,000

6,922,195,000

5,918,736,000

--- LIABILITIES

 

 

 

Equity capital:

200,359,000

200,359,000

200,359,000

Profit & lost Account:

4,041,898,000

3,309,808,000

2,536,160,000

Total Equity:

4,242,257,000

3,510,167,000

2,736,519,000

Other long term Liab.:

 

553,000

4,485,000

Total L/T Liabilities:

 

553,000

4,485,000

Trade Creditors:

2,544,786,000

3,122,914,000

2,873,203,000

Short term liabilities:

553,000

2,899,000

5,431,000

Provisions:

250,281,000

221,379,000

207,764,000

Other Short term Liab.:

2,498,000

2,764,000

5,778,000

Total short term Liab.:

2,870,721,000

3,411,475,000

3,177,732,000

Prepay. & Def. charges:

72,603,000

61,519,000

85,556,000

TOTAL LIABILITIES:

2,870,721,000

3,412,028,000

3,182,217,000

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

12,120,833,000

10,787,791,000

8,895,260,000

NET RESULT BEFORE TAX:

1,415,634,000

1,279,498,000

1,156,284,000

Tax :

263,544,000

229,807,000

209,118,000

Net income/loss year:

1,152,090,000

1,049,691,000

947,166,000

Interest Paid:

80,000

328,000

1,177,000

Depreciation:

76,799,000

60,050,000

52,309,000

Dividends:

420,000,000

276,043,000

199,773,000

Directors Emoluments:

13,628,000

11,208,000

10,489,000

Wages and Salaries:

545,544,000

489,660,000

446,748,000

Financial Income:

 

2,128,000

4,530,000

 

RATIOS

 

Date Account Lodged:

31/12/2007

31/12/2006

31/12/2005

Net result / Turnover(%):

0.1

0.1

0.11

Fin. Charges / Turnover(%):

0

0

0

Stock / Turnover(%):

0.09

0.1

0.08

Net Margin(%):

9.51

9.73

10.65

Return on Equity(%):

27.16

29.9

34.61

Return on Assets(%):

16.2

15.16

16

Dividends Coverage:

2.74

3.8

4.74

Net Working capital:

3836953000

3137169000

2492268000

Cash Ratio:

0.93

0.89

0.77

Quick Ratio:

1.92

1.6

1.53

Current ratio:

2.34

1.92

1.78

Receivables Turnover:

84.63

81.15

97.15

Leverage Ratio:

0.68

0.97

 

 
 

 

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 FAIR IN VIEW OF THE FOLLOWING:                                                            
      
                                                                
NET WORTH:                                                            
THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 20.83% FROM YEN3,510,167,000 IN FY 2006 TO YEN4,242,257,000 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF YEN4,041,898,000 (2006: YEN3,309,808,000); A RISE OF 22.12% FROM THE PRIOR FINANCIAL YEAR.
 
                                                                      
LEVERAGE:                                                             
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 88.65% (2006: 91.54%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO YEN2,544,786,000 (2006: YEN3,122,914,000). THE BREAKDOWN IS AS FOLLOWS:                                              
                                                                      
TRADE PAYABLES:                                                       
*  OUTSIDE PARTIES   - 2007: YEN1,228,523,000 (2006: YEN1,248,287,000)
*  HOLDING COMPANY   - 2007: YEN6 650,432,000 (2006: YEN1,421,418,000)
*  RELATED COMPANIES - 2007: YEN  137,184,000 (2006: YEN   57,057,000)
*  SUBSIDIARIES      - 2007: YEN  528,647,000 (2006: YEN  396,152,000)
                                                                      
                                                                      
OVERALL, THE LEVERAGE RATIO HAD IMPROVED TO 0.68 TIMES (2006: 0.97 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.
 
                                                                      
LIQUIDITY:                                                            
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. BOTH CURRENT AND QUICK RATIOS WERE POSTED HIGHER AND SUFFICIENT TO 2.34 TIMES (2006: 1.92 TIMES) AND 1.92 TIMES (2006: 1.60 TIMES) RESPECTIVELY.           
                                                                      
SIMILARLY, NET WORKING CAPITAL IMPROVED BY 22.31% FROM YEN3,137,169,000 IN FY 2006 TO YEN3,836,953,000 IN FY 2007.
 
CASH AND CASH EQUIVALENT FELL BY 11.86% AND AMOUNTED TO YEN2,671845,000 (2006: YEN3,031,507,000); BREAKDOWN WAS AS FOLLOWS:   
                                                                      
*  CASH AT BANK - 2007: YEN2,671,378,000 (2006: YEN3,030,422,000)     
*  CASH ON HAND - 2007: YEN      467,000 (2006: YEN    1,085,000)
          
PROFITABILITY:                                                        
REVENUE POSTED AN INCREASE OF 12.36% FROM YEN10,787,791,000 IN FY 2006
TO YEN12,120,833,000 IN FY 2007. NET PROFIT INCREASED BY 9.76% TO     
YEN1,152,090,000 (2006: YEN1,049,691,000). HENCE, NET MARGIN FELL TO
9.51% (2006: 9.73%).                                                  
       
                                                               

REVENUE:                                                              
*  SALES OF GOODS - 2007: YEN11,913,800,000 (2006: YEN10,519,158,000) 
*  COMMISSION INCOME - 2007: YEN207,033,000 (2006: YEN   268,633,000)
                                                                      
                                                                      
DEBT SERVICING:                                                       
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS 
CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.
                                                                      
IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 85 DAYS 
(2006: 81 DAYS).
 
 
NOTES TO FINANCIAL STATEMENTS                                         
*  CONTINGENT LIABILITIES - UNSECURED:                                
 
BANKERS' GUARANTEES ISSUED IN FAVOUR OF THIRD PARTIES                 
- 2007: YEN43,550,000 (2006: YEN91,424,000)

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON          
18/10/1989 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER          
THE PRESENT NAMESTYLE OF "SHIMADZU (ASIA PACIFIC) PTE LTD".
 
 
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 3,150,000 SHARES, OF A VALUE OF S$3,150,000.                          
                                                                      
                                                                      
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY    
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1) RESEARCH AND EXPERIMENTAL DEVELOPMENT ON LIFE SCIENCES;            
   R&D, IMPORT, EXPORT, REPAIR ANALYTICAL, MEDICAL & INDUSTRIAL GOODS 
2) HARDWARE CONSULTANCY (INCLUDING SYSTEMS CONSULTANCY)
                                                                      
                                                                      
THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE   
CLASSIFICATION OF THE FOLLOWING:                                      
*  MEDICAL EQUIPMENT & SUPPLIES
*  SCALES                                                             
*  SCIENTIFIC APPARATUS & INSTRUMENTS-MFRS & WHSLE                    
*  X-RAY APPARATUS & SUPPLIES
 
 
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES  
OF THE COMPANY ARE IMPORTING, EXPORTING, BUYING, SELLING, REPAIRING   
AND DEALING IN ANALYTICAL, MEDICAL AND INDUSTRIAL GOODS.  
THE COMPANY HAS BRANCHES IN INDIA AND MALAYSIA, WHICH ARE PRINCIPALLY
ENGAGED IN SALES AND PROMOTIONAL ACTIVITIES IN INDIA AND MALAYSIA.    
                                                                      
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
  
                                                                    
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
*  RESEARCH & DEVELOPMENT, SALES & MARKETING OF PRODUCTS IN THE FIELDS
   OF ANALYTICAL, SCIENTIFIC, MEDICAL AND INDUSTRIAL BUSINESSES       
*  INTERNATIONAL PROCUREMENT
*  REGIONAL OFFICE FOR MARKETING OPERATION AND CUSTOMER SUPPORT CENTRE
   IN THE ASIA PACIFIC REGION
 
 
PRODUCTS:                                                             
LABORATORY INSTRUMENTS:                                               
*  LIQUID CHROMATOGRAPH                                               
*  GAS CHROMATOGRAPH                                                  
*  DATA SYSTEMS FOR LC/GC
*  MASS SPECTROMETER SYSTEMS                                          
*  SPECTROSCOPY PRODUCTS                                              
*  TOC ANALYZERS AND WATER QUALITY ANALYZERS                          
*  ENVIRONMENTAL GAS ANALYZERS                                        
*  SURFACE ANALYSIS APPARATUS
*  THERMAL ANALYSIS INSTRUMENTS                                       
*  X-RAY SPECTROSCOPIC APPARATUS                                      
*  X-RAY DIFFRACTOMETER                                               
                                                                      
TESTING & INSPECTION MACHINES:
*  UNIVERSAL TESTING MACHINES                                         
*  FATIGUE TESTING MACHINES                                           
*  HARDNESS TESTER                                                    
*  VISCOSITY & FLOW TESTING INSTRUMENTS                               
*  NON-DESTRUCTIVE INSPECTION MACHINES
*  POWDERS & PARTICLE SIZE ANALYZERS                                  
*  HIGH-SPEED VIDEO CAMERA                                            
                                                                      
BALANCES & SCALES:                                                    
*  DUAL-RANGE SEMI-MICRO BALANCES
*  ANALYTICAL BALANCES                                                
*  TOP-LOADING BALANCES                                               
*  PORTABLE BALANCES                                                  
*  HIGH-PRECISION PLATFORM BALANCES                                   
*  APPLICATION BALANCES
*  ELECTRONIC PRINTER                                                 
                                                                      
MEDICAL SYSTEMS & EQUIPMENT:                                          
*  ANGIOGRAPHY                                                        
*  FLUOROSCOPY
*  MOBILE X-RAY                                                       
*  RADIOGRAPHY                                                        
*  CT                                                                 
*  ULTRASOUND
 
AFTER-SALES SUPPORT AND SERVICES:                                     
*  INSTRUMENT INSTALLATION AND COMMISSIONING                          
*  INSTRUMENT TROUBLESHOOTING                                         
*  INSTALLATION QUALIFICATION AND OPERATIONAL QUALIFICATION (IQOQ)    
*  SERVICE TRAINING (BASIC AND INTERMEDIATE) FOR THE NETWORK OF
 
 
BRANDNAME:                                                            
*  SHIMADZU - MEDICAL EQUIPMENT, SCIENTIFIC INSTRUMENTS & EQUIPMENT,  
              LABORATORY BALANCES
                                                                      
DISTRIBUTORS:                                                         
*  DISTRIBUTOR ADVANCED SERVICE TRAINING                              
*  DISTRIBUTOR IQOQ TRAINING                                          
*  WARRANTY MANAGEMENT
                                                                      
                                                                      
IMPORT COUNTRIES                                                      
*  JAPAN                                                              
*  ETC.
                                                                      
                                                                      
EXPORT COUNTRIES                                                      
*  WORLDWIDE (JAPAN, AUSTRALIA, ETC)
                                                                      
SUBJECT IS A MEMBER OF FOLLOWING ENTITY                               
*  JCCI (JAPANESE CHAMBER OF COMMERCE & INDUSTRY)
 
 
TERMS OF PAYMENT:                                                     
*  TRADE AND OTHER RECEIVABLES: 60 DAYS TERM                          
*  TRADE AND OTHER PAYABLES   : 30 DAYS TERM
 
 
NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL 
                                                                      
                                                                      
THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF SHIMADZU CORPORATION,
INCORPORATED IN JAPAN, WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING   
COMPANY.                                                              
                                                                      
                                                                      
NUMBER OF EMPLOYEES (31 DECEMBER)
*  COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 99;      
             2003: 95; 2002: 94; 2001: 89)
 
 
REGISTERED AND BUSINESS ADDRESS:                                      
16 SCIENCE PARK DRIVE                                                 
#01-01                                                                
THE PASTEUR                                                           
SINGAPORE 118227
DATE OF CHANGE OF ADDRESS: 25/04/1990                                 
- RENTED PREMISE                                                      
- PREMISE OWNED BY: ASCENDAS LAND (SINGAPORE) PTE LTD
      
                                                                
WEBSITE: http://www.shimadzu.com.sg                                   
E-MAIL : sales@shimadzu.com.sg                                        
                   lab@shimadzu.com.sg

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:                         
                                                                      
1) TSUGUO KISHIDA, A JAPANESE                                         
    - BASED IN SINGAPORE
 
2) SHUNJI FUKUI, A JAPANESE                                           
   - BASED IN JAPAN                                                   
                                                                      
3) YOSHIAKI MASE, A JAPANESE                                          
   - BASED IN JAPAN
                                                                      
4) JUN DOMOTO, A JAPANESE                                             
   - BASED IN JAPAN                                                   
                                                                      
5) FUMIO TSUJI, A JAPANESE
   - BASED IN JAPAN

 

 

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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