MIRA
INFORM REPORT
|
Report Date : |
05.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
|
|
|
|
Formerly Known As : |
DESIGN STUDIO PTE LTD |
|
|
|
|
Registered Office : |
8 Sungei Kadut Crescent 728682 |
|
|
|
|
Country : |
Singapore |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
05.03.1994 |
|
|
|
|
Com. Reg. No.: |
199401553D |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Product Design, Manufacturer, Renovation and Furnishing of Premium
Lifestyle Furniture And Fittings. |
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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Subject Company
DESIGN STUDIO FURNITURE MANUFACTURER LTD
Line Of Business
PRODUCT DESIGN, MANUFACTURER, RENOVATION AND FURNISHING OF PREMIUM
LIFESTYLE FURNITURE AND FITTINGS.
Parent Company
-
Financial Elements
FY
2007
COMPANY
Sales : S$ 76,424,000
Networth :
S$ 41,388,000
Paid-Up
Capital : S$ 30,111,000
Net result :
S$ 8,755,000
Net Margin(%) : 11.46
Return on Equity(%) : 21.15
Leverage Ratio :
0.71
COMPANY IDENTIFICATION
|
Subject Company : |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
|
Former Name : |
DESIGN STUDIO PTE LTD DATE OF CHANGE OF NAME: 10/12/2002 |
|
Business Address: |
8 SUNGEI KADUT CRESCENT |
|
Town: |
SINGAPORE |
|
Postcode: |
728682 |
|
Country: |
Singapore |
|
Telephone: |
6367 0133 |
|
Fax: |
6366 2612 |
|
ROC Number: |
199401553D |
PREVIOUS IDENTIFICATION
DESIGN STUDIO PTE LTD DATE OF CHANGE OF NAME: 10/12/2002
SUMMARY
|
Legal Form: |
Pub Ltd Co |
|
Date Inc.: |
05/03/1994 |
|
Previous Legal Form: |
Pte Ltd |
|
Summary year : |
31/12/2007 |
|
All amounts in this report are in : |
SGD |
|
Sales: |
76,424,000 |
|
Networth : |
41,388,000 |
|
Capital: |
|
|
Paid-Up Capital: |
30,111,000 |
|
Employees: |
300 |
|
Net result : |
8,755,000 |
|
Share value: |
|
AUDITOR: ERNST & YOUNG LLP AS AT AUTHORISED CAPITAL: 18,000,000.00 V/SHARE: 0.06 SINGAPORE DOLLAR ISSUED ORDINARY : 12,600,000.00 V/SHARE: 0.06 SINGAPORE DOLLARPAID UP ORDINARY : 12,600,000.00 V/SHARE: 0.06 SINGAPORE DOLLAR BASED ON ACRA'S RECORD NO. OF SHARES CURRENCY AMOUNT ISSUED ORDINARY 210,000,000 SGD 13,378,000.00PAID-UP ORDINARY - SGD 13,378,000.00 BASED ON ACRA'S RECORD NO OF SHARES CURRENCY AMOUNT ISSUED ORDINARY 255,125,887 SGD 30,315,983.35PAID-UP ORDINARY - SGD 30,315,983.35
REFERENCES
|
Litigation: |
No |
|
Company status : |
TRADING |
|
Started : |
05/03/1994 |
PRINCIPAL(S)
|
LIM LENG FOO |
S2550888B |
Managing Director |
DIRECTOR(S)
|
LIM BEE LIAN ELIZA |
S1349251D |
Company Secretary |
|
Appointed on : |
18/12/2002 |
|
|
Street : |
32 DOVER ROAD #11-119 |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
130032 |
|
|
Country: |
Singapore |
|
|
NG CHAI CHOEY |
S2617234I |
Company Secretary |
|
Appointed on : |
15/09/2008 |
|
|
Street : |
93 CASHEW ROAD #16-03 CASHEW HEIGHTS
CONDOMINIUM |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
679664 |
|
|
Country: |
Singapore |
|
|
WONG CHEE HERNG |
S7012183B |
Director |
|
Appointed on : |
05/10/1999 |
|
|
Street : |
3A VICTORIA PARK CLOSE VICTORIA PARK |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
266557 |
|
|
Country: |
Singapore |
|
|
SEAH HOU KEE |
S0204464A |
Director |
|
Appointed on : |
20/12/2002 |
|
|
Street : |
67 JALAN LIMAU NIPIS LUCKY HILLS |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
468314 |
|
|
Country: |
Singapore |
|
|
LIM LENG FOO |
S2550888B |
Director |
|
Appointed on : |
05/03/1994 |
|
|
Street : |
13 BEDOK RESERVOIR VIEW #10-01 AQUARIOUS
BY THE PARK |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
478932 |
|
|
Country: |
Singapore |
|
|
TAN SIOK CHIN |
S7007982H |
Director |
|
Appointed on : |
01/01/2006 |
|
|
Street : |
41 EWE BOON ROAD #04-43 CRYSTAL TOWER |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
259335 |
|
|
Country: |
Singapore |
|
|
WONG HONG KEOW ELIN |
S1618911A |
Director |
|
Appointed on : |
15/08/2006 |
|
|
Street : |
28 LORONG 31 GEYLANG #07-02 |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
388038 |
|
|
Country: |
Singapore |
|
|
ONG TIEW SIAM |
S1024985F |
Director |
|
Appointed on : |
01/03/2007 |
|
|
Street : |
1 FRANKEL AVENUE FRANKEL ESTATE |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
458132 |
|
|
Country: |
Singapore |
|
|
NG CHAI CHOEY |
S2617234I |
Director |
|
Appointed on : |
15/09/2008 |
|
|
Street : |
93 CASHEW ROAD #16-03 CASHEW HEIGHTS
CONDOMINIUM |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
679664 |
|
|
Country: |
Singapore |
|
|
MOHANNAD IZZAT SWEID |
001151014 |
Director |
|
Appointed on : |
13/08/2007 |
|
|
Street : |
AL.REEM TOWER, 18TH FLOOR AL MATOUM ST.,
P.O. BOX 56338 |
|
|
Town: |
DUBAI |
|
|
County: |
DU |
|
|
Country: |
United Arab Emirates |
|
|
LIM LENG FOO |
S2550888B |
Managing Director |
|
Appointed on : |
10/03/1994 |
|
|
Street : |
13 BEDOK RESERVOIR VIEW #10-01 AQUARIOUS
BY THE PARK |
|
|
Town: |
SINGAPORE |
|
|
Postcode: |
478932 |
|
|
Country: |
Singapore |
|
FORMER DIRECTOR(S)
|
FAN YEN YEE HERBERT |
S0384423D |
|
|
KOH KAH LIAM |
S1236745G |
|
|
CHAN WENG FITT |
S1403468D |
|
|
NG SENG CHOO |
S1490189B |
|
|
YANG TSE PIN |
S1525470Z |
|
|
THE MUI NGO |
S2176843Z |
|
|
HO KAI HON |
S2554642C |
|
|
LIM LENG FOO |
S2550888B |
|
|
CHOW KOK FONG |
S0170828G |
|
|
TAN CHENG LEONG |
S1112917Z |
|
|
LOO KENNETH |
S2638787F |
|
ACTIVITY(IES)
|
Activity Code: |
5490 |
CONTRACTORS - BUILDING, GENERAL |
|
Activity Code: |
12040 |
INTERIOR DECORATORS And DESIGNERS |
|
Activity Code: |
9930 |
FURNITURE MFRS |
BASED ON ACRA'S RECORD (1) MANUFACTURE OF FURNITURE AND FIXTURES OF WOOD (INCLUDING UPHOLSTERY); MANUFACTURE, IMPORT, EXPORT AND TRADING OF FURNITURE PRODUCTS AND COMPONENTS (2) GENERAL CONTRACTORS (BUILDING CONSTRUCTION INCLUDING MAJOR UPGRADING WORKS); INTERIOR FITTING-OUT WORKS AND GENERAL CONTRACTORSCHARGES
|
|
NOT AVAILABLE |
|
Date: |
12/08/2004 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: C200403953 (DISCHARGED) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: OVERSEA-CHINESE BANKING CORPORATION LTD |
|
|
NOT AVAILABLE |
|
Date: |
14/11/1994 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: 9406597 (DISCHARGED) AMOUNT SECURED: 0.00 AND AND ALL MONIES OWING CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LTD |
|
|
NOT AVAILABLE |
|
Date: |
11/01/1999 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO : 199900097 (DISCHARGED) AMOUNT SECURED : 0.00 AND ALL MONIES OWING CHARGEE [S] : OVERSEA-CHINESE BANKING CORPORATION LTD |
|
|
NOT AVAILABLE |
|
Date: |
16/11/1999 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: 199905028 (DISCHARGED) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE (S): CITIBANK N.A |
|
|
NOT AVAILABLE |
|
Date: |
15/11/2000 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: 200005515 (DISCHARGED) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): MALAYAN BANKING BERHAD |
|
|
AVAILABLE |
|
Date: |
06/08/2001 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: 200103711 AMOUNT SECURED: 0.00 AND AND ALL MONIES OWING CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LTD |
|
|
AVAILABLE |
|
Date: |
16/05/2002 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: 200202236 AMOUNT SECURED: 0.00 AND AND ALL MONIES OWING CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LTD |
|
|
AVAILABLE |
|
Date: |
10/07/2003 |
|
Amount: |
0 |
|
Comments : |
CHARGE NO: C200303198 (DISCHARGED) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): UNITED OVERSEAS BANK LTD |
PREMISES/PROPERTY INFORMATIONS
|
|
AVAILABLE |
|
Date: |
18/09/2008 |
|
Tax rate: |
10 |
|
Site Address : |
8 SUNGEI KADUT CRESCENT |
|
Annual Value: |
638,000 |
TAX RATE OF 4% MEANS THE ADDRESS IS OWNER OCCUPIEDTAX RATE OF 12% MEANS THE ADDRESS IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER
BANKERS
|
OVERSEA-CHINESE BANKING CORPORATIONLIMITED |
|
MALAYAN BANKING BERHAD |
|
UNITED OVERSEAS BANK LIMITED |
ASSOCIATED COMPANY(IES)
|
DDS ASIA HOLDINGS PTE. LTD. |
Singapore |
SHAREHOLDERS(S)
|
STRAITS CONSTRUCTION COMPANY (PRIVATE) LIMITED |
49,475,000 |
Company |
|
Street : |
2 JALAN KILANG BARAT #08-01 PANASONIC BUILDING |
|
Town: |
SINGAPORE |
|
Postcode: |
159346 |
|
Country: |
Singapore |
|
HO KAI HON |
10,050,000 |
Private Person |
|
Street : |
94 KING'S ROAD |
|
Town: |
SINGAPORE |
|
Postcode: |
266468 |
|
Country: |
Singapore |
|
LIM LENG FOO |
22,250,000 |
Private Person |
|
Street : |
13 BEDOK RESERVOIR VIEW #10-01 AQUARIOUS BY THE PARK |
|
Town: |
SINGAPORE |
|
Postcode: |
478932 |
|
Country: |
Singapore |
|
NG KENG TEONG |
9,834,000 |
Private Person |
|
Country: |
Singapore |
|
KIM ENG SECURITIES PTE LTD |
5,197,000 |
Company |
|
Street : |
9 TEMASEK BOULEVARD #39-00 SUNTEC TOWER TWO |
|
Town: |
SINGAPORE |
|
Postcode: |
038989 |
|
Country: |
Singapore |
|
OCBC SECURITIES PRIVATE LIMITED |
2,772,000 |
Company |
|
Street : |
18 CHURCH STREET #01-00 OCBC CENTRE SOUTH |
|
Town: |
SINGAPORE |
|
Postcode: |
049479 |
|
Country: |
Singapore |
|
SOON CHIEW YONG |
4,000,000 |
Private Person |
|
Country: |
Singapore |
|
DBS VICKERS SECURITIES (S) PTE LTD |
2,958,000 |
Company |
|
Street : |
6 SHENTON WAY DBS BUILDING TOWER 1 |
|
Town: |
SINGAPORE |
|
Postcode: |
068809 |
|
Country: |
Singapore |
|
DEPA INTERIORS LLC |
42,217,000 |
Company |
|
Country: |
Singapore |
|
WONG SWEE CHUN |
8,907,000 |
Private Person |
|
Street : |
000000 |
|
Town: |
SINGAPORE |
|
Country: |
Singapore |
|
BURKHARD SOHM |
1,508,000 |
Private Person |
|
Town: |
SINGAPORE |
|
Country: |
Singapore |
|
ROYAL BANK OF CANADA (ASIA) LTD |
12,484,000 |
Company |
|
Town: |
SINGAPORE |
|
Country: |
Singapore |
|
HSBC (SINGAPORE) NOMINEES PTE LTD |
9,206,000 |
Company |
|
Street : |
10 COLLYER QUAY #02-02 OCEAN BUILDING |
|
Town: |
SINGAPORE |
|
Postcode: |
049315 |
|
Country: |
Singapore |
|
LIM & TAN SECURITIES PTE LTD |
6,376,887 |
Company |
|
Street : |
10 COLLYER QUAY #12-00 OCEAN BUILDING |
|
Town: |
SINGAPORE |
|
Postcode: |
049315 |
|
Country: |
Singapore |
|
DBS NOMINEES PTE LTD |
4,467,000 |
Company |
|
Country: |
Singapore |
|
TAN CHONG YONG |
3,765,000 |
Private Person |
|
Country: |
Singapore |
|
HONG LEONG FINANCE NOMINEES PTE LTD |
3,303,000 |
Company |
|
Town: |
SINGAPORE |
|
Country: |
Singapore |
|
TAN CHOON KEAT TONY |
2,482,000 |
Private Person |
|
Street : |
46 CORONATION ROAD WEST #09-03 ASTRID MEADOWS |
|
Town: |
SINGAPORE |
|
Postcode: |
269262 |
|
Country: |
Singapore |
|
CIMB-GK SECURITIES PTE LTD |
2,437,000 |
Company |
|
Town: |
SINGAPORE |
|
Country: |
Singapore |
|
MORGAN STANLEY ASIA (S) SECURITIES PTE LTD |
1,564,000 |
Company |
|
Country: |
Singapore |
FORMER SHAREHOLDER(S)
|
KOH KAH LIAM |
1,485,000 |
|
|
CHAN WENG FITT |
50,000 |
|
|
NG SENG CHOO |
3,217,500 |
|
|
YANG TSE PIN |
4,207,500 |
|
|
JY INVESTMENT PTE LTD |
500,000 |
|
|
BJE HOLDING PTE LTD |
60,885,000 |
|
|
UNITED OVERSEAS BANK NOMINEES (PTE)LIMITED |
1,834,000 |
|
|
WEE BOO TEE |
1,384,000 |
|
|
LIM LYE HUAY |
1,100,000 |
|
|
CHUA BENG HUAT |
890,000 |
|
|
LIM SIONG GOH |
672,000 |
|
|
LIM LIAN HIN |
621,000 |
|
|
BHARAT DHARMADAS KALWANI |
500,000 |
|
|
MANOJ DHAMADAS KALWANI |
450,000 |
|
|
SIM SOON NGEE GLENNDIE |
1,843,000 |
|
|
CHEE CHIN HO |
300,000 |
|
|
LIM GEOK NEO |
900,000 |
|
|
QUEEK JOO HUAT |
8,400,000 |
|
|
WOO MUN KIT |
8,084,000 |
|
|
LIM CHIN TION |
3,522,000 |
|
|
CHENG MING JEN |
1,023,000 |
|
|
CHUA CHOON HONG |
2,018,000 |
|
|
UOB KAY HIAN PRIVATE LIMITED |
1,515,000 |
|
|
ONG CHEN LENG |
1,280,000 |
|
|
ONG KOK SIONG |
1,405,000 |
|
|
KUEK TIANG ANN FREDERICK |
900,000 |
|
|
PHILLIP SECURITIES PTE LTD |
880,000 |
|
|
ONG BENG TECK ROLAND |
1,729,000 |
|
|
YIM MUN THONG |
1,729,000 |
|
|
WONG YOONG SUM |
1,580,000 |
|
|
LIM CHYE SENG |
1,335,000 |
|
|
CHEW JEN KIAT |
1,042,000 |
|
|
CHEN JINYONG |
987,000 |
|
SUBSIDIARY(IES)
|
DS FURNITURE MANUFACTURER SDN BHD |
|
|
DESIGN STUDIO FURNITURE (SHANGHAI) CO., LTD |
|
|
DS INTERIOR CONTRACTS RENOVATION (SHANGHAI) CO LTD |
|
|
DSI (MIDDLE EAST) PTE. LTD. |
|
|
D S INTERIOR DECORATION (MIDDLE EAST) LLC |
|
PAYMENT HISTORY AND EXPERIENCES
|
Trade Morality: |
AVERAGE |
|
Liquidity : |
SUFFICIANT |
|
Payments : |
REGULAR |
|
Trend : |
UPWARD |
|
Financial Situation: |
AVERAGE |
LITIGATION(S)
|
Type Of Case: |
Magistrate Court - W/S |
|
|
Case Number: |
MCS14376/2007 |
|
|
Defendant |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
ROC # : 199401553D |
|
Type Of Case: |
Magistrate Court - W/S |
|
|
Case Number: |
MCS034510/2002 |
|
|
Defendant |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
ROC # : 199401553D |
|
Type Of Case: |
Magistrate Court - W/S |
|
|
Case Number: |
MCS021206/2002 |
|
|
Defendant |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
ROC # : 199401553D |
|
Type Of Case: |
District Court - W/S |
|
|
Case Number: |
DCS002957/2000 |
|
|
Defendant |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
ROC # : 199401553D |
|
Type Of Case: |
Magistrate Court - W/S |
|
|
Case Number: |
MCS060642/1999 |
|
|
Defendant |
DESIGN STUDIO FURNITURE MANUFACTURER LTD |
ROC # : 199401553D |
FINANCIAL ELEMENTS
|
All amounts in this report are in : |
SGD |
|
Audit Qualification: |
UNQUALIFIED (CLEAN) OPINION |
UNQUALIFIED (CLEAN) OPINION |
UNQUALIFIED (CLEAN) OPINION |
|
Date Account Lodged: |
27/06/2008 |
|
|
|
Balance Sheet Date: |
31/12/2007 |
31/12/2006 |
31/12/2005 |
|
Number of weeks: |
52 |
52 |
52 |
|
Consolidation Code: |
CONSOLIDATED |
CONSOLIDATED |
CONSOLIDATED |
|
--- ASSETS |
|
||
|
Preliminary Exp |
883,000 |
1,701,000 |
1,018,000 |
|
Tangible Fixed Assets: |
10,424,000 |
9,580,000 |
10,480,000 |
|
Investments |
85,000 |
86,000 |
|
|
Total Fixed Assets: |
11,392,000 |
11,367,000 |
11,498,000 |
|
Inventories: |
10,604,000 |
6,671,000 |
3,310,000 |
|
Receivables: |
22,567,000 |
12,198,000 |
7,291,000 |
|
Cash,Banks, Securitis: |
24,341,000 |
5,421,000 |
3,601,000 |
|
Other current assets: |
2,011,000 |
1,583,000 |
6,889,000 |
|
Total Current Assets: |
59,523,000 |
25,873,000 |
21,091,000 |
|
TOTAL ASSETS: |
70,915,000 |
37,240,000 |
32,589,000 |
|
--- LIABILITIES |
|
|
|
|
Equity capital: |
30,111,000 |
13,378,000 |
12,600,000 |
|
Reserves: |
-49,000 |
-58,000 |
-82,000 |
|
Profit & lost Account: |
11,326,000 |
3,475,000 |
-2,098,000 |
|
Surplus equity: |
|
|
778,000 |
|
Total Equity: |
41,388,000 |
16,795,000 |
11,198,000 |
|
Long Term Loans: |
2,981,000 |
3,461,000 |
450,000 |
|
L/T deffered taxes: |
45,000 |
|
|
|
Other long term Liab.: |
695,000 |
488,000 |
809,000 |
|
Total L/T Liabilities: |
3,721,000 |
3,949,000 |
1,259,000 |
|
Trade Creditors: |
5,345,000 |
4,553,000 |
4,202,000 |
|
Short term liabilities: |
367,000 |
740,000 |
882,000 |
|
Due to Bank: |
1,226,000 |
2,788,000 |
12,157,000 |
|
Provisions: |
1,251,000 |
|
|
|
Other Short term Liab.: |
4,328,000 |
3,104,000 |
1,763,000 |
|
Total short term Liab.: |
25,806,000 |
16,496,000 |
20,132,000 |
|
Prepay. & Def. charges: |
13,289,000 |
5,311,000 |
1,128,000 |
|
TOTAL LIABILITIES: |
29,527,000 |
20,445,000 |
21,391,000 |
|
--- PROFIT
& LOSS ACCOUNT |
|
|
|
|
Net Sales |
76,424,000 |
59,651,000 |
38,148,000 |
|
Gross Profit: |
19,526,000 |
11,029,000 |
2,228,000 |
|
Results of Ord Ops: |
11,267,000 |
5,695,000 |
-1,678,000 |
|
NET RESULT BEFORE TAX: |
11,043,000 |
4,967,000 |
-2,569,000 |
|
Tax : |
2,288,000 |
-606,000 |
384,000 |
|
Net income/loss year: |
8,755,000 |
5,573,000 |
-2,953,000 |
|
Interest Paid: |
354,000 |
792,000 |
926,000 |
|
Depreciation: |
2,279,000 |
2,118,000 |
1,980,000 |
|
Dividends: |
904,000 |
|
|
|
Directors Emoluments: |
1,734,000 |
1,208,000 |
826,000 |
|
Purchases,Sces & Other Goods: |
56,898,000 |
48,622,000 |
35,920,000 |
|
Wages and Salaries: |
11,333,000 |
7,580,000 |
7,240,000 |
|
Financial Income: |
130,000 |
64,000 |
35,000 |
RATIOS
|
Date Account Lodged: |
31/12/2007 |
31/12/2006 |
31/12/2005 |
|
Turnover per employee: |
254746.67 |
198836.67 |
127160 |
|
Net result / Turnover(%): |
0.11 |
0.09 |
-0.08 |
|
Fin. Charges / Turnover(%): |
0 |
0.01 |
0.02 |
|
Stock / Turnover(%): |
0.14 |
0.11 |
0.09 |
|
Net Margin(%): |
11.46 |
9.34 |
-7.74 |
|
Return on Equity(%): |
21.15 |
33.18 |
-26.37 |
|
Return on Assets(%): |
12.35 |
14.97 |
-9.06 |
|
Dividends Coverage: |
9.68 |
|
|
|
Net Working capital: |
33717000 |
9377000 |
959000 |
|
Cash Ratio: |
0.94 |
0.33 |
0.18 |
|
Quick Ratio: |
1.82 |
1.07 |
0.54 |
|
Current ratio: |
2.31 |
1.57 |
1.05 |
|
Receivables Turnover: |
106.3 |
73.62 |
68.8 |
|
Leverage Ratio: |
|
|
|
Net Margin : (100*Net income loss year)/Net salesReturn on Equity : (100*Net income loss year)/Total equityReturn on Assets : (100*Net income loss year)/Total fixed assetsDividends Coverage : Net income loss year/DividendsNet Working capital : (Total current assets/Total short term liabilities)/1000Cash Ratio : Cash Bank securities/Total short term liabilitiesQuick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilitiesCurrent ratio : Total current assets/Total short term liabilitiesInventory Turnover : (360*Inventories)/Net salesReceivables Turnover : (Receivable*360)/Net salesLeverage Ratio : Total liabilities/(Total equity-Intangible assets)
FINANCIAL COMMENTS
THE FINANCIAL CONDITION OF THE GROUP WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING: NET WORTH: THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 1.46 TIMES FROM S$16,795,000 IN FY 2006 TO S$41,388,000 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFITS OF S$11,326,000 (2006: S$3,475,000); A RISE OF 2.26 TIMES FROM THE PRIOR FINANCIAL YEAR. LEVERAGE:IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY PREPAYEMENTS AND DEFERRED CHARGES WHICH MADE UP 51.50% (2006: 32.20%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$13,289,000 (2006: S$5,311,000). THE BREAKDOWN IS AS FOLLOWS: - ACCRUED OPERATING EXPENSES - 2007: S$13,289,000 (2006: S$5,311,000) IN THE LONG-TERM, SUBJECT WAS LARGELY FINANCED BY LONG-TERM LOANS WHICH MADE UP 80.11% (2006: 87.64%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$2,981,000 (2006: S$3,461,000). THE BREAKDOWN IS AS FOLLOWS:-NON-CURRENT PORTION OF SECURED LONG-TERM BANK LOAN - 2007: S$2,981,000 (2006: S$3,461,000) AMOUNT DUE TO BANKS OF S$1,226,000 (2006: S$2,788,000) CONSISTED OF: -BANK OVERDRAFT, SECURED - 2007: S$260,000 (2006: S$529,000)-CURRENT PORTION OF SECURED LONG-TERM BANK LOAN - 2007: $471,000 (2006: $469,000) -BILLS PAYABLE TO BANKS - 2007: S$495,000 (2006: S$1,790,000) IN ALL, LEVERAGE RATIO FELL FROM 1.22 TIMES TO 0.71 TIMES AS A RESULT OF A GREATER RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES. LIQUIDITY: IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 2.31 TIMES, UP FROM 1.57 TIMES AND QUICK RATIO IMPROVED TO 1.82 TIMES FROM 1.07 TIMES IN FY 2006. SIMILARLY, NET WORKING CAPITAL IMPROVED BY 2.60 TIMES FROM S$9,377,000IN FY 2006 TO S$33,717,000. CASH AND CASH EQUIVALENTS COMPRISE OF: -CASH AT BANK AND IN HAND - 2007: S$3,263,000 (2006: S$3,320,000) -FIXED DEPOSITS (SECURED) - 2007: S$2,128,000 (2006: S$2,101,000) -FIXED DEPOSITS (UNSECURED) - 2007: S$18,950,000 (2006: -) PROFITABILITY: REVENUE POSTED AN INCREASE OF 28.12% FROM S$59,651,000 IN FY 2006 TO S$76,424,000 AND NET PROFIT IMPROVED BY 57.10% TO S$8,755,000 (2006: S$5,573,000). HENCE, NET MARGIN ROSE TO 11.46% (2006: 9.34%). REVENUE:
-PROJECT REVENUE - 2007: S$73,051,000 (2006: S$58,692,000) -SALE OF GOODS - 2007: S$3,373,000 S$(2006: S$959,000)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$159,000 (2006: S$1,006,000) -FIXED DEPOSIT (STRUCTURED) - 2007: S$724,000 (2006: S$695,000) NOTES TO THE FINANCIAL STATEMENTS: LOANS AND BORROWINGS CURRENT OBLIGATIONS UNDER FINANCE LEASES-SECURED - 2007: S$367,000(2006: S$740,000) LONG-TERM BANK LOAN - 2007: S$471,00 (2006: S$469,000) BANK OVERDRAFTS - 2007: S$260,000 (2006: S$529,000) BILLS PAYABLE TO BANKS - 2007: S$495,000 (2006: S$1,790,000)NON-CURRENT OBLIGATIONS UNDER FINANCE LEASES-SECURED - 2007: S$645,000 (2006: S$488,000) LONG-TERM BANK LOANS - 2007: S$2,981,000 (2006: S$3,461,000)COMPANY (DENOMINATED IN SGD) THE BANK TERM LOAN IS REPAYABLE IN EQUAL INSTALMENTS COMMENCING IN 2002 OVER 15 YEARS AND INTEREST IS PAYABLE AT 4.50% PER ANNUM FOR THE FIRST AND SECOND YEARS AND THEREAFTER, AT THE BANK'S PRIME LENDING RATE. AS AT 31 DECEMBER 2007, THIS BANK TERM LOAN HAS AN EFFECTIVEINTEREST RATE OF 5.00% (2006: 5.00%). THE BANK TERM LOAN IS SECURED BYTHE LEASEHOLD FACTORY BUILDING OF THE COMPANY WITH A NET BOOK VALUE OFAPPROXIMATELY S$4,239,000 (2006: S$4,497,000) A SUBSIDIARY (DENOMINATED IN USD)THE BANK TERM LOAN IS REPAYABLE IN EQUAL INSTALMENTS COMMENCING IN 2004 OVER 5 YEARS AND INTEREST IS PAYABLE AT SIBOR PLUS 2.00% OVER THE TERM LOAN AMOUNT. AS AT 31 DECEMBER 2006, THIS BANK TERM LOAN HAS AN EFFECTIVE INTEREST RATE OF 6.37% (2006: 6.37%). THE BANK TERM LOAN IS SECURED BY PLANT AND MACHINERY AND CORPORATE GUARANTEES FROM THE COMPANY. COMPANY BILLS PAYABLE AND BANK OVERDRAFT, TOGETHER WITH OTHER BANKING FACILITIES, ARE SECURED BY THE FOLLOWING:(I) A MORTGAGE OVER THE COMPANY'S LEASEHOLD FACTORY BUILDING WITH A NET BOOK VALUE OF APPROXIMATELY S$4,239,000 (2006: S$4,497,000). (II) PLEDGE OF FIXED DEPOSITS OF THE COMPANY AMOUNTING TO APPROXIMATELY S$2,742,000 (2006: S$2,690,000) BILLS PAYABLE OF THE COMPANY BEARS INTEREST RANGING FROM 5.00% TO 6.50% (2006: 4.20% TO 7.45%) PER ANNUM. A SUBSIDIARY (DENOMINATED IN MALAYSIA RINGGIT/UAE DIRHAMS) BILLS PAYABLE/BANK OVERDRAFT/BANKING FACILITIES ARE SECURED BY THEFOLLOWING: (I)A CORPORATE GUARANTEE BY THE COMPANY; AND (II) PLEDGE OF A FIXED DEPOSIT OF A SUBSIDIARY AMOUNTING TO APPROXIMATELY S$110,000 (2006: S$106,000); AND (III) DEBENTURE INCORPORATING FIXED AND FLOATING UP TO S$1,748,000(2006: S$1,740,000) CHARGES OVER PRESENT AND FUTURE ASSETS OF THE SUBSIDIARY BILLS PAYABLE AND BANK OVERDRAFT OF THE SUBSIDIARY BEAR INTEREST AT 5.30% TO6.25% AND 8.00% (2006: 4.05% TO 4.30% AND 7.50% TO8.75%) PER ANNUM RESPECTIVELY. CONTINGENT LIABILITIES GUARANTEESTHE COMPANY HAD PROVIDED CORPORATE GUARANTEES OF APPROXIMATELY S$4,400,000 (2006: S$4,100,000) IN FAVOUR OF BANKS AND FINANCIAL INSTITUTIONS FOR THE GRANTING OF CREDIT FACILITIES AND HIRE PURCHASE FINANCING TO A SUBSIDIARY.AS AT 31 DECEMBER 2007, THE COMPANY PROVIDED A LETTER OF GUARANTEE OF UP TO MALAYSIA RINGGIT 1 MILLION (2006: MALAYSIA RINGGIT 1 MILLION) INFAVOUR OF A SUPPLIER OF ITS SUBSIDIARY FOR SUUPLYING AND/OR CONTINUINGTO SUPPLY GOODS AND SERVICES AND GIVING CREDIT TO THE SUBSIDIARY.SEGMENT INFORMATION BUSINESS SEGMENTS RESIDENTIAL PROPERTY PROJECTS - 2007: S$39,827,000 (2006 : S$51,311,000)INTERIOR FITTING-OUT PROJECTS - 2007: S$33,244,000 (2006 : S$ 7,381,000) DISTRIBUTORSHIP AND EXPORTS - 2007: S$3,373,000 (2006 : S$959,000) CONSOLIDATED - 2007: S$76,424,000(2006 : S$59,651,000) GEOGRAPHICAL SEGMENTS SINGAPORE - 2007: S$39,268,000 (2006 : S$24,058,000) OTHERS - 2007: S$37,156,000 (2006: S$35,593,000)CONSOLIDATED - 2007 : S$76,424,000 (2006: S$59,651,000)
BACKGROUND/OPERATION
THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 05/03/1994 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "DESIGN STUDIO PTE LTD" SUBSEQUENTLY, ON 10/12/2002, THE COMPANY CHANGED TO ITS PRESENTNAMESTYLE AS "DESIGN STUDIO FURNITURE MANUFACTURER LTD" AND IS TRADING AS A PUBLIC COMPANY LIMITED BY SHARES. THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 255,125,887 SHARES OF A VALUE OF S$30,315,983,35. PRINCIPAL ACTIVITIES: SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: (1) MANUFACTURE OF FURNITURE AND FIXTURES OF WOOD (INCLUDING UPHOLSTERY); MANUFACTURE, IMPORT, EXPORT AND TRADING OF FURNITURE PRODUCTS AND COMPONENTS (2) GENERAL CONTRACTORS (BUILDING CONSTRUCTION INCLUDING MAJOR UPGRADING WORKS); INTERIOR FITTING-OUT WORKS AND GENERAL CONTRACTORS DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THE MANUFACTURE, SUPPLY AND INSTALLATION OF PANELLING PRODUCTS SUCH AS KITCHEN AND VANITY CABINETS, WARDROBES, DOORS AND DOORSFRAMES, AND FURNITURE COMPONENTS FOR LOCAL AND OVERSEAS MARKETS, THE PROVISION OF INTERIOR FITTING-OUT SERVICES ON A TURNKEY BASIS AND STRUCTURAL WORKS FOR RESIDENTIAL, COMMERCIAL AND RETAIL PROPERTIES. THE COMPANY ALSO ACTS AS THE DISTRIBUTOR FOR FURNITURE PRODUCTS OF REPUTABLE OVERSEAS BRANDS IN SINGAPORE, MALAYSIA, INDONESIA AND BRUNEI. FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: LISTINGS * LISTED ON 24/12/2003 ON SGX MAINBOARD BACKGROUND OF THE SUBJECT: THE COMPANY IS PRINCIPALLY ENGAGED IN THE MANUFACTURE, SUPPLY AND INSTALLATION OF PANELLING PRODUCTS FOR RESIDENTIAL PROPERTY DEVELOPMENTS. IT IS ALSO INVOLVED IN INTERIOR FITTING-OUT PROJECTS FORRESIDENTIAL, COMMERCIAL AND RETAIL PROPERTIES. IN ORDER TO PROVIDE A FULL SPECTRUM OF SERVICES AND PRODUCTS FOR ITS CLIENTS, IT BRINGS IN PREMIER BRANDS OF COMPLEMENTARY PRODUCTS. THE COMPANY HAS THE EXCLUSIVE RIGHTS TO SELL SIEMATIC FITTED KITCHENSIN SINGAPORE AND BRUNEI. IT ALSO HAS THE SOLE RIGHTS TO SELL THE ITALIAN BRAND OF MAP QUALITY FURNITURE PRODUCTS IN SINGAPORE, MALAYSIA, INDONESIA AND BRUNEI, FURTHER, IT MARKETS, SELLS AND FABRICATES CORIAN SOLID SURFACES PRODUCTS FOR RESIDENTIAL AND COMMERCIAL DEVELOPMENTS (EXCLUDING THE RETAIL MARKET) IN SINGAPORE. PRESENTLY, THE COMPANY HAS TWO PRODUCTION FACILITIES, ONE IN SINGAPOREAND ONE IN JOHOR, MALAYSIA. ITS PRODUCTION FACILITY IN SINGAPORE MANUFACTURES KITCHEN CABINETS, WARDROBES, VANITY CABINETS AND OTHER RELATED PRODUCTS, WHILE THE PRODUCTION FACILITY IN MALAYSIAMANUFACTURES MAINLY DOORS AND DOOR COMPONENTS. THE COMPANY'S DIRECT CUSTOMERS INCLUDE DEVELOPERS, MAIN CONTRACTORS AND INTERIOR DESIGNERS. HOWEVER, THE END USERS OF ITS PRODUCTS ARE MAINLY HOMEOWNERS AND OPERATORS OF COMMERCIAL OR RETAIL BUSINESS. SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES: * PRODUCT DESIGN, MANUFACTURER, RENOVATION AND FURNISHING OF PREMIUM LIFESTYLE FURNITURE AND FITTINGS. * SUPPLY AND INSTALLATION OF DISTINCTIVE PANELLING PRODUCTS, SUCH AS KITCHEN CABINETS, VANITY CABINETS, WARDROBES, DOORS AND DOORFRAMES THE SUBJECT HAS THREE COMPLEMENTARY AND VERSATILE CORE BUSINESSES: * THE SUPPLY AND INSTALLATION OF MANUFACTURED PRODUCTS * INTERIOR FITTING-OUT PROJECT SERVICES* EXCLUSIVE DISTRIBUTORSHIP OF RENOWNED IMPORTED BRANDS AND THE EXPORT OF TWO WIDELY RECEIVED IN-HOUSE BRANDS THE SUPPLY AND INSTALLATION OF MANUFACTURED PRODUCTS * PRESENTLY, THE COMPANY HAS TWO PRODUCTION FACILITIES, ONE IN SINGAPORE AND ONE IN JOHOR, MALAYSIA. * ITS PRODUCTION FACILITY IN SINGAPORE MANUFACTURES KITCHEN CABINETS, WARDROBES, VANITY CABINETS AND OTHER RELATED PRODUCTS * THE PRODUCTION FACILITY IN MALAYSIA MANUFACTURES MAINLY DOORS AND DOOR COMPONENTS. INTERIOR FITTING OUT SERVICES: * FITTING, REFURBISHMENT AND INTERIOR FURNISHING FOR RESIDENTIAL, COMMERCIAL AND RETAIL PROPERTIES.CLIENTS * DEVELOPERS * MULTI-NATIONAL COMPANIES * BANKS * HIGH-END RETAILERS* PRIVATE HOMEOWNERS INHOUSE BRANDS: PANELZ* DOORS & FRAMES * SYSTEM KITCHENS * SYSTEM WARDROBES I.FORMZ * COLLECTIONS IMPORTED BRANDS: SOLE DISTRIBUTOR OF INTERNATIONAL PREMIUM BRANDS: * SIEMATIC (FITTED KITCHENS FROM GERMANY) FOR SINGAPORE AND BRUNEI* MAP (WARDROBES FROM ITALY) FOR SINGAPORE, MALAYSIA, INDONESIA AND BRUNEI * CORIAN® (SOLID SURFACES FROM USA)FOR RESIDENTIAL AND COMMERCIAL DEVELOPMENTS (EXCLUDING THE RETAIL MARKET) IN SINGAPORE.DIRECT CUSTOMERS: * DEVELOPERS * MAIN CONTRACTORS * INTERIOR DESIGNER THE END USERS OF ITS PRODUCTS ARE MAINLY:* HOMEOWNERS AND OPERATORS OF COMMERCIAL OR RETAIL BUSINESS. TERMS OF PAYMENT: * TRADE AND OTHER RECEIVABLES: 30-90 DAYS TERM * TRADE AND OTHER PAYABLES : 30-90 DAYS TERM MARKET PRESENCE: * SOUTH EAST ASIA REGION OVERSEAS OFFICES:* SHANGHAI, CHINA * TOKYO, JAPAN * NEW YORK, UNITED STATES OF AMERICA * DUBAI, UNITED ARAB EMIRATESQUALITY ASSESSMENT: * ISO 9002 SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES: * ASSOCIATION OF SMALL & MEDIUM ENTERPRISES (ASME) FROM THE PREVIOUS TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED: NUMBER OF EMPLOYEES:* COMPANY - 2007: 300 NO OTHER TRADE INFORMATION IS AVAILABLE FROM THE TELE-INTERVIEW CONDUCTED ON, THE FOLLOWING WAS GATHERED: SUBJECT'S PERSONNEL DECLINED TO REVEAL ANY TRADE RELATED INFORMATION BUT ONLY WILLING TO VERIFY THE COMPANY'S BUSINESS ADDRESS AND CONTACT NUMBERS. NO OTHER TRADE INFORMATION WAS MADE AVAILABLE NUMBER OF EMPLOYEES (31 DECEMBER): * COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 277; 2003: 254) * GROUP - 2006: - (2005: -; 2004: 403; 2003 : 340) REGISTERED AND BUSINESS ADDRESS: 8 SUNGEI KADUT CRESCENTSINGAPORE 728682 - OWNED PREMISE - DATE OF CHANGE OF ADDRESS: 18/05/2002 WEBSITE:http://www.designstudio.com.sg EMAIL: marketing@designstudio.com.sg export@designstudio.com.sgelinwong@designstudio.com.sg
MANAGEMENT
THE DIRECTORS AT THE TIME OF THE REPORT ARE: 1) MOHANNAD IZZAT SWEID, A SYRIAN - BASED IN DUBAI2) SEAH HOU KEE, A SINGAPOREAN - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE. 3) ONG TIEW SIAM, A SINGAPOREAN - HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE: TAT HONG HOLDINGS LTD YANG ASIA CORPORATION PTE LTD 4) WONG HONG KEOW ELIN, A SINGAPOREAN - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE. 5) LIM LENG FOO, A SINGAPORE PERMANENT RESIDENT - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE. 6) NG CHIA CHOEY, A SINGAPORE PERMANENT RESIDENT - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE. 7) TAN SIOK CHIN, A SINGAPOREAN - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE. 8) WONG CHEE HERNG, A SINGAPOREAN - HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE: HOI HUP REALTY PTE LTD CIVIL GEO PTE LTD 9) LOO KENNETH, A SINGAPORE PERMANENT RESIDENT - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE.
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 SHARPINCREASE 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 COFACEPAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIALTRANSPARENCY. HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTHIN 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 RAWMATERIAL 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 IIPRUDENTIAL 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 TAXINCENTIVES 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 ECONOMICSECTORS -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 THELEAST SKILLED COULD GENERATE SOCIAL TENSIONS. " THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN. MANUFACTURING SECTOR PAST PERFORMANCE
THE MANUFACTURING SECTOR FELL BY 5.2% IN 2Q 2008, IN CONTRAST TO THE 13.0%GROWTH IN 1Q 2008. IT WAS BOOSTED BY THE BIOMEDICAL MANUFACTURING CLUSTER WHICH EXPANDED 49.0%. THE DECLINE WAS MAINLY DRIVEN BY THE BIOMEDICAL MANUFACTURING CLUSTER WHICH FELLSIGNIFICANTLY BY 28.0%. THIS WAS LARGELY DUE TO A 31% DECLINE IN PHARMACEUTICALSOUTPUT, AS LOCAL PHARMACEUTICAL COMPANIES SWITCHED THEIR PRODUCT MIX TO PHARMACEUTICAL INGREDIENTS WITH LOWER VALUES COMPARED TO 2Q 2007. THE TRANSPORT ENGINEERING CLUSTER ROSE BY 10.0% AS THE MARINE AND OFFSHORE ENGINEERING CLUSTER MAINTAINED ITS STRONG PERFORMANCE, RISING BY 19.0% IN 2Q2008. OTHER CLUSTERS REGISTERED MIXED PERFORMANCE. THE CHEMICALS CLUSTER ROSE MARGINALLY BY 1.2% WHILE THE PRECISION ENGINEERING CLUSTER FELL 1.7%. WITH THE IMPACT OF WEAKENING GLOBAL DEMAND, THE ELECTRONICS CLUSTER FELL TO 0.2% GROWTH. NEWS FACTORY OUTPUT DECLINES FOR FIRST TIME IN 3 MONTHS THE ONE ECONOMIC INDICATOR HERE THAT HAS PROVED RESILIENT HAS FINALLY GIVEN IN TO THE MOUNTING FINANCIAL PRESSURE. THE MONTHLY PURCHASING MANAGER'S INDEX (PMI), WHICH POINTS TO UPCOMING FACTORY OUTPUT, FELL FROM 50.6 IN AUGUST TO 49.5 LAST MONTH. ITS 1.1 POINT FALL WAS THE FIRST CONTRACTION IN THREE MONTHS AND THE LARGESTDECLINE RECORDED SINCE THE BEGINNING OF THE YEAR. A READING BELOW 50 INDICATES A CONTRACTION, WHILE A READING ABOVE 50 INDICATES AN EXPANSION.ECONOMISTS ARE NOT SURPRISED THE FIGURES HAS FINALLY COME DOWN. THEY BELIEVED THAT THE PMI HAS BEEN OUT OF SYNC WITH THE ECONOMY IN RECENT MONTHS WITH ITS POSITIVE READINGS - JULY'S READING WAS 51.6 - AMID A GLOBAL DOWNTURN. CITIGROUP'S MR KIT WEI ZHENG SAID THE FIGURES "SUPPORTED THE BEARISH VIEW OF THEECONOMY" AND EXPORTS ARE LIKELY TO CONTINUE TO CONTRACT UNTIL THE FIRST HALF OF NEXT YEAR. MR DAVID COHEN, DIRECTOR OF ASIAN FORECASTING AT ACTION ECONOMICS, SAID: "THIS WAS MORE OR LESS WITHIN EXPECTATIONS AS IT IS COMING AGAINST THE BACKDROP OF THEGENERAL DETERIORATION SCENE. "THERE IS A GROWING SENSE THAT ECONOMIES AROUND THE WORLD ARE FINALLY SHOWING SOME SORT OF A DRAG FROM THE FINANCIAL TURMOIL OF THE PAST YEAR.KEY MANUFACTURING INDICATORS IN THE UNITED STATES AND JAPAN HAVE SHOWN LARGER THAN EXPECTED CONTRACTIONS RECENTLY. THE UNITED STATES' MANUFACTURING INDEX PLUMMETED TO 43.5 FOR SEPTEMBER, ITS LOWEST LEVEL SINCE OCTOBER 2001. THE QUARTERLY TANKAN SURVEY OF MANUFACTURERS BY THE BANK OF JAPAN ALSO SHOWED SENTIMENT AMONG LARGE MANUFACTURERS TO BE AT ITS LOWEST IN FIVE YEARS. MS JANICE ONG, EXECUTIVE DIRECTOR OF THE SINGAPORE INSTITUTE OF PURCHASING &MATERIALS MANAGEMENT (SIPMM), WHICH PUBLISHES THE PMI, ATTRIBUTED THE FALL TO WEAK LOCAL DEMAND AND OVERSEAS DEMAND. THE NEW ORDERS INDEX FELL TO 49.8, A 0.6 POINT DROP FROM AUGUST AFTER A THREE- MONTH EXPANSION, AND THE NEW EXPORT ORDERS INDEX GREW BY 0.7 FROM AUGUST BUT WASSTILL IN CONTRACTION WITH A 48.9 READING. THE EMPLOYMENT INDEX ALSO SENT WORRYING SIGNALS BY CONTRACTING FOR THE 10TH STRAIGHT MONTH. IT LOST ANOTHER 2.2 POINTS TO HIT 46.4 IN SEPTEMBER. "WE ARE LIKELY TO SEE SOFTENING IN THE JOB MARKET, WHICH WOULD TRANSLATE TO SOMEJOB LOSSES. BUT SINGAPORE HAS A SAFETY NET OF FOREIGN WORKERS, SO THE JOB THREATWILL NOT BE IMMEDIATE," SAID MR COHEN. THE ELECTRONICS SECTOR EMPLOYMENT INDEX CONTRACTED FOR ITS THIRD CONSECUTIVE MONTH, TO 43.4. OUTLOOK A WEIGHTED 13.0% OF THE MANUFACTURING SECTOR FORECASTS IMPROVED BUSINESS CONDITIONS FOR THE COMING MONTHS WHILE A WEIGHTED 12.0% PREDICTS DETERIORATION.THIS LEADS TO A NET WEIGHTED BALANCE OF 1.0% OF MANUFACTURERS FORECASTING BETTERBUSINESS CONDITIONS IN 2NF HALF OF 2008 COMPARED TO 2Q 2008. A WEIGHTED 75.0% OFMANUFACTURERS EXPECT THE BUSINESS CLIMATE TO REMAIN STABLE, RESULTING IN A TOTALWEIGHTED 88.0% OF MANUFACTURERS EXPECTING BETTER OR STABLE BUSINESS CONDITIONS IN THE COMING MONTHS. BASED ON THE NET WEIGHTED BASIS, THE GENERAL MANUFACTURING INDUSTRIES CLUSTER IS THE MOST OPTIMISTIC WITH A NET WEIGHTED BALANCE OF 11.0% OF FIRMS EXPECTING BETTER BUSINESS CONDITIONS IN THE MONTHS AHEAD.IN CONTRAST, THE CHEMICALS CLUSTER HAS THE WEAKEST OUTLOOK WITH A NET WEIGHTED BALANCE OF 23.0% OF FIRMS PREDICTING A LESS FAVOURABLE BUSINESS ENVIRONMENT. THIS IS ATTRIBUTED TO WEAKER PROFIT EXPECTATIONS ON THE BACK OF HIGH MATERIAL COSTS.IN THE ELECTRONICS CLUSTER, A NET WEIGHTED BALANCE OF 1.0% OF FIRMS PREDICTS A LESS FAVOURABLE BUSINESS CLIMATE. IN THE BIOMEDICAL MANUFACTURING CLUSTER, A NET WEIGHTED BALANCE OF 4.0% OF FIRMSFORECASTS A BETTER BUSINESS CLIMATE FOR THE COMING MONTHS. IN THE PRECISION ENGINEERING CLUSTER, A NET WEIGHTED BALANCE OF 2.0% OF FIRMS FORECASTS BETTER BUSINESS PROSPECT. FOR THE TRANSPORT ENGINEERING CLUSTER, A NET WEIGHTED BALANCE OF 8.0% OF FIRMSFORECASTS POSITIVE SENTIMENTS IN THE MONTHS AHEAD. EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE EDB SINGAPORE THE STRAITS TIMES
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.67 |
|
UK Pound |
1 |
Rs.75.47 |
|
Euro |
1 |
Rs.61.19 |
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%)