MIRA INFORM REPORT

Report Date :

06.11.2008

IDENTIFICATION DETAILS

Name :	JBS RESOURCES PTE LTD
Registered Office :	133 New Bridge Road #23-01 Chinatown Point 059413
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	22.12.1992
Com. Reg. No.:	199206897R
Legal Form :	Exempt Pte Ltd
Line of Business :	General Wholesale Trade (Including General Importers and Exporters)

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

Subject Company

JBS RESOURCES PTE LTD

Line Of Business 

 
GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)
 

Parent Company

-

Financial Elements

FY 2006

COMPANY

Sales : S$ 39,432,155

Networth : S$ -7,051,180

Paid-Up Capital : S$ 200,000

Net result : S$ -453,747

Net Margin(%) : -1.15

Return on Equity(%) : 6.44

Leverage Ratio : -1.24

COMPANY IDENTIFICATION

Subject Company :	JBS RESOURCES PTE LTD
Business Address:	133 NEW BRIDGE ROAD #23-01 CHINATOWN POINT
Town:	SINGAPORE
Postcode:	059413
Country:	Singapore
Telephone:	6438 2552
Fax:	6438 2442
ROC Number:	199206897R

SUMMARY

Legal Form:	Exempt Pte Ltd
Date Inc.:	22/12/1992
Summary year :	31/12/2006
All amounts in this report are in :	SGD
Sales:	39,432,155
Networth :	-7,051,180
Capital:	-
Paid-Up Capital:	200,000
Net result :	-453,747
Share value:	1

 
AUDITOR: WONG, LEE & ASSOCIATES
 
 
 

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	22/12/1992

PRINCIPAL(S)

CHAN WONG SENG

S0033491Z

Director

DIRECTOR(S)

WONG KIAH PENG	S0091677C	Company Secretary
Appointed on :	16/08/1999
Street :	205 BALESTIER ROAD #09-02 RUBY PLAZA
Town:	SINGAPORE
Postcode:	329682
Country:	Singapore
CHAN WONG SENG	S0033491Z	Director
Appointed on :	30/12/2005
Street :	8 JALAN KERIS CATHAY GARDENS
Town:	SINGAPORE
Postcode:	457542
Country:	Singapore
NG YEW KENG	S2010803G	Director
Appointed on :	30/12/2005
Street :	9 DUNSFOLD DRIVE BRADDELL HEIGHTS ESTATE
Town:	SINGAPORE
Postcode:	359372
Country:	Singapore

FORMER DIRECTOR(S)

CHAN WONG SENG	S0033491Z
TEO AI HUA @ JIMMY TEO	S0102761A
CHEAH KIM SOO (MDM)	S1833955B
NGIAM LAI KWANG	S1296358J

ACTIVITY(IES)

Activity Code:

11760

IMPORTERS And EXPORTERS

 
BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND IMPORTERS)
 

CHARGES

	AVAILABLE
Date:	16/07/2008
Amount:	0
Comments :	CHARGE NO: C200806457 CHARGEE(S): UNITED OVERSEAS BANK LIMITED AMOUNT SECURED: 0.00 AND ALL MONIES OWING

	NOT AVAILABLE
Date:	30/01/2004
Amount:	0
Comments :	CHARGE NO : C200400564 SECURED : 0.00 AND ALL MONIES OWING CHARGEE : BNP PARIBAS

BANKERS

BNP PARIBAS

UNITED OVERSEAS BANK LIMITED

SHAREHOLDERS(S)

CHAN WONG SENG

50,000

Private Person

Street :	8 JALAN KERIS CATHAY GARDENS
Town:	SINGAPORE
Postcode:	457542
Country:	Singapore

TEO AI HUA @ JIMMY TEO

100,000

Private Person

Street :	9 TAI HWAN DRIVE TAI HWAN PARK
Town:	SINGAPORE
Postcode:	555519
Country:	Singapore

NG YEW KENG

50,000

Private Person

Street :	9 DUNSFOLD DRIVE BRADDELL HEIGHTS ESTATE
Town:	SINGAPORE
Postcode:	359372
Country:	Singapore

FORMER SHAREHOLDER(S)

TAY CHER KHIN

100,000

NGIAM LAI KWANG

50,000

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	LACKING
Payments :	UNKNOWN
Trend :	LEVEL
Financial Situation:	BAD

FINANCIAL ELEMENTS

All amounts in this report are in :

SGD

Audit Qualification:	GOING CONCERN QUALIFICATION	GOING CONCERN QUALIFICATION
Date Account Lodged:	03/09/2008
Balance Sheet Date:	31/12/2006	31/12/2005
Number of weeks:	52	52
Consolidation Code:	COMPANY	COMPANY

--- ASSETS
Tangible Fixed Assets:	646	8,026
Total Fixed Assets:	646	8,026
Receivables:	1,315,119	2,937,074
Cash,Banks, Securitis:	84,673	90,541
Other current assets:	298,040	513,674
Total Current Assets:	1,697,832	3,541,289
TOTAL ASSETS:	1,698,478	3,549,315
--- LIABILITIES
Equity capital:	200,000	200,000
Profit & lost Account:	-7,251,180	-6,797,433
Total Equity:	-7,051,180	-6,597,433
Trade Creditors:	2,590,923	3,885,136
Prepay. & Def. charges:	14,546	99,198
Due to Bank:	4,339,080	6,131,055
Other Short term Liab.:	1,805,109	31,359
Total short term Liab.:	8,749,658	10,146,748
TOTAL LIABILITIES:	8,749,658	10,146,748
--- PROFIT & LOSS ACCOUNT
Net Sales	39,432,155	100,067,193
Purchases,Sces & Other Goods:	39,970,096	100,675,232
Gross Profit:	537,941	608,039
NET RESULT BEFORE TAX:	-453,747	-3,918,719
Tax :	-	7,500
Net income/loss year:	-453,747	-3,926,219
Interest Paid:	147,708	115,149
Depreciation:	4,966	4,966
Directors Emoluments:	99,252	118,360
Wages and Salaries:	207,792	334,397
Financial Income:	5,623	3,245

RATIOS

Date Account Lodged:	31/12/2006	31/12/2005
Net result / Turnover(%):	-0.01	-0.04
Fin. Charges / Turnover(%):	-	-
Net Margin(%):	-1.15	-3.92
Return on Equity(%):	6.44	59.51
Return on Assets(%):	-26.71	-110.62
Net Working capital:	-7,051,826	-6,605,459
Cash Ratio:	0.01	0.01
Quick Ratio:	0.16	0.3
Current ratio:	0.19	0.35
Receivables Turnover:	12.01	10.57
Leverage Ratio:	-1.24	-1.54

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

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

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

^{Dividends Coverage : Net income loss year/Dividends}

^{Net Working capital : Total current assets - Total short term liabilities}

^{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

AUDITORS' REPORT: 
WE HAVE EXAMINED THE FINANCIAL STATEMENTS WHICH HAVE BEEN PREPARED ON A GOING CONCERN BASIS. IN VIEW OF THE ACCUMULATED LOSS HAVING EXCEEDED THE PAID UP CAPITAL, WE ARE UNABLE TO EXPRESS AN OPINION ON WHETHER THE GOING CONCERN BASIS IS STILL APPROPRIATE.
 
NO ALLOWANCE FOR IMPAIRMENT LOSS HAS BEEN MADE IN THE ACCOUNTS FOR TRADE RECEIVABLE FROM A RELATED PARTY. IN OUR OPINION, IMPAIRMENT LOSS TOTALLING $1,314,931 SHOULD HAVE BEEN MADE IN THE ACCOUNTS. HAD SUCH IMPAIRMENT LOSS BEEN GIVEN EFFECTS IN THE ACCOUNTS, THE NET LOSS FOR THE YEAR AND ACCUMULATED LOSS WOULD HAVE BEEN INCREASED BY THE AFORESAID AMOUNT. 
 
 
THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED IN VIEW OF THE FOLLOWING: 
 
NET WORTH: 
THE BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NET WORTH DETERIORATED BY 6.88% FROM -S$6,597,433 IN FY 2005 TO -S$7,051,180 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED LOSS OF S$7,251,180 (2005: -S$6,797,433); A RISE OF 6.68% FROM THE PRIOR FINANCIAL YEAR.
 
 
LEVERAGE: 
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY DUE TO BANKS WHICH MADE UP 49.59% (2005: 60.42%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$4,339,080 (2005: S$6,131,055).
  
TRADE CREDITORS MADE UP 29.61% (2005: 38.29%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$2,590,923 (2005: S$3,885,136). THE BREAKDOWN IS AS FOLLOWS:  
* THIRD PARTIES - 2006: S$1,963,950 (2005: S$3,463,842)
* RELATED PARTY - 2006: S$626,973 (2005: S$421,294) 
 
IN ALL, LEVERAGE RATIO STOOD AT -1.24 TIMES FROM -1.54 TIMES AS A RESULT OF A GREATER DECLINE IN TOTAL LIABILITIES TO TOTAL EQUITY. 
 
  
LIQUIDITY:
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS WEAK AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 0.19 TIMES, DOWN FROM 0.35 TIMES AND QUICK RATIO FELL TO 0.16 TIMES FROM 0.30 TIMES IN FY 2005.
 
NET WORKING CAPITAL DETERIORATED BY 6.76% FROM -S$6,605,459 IN FY 2005 TO -S$7,051,826. 
 
  
CASH AND CASH EQUIVALENTS COMPRISE OF:
* CASH ON HAND - 2006: S$500 (2005: S$500) 
* CASH AT BANKS - 2006: S$84,173 (2005: S$90,041)
 
  
PROFITABILITY: 
REVENUE POSTED A DECREASE OF 60.59% FROM S$100,067,193 IN FY 2005 TO 
S$39,432,155 BUT NET LOSS DROPPED BY 88.44% TO S$453,747 (2005: 
-S$3,926,219). THIS COULD BE DUE TO LOWER COSTS AND EXPENSES BY 85.11%
WHICH AMOUNTED TO S$493,480 (2005: S$3,313,925). 
HENCE, NET MARGIN STOOD AT -1.15% (2005: -3.92%).
 
 
DEBT SERVICING:  
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS 
CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. 
IT IS NOTED THAT SUBJECT HAS NET LOSS AND LOW LIQUIDITY WHICH NEED
CAUTION. 
 
 
NOTES TO THE FINANCIAL STATEMENTS:
 
GOING CONCERN 
THE GOING CONCERN STATUS OF THE COMPANY MIGHT NOT BE APPROPRIATE AS TOTAL LIABILITIES HAVE EXCEEDED TOTAL ASSETS BY $7,051,180 (2005: S$6,597,433).
 
SIMILARLY, ACCUMULATED LOSS HAS EXCEEDED PAID UP CAPITAL BY THE SAME AMOUNT MENTIONED AFORESAID.
 
BANK BORROWINGS  
BANK BORROWING REPRESENT BANK BILLS PAYABLE, WHICH IS DENOMINATED IN UNITED STATES DOLLAR. THE BANK BORROWING IS SECURED BY THE PERSONAL GUARANTEE OF THE DIRECTORS AND THIRD PARTIES, A LODGEMENT OF EXPORT LETTER OF CREDIT TO SUPPORT LETTERS OF CREDIT ISSUED UNDER INVOICE FINANCING AND A NEGATIVE PLEDGE OF THE COMPANY'S ASSETS. INTEREST IS LEVIED AT 1.5% PER ANNUM ABOVE PRIME FOR SINGAPORE DOLLARS BILLS AND 2% PER ANNUM OVER SINGAPORE INTERBANK OFFERED RATE (SIBOR) FOR FOREIGN CURRENCY BILLS. THE AVERAGE EFFECTIVE INTEREST RATE FOR THE BANK BILL PAYABLE IS APPROXIMATELY 9.6% (2005: 5.5%) PER ANNUM.
 
AS AT 31ST DECEMBER 2006, BANK BILLS PAYABLE HAS BEEN OVERDUE FOR APPROXIMATELY 6 MONTHS. 
 
AS AT 31ST DECEMBER 2005, BANK BILLS PAYABLE AMOUNTING TO $3,872,958 WERE OVERDUE FOR A MONTH WHILE UNDUE BANK BILLS PAYABLE HAVE AVERAGE MATURITIES OF APPROXIMATELY 2 MONTHS FROM THE END OF THE FINANCIAL YEAR.
 
 
EXEMPT PRIVATE COMPANY  
WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS KNOWN AS AN EXEMPT PRIVATE COMPANY. 
  
AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A 
PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE 
REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS 
DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:
1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY. 
2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS 
AT THE ANNUAL GENERAL MEETING. 
3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.
THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE 
COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND 
APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY. 
  
A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL 
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION. 
 
 
EXEMPT FROM AUDIT 
AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL REQUIRED TO MAINTAIN PROPER ACCOUNTING.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/12/1992 AS A EXEMPT LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "JBS RESOURCES PTE LTD".  
 
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 200,000 SHARES, OF A VALUE OF S$200,000. 
  
 
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY 
AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:  
(1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND 
 EXPORTERS)
 
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL 
ACTIVITIES ARE GENERAL MERCHANTS, IMPORTERS, EXPORTERS AND COMMISSION 
AGENTS.
 
 
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE 
CLASSIFICATION OF: IMPORTERS AND EXPORTERS
 
NO INFORMATION WAS GATHERED FROM THE RESEARCH DONE.
 
NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOTGRANTED BY SUBJECT'S PERSONNEL 
 
 
REGISTERED ADDRESS: 
133 NEW BRIDGE ROAD  
#23-01 CHINATOWN POINT 
SINGAPORE 059413 
DATE OF CHANGE OF ADDRESS: 08/03/2006
  
ADDRESS PROVIDED BY CLIENT: 
133 NEW BRIDGE ROAD 
#13-09 CHINATOWN POINT 
SINGAPORE 059413
- UNABLE TO VERIFY AS TELE INTERVIEW WAS NOT CONDUCTED 
WEBSITE: -
 
EMAIL: -

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
  
1) CHAN WONG SENG, A SINGAPOREAN 
 - HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE: 
 CITUS ENERGY PTE. LTD.
  
2) NG YEW KENG, A SINGAPOREAN 
 - HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE: 
 OLYMPIA DIARY (S'PORE) PTE LTD  
 OLYMPIA PLASTIC PTE LTD
 OLYMPIA PRINTING PTE LTD 
 KECK SENG (MALAYSIA) BHD

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.47.67
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%)

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